RevolvingDork says:
Hi all,

There have been some concerns about image quality on the site. Images that have previously looked okay on Etsy look grainier when uploaded now. Fortunately, there’s an easy way to get better quality for your images.

To get the best image quality for your listings, you should upload your images as .jpeg — it’s the only file format suitable for photographs, and .gif and .png files will end up looking substantially worse after they are processed.

There are other unrelated issues with cropping that we’re looking into now, which some folks may also be having problems with.

If you are uploading jpegs and are still seeing quality issues, let us know here!
Posted at 11:08 am, July 2 2007 EST