Why is Etsy holding my funds in a new shop with no policy violations?

Hi! Even with a clean account, Etsy can still place a payment account reserve or a payout/deposit delay on a newer shop because it’s mostly risk-based (not “you did something wrong”). The two most common triggers you described are: being a new seller/just starting to get consistent sales, and shipping orders without tracking—Etsy’s system leans heavily on tracking events to confirm orders are actually in transit.

Here are the most common things that trigger a reserve/hold for new shops:

• New seller / early sales history (it’s common in the first months).
• Lots of orders with no tracking or no tracking scans (even if buyers are happy).
• A sudden jump in order volume (viral item, ads turned on, seasonal spike, etc.).
• Late shipments or “shipped” marked before the carrier accepts the package (can happen accidentally).
• Increase in refunds, cases, chargebacks, or delivery issues (even small changes can matter).
• Bank detail changes (updating bank info can create a short security hold on payouts).

What you can do to get payouts released sooner (especially without tracking)

1. Confirm what type of hold it is

   • Go to Shop Manager → Finances → Payment account.
   • If you see a “Payment account reserve” section, it will show the % being reserved and the holding period Etsy will use if there’s no trackable shipment.

2. Add tracking whenever possible (this is the #1 way)

   • If you add valid tracking and Etsy can verify it shows the package is in transit, funds for that order are often released sooner than waiting out the reserve period.
   • Buying shipping labels through Etsy usually helps because the tracking is automatically attached in a way Etsy recognizes.

3. For “cheap shipping” buyers, consider changing how you offer it
   If your current cheaper option is untracked mail, it may keep triggering the reserve. Safer options:

   • Build tracked shipping into your item price and offer “free shipping” (or a small shipping fee), so every order gets tracking.
   • Offer two options, but make tracked shipping the default/recommended option and clearly label untracked as “no tracking / slower / limited support.”
   • If tracking is expensive in your category, consider raising prices slightly to subsidize tracking—reserves often cost more in cash flow than the tracking savings.

4. Ship on time and don’t mark shipped early

   • Make sure your processing time is realistic.
   • Only mark an order as shipped when it’s actually handed off / accepted by the carrier (early “completed” orders with no tracking scans can look risky).

5. Keep messages and service tight (it does matter)

   • Reply quickly, proactively message for delays, and avoid refunds caused by preventable issues (wrong address, unclear personalization details, etc.).

A quick reality check about untracked orders: if there’s a reserve on your shop, Etsy usually won’t “prove shipment” with photos or a receipt the same way a tracking scan does. In practice, no tracking usually means you’ll wait until the reserve’s holding period expires for those orders—so the best fix is making future shipments trackable.

If you tell me what you see in Finances → Payment account (does it say “reserve,” “deposit delay,” or just “available for deposit on X date”?) and what country you’re shipping from, I can suggest the most practical low-cost tracking approach for your situation.