"Brand" is the key thing here. There's obviously an upper level where increased pay / perks becomes excessive, but for the type of customers / sellers that Etsy

"Brand" is the key thing here. There's obviously an upper level where increased pay / perks becomes excessive, but for the type of customers / sellers that Etsy wants to attract the line is FAR above "as little as possible to make employees not leave". Etsy has to, more than most other companies, maintain an image of not being a soulless corporation as much as humanly possible.