Etsy's seller protection isn't always what it's cracked up to be, or at least for me

Had a situation recently I want to share so others can learn from it.

Customer ordered 3 prints (18x24), everything went smoothly, delivered within my estimated timeline, no issues on my end. Then the customer messages me saying the package got stolen after delivery.

I reached out to PrintShrimp support asking if I could send a replacement. They actually came back and told me to direct the customer to Etsy support, and that I'd be covered under the seller protection program since delivery was confirmed.

So I did exactly that.

Spoiler: I was not covered. Etsy deducted the amount from my account anyway.

Delivered on time. Confirmed delivery. Followed the recommended process. Still got hit.

Just wanted to put this out there because I went into that situation thinking I was protected, and I wasn't. Worth knowing this is possible before it happens to you.

Has anyone else run into something like this? How did you handle it?

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Etsy's seller protection isn't always what it's cracked up to be, or at least for me