I got my first violation last month for selling KnitKnow yarn bags. The Etsy email implied that these bags are actually a purse. These bags are made specifically to hold yarn (keep it clean keep it from rolling) while you crochet and knit. The inventor has these made in the USA and ya all know I am always trying to find things made in the USA.
A few weeks later I get an email that says SECOND VIOLATION. So I guess its true that you only get 3 and you are out otherwise why would it say second violation? Then it said something like "should you receive another violation your shop may be suspended" This one was for selling knitting needle organizers. I (and all of my competitors) have been selling knitting needle organizers for years. But now they are not considered a craft supply.
I replied to this email and asked them to please just look at my entire shop and tell me now what not to sell so that I don't get a 3rd violation. Wouldn't it make more sense to just tell me all at once rather than keep sending me notices every couple weeks? The reply was that it can be hard to know what is a craft supply and what isn't with a link to the guidelines. Epic Fail.
Obviously a competitor is flagging my items. I don't think these violations just came out of the blue. I have always tried to stay within the Etsy guidelines and be a good community member. But it doesn't seem to matter. Ironically I got another Etsy email last week stating that because they hold my shop in such high regard they put me on the Etsy Sellers survey team. Now how does that make any sense?
People say Ebay is so cut throat but I can tell you I have never had any issues like this selling on Ebay or Amazon. I have always said (even before my warnings) that Etsy should stop having Etsy members flag other members. It just creates bad feelings and makes it too easy for competitors to go after you.