Study Reveals Etsy Sellers Need Help Saving for Emergencies
Excerpt from Commonwealth blog post below:
Last year, recognizing the challenge and importance of emergency savings for their sellers, Etsy joined BlackRock’s Emergency Savings Initiative (ESI) to learn more about their sellers and what kind of savings solutions would help them the most. Etsy partnered with Commonwealth, an ESI industry expert, to survey their sellers’ financial concerns and needs. The survey findings come at a precarious time for small business owners and gig workers. However, this proactive measure provides much-needed insight into how Etsy sellers manage their financial situations and how the platform can step in to provide support.
Read on for four key takeaways from the research, or download the full report here.
Key Report Takeaways
As creative entrepreneurs, Etsy sellers have unique income streams and financial circumstances. Along some measures, Etsy sellers are more financially secure than the average American—for example, they express more confidence in their ability to meet their financial goals. And yet, they experience some of the same income instability and report similar, significant financial concerns as other non-traditional workers.
Like many Americans, Etsy sellers struggle to save for emergencies
Although 61 percent of sellers have experienced a financial emergency over $400 in the past year, almost a third (30%) of sellers are not saving for emergencies.
Emergency expenses often run into four-figures
23 percent of Etsy sellers’ most recent emergency expenses cost over $2,000.
Sellers experience income volatility that makes emergency expenses even harder to cover
37 percent of sellers have occasionally varied or highly unpredictable income. This instability only increases the difficulty of overcoming financial emergencies.
Sellers are interested in receiving help from Etsy in addressing their emergency financial concerns
Up to 38 percent of sellers are interested in receiving help to pay off debt, save for a specific purchase or expense, and save for emergencies. 28 percent are interested in receiving help specifically around emergency savings.
In the face of a new health and economic crisis, all workers, traditional and otherwise, are looking for a place to turn, and traditional employers, gig platforms, financial institutions, and others all have an opportunity to step up to help. Cross-sector collaboration will be key to addressing a need for financial security in these unprecedented economic circumstances.