Etsy Dropshipping - Is it allowed by the platform?
11 mars 2024
Table of contents
Introduction to Etsy Dropshipping business
Dropshipping is a business model where a retailer (the dropshipper) does not hold the products they sell in stock. Instead, when the retailer sells a product, they purchase the product from a third party (supplier or wholesaler) and have it shipped directly to the customer. ("they dropship products")
This way, the retailer does not have to manage inventory or deal with product shipment. However, there are several types of dropshipping, and the topic of "Etsy dropshipping" has become one of the most controversial on the platform, especially for the Etsy sellers selling vintage or handmade items making their products with craft supplies.
Etsy dropshipping rules for your Etsy store
Etsy Dropshipping is allowed on the platform. Dropshipping is a business model where the seller does not directly ship the order. This is explicitly permitted on Etsy through production partners. For example, if a seller designs an item and outsources its production, it can still be sold on Etsy as handmade items.
The most common type of dropshipping allowed on Etsy is Print on Demand. The Etsy seller designs the product, create the Etsy listings, and when an order is placed, the production partner (e.g., Printify) handles production and shipping.
So, while opinions may vary on whether this practice should be allowed, it is a fact that Etsy dropshipping is explicitly permitted according to Etsy's policy.
However, there is another type of dropshipping on Etsy that is not allowed.
The type of Etsy dropshipping that is prohibited from being sold in your Etsy shop
The type of dropshipping not allowed on Etsy involves reselling mass-produced items not designed by the seller (for example, products from AliExpress or Alibaba). Since the Etsy platform has a huge customer base where there is no need to generate one's own traffic through social media, many Etsy sellers have seen this as an opportunity to sell items produced and shipped from China.
However, this is clearly prohibited by the platform. If you engage in this type of dropshipping, your Etsy listing could be deactivated, or even worse, your Etsy shop might face suspension or banning.
Conclusion for Etsy dropshipping business
Today, many sellers are arriving daily on the platform trying to sell products designed and shipped from China. Indeed, while this is prohibited, selling products at such low and appealing prices to buyers generates high revenues for both the seller and the Etsy platform. In any case, if you intend to sell on Etsy in the long term, I recommend adhering to the rules governing the platform. If you're truly into dropshipping, consider exploring other online marketplaces that might be better suited for you. Alternatively, you could set up your own online store. But if you really want to sell on Etsy, you should read the Etsy dropshipping FAQ.
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