Dropshipping is a business model that simplifies order fulfillment, and many merchants have found success with dropshipping as a hassle-free business method across multiple sales channels.
That’s where Etsy comes in: a marketplace for unique, handcrafted goods. Start a dropshipping businessMany sellers are turning to Etsy as an additional sales channel.
However, while Etsy is a great place to launch a new business, it might not be the best option for dropshipping. Read on to find out why.
What is drop shipping?
Drop Shipping is a business model in which suppliers and manufacturers ship orders directly to customers once a sale is made through an online store. This model frees retailers from the logistical challenges traditionally associated with warehousing and running a retail business, allowing them to focus on areas such as marketing and customer service. It’s a low-risk way to get into e-commerce, as there’s no need to invest in inventory.
What is Etsy?
Ötzi Etsy is an online marketplace where sellers sell handmade and vintage goods, craft supplies, and more. It started as a platform for small artisans and makers but has since expanded to include merchants of all types and sizes. Etsy has over 5 million sellers and 90 million active buyers.
How dropshipping works on Etsy
Etsy makes it difficult to do drop shipping on their platform. While they don’t explicitly prohibit drop shipping, they do have rules around key elements of the drop shipping model: resale.
Etsy offers two main methods of “dropshipping” that comply with the platform’s terms of service: Neither method is strictly dropshipping, but they most closely resemble the business model of selling on Etsy.
There are two dropshipping options for Etsy merchants.
1. Start an Etsy store and outsource production
Similar to dropshipping, this method means you don’t have to worry about production since you outsource the manufacturing. However, you still need to manage order fulfillment.
If you choose this option, it’s important to only outsource manufacturing for items that you’ve designed yourself; Etsy expects sellers to at least have a hand in the design.
According to the terms of use“All handmade items must be made or designed by you.”
2. Source products from Etsy and sell them in your own online store
With this method, you source items from Etsy sellers and resell them on your own branded e-commerce site. (You can’t source items from Etsy and resell them in your own Etsy shop.)
Having your own storefront gives you more control and autonomy over your business, but it also means you’re responsible for marketing and driving traffic to your store, since you don’t have Etsy’s built-in customer base.
Etsy Dropshipping Rules
Although Etsy doesn’t explicitly encourage dropshipping on its website, it does publish some rules and conditions regarding a similar business model.
- All items sold on Etsy must be handmade, vintage, or craft items.
- Items sold in Etsy’s Handmade category must be made and/or designed by the seller themselves. Resale is prohibited.
- When working with a “production partner,” sellers must disclose that relationship in their product listing.
- Production Partner You cannot be a member of an Etsy shop or a supplier of pre-made goods that a merchant purchases for resale.
- Etsy sellers cannot use AliExpress dropshipping.
- Vintage items are over 20 years old.
- Craft supplies may be sourced from third-party sellers and may be handmade, commercially available, or vintage.
- All Etsy listings must directly promote and sell physical or digital products. You may not create Etsy listings for referral codes, classified ads, or “similar activities.”
- specific Prohibited Resale Activities This includes repackaging or rebranding commercial products, curating other people’s handmade items that you did not design or manufacture yourself, selling items manufactured or designed by another seller not associated with your shop, and selling traditional craft or fair trade products that you did not design or manufacture yourself.
So, to put it simply, while you might be able to find workarounds or hacks to dropship on Etsy, the marketplace generally isn’t designed to support dropshipping.
Benefits of Etsy Dropshipping
There is less competition for drop shippers
Etsy makes it difficult for sellers to use dropshipping, so few dropshippers focus on the marketplace. As a result, if your dropshipping business complies with Etsy’s rules, you may find yourself with an easy advantage, with very little competition.
Niche businesses welcome
If you have a dropshipping niche business or product idea that fits Etsy’s requirements, dropshipping your products could be a great opportunity. Etsy welcomes niche businesses and categorizes sellers to make it easier for customers to find them.
Vintage and handmade items are easy to sell
Etsy is an ideal third-party marketplace for selling handmade and antique goods. Dropshipping Products Because their user base is highly fragmented, they fall into one of these categories.
Easy access to a select customer base
People on Etsy are usually looking for a specific type of product, often a unique vintage or handmade item, and are willing to pay a premium for it.
Cons of dropshipping on Etsy
High fees
Dropshipping on Etsy can be costly. Marketplace fees can quickly eat into your profits. Sellers pay a listing fee of 20 cents per item and a transaction fee of 6.5% of the list price, plus shipping and gift wrapping.
Strict Dropshipping Rules
It’s clear that Etsy is not a fan of dropshipping and does not welcome the business model onto its platform, so they don’t have any features or tools to help dropshippers, and they might not be rolling them out anytime soon.
No wholesale options
Etsy suffered another setback when it shut down its drop-shipping business. Wholesale The company encourages sellers to be more directly involved in product development and manufacturing, and as such has removed the wholesale program that made it easier to dropship on Etsy.
A lengthy listing process
Listing items on Etsy isn’t as easy as it sounds: Etsy doesn’t offer a bulk upload feature, so you have to list each item manually, and some sellers report a delay between when their listing is published and when it appears in search results.
Low scalability
Due to the nature of items sold on Etsy, they are not usually mass-produced. Most items are carefully designed and crafted, so Etsy suppliers are not able to produce as many items as quickly as larger manufacturers. Not to mention that when it comes to vintage and antique items, inventory is limited. This means Grow your business This will further increase your sales.
How to dropship products from Etsy
Check out these two Etsy dropshipping workarounds.
- Set up an Etsy store and outsource the production of your products.
- Source products from Etsy and sell them in your online store.
In option 1, you have an approved Etsy Partner who designs and manufactures your products. Printis an integration that enables merchants to dropship custom print-on-demand products.
Another app to consider is The Art of Whereis a dropshipping partner that offers print-on-demand products with customization options for labels and stickers.
For option 2, useful tools include: Auto DShelps merchants source products from Etsy and sell them on their Shopify stores.
Dropshipping from AliExpress to Etsy
Merchants cannot dropship from AliExpress to sell in their Etsy storefront. Etsy requires that items be handmade, uniquely designed, or antique/vintage, and AliExpress suppliers do not sell products that fit these criteria. Instead, they are typically mass-produced in some sort of factory or manufacturing facility.
Dropshipping from Etsy to eBay
Dropshipping from Etsy to eBay is technically possible by sourcing products from Etsy sellers and selling them on your own eBay account.
Dropshipping from Amazon to Etsy
Like AliExpress, sellers cannot dropship from Amazon to Etsy, as Amazon’s products are typically mass-produced and don’t reflect the quality of handmade, vintage, and crafted goods that Etsy strives to maintain on its platform.
Etsy Dropshipping Alternatives
The best way to dropship products is Etsy Alternatives Eventually you’ll launch your own online store. Having your own e-commerce site allows you to:
- Selling internationally
- Build relationships and communicate directly with customers
- Increased customer loyalty and retention
- Access customer data (emails, browsing history, purchase history, etc.)
- Gain complete autonomy and control over your business
Start your dropshipping business today
Etsy may not be the best place to start a dropshipping business, but Set up an online store Using a platform like Shopify gives you more dropshipping options, and if the drawbacks of dropshipping on Etsy outweigh the benefits, you can explore other options with Shopify and start growing your dropshipping business today.
Etsy Dropshipping FAQ
Does Etsy allow drop shipping?
Is Etsy dropshipping worth it?
If you have the time and resources to build a strong dropshipping business, Etsy can be a profitable platform. It has a large customer base, low fees, and a wide variety of products. Ultimately, the success of your dropshipping business depends on the effort you put into it.
Can I dropship from Etsy with Shopify?
You can dropship from Etsy to Shopify, and Shopify offers a number of apps that allow you to connect your Etsy and Shopify stores to sync inventory, manage orders, and more.
How does dropshipping on Etsy work?
Dropshipping on Etsy works by connecting an Etsy seller’s store with a supplier who ships products directly to customers. Sellers list their products in their Etsy store, and when a customer orders an item, the seller forwards the order to their supplier, who then ships the product directly to the customer.
