Etsy has long built its reputation as a marketplace for handmade, vintage, and unique goods — a place where buyers appreciate craftsmanship and sellers thrive on creative vision.  For many years, recognition and badges on Etsy went primarily to sellers:  e.g., the much-talked-about Star Seller badge, awarded to shops with top-tier customer service, fast shipping, and great reviews. 

But now — in late 2025 — Etsy appears to be shifting some of its spotlight onto buyers as well, via a new initiative that feels like a mirror-image of Star Seller: a ranking and reward system for shoppers.

What’s the New Program?

In 2024, Etsy launched a buyer-loyalty program called Etsy Insider.  It was introduced as a closed-beta trial by invitation only for some U.S. buyers.  Early perks included “free U.S. domestic shipping” on many items, a birthday bonus, a limited-edition annual gift designed by an Etsy seller, early access to special discounts and merchandise, and even a “double impact” option for the platform’s donation program. 

However — and rather significantly — the benefits under that program have recently been revised. As of November 4, 2025, Etsy announced that it will no longer guarantee unlimited free shipping for Insider members.  Instead:

Members earn 5% back in Etsy credit on every purchase. 

For shipping savings, Etsy now covers up to $6 in US domestic shipping costs on the least-expensive shipping class for orders over $15 per shop.

Other benefits remain, such as “personalized offers” and “special savings” for members. 

On top of the revised Insider program, Etsy has begun testing a new label often referred to as the Top Buyer (or “Top Buyer badge”).  According to recent reports, this badge marks the top ~15% of U.S. buyers by spend over the last 12 months.  When a seller views messages from a buyer with that badge, they see a prompt asking them to “prioritize” responding to that buyer. 

Thus, Etsy seems to be forging a “best-buyer” or “loyal buyer” experience — a system designed to recognize and reward buyers who shop often, spend more, or are otherwise “high-value.”

Why Is Etsy Doing This?

There are a few likely motivations:

Encouraging buyer loyalty and repeat purchases.

By giving frequent buyers perks (credits, discounts, shipping incentives) or a badge signaling their status, Etsy may increase buyer retention, reduce friction for repeat purchases, and foster a sense of belonging and reward.  This mirrors what many subscription-based or loyalty-driven retailers do to keep customers coming back.  The revamp of Etsy Insider appears to be a response to cost and scalability challenges — in its first iteration, “free shipping on many items” proved expensive, prompting Etsy to shift toward a credit-back model. 

Signaling value to sellers.

The “Top Buyer” badge gives sellers a quick indicator of a customer’s overall spending history (on Etsy broadly).  The prompt to “prioritize” those buyers suggests Etsy hopes to encourage sellers to treat high-value shoppers with extra care, which could improve chances of repeat orders or positive feedback. 

Segmenting buyer base.

As Etsy grows and evolves, the platform may be looking for ways to differentiate among buyers — casual browsers, occasional shoppers, and heavy spenders.  A loyalty or badge system helps create that segmentation.  This could allow Etsy to tailor promotions or perks to different buyer segments, making marketing and retention more efficient.  Indeed, in statements about the 2025 holiday season, Etsy executives have emphasized “rewarding our most valuable customers” — meaning both shoppers (buyers) and sellers. 

What It Means for Shoppers (Buyers)

If you shop on Etsy regularly or buy higher-value handmade items, this shift could work in your favor. Some potential advantages:

You might get discounts or credits — especially if you’re part of the revamped Insider program.  The new 5%-back-in-Etsy-credit perk means that over time, frequent buyers get a tangible benefit that encourages more purchases.

For shoppers marked as “Top Buyer,” sellers may be more likely to respond promptly or treat you as a valued repeat customer, given the nudge from Etsy.

If you often purchase handmade, custom, or higher-cost items (like heirloom-quality crochet, art, or decor), you may save meaningfully over time — especially around holiday seasons or sale events.

That said, it remains to be seen how broadly the Top Buyer badge or revised Insider perks will roll out.  As of now, the Top Buyer badge is described as being tested; not all sellers or buyers may see it. 

What It Means for Sellers (Especially Handmade/Niche Sellers)

As someone who sells on Etsy, Bohomos included, this development presents both opportunity and caution:

✅ Potential Upsides

Buyers with more purchases and higher spend may be easier to convert.  If a buyer is flagged as a “Top Buyer,” they may already be more comfortable spending on Etsy, which could mean a greater likelihood that they’ll purchase your more niche, handcrafted, or custom items (e.g., mosaic-crochet patterns, fantasy-themed sets).

Incentive for repeat business.  The 5% Etsy-credit back for buyers could encourage repeat purchases.  If you offer small but unique items (e.g., crochet appliques, bookmarks, digital pattern downloads), the lowered barrier to recurring purchases could attract more return buyers.

Favor from sellers who want to prioritize high spenders.  If buyers using your store have a “Top Buyer” badge, some sellers might give them faster or more attentive service, which could lead to smoother custom orders, quicker communication, and possibly better reviews.

⚠️ What to Watch Out For

Not all buyers will have or value the badge.  Because it’s only for “top spenders,” many genuine potential buyers (especially new or budget-conscious shoppers) won’t qualify — and they may not benefit from any “fast-track” service.  You may need to continue marketing broadly, not just focus on high-spenders.

Badge does not equal guarantee of sale or loyalty.  Just because someone has a “Top Buyer” badge (or even is an Insider member) doesn’t mean they will always buy — or buy from you.  The badge is based on aggregated spend across Etsy, not on loyalty to a particular shop.  Some sellers in forums note that badges can feel arbitrary. 

Perks may change over time (as Insider already has).  Etsy quickly updated the Insider program benefits when the free-shipping model proved costly.  That suggests current benefits (like credit back) could evolve again — meaning the “advantage” may shift.

The evolving buyer loyalty system on Etsy could be a helpful tailwind for sellers.  Here’s how sellers might leverage it in their content/marketing/shop strategy:

Target “Top Buyer” buyers with custom, higher-value listings. Because such buyers tend to be higher spenders, you might see better conversion on larger or more intricate items.

Promote repeat-purchase items.  Small add-ons might flourish if buyers know they’ll get a small “credit-back” benefit — nudging them to buy more frequently.

Highlight seller's value for “serious buyers.”  Use copy in your listings that speaks to buyers who appreciate craftsmanship.  If you target serious crafters or collectors, they may align with Etsy’s “Top Buyer” demographic.

Keep good service habits.  Given that part of Etsy’s focus is on rewarding both buyers and sellers, continuing to offer excellent communication, timely delivery, and clarity — especially for custom orders — will keep sellers aligned with Etsy’s evolving values (similar to how Star Seller rewards service).

What’s Still Uncertain — and What to Watch

Because the “Top Buyer” badge is still in testing, and the buyer-loyalty program has recently changed, many unknowns remain:

We don’t yet know whether Etsy will make the Top Buyer badge permanent or roll it out to a wider user base.

It’s unclear whether the benefits tied to buyer loyalty (credit back, early-access, discounts) will remain stable or change again.

There’s no guarantee that being a Top Buyer will lead to better seller behavior across the board — some sellers might not change their response habits based on badges.

The key will be to monitor how these changes play out over the next few months:  track whether you see more messages from “Top Buyer” flagged accounts, test whether conversion rates for certain types of listings go up, and evaluate whether repeat business increases.

Conclusion: A New Chapter — but Not a Silver Bullet

Etsy’s move to test a “best-buyer” / “top-buyer” badge and revamp its buyer loyalty program signals a shift.  For the first time, buyers — not just sellers — are being recognized, rewarded, and potentially prioritized.  For shoppers who love handmade, unique, or custom goods, this could mean better deals, faster service, and a smoother buying experience.

For sellers — especially niche sellers — it opens new possibilities.  Top-spending buyers may be more open to higher-value or custom items, and the credit-back incentives could encourage repeat purchases of smaller items.  But success won’t come automatically: the badge doesn’t guarantee loyalty, and perks could evolve or disappear.

The smart path: treat this as a potential window of advantage.  Use the moment to showcase your best work, optimize listings for serious buyers, and maintain top-notch service.  Watch what happens — and adapt accordingly.