Dropshipping On Etsy

Can you Dropship on Etsy? Best Products and Suppliers

If you are anything like me, you might not be familiar with Etsy. An apt description would be that it is an eccentric internet marketplace that sells all kinds of weird things, such as an octopus made of resin and soap bars created from body parts. However, although it is not a household name, it sells things that are necessary for everyday life. When compared to Amazon and eBay, Etsy is a completely different platform. A location where you may get incredible prices, universal 2-day shipping, or doorstep delivery is not available.

Also, read Alibaba’s Private Label Camping Dropshipping Program.

When you stop to think about it, it’s incredible that Etsy is still in business. It’s absurd to think that Etsy might be merged into today’s technologically driven eCommerce experience in the twenty-first century.

What is Etsy?

When it comes to competing in the fast-developing eCommerce business, Etsy is a formidable opponent. It is an online marketplace that facilitates the sharing and selling of handcrafted goods throughout the world. At one point, Etsy appeared to be a little out of date. Customers had to wait for long periods to get their orders, and vendors did not always have enough inventory. Etsy is currently reaching a high point at the moment.

Set up a dropshipping store on Shopify.

As a small business owner or shopper, you may have observed an increase in support for small businesses, local purchasing, and handmade things. Several movements, such as the Makers Movement and Small Business Saturday, have gained widespread attention on social media and other online venues. Specifically, I am suggesting that Etsy is the most popular eCommerce site for small-scale purchasing. It was established some decades ago and has continued to grow its market share.

In 2019, it made a total of $200,000,000 in revenue, although it has been in operation since 2005. It has more than 40,000,000 purchasers worldwide. Many business owners, consumers, and even manufacturers continue to underestimate the importance of this factor. Etsy is a fantastic eCommerce platform, especially as it increasingly becomes the primary retail experience for consumers.

It takes imagination to navigate around the Etsy internet marketplace. Even though you do not have to produce everything yourself, dropshipping through Etsy requires a highly creative and skilled entrepreneur to be successful. By achieving financial stability, you will be able to generate strong profit margins, build a loyal customer base, and establish a well-established presence in the marketplace.

Etsy Dropshipping:

Dropshipping has seen a steady increase in eCommerce sales over the past few years, and it is expected to continue. It’s essentially the digital version of traditional brick-and-mortar retailers. Dropshipping enterprises load their shelves with products from small-business stockists, and then delegate the production, packaging, and shipping of each order to the manufacturer on their behalf. Customers can place orders for products from you at a predetermined price through your platform. After that, they would take care of transporting it to their client.

Create an online storefront using WooCommerce, Shopify, or Squarespace, and you will be successful. A website (WooCommerce, Shopify, Squarespace, or another similar platform) will need to be set up, and you will need to curate a selection of products from the internet to resale them at a more profitable price. It all comes down to developing a brand identity and understanding your target market.

Dropshipping on Etsy:

Because Etsy is distinct from dropshipping, some individuals are put off by the idea of it. However, this should not be the case. Everything you need to know about tapping into the Etsy marketplace and growing your dropshipping business will be covered in this section.

It is possible to dropship with Etsy in two different methods. Dropshipping Etsy products from an Etsy seller to an online shopfront is the first of these methods. This is not permitted to be done outside of Etsy.

However, there is one caveat to reselling other Etsy sellers’ products. Handmade items are not eligible for resale. This model is ineligible for usage in your store. On the site, you can only offer vintage things (i.e., products that are at least 20 years old and were not manufactured by you) and craft supplies, not anything else. Although this is an odd position for Etsy, I will explain it more below.

Also Read:  Average Income for Dropshipping

In addition, see How to Start a DropShipping Business in the Philippines?

Many dropshippers find that the handmade goods on Etsy are the most enticing aspect of the things they sell. If this is the case, the second option may be the most appropriate for you. If you are prepared to be involved in the design and manufacture of the things you sell, you can open an Etsy shopfront in your home or business.

Dropshipping on Etsy: The pros and cons

Dropshipping offers both advantages and disadvantages. I’ll go over each one in detail.

There are many pros to these:

1. Conscious (and patient!) consumers

If you build an Etsy storefront, you will be able to sell your products directly to buyers. Since its start, the website has developed a distinct community that places a high emphasis on craftsmanship, human-centric buying, and individualism. Customers are more likely to be lured to a platform that shares these fundamental principles. Customers on Etsy are accustomed to lengthy production durations and are more willing to pay a higher price for their goods.

Etsy distinguishes itself from the rest of its competitors because its basic ideals, which are unifying and primarily selfless, are what distinguishes it from the rest of its competitors. Amazon, for example, was founded on the principles of simplicity and efficiency. Amazon is unlikely to allow Etsy’s high prices and lengthy manufacturing times to become a source of contention. Entrepreneurs will have greater freedom and flexibility in how they conduct their business as a result of this.

It is impossible to overestimate the importance of returning consumers and patients.

2. There are many opportunities to be creative.

Entrepreneurs are never at a loss for new concepts. These businesses prosper when they have greater control over their products and don’t have to worry about logistical issues such as manufacturing, packing, and shipping. Etsy is an excellent platform for this. Dropshipping through Etsy necessitates entrepreneurs to take a more active role in the design and production of their products. By selling under the Etsy banner, you have the opportunity to innovate in a completely new way.

Also, see Dropshipping Maxi and Bodycon Dress Suppliers in the United States of America.

3. Your product base should be different

Dropshipping is getting increasingly popular in the eCommerce industry. It is becoming increasingly difficult for business owners to stock things that are one-of-a-kind and tough to come by. Etsy enables you to stock things that are one-of-a-kind and that you would be unable to make or sell anyplace else.

Set up a dropshipping store on Shopify.

4. Etsy is all about niches.

This is what I’m referring to. If you are seeking a certain niche in the eCommerce market, Etsy is the greatest place to start a dropshipping business. Etsy is home to a large number of dropshipping stores, weddings, apparel, and a variety of other things. Numerous Etsy shops are successful. Etsy is well-known for being a terrific location to find unique and specialized items. Every time someone needs anything or wants to make a purchase, customers and merchants alike flock to it. Etsy has put in the time and effort to establish a reputation for selling unusual and unique items, so you don’t have to.

5. High-profit margins

Many detractors argue that Etsy’s high retail pricing serves as an excuse for the platform’s refusal to adopt a dropshipping business model. Many of the items sold on Etsy are indeed priced significantly more than their market value. Sellers, on the other hand, have the advantage of being part of a well-established community that has a track record of paying the prices listed.

What does this mean for dropshipping companies, and how should they respond? You have the potential to make large gains. In comparison to other businesses, there is greater flexibility in how you present your products on the market. Prices can be set high while still selling a large number of products while yet keeping a profit margin of at least 40 percent, according to the research.

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Also, see How to Find and Contact Instagram Influencers for Dropshipping? for more information.

6. Transparency

While others may see this as a disadvantage, I see it as an opportunity to perceive the glass as half-full rather than half empty. According to Etsy’s policies, you must reveal your location as well as the location where your manufacturing takes place. It is impossible to conceal the fact that you are not the one who manufactures your stuff.

It is because of this degree of transparency and honesty that Etsy has been able to maintain a quiet and constant level of success. Customers are neither tricked nor caught in an ongoing online game of selling and purchasing things from all over the world, nor are they influenced. When it comes to today’s global and sophisticated online economy, many people are unsure of where their products are manufactured. Something can be ordered online and delivered to your door in a box within days after placing the order.

Although Etsy does not show buyers how your business is set up, they do collect this information from you to verify that your shop supports artisans and produces handcrafted items. The fact that your purchases have been approved by a well-established platform that follows certain ethical production criteria gives you peace of mind.

It’s important not to get too excited about Etsy too soon.

Here are some cons.

1. You pay more fees than you think

You will be charged a slew of fees just to list your Etsy shop and sell your products there. It is important to be informed of the fees associated with setting up an Etsy drop shipping shop before starting your business.

Also, see our Amazon and eBay Dropshipping Titans Course Review for more information.
There is a $0.20 listing fee, and the listings expire after four months if they are not renewed. Even though it may not appear to be much, it can have a considerable impact on profit margins. It is possible to set up automatic renewals, but you will be charged every four months for each listing that does not renew on time. Manual listing renewals are more time-consuming and necessitate additional effort to keep your listings up to date.

Every product sold is subject to a second processing fee of 5% of the total sales price. You should keep in mind that shipping costs are not included in these charges.

A variety of tools and resources are available to sellers on Etsy, including pattern fees, ad fees, and in-person fees, among other things. The evaluation of these materials will be the subject of a separate article.

2. Dropshipping business models: Intense guidelines

Etsy is a highly controlled internet marketplace with strict rules and regulations. Seller-created policies, as well as supplier codes, are all detailed in the House Rules. They cover anything from buyer/seller communications to seller-created policies. Even though it is thick and lengthy, here are the essential points.
Etsy has developed a very distinct lingua franca for the sale and resale of the merchandise. However, it is not legal to resell homemade products. Dropshipping vintage or craft supplies are permitted.

In the case of original designs, it may be able to provide production support. As a spectrum, it can be described as follows: Some businesses manufacture each product in-house using their tools and hands, whereas others design the product but lack the necessary skills or resources to manufacture it themselves. This is excellent news for dropshippers, as Etsy encourages sellers from both ends of the spectrum.

Also, see How to Begin Dropshipping Socks and Supplier List Included for more information.
It is acceptable for you to employ your imagination and thoughts in the creation of your product. It is possible to outsource production, but there are some constraints on who and how you can do so. To sell your products on Etsy, you must reveal the name and location of your manufacturer, as well as specifics about the manufacturing process. However, not all of the specifics of your company’s activities or logistical operations will be made public. Etsy is quite explicit about what information is available to the public and what information is not.

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3. Etsy sellers benefit from extensive community policing

Etsy takes pleasure in policing its consumers. As a result, operations are fair, uniform, and run smoothly, which is beneficial. The fact of the matter is that you must be aware of their policies as well. You may be subject to fines and fees if you do not comply.

In addition, it’s important to note that Etsy permits third-party payment providers to track your activities on the site. Our payment gateway crash course is perfect for those who are new to the world of payments. Users are exposed to corporations such as PayPal conducting reviews of their transactions and accounts to assess whether or not they have broken their terms of service.
Etsy drop shipping is subject to a higher level of inspection than dropshipping through an e-store or any other type of online platform. Although Etsy offers a vast consumer base and excellent profit margins, you need to think about what you are willing to give up to have access to these benefits.

Also see Wholesale2b Dropshipping Review, Pricing, and Features for more information.

4. Operates by economic sanctions and trade restrictions

Yes, that does come across as a little wordy. But, please, pay attention. Although Etsy is a global marketplace, its headquarters are located in the United States. This means that Etsy complies with all applicable government and economic sanctions. Their accounts are only available in specific geographic zones and they are prohibited from selling or importing goods from sanctioned regions.

You should be aware that sellers on Etsy may be subjected to red tape that is beyond their control. A negative impact on your sales and profit margins may result as a result of this.

5. It is a tedious process to list.

This isn’t a problem that only exists on Etsy. The process of listing your products on the site, on the other hand, might be time-consuming. Because Etsy is a marketplace for handcrafted goods and small enterprises, there are several product selections to choose from. Etsy has created listing rules for products that ensure that consumers receive the most accurate information and that products are listed consistently. This might be a hardship for retailers who are trying to keep track of a variety of different products.
For example, listing on Etsy will be very comparable to listing on Amazon Handmade, so you should consider both options. In comparison to listing on a storefront separately owned by Squarespace, Wix, or Shopify, you will have to put in more work to do it successfully.

6. Potential profit sharing

You must make any payments due to any sellers that provide your merchandise. You must negotiate a fair contract to ensure that you receive a healthy profit margin and that the seller is adequately compensated for their efforts.


Even though selling on Etsy may necessitate a little extra imagination, now is an excellent moment to drop ship to the site. Etsy was founded to solve these cultural and economic concerns.

In addition, please read The best way to find and contact Instagram influencers for dropshipping is using hashtags.
You should carefully consider the objectives of your company’s brand and be prepared to assume a more active part in the running of your company. Dropshipping is simple to set up on any eCommerce platform, and you may source products from any part of the world using this method of distribution. Don’t be concerned if Etsy does not meet your requirements. Alternatives to the standard selection are numerous and varied.