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Etsy Dropshipping: The Rules And Requirements (2026 Guide)

Etsy dropshipping
Dropshipping
1. Etsy Dropshipping: The Rules And Requirements (2026 Guide)
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Forums and groups of late have been driven by drop shippers seeking new dropshipping platforms with more or better options for product selection, shipping duration, and Product quality.

Etsy dropshipping sounds promising, as the platform has over 2.1 million sellers on the marketplace; hence, product availability and quality are assured. Consider this an Etsy dropshipping guide.

If you were looking for a Shopify dropshipping alternative, then be ready as I break down the pros and cons of Etsy dropshipping and the goldmine information that comes with doing dropshipping business on the Etsy platform, shall we?

Etsy Dropshipping

Dropshipping is a simple business model where you, the seller, sell products you don’t manufacture, don’t have in inventory, and don’t handle shipping to your customers.

So, how can I start Etsy dropshipping?

To start dropshipping on Etsy, you can: 

  1. Open an Etsy shop
  2. Find a supplier who offers products that match your niche or target audience.
  3. Create a listing for these products on your Etsy shop
  4. Connect Etsy with dropshipping suppliers
  5. Import products to the Etsy shop
  6. Receive and fulfill orders

In other words, you act as a broker between the manufacturer/wholesaler and the customer.

The dropshipping business model is most practiced among young entrepreneurs who care less about taking risks in the quest for financial freedom when starting an eCommerce business online.

Etsy Dropshipping

Dropshipping has made selling online easy, especially for entrepreneurs like me and you who hate the idea of running losses and having piles of unsold stock and products you have yet to learn how to get rid of if you fail to sell.

Dropshipping works well; you only need to buy a product when a customer places an order for it, and you don’t need to have the product before getting a sale.

After a successful conversion, the seller looks for a reliable supplier, buys the product, and then the supplier handles the picking, packing, and shipping to the customer.

In this case, the seller saves the cash he would have spent on manufacturing, packaging, shipping, and handling inventory.

Advantages of Etsy Dropshipping

The dropshipping model is standard in major eCommerce platforms like Shopify, eBay, Amazon, and Etsy. Dropshipping is the new kid on the block, but why are dropshippers showing interest in Etsy Dropshipping? Here is a breakdown to address the whys;

Sell Handmade Crafted Products

Unlike other dropshipping platforms, Etsy Dropshipping is unique because it focuses on handmade products.

Etsy offers a variety of crafted products, from knitted blankets for maternity stores to handmade jewelry.

They have unique products; the only obstacle is that the products may take longer to deliver, as they are made only when an order is placed. This might affect your shop if you handle bulk orders.

Etsy dropshipping

Etsy is your one-stop marketplace for such niches if you dropship handmade goods, printable, or wedding cards. 

It’s the best marketplace for dropshippers looking to sell digital products or wedding accessories-related niches; try Etsy Dropshipping.

Etsy Dropshipping Disadvantages

Before you fall in love with Etsy drop shipping, some cons may make you change your mind about joining the marketplace, so let’s dig into some of the Etsy drop shipping cons:

The product’s Retail price is relatively high.

The product prices, as listed on Etsy, are way above the retail value for common dropshippers; a product can be listed for $97.99, and the final price at checkout might sum up to over $149; hence, this makes it hard for any dropshipper to even think of starting an Etsy Dropshipping business with such priced products.

The high retail price makes Etsy Dropshipping unattractive to dropshippers who want to start and run a profitable, successful dropshipping business online.

Seller’s Listing Fee

To list a product for sale on Etsy, you must pay a listing fee to have your product live on their marketplace. The product listing fees are 20 cents per listing, which expires after 4 months.

Etsy dropshipping

You therefore need to re-add a listing to their marketplace, which takes more time and manual work than on other dropshipping eCommerce platforms.

Unlike Shopify, where your products remain live on your store as long as you pay a hosting fee, on Etsy, you pay to list before and after successful sales.

Limited Dropshipping Capabilities 

Even though reselling is allowed on Etsy, they don’t specifically acknowledge the dropshipping model in their seller’s policy.

We all know reselling is like dropshipping because both sell products they didn’t make or design. Therefore, Etsy can only resell handmade products, such as vintage items and other craft supplies, so yes, you can dropship, but your options are limited.

Etsy dropshipping isn’t sustainable.

Now that you know, you can try your hand at Etsy Dropshipping, but you still need to be more sustainable when it comes to dropshipping products from Etsy, let alone selling the product on Etsy.

The marketplace hosts handmade products from a part-time Etsy seller who needs help handling huge orders. 

Unfortunately, the chances of you falling into dropshipping from Etsy are very high.

Unlike Shopify, suppliers on AliExpress can handle large orders daily.

Read Also:

Has no Wholesale Option

Etsy’s recently updated wholesale program in June 2018 has brought dropshipping business on its platform to a standstill.

They recently decided to shut down the wholesale program, which means sellers will sell to retailers, not wholesalers selling to sellers; read this update.

Etsy Dropshipping Rules Of Operation

It is the only marketplace that can not accept any other product listing unless it’s a vintage or handmade product; they also insist that the seller must make the product. If you are considering listing a vintage product, it must be at least 20 years old per their rules.

The product you seek to list on Etsy must be unique and available only on Etsy, not on any other platform. You can find all the information about the products you can sell on Etsy in their ‘What Can Be Sold section.

Suppose you sell crafted products that you didn’t make or own. In that case, you must credit the designer and also include the environmental aspects, indicating whether the material used is biodegradable or recyclable.

Etsy Dropshipping business on the Shopify Platform

Despite the limitations you will face when dropshipping Etsy products on Shopify, you can still sell Etsy products on your store via Shopify apps.

The only issue you should be aware of is that, as a seller, you can only sell handmade products, and you are not entitled to large quantities or bulk orders, especially if you have a high conversion volume and tons of paid traffic.

Most of the products on Etsy are handmade and original, and getting a replacement seller will take a lot of work.

Doing Dropshipping From Aliexpress To Etsy Marketplace

You cannot drop ship AliExpress products to Etsy because you cannot sell any other product on Etsy apart from handmade, crafted, and vintage products.

However, you can sell print-on-demand T-shirts, design shirts, and list them on Etsy. On rare occasions, sellers have been able to sneak in designs they don’t own, but it’s hazardous; your Etsy account might be banned if caught.

You can dropship on Etsy only if you are running a print-on-demand store with your designs and rights, but you can’t dropship products or designs you did not create or own.

So, how and where should you dropship?

Etsy’s limitation is that it is far from being a starting point for and a guide to running a successful dropshipping store. Hence, the best way to start a dropshipping business is to have your dropshipping online store on Shopify. With your store, you have control over your business, and these are but a few of the reasons why we love having our store.

  • Unlike Etsy, you have control over your brand: Customers will remember your store name and brand.
  • Control Over Marketing: Freedom to build your email list, use your visitors’ behavior for retargeting, and run your marketing campaign.
  • You can list or sell as many products as you’d like, choose the products you want from millions of unique products, and have no listing fees on your store.

Conclusion

The dropshipping business has proven to be the newest, most reliable, and most sustainable model admired by many for long-term business income. 

The same cannot be said about Etsy dropshipping because sellers cannot list or access a high volume of products, and they also face expensive product listing and shipping fees.

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