This is a capital strike: https://en.wikipedia.org/wiki/Capital_strike
Though, many Etsy businesses are sole proprietorships or family businesses, in which case capital and labour are the same, and it's also a labour strike.
Though, many Etsy businesses are sole proprietorships or family businesses, in which case capital and labour are the same, and it's also a labour strike.
These are small businesses with no market power agreeing to collectively price squeeze another player in an upstream/downstream market. Textbook cartel behaviour.
Edit: typo
A cartel is a group of businesses who collude to take market power as an oligopoly. That's not what this is, because these sellers are striking for platform changes, not consumer domination. You can keep saying it's cartel behaviour, but you're working with a different definition of cartel to the mainstream one. They're colluding yes, but they are not warping market forces the way a business cartel does (the typical example being the lightbulb cartel: https://en.wikipedia.org/wiki/Phoebus_cartel).
We can argue about whether or not this is good (by the sounds of it, probably?) but the entire purpose of them agreeing to restrict their output is to influence the cost of their inputs/outputs.
In the absence of market power, individual firms can’t do that!
If we're talking about the generic concept of a cartel that encompasses basically all special interest groups, then yes they're a cartel - but they're not a business cartel in the same way that Phoebus group were. The power imbalance puts them in a position more comparable to a labour union.