Etsy Purchase Protection is Etsy's programme that covers up to $250 of a buyer's refund on eligible orders, so when a case is approved the buyer gets their money back and you keep your earnings from the sale. It applies to orders that never arrive, arrive well after the estimated delivery window or arrive damaged, but only if you shipped on time with valid tracking and answered the buyer promptly.
For print-on-demand sellers this matters more than for most, because a production partner prints and ships the item and you never touch the parcel. Whether an order is protected is decided by things you set up in advance: the processing time you promise, the tracking that reaches Etsy and how quickly you reply.
What Etsy Purchase Protection covers
According to Etsy's help article, the programme covers these situations on eligible orders:
The order was never delivered.
It arrived "7+ days after its estimated delivery date window provided at checkout".
It arrived damaged, for the first instance per calendar year.
The item matches the listing description and photos, but the buyer claims it does not.
For approved cases, "Etsy will refund the buyer, and you'll keep your earnings from the sale." Etsy covers up to $250, or the converted equivalent in your local currency, and any amount above that is charged to you. A single shirt or mug order sits well under that line, while a large group order can go over it.
What it does not cover
Some cases fall outside the programme no matter how well you shipped:
"The item doesn't match the listing description." An accurate listing is the seller's job, so a wrong colour or size in the description is yours to resolve.
Orders with third-party insurance or with the carrier's or payment processor's own coverage. Claim there first.
Shops that are not in good standing.
A second damaged-item case in the same calendar year, since damage is covered for the first instance only.
US-bound orders from sellers outside the US that ship without duties prepaid. Etsy's June 2026 update says that from July 9, sellers outside the US must account for duties and import fees, and "if orders are shipped without duties prepaid, they will no longer qualify for Etsy Purchase Protection."
The whole picture in one table:
| Situation | Covered? | What has to be true |
|---|---|---|
| Parcel never delivered | Yes | Shipped on time with valid tracking or an Etsy label |
| Arrived 7+ days after the estimated window | Yes | An estimated delivery date shown on the listing |
| Arrived damaged | First instance per calendar year | On-time shipping, tracking, a reply within 48 hours |
| Matches the listing, buyer says it does not | Yes | An accurate description and accurate photos |
| Does not match the listing description | No | Resolve it with the buyer yourself |
| Has third-party insurance or carrier cover | No | Claim with the insurer or carrier first |
| US-bound, seller outside the US, duties not prepaid | No | Duties prepaid when the order ships |
| Shop not in good standing | No | A shop in good standing that meets Etsy's customer service standards |
The eligibility conditions, one by one
Before any of the coverage applies, the order has to meet Etsy's conditions.
Shipped within your stated processing time. Items must be marked as shipped by 11:59pm on the ship date, in your shop's time zone. Set a processing time that matches your partner's real production time, as explained in what processing time to set for POD on Etsy.
Valid tracking or an Etsy shipping label. Etsy is explicit: "Orders must also have valid tracking to qualify for Etsy Purchase Protection." You have 3 days to correct a tracking number or carrier, and tracking numbers on Etsy covers how they get added.
An estimated delivery date on the listing. Check that buyers see a delivery estimate on every listing before you rely on the programme.
Duties prepaid on US-bound orders, if you ship from outside the US.
A reply within 48 hours to the buyer's Help with Order message, and a shop that meets Etsy's customer service standards.
Those standards are the floor for every seller: reply to 80% of first messages in a thread within 24 to 48 hours, and ship at least 80% of orders on time. Cases count too: with fewer than 300 completed orders, no more than 3 orders can have cases refunded from your Payment account.
Records that help when a buyer opens a claim
Etsy decides each case from the information in front of it, so build the record before anything goes wrong.
Tracking: the number, the carrier, the date the order was marked shipped and its ship-by date.
Tracking history: the scans that show delivery, or show where the parcel stopped.
Your listing as it was sold: dated screenshots of the description, photos, sizes and colours, since the "matches the listing" coverage depends on them.
Messages: every exchange with the buyer inside Etsy Messages, with your reply times.
Production records: when the partner received the order, where it was printed and when it shipped.
Personalization: the buyer's text exactly as submitted, so a spelling complaint can be checked against what was ordered.
Photos from the buyer: for damage, clear photos of the item and of the packaging.
Keep conversations on Etsy. Etsy scans messages, and an agreement made somewhere else is hard to show later. If you agree to a return in Messages or in a case, Etsy says "we require you to fulfill that agreement", so offer only what you will honour.
When protection does not apply
When an order falls outside the programme, you resolve it with the buyer: a reprint, a replacement or a refund. A refund through Shop Manager means your Etsy transaction and processing fees for the refunded transactions are automatically refunded, and you can refund through Etsy Payments only within 180 days. A quick, fair answer also keeps the order from turning into a case, which counts against the standards above. Our guides to how Etsy cases work and lost or late packages cover the conversations themselves.
How Alomations keeps the order record together
In Alomations, Etsy orders arrive resolved: each one is pulled in with the design and variant matched and the buyer's personalization text and photos attached, which is the first thing you need when a buyer says the item is wrong. When you fulfill through a production partner from the orders screen, the row shows which print centre has the order, the partner cannot mark an order shipped without a tracking number, and tracking is posted back to Etsy where Etsy allows it. That helps with the valid-tracking condition without copying numbers by hand. The orders screen walks through it.
Production for US orders is in the US, so a parcel to a US buyer ships within the country rather than from abroad, which is worth knowing if you sell from Türkiye. You can also print and ship an order yourself, and the orders screen is open on every plan, Free included.
Frequently asked questions
How much does Etsy Purchase Protection cover?
Up to $250 of a refund, or the converted equivalent in your local currency. If the refund is larger, the amount above $250 is charged to the seller.
Do I lose my earnings when Etsy approves a case?
Not under Purchase Protection. For approved cases Etsy refunds the buyer and you keep your earnings from the sale.
Does it cover orders I ship from Türkiye to the US?
It can, if the order meets every condition. Since the rule from Etsy's June 2026 update took effect on July 9, that includes duties prepaid on US-bound orders, on top of on-time shipping, valid tracking and a reply within 48 hours.
Is a damaged item always covered?
No. Damage is covered for the first instance per calendar year, and only when the order meets the eligibility conditions.
Keep every order's design, tracking and buyer text in one place by starting on the free plan.
