No e-commerce company is perfect, and while Etsy (ETSY -1.75%) has detailed processes in place to deal with potentially fraudulent sellers, some customers have still reported issues with the platform. In this segment of Backstage Pass, recorded on Dec. 3, Fool contributors Toby Bordelon and Rachel Warren respond to a member's question.
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Toby Bordelon: Let's see. You follow Etsy, Do you not, Rachel?
Rachel Warren: I do. Yes, I have shares.
Bordelon: Do you have any thoughts on Richard O.'s question about how does Etsy reduce or eliminate fraudulent websites from some of their platform? I don't know if you're aware of anything they are doing or have a take on the issue or what they could do with that?
Warren: I'm not really sure. I know one problem that I've seen online has been Etsy listings being fraudulently carried over to other websites. But not so much about Etsy having a fraudulent sellers.
Obviously, that's something you're going to see with an e-commerce platform like Etsy unfortunately, [laughs] I'm sure that's happened on other ones as well.
It's not something I've seen a lot on because I did a little research when I saw that comment and one of the biggest issues I felt in the seller forums on Etsy was the people noticing that sometimes you had listings that actually belong on Etsy being carried over to other websites, to perpetrate scams.
I think that challenge is not unique to Etsy. I know they have inner quality controls that are implemented to help try to regulate and reduce those types of things. I don't know so much that it has big of a concern for investors specifically, though.