Etsy Dropshipping has been making a lot of noise lately. Etsy is a popular marketplace for creative entrepreneurs who love handmade items and unique products. Dropshipping is not well-known to everyone, and how you can use it to sell items on Etsy needs to be clarified. This article will break down how to set up your Etsy Dropshipping Business.

What exactly is dropshipping?

Dropshipping allows a merchant to sell products without carrying inventory or manufacturing products. This business model is favored by new and risk-averse entrepreneurs who want to launch an ecommerce company.

In the past, entrepreneurs had to purchase products in bulk at wholesale prices. It’s great if a product sells! They were left with an unopened inventory box if it failed to sell. Yikes. Dropshipping allows you to buy products directly from suppliers. If a customer orders a product from your store, you only type that one product.

What is Etsy?

Etsy allows sellers to display vintage and handmade items, craft supplies, or other products. Etsy was initially designed to help small-batch artisans and makers sell their products. However, it has evolved and is now an excellent platform for merchants. Etsy has More than four million active sellers and almost 81 million buyers.

Dropshipping on Etsy: How it works

Starting an Etsy dropshipping company is more challenging than it seems. Although no direct communication prohibits dropshipping, you may need help navigating the language used around other business models, such as print-on-demand and reselling.

Two ways to dropship on Etsy don’t fit the traditional model.

Outsource your production by opening an Etsy shop. You can outsource the production of your goods to a third party, saving you a lot in capital. It would be best if you still handled the order fulfillment. Etsy also requires that sellers have a hand in the design process. This means you can only outsource the production of items you created yourself.

Sell products on your website by sourcing them from Etsy. This business model involves purchasing products from Etsy sellers and selling them on your site. This business model gives you greater control and autonomy over your business. Still, it requires more marketing. You can’t resell products on Etsy that you source from Etsy.

Rules of Dropshipping on Etsy

Dropshipping can be tricky on Etsy since the platform does not explicitly allow it. Etsy does have some rules and restrictions that apply to similar business models. Keep in mind these Etsy drop shipping guidelines:

Selling only vintage, handmade, or craft supplies on Etsy would be best. Vintage items must be older than 20 years.

The seller must make and design all items. Etsy does not allow reselling. This means you cannot source handmade products from Etsy and sell them in your shop.

You must indicate the relationship between “Production Partners” and your product listing. Production partners are not Etsy members or suppliers the merchant uses to source ready-made items for resale.

If you buy craft supplies from third parties, you can purchase vintage, commercial, or handmade products.

Etsy listings must sell or endorse an item, whether digital or physical. Etsy prohibits sellers from creating Etsy listings, referral codes, want ads, or other similar activities.

Some prohibited reselling include: selling items by merchants not affiliated with your business, selling fair-trade items you did not design or manufacture, and repackaging commercial items.

AliExpress Dropshipping is not allowed by Etsy merchants.

While finding hacks and workarounds for dropshipping on Etsy is possible, it’s still important to remember these rules and limitations. The seller’s responsible for ensuring that their business practices align with Etsy policies.

Low Scalability

Etsy’s inventory is typically handmade, vintage, or sourced with great care. It’s not mass-produced. Etsy’s suppliers cannot produce items as quickly or efficiently as large manufacturers. The inventory of antiques and vintage items is also limited, which makes it challenging to grow your business.

No wholesale

In June 2018, Etsy decided to shut down its wholesale program. This allowed sellers to sell directly to retailers. If you’re looking to dropship Etsy items, your options are limited to selling directly to consumers.

Etsy Dropshipping on Shopify

Shopify Apps are a great way to promote Etsy items on your Shopify store.

The downside is that many sellers sell handmade products. This means that quantities are often limited. You may not be able to get the product you want if you are sending in a lot of traffic. Since the product is original, it’s unlikely that you can find a substitute seller. This could lead to happier clients.

Dropshipping AliExpress products to Etsy

Dropshipping AliExpress products to Etsy, however, is not allowed. Why? The goods must be handmade, vintage, or craft supplies. The design must be your own if you are selling a tee shirt. Etsy does not allow dropshipping. Some sellers have gotten around this rule by using their photos. You could be banned from Etsy if you are caught.

Is dropshipping allowed on Etsy? Yes, if you run a dropshipping print-on-demand store where you design your products. Dropshipping products you didn’t plan or create is not allowed.

Where should you instead dropship? Let’s take a look.

Dropshipping Your Brand

There may be better places to drop ship your products than Etsy. It doesn’t necessarily mean that you can’t successfully dropship elsewhere. Having your online shop is the best way to dropship online products. You will have complete control of your business. You can enjoy the following benefits by owning your store:

Create your brand. People will remember the name of your store, not where you sell, such as Etsy.

Own Your Marketing: Build Your Email List, Retarget Website Visitors, Own Your Customer List.

Add as many products as possible to your store: You can add any products without listing fees.

Launch your dropshipping company today

Dropshipping on Etsy is a challenge, but that shouldn’t stop you. Consider building your store on platforms such as Shopify instead to gain access to unique benefits unavailable on Etsy. If the disadvantages of Etsy are more significant than their benefits, you can still create a Shopify shop and expand your dropshipping company immediately.

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