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for your dropshipping business

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Dropshipping on Etsy

The Ultimate Guide to Dropship on Etsy (2022)

What is Etsy? How do you dropship on Etsy? What are the benefits of dropshipping Etsy products?

You’ve most likely got a lot of questions concerning the Etsy marketing platform. And I’ll answer all of them, as well as many others.

But, before I tell you more about Etsy and what it can achieve for you, let’s have a brief discussion on what dropshipping is.

What is dropshipping?

In simple terms, dropshipping is a business model in which a merchant sells things without manufacturing, stocking, or shipping them to the buyers.

So, whenever a consumer orders something from your site, you order that product – and only that product – from the supplier, who will handle everything else.

Dropshipping works a lot like traditional retail. However, the main distinction between the two is that the selling merchant does not keep the products in stock.

To fulfill orders, the vendor obtains products from a third party based on its requirements.

All you need as a dropshipping business owner is to load your shelves with small-business stockists and delegate production, packaging, and shipping to the maker of each order.

The dropshipping business model has the following advantages:

  • There is a lower requirement for financing or initial costs.
  • You can get your business up and running quickly.
  • Low overhead costs
  • Location selection flexibility
  • A large number of products to choose from for dropshipping
  • A more natural technique of gauging demand for certain items

What is Etsy?

Etsy is a one-of-a-kind online marketplace for handcrafted, antique, and crafts supplies and tools created by people like you.

It’s really unique.

There is a lot of interest in selling on Etsy because there is a large community of sellers, small-business owners, and customers who are all passionate about unique and vintage items.

If you’re searching for one-of-a-kind or high-end handcrafted items, Etsy is a terrific place to start. Etsy items are handmade, making them even more unique, especially for things like jewelry, art, and crafts, baby toys, or items for use at important occasions like weddings.

Etsy does not sell anything else on its own; instead, it serves as a middleman. But, to avoid fraud, the website handles all of the paperwork between the buyer and seller.

With over 60 million items listed for purchase on the Etsy marketplace, let’s find out …

Why choose Etsy for your dropshipping business?

Dropshipping on Etsy is increasingly becoming more popular than it has ever been, and I don’t see the curve slopping down anytime soon.


Etsy provides dropshippers a platform to promote unique products while also providing high-quality vintage products from different suppliers.

As of 2020, there were more than 4.3 million active sellers and 39.4 million active shoppers worldwide on Etsy, making the platform a popular marketplace to dropship your products.

If you’re thinking about dropshipping with Etsy, now is the best time to do it, and here is why.

Etsy dropshipping advantages


Etsy helps its merchants reach a huge number of clients quickly because it is a very popular marketplace.

Targeted demography

Etsy has the most targeted demographic looking for handcrafted, artisanal, or vintage things.

Unique product niche

Etsy is one of the most popular online markets for handcrafted goods, printables, and wedding accessories.

Dropshipping Etsy products could be appealing to sellers who want to offer digital products or craft supplies.

Simple platform

Just create an account, upload product photographs, select prices and promotions, and go! Etsy encourages creativity and holds a strong reputation for supporting the creative industry.

Supportive community

Etsy’s large community of active sellers tend to assist one another, providing more than just an E-commerce site.

Yes, many individuals are dropshipping Etsy products right now, but that shouldn’t deter you. The sooner you take the first step, the faster you can establish your brand and expand your niche on Etsy.

But before you can take this step, let’s look at some of the challenges you might face while dropshipping on Etsy.

Etsy dropshipping Disadvantages

Whether you’re selling your own products or still considering using Etsy for dropshipping, there are several disadvantages to selling on Etsy that you should be aware of.

High cost of transaction

One of the disadvantages you are likely to face while dropshipping on Etsy is the platform’s listing and transaction fees. Etsy charges a $0.2 listing fee and a 5% transaction fee. When you include in the shipping and packaging costs, you have the final figure.

If you’re planning to send your Etsy traffic to your dropship business, don’t even consider it because it’s illegal.

Expiration of listings

Your listings will expire after four months. If your item hasn’t sold after four months, you’ll be charged again.

If you don’t have many clients who want to buy from you, this implies starting over with the listing process.

Sanctions policy

Members of Etsy, for example, are not permitted to use their accounts while in particular geographical areas such as Crimea, Cuba, Iran, North Korea, and Syria.

Members are strongly discouraged from listing, purchasing, or selling things that come from sanctioned locations.

The Etsy sanctions policy also allows third-party payment systems like Paypal to monitor and block any purchases that they believe are in violation of the policy.

Violating any of the sanctions listed here could result in the termination of your Etsy account.

Limitations on mass-selling

Etsy is not meant for those who want to mass-sell their products, which is exactly what most dropshippers want to do.

It’ll be time to exit the marketplace if you ever reach a point where you have too many orders.

Closure of the wholesale program

The closure of Etsy’s wholesale options poses another challenge to a dropshipper.

Etsy used to give sellers the option of selling on the Etsy Wholesale marketplace, allowing merchants to sell to resellers. However, this option was removed on July 31st, 2018, making it nearly impossible to dropship safely on the marketplace.

Dropshippers face an uncertain future

Almost every dropshipper on Etsy is worried about when they’ll enforce a stringent policy that outlaws any loophole that allows them to dropship.

The majority of individuals believe it will only be a matter of time before a rigorous policy is implemented.

Etsy dropshipping policies

Etsy describes itself as a “marketplace includes handmade items, vintage items, and craft supplies. Etsy’s dropshipping policies stipulate that reselling is only allowed in the vintage and craft supplies categories.”

The following things are not permitted under the resale rule:

  • Creatively repackaging commercial items (for example, a gift basket consisting of non-handmade items)
  • Curating a collection of others’ handmade goods that you did not design or make
  • Selling items made or designed by another seller who is not part of your shop
  • Selling traditional handicrafts or fair trade items that you did not design or make

The rule of the thumb is that you can’t sell anything on Etsy that you haven’t manufactured, developed, or sourced as vintage, which must be at least 20 years old in order to be classified as such.

Craft supplies, on the other hand, can be purchased from a different vendor.

You must, however, identify where you received the products and explain their environmental characteristics, such as whether they’re composed of recycled material.

Is it safe to choose Etsy for your dropshipping business?

Etsy is well-known all around the world as a respected online marketplace offering:

  • Convenient and dependable payment gateways
  • A strict usage policy
  • A welcoming environment that is beneficial to both consumers and vendors

In other words, you can sell and buy items you want in a secure manner.

While there are a number of eCommerce platforms that can help you run a dropshipping business, Etsy stands out from the rest of the marketplaces.

You must first build a store before you can begin dropshipping from Etsy.

If you’re looking for vintage clothes, handmade art, and crafts, or antiques, Etsy is an excellent marketplace.

How to start dropshipping with Etsy

Dropshipping with Etsy can be done in two ways.

The first option is to dropship Etsy products from another seller’s Etsy store to your online business, which must be run outside of Etsy.

But there is one drawback to this option. Handmade items cannot be resold.

If you wish to adopt this model for your business, you’ll be limited to just selling vintage items that are at least 20 years old and weren’t manufactured by you and craft supplies on the platform.

The second option is to start your own Etsy store and outsource production to non-Etsy makers.

If you’re willing to get engaged in the design of whatever you’re selling, you can start an Etsy store and outsource the production of your goods.

Rewards of dropshipping from Etsy

Informed and patient consumers

If you choose to start an Etsy store, you will have the advantage of selling directly to Etsy users.

Since its inception, the platform has built a unique community of makers and shoppers who appreciate craftsmanship, human-centered buying, and individuality.

Etsy is distinct from its competitors in that its uniting, basic beliefs are altruistic in nature.

Amazon, for example, was founded on the principles of convenience and speed.

On a platform like Amazon, Etsy’s high prices and long manufacturing periods have no chance of surviving. This provides entrepreneurs considerable leeway and freedom in terms of how they run their businesses.

Room for creativity

Etsy is a great place to start working on your products without having to worry about production, packaging, or logistics.

Dropshipping through Etsy allows entrepreneurs to take a more active, participating role in design without having to handle manufacturing. Selling on Etsy gives you the opportunity to reimagine your brand.

Set your product apart from the competition

Etsy allows you to stock your virtual shelves with unique, one-of-a-kind items that you wouldn’t be able to make or sell anywhere else.

Niche items abound on Etsy.

If you’re looking to run a dropshipping business in a specialized area of the eCommerce sector, Etsy is the place to be.

Etsy has put in the time and effort to build a reputation for uncommon and specialty items because people know Etsy is a go-to spot for specialty items; both producers and purchasers come to the site whenever they have or require one.

There are numerous companies prospering in Etsy’s marketplace, including dropshipping stores for artworks, personalized clothing, wedding stationery, stickers, craft kits, and graphic designs and printables.

Exceptionally high-Profit margins

For some people, the high retail prices on Etsy are a reason to avoid using the platform for dropshipping.

This is true!

Many of the items on the market are overpriced. However, Sellers, on the other hand, have the advantage of a well-established community that is willing to pay such prices.

For a dropshipper, this implies that there are high-profit margins and a lot more leeway in how you present your products in the marketplace.

You can charge a high price and still sell a lot of products while keeping a higher profit margin.


Although some may perceive this as a disadvantage, I see it as a positive. According to Etsy’s policies, you must state your location as well as the location of your manufacturing. It’s impossible to hide the fact that you’re not the one manufacturing your stuff physically.

While Etsy does not display shoppers how your business is set up, they do gather that information from you to ensure that your shop generates handcrafted goods and supports manufacturers.

Customers may relax knowing that their purchases have been approved by a broader platform that adheres to certain ethical production guidelines.

Are there any limitations to selling on Etsy?

Before you get too excited, keep in mind that Etsy has certain regulations to consider, such as…

  1. Strict dropshipping guidelines

Etsy is a well-regulated platform on the internet. Etsy House Rules lay down their positions on everything from buyer-seller relations to seller handmade policies to supplier code of conduct in great detail. It’s as long and complicated as it appears.

The selling and reselling of goods on Etsy are governed by a set of rules. While reselling homemade products is prohibited, dropshipping vintage goods or craft supplies are permitted.

It is also permissible to provide production help for original designs.

They describe it as a spectrum, with some companies handcrafting each product with their own hands and tools in-house while others develop a product from scratch.

Etsy enjoys regulating users.

Is this a good thing?

Yes, on the one hand, it ensures that operations are fair, consistent, and efficient.

It does, however, imply that you must be familiar with their policies. You’ll face a slew of costs and penalties if you don’t.

While Etsy’s established customer base, strong profit margins, and creative flexibility are all appealing, think about what you’ll give up to get there.

Read Etsy’s full set of rules and policies here.

  1. Sanctions

Be aware that selling on Etsy entails a sanctions policy that you have no control over, which may have an influence on your sales and profit margins.

  1. Tiresome listing process

Although this isn’t exclusive to Etsy, the process of listing your wares on the site is, to put it mildly, tiresome. There are unlimited product possibilities because the marketplace caters to homemade goods and small businesses.

Etsy has set product listing rules that provide shoppers with as much information and consistency as feasible.

  1. Profit-sharing possibilities

You must be willing to compensate whichever merchant you choose to purchase your goods from. You must negotiate a reasonable contract that provides you with a comfortable profit margin while also compensating the seller for their efforts.

Tip: We strongly advise you not to rely solely on Etsy’s marketplace. You can also sell to other merchants through your independent E-commerce stores, such as Amazon, Google Shopping, eBay, and others.

How do I products from Etsy?

Yes, it is possible to dropship products from Etsy. I will explain how.

Setting up a dropshipping business is rather simple, despite having to jump through a few extra hoops here and there. You simply need to set up the right channels and partnerships from the start for both Etsy drop shipping options.

To add an Etsy product to your Shopify store, follow these steps:

  • Make certain you’ve chosen Etsy vendors who are compatible with your brand and mission.
  • Make contact, create a line of communication, and reach an agreement on your dropshipping terms.
  • Download the Shopify Chrome extension.
  • Go to the product page of the Etsy item you wish to add, then click the Shopify extension and fill out all of the required fields. Make sure the phrasing is changed.

I have wonderful news for you if you wish to start an Etsy shop. Etsy has a wealth of information to help you understand the process.

To get your Etsy shop up and running, follow these steps.

  • Create products for your store and find a manufacturer to help you with the production.
  • Calculate your Price and profit margins
  • Sign up to sell on Etsy. This entails giving your store a name, setting up your invoicing and payment methods, entering the information for your manufacturing partner, and listing your products.
  • Make the most of all marketing opportunities and develop a compelling story for your shop.

You’ll be able to contribute to product development without having to do any of the actual manufacturing or shipping.

What is Etsy print-on-demand?

Print on demand is a business strategy in which you market products with designs you created without actual involvement in the manufacturing process.

The process involves customizing white-label products such as phone accessories, stainless steel water bottles, baseball caps and mugs with your own designs and selling them as per-order items under your own brand.

Print on demand is a fantastic business strategy and Etsy is an excellent platform for implementing it.

Why Should You Use Print-on-Demand for Etsy?

Using print on demand for Etsy is beneficial because Etsy customers are typically seeking for unique, witty, and creative designs, such as t-shirts with unique graphics and slogans, which are simple to create with print on demand.

What more?

You stand a chance to diversify your business, reach more people and generate a new revenue stream by selling print-on-demand products either on other online marketplaces or in your own store.

All you need to get started is a competent print-on-demand company, that offers an Etsy store integration.

Provide the design, and a print-on-demand company will print it on the items and ship it to your consumer when an order is placed.

Let’s look at some print-on-demand platforms that can integrate with your Etsy store and help you get your business off to a good start.

Explore any of the three platforms and decide which one works best for your store.

Here Are 5 Tips for Selling Print-On-Demand Items on Etsy

  1. Optimize both regular and Etsy SEO to uncover popular, high-volume keywords that people are putting into Google.
  2. Ensure that you have high-quality photos of your products. Ordering a sample of each product you’re selling so you can take professional images of it is one approach to do this.
  3. Provide free shipping to boost your conversions. If you can’t offer free shipping, focus instead on attaining fast shipment. To do so, look for a print-on-demand service that guarantees timely delivery.
  4. Use social media to promote your business. You can create a Facebook page to advertise your ideas and products and promote your distinct style.
  5. Broaden your horizons by selling on a variety of platforms, including eBay, Amazon, and your own Shopify store. Check to see whether your print-on-demand service has any other integrations.

Is it possible to dropship from AliExpress to Etsy?

The simple answer is no!

You cannot dropship from AliExpress to Etsy because Etsy’s terms and conditions state that you cannot sell or resell products that you did not produce or design or that are vintage.

For example, if you are selling wall art, the artwork must have been created by you.

Your account will most likely be suspended if you break the rules and sell works of art that are not made by you.

Is it possible to open a Shopify store and dropship items from Etsy?

Yes, it’s possible to open a Shopify store and use Etsy to dropship things.

You can use Shopify apps to promote Etsy items and reach a wider audience. However, you must exercise caution because Etsy is not your normal marketplace.

According to Etsy’s Seller’s Policy, “Etsy is a unique marketplace. Buyers come here to purchase items that they might not find anywhere else. Everything listed for sale on Etsy must be handmade, vintage, or a craft supply.”

This clause essentially means that if a product is in high demand, the seller may not be able to fulfill all of your requests because they sell handmade and unique things.

So, before you start dropshipping Etsy items on Shopify, make sure you’re familiar with your supply.

Final thoughts

Etsy is a wonderful marketplace for finding high-quality products for your store if you’re searching for unique items and vintage products.

It doesn’t matter whether you have a niche or a general store, Etsy can help you find unique things to add to your store.

You can rapidly import products from Etsy into your Shopify and effortlessly integrate Etsy products into your existing store.

Wholesale2B Design Director

Ani Jr.

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