Last Updated March 6, 2023
Drop shipping on Etsy can be a great way to make money in 2023, but there are rules that dropshippers must follow to stay active on Etsy. This article outlines how to get started and make money without breaking Etsy's guidelines for dropshippers.
In the last few years, the concept of dropshipping has evolved significantly, especially with the emergence of platforms such as Etsy. For instance, thousands of people worldwide and from all walks of life have been exploring the innumerable benefits of dropshipping by selling millions of handmade and unique products.
What is Dropshipping, and How Does it Work on Etsy?
Dropshipping is often classified as a retail fulfillment method for online stores where sellers create and operate a web store and sell products that are not kept in stock. In other words, dropshipping allows dropshippers to outsource the procurement, storage, and shipment of products to a third party instead of managing everything independently.
One of the most significant advantages of a dropshipping business model is that the seller can start and maintain a successful business without spending money on inventory and warehousing costs. The seller is only required to buy products if his customer has already placed an order and paid for it.
Furthermore, the dropshipper can sell a wide range of products like graphics for clothing, vintage items, and other practical crafts. Since dropshippers don't have to pre-purchase the things they will be selling on their website, they can list as many items as they want.
There are two ways of drop shipping on Etsy. The first is leveraging Etsy dropshipping suppliers from another store on Etsy to an online storefront operated outside of Etsy like Shopify or WooCommerce. Alternatively, dropshippers can decide to open an Etsy storefront of their own and outsource the production of goods to non-Etsy makers. However, they cannot resell handmade goods.
Secondly, you can open a store and outsource the production of goods but stay involved in the design of the goods.
The Benefits of Drop Shipping On Etsy
One of the most significant benefits of drop shipping on Etsy is that it is an excellent site for niche marketing. In other words, you can efficiently serve specific customers with special interests such as homemade goods, crafts, paintings, and different craft supplies categories.
Anyone can benefit from drop shipping on Etsy without any geographical constraints. The platform serves fringe markets and popular eCommerce niches such as bodycon apparel and handmade jewelry. All in all, Etsy is a perfect mainstream outlet for non-mainstream products.
The benefits of Etsy drop shipping are different than on other platforms. Unlike other eCommerce platforms where cutthroat competition often results in vicious undercutting practices by retailers, the site has a harmonious seller community that is generally willing to offer a helping hand.
The Etsy community is a platform where sellers can raise and answer questions, share advice and suggestions, or even vent frustrations in a friendly atmosphere. You can join Etsy Teams relevant to your niche for recommendations related to product sourcing or to seek advice from others regarding promotion and advertising.
Furthermore, running a business on Etsy is a far more accessible and simplified way to sell things to customers. You can create an Etsy shop in just a few minutes, and it doesn't require design knowledge or coding skills. You can even utilize template-style editing approaches to develop new shops or list new products to get your business running.
You can quickly download your business's sales and product data to make month-end budgeting easy. Furthermore, you can download the Etsy mobile app for adding listings on the go, simply checking in, or for instant customer engagement.
As far as the benefits of Etsy drop shipping are concerned, the most delightful aspect is that Etsy is more than just a regular marketplace for business. Etsy merchants are passionate about their art first, and selling to customers is a hobby rather than a business.
Building a customer base is often the most challenging aspect when starting an eCommerce business from scratch. With Etsy drop shipping, this concern is diminished.
The Etsy dropshipping platform simplifies things for both existing and new sellers. You can leverage an Etsy store to connect with millions of potential customers and sell them as many products as makes sense for your business.
Additionally, the search algorithm of Etsy is known for prioritizing new products. This gives new sellers a much-wanted automatic boost to grow their brand as soon as they are done populating their online store listings.
The easy-to-navigate and intuitive settings of the advertising platform on Etsy provide a head start on marketing, and small stores can get going with an advertising budget as low as $10 a week.
How to Get Your Etsy Dropshipping Business Started
In recent years, there has been a lot of buzz around drop shipping on Etsy. Entrepreneurs are looking for ways to promote bestselling and trending products from a wide range of marketplaces that make drop shipping on Etsy and sourcing products from Etsy an attractive option. Dropshipping from eBay to Etsy is one area that has grown tremendously over the years, as many of the same products apply to each platform.
The best part is that Etsy has more than 2.6 million sellers, and the Etsy marketplace is nothing short of a goldmine for premium-quality products. You can control your online shop without worrying about manufacturing, packaging, inventory, suppliers, and delivery. All you need to do is market your product to potential buyers.
You can drive traffic from Facebook and Google to your online store. You can also buy a wholesale program to sell your products in bulk at discounted prices, thus delivering quality artwork to your customers to get more reviews. Keep your expenses low in the beginning to get more customers and positive reviews to recover your initial cost.
Let's find out how to get started with Etsy drop shipping.
- To start with drop shipping on Etsy, you'll need to create an Etsy store with no upfront fees.
- You will now have to choose a brand name and theme to provide a unique look to your store.
- You can then proceed to set up a payment system.
- You'll agree to the Etsy drop shipping policy.
- The last step is selecting products to sell, and you're all set to start drop-shipping on Etsy.
Drop Shipping On Etsy – Things to Keep in Mind
Here are some things that you should remember when you start dropshipping on Etsy:
- Listing fees, for starters, are $0.20, and listings expire after four months.
- If you set up automatic listing renewals, you will be charged listing fees for every expiring listing every four months.
- You cannot offer free shipping; you can only offer discounted shipping.
- You must ship all orders within seven days.
- All customer service inquiries must be responded to within 24 hours.
- There is a processing fee of five percent for each product sold. Shipping costs are not included in this fee.
- Etsy is a highly regulated marketplace with dense and extensive language around the selling and reselling of goods.
- The reselling of handmade products is not allowed for Etsy drop shipping.
- Third-party payment gateways are allowed to monitor your activity.
- Etsy dropshipping is characterized by higher levels of scrutiny.
- You can reap the advantages of a readymade customer base, high-profit margins, and creative freedom with Etsy drop shipping.
Examples of Successful Dropshipping Businesses on Etsy
Some of the most successful dropshipping businesses on Etsy include:
Owned by Kate Antesberger, PlannerKate is the top Etsy seller with more than 1,841,378 sales transactions and 61,419 admirers. It deals in checklists, vision boards, icons, planners, stickers, bingers, albums, planner kits, and more.
Etsy customers appreciate CaitlynMinimalist for creating stylish and elegant jewelry with meaning and minimalism. The catalog of CaitlynMinimalist includes name pieces, meaningful quote jewelry, and handwriting. You can immortalize a handwriting piece into daily wearable silver jewelry. This Etsy store has more than 1,574,688 sales transactions and 259,152 admirers.
With more than 1,469,977 sales transactions and 59,364 admirers, Bead Boat is renowned for jewelry-making supplies and everyday jewelry products.
Since 2008, Yakutum has been selling jewelry supplies on Etsy. It has more than 971,590 sales transactions and 36,742 admirers. Yakutum deals in jewelry supplies and has a rich range of products, especially brass and gold-plated items.
Are you looking for handmade gifts and party favors for birthdays, weddings, baby showers, and celebrations? Trust ModParty has more than 1,294,176 sales transactions and 115,636 admirers.
A comprehensive charm shop from Stockport, Nicole de Bruin Charms offers countless products, including but not limited to buttons, paper products, charms, beads, and custom-engraved tags. This Etsy store has more than 765,735 sales transactions and 54,403 admirers.
Since 2014, King Jewelry Supplies has been an Etsy store that deals in chains, charms, beads, clasps, rings, earrings, and gold-plated supplies. It has more than 921,428 sales transactions and 49,588 admirers.
With more than 810,220 sales transactions and 25,387 admirers, PeggySueAlso Leather deals in embossed cowhide leather, earring leather, metallic leather, cork leather, suede, and leather from ostrich, alligator, goatskin, lambskin.
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- Best Dropshipping Products
- Make Money Dropshipping
Drop Shipping on Etsy Wrap-up
It's safe to say that drop shipping on Etsy can be lucrative if you can navigate its policies for dropshipping stores. The main focus of Etsy is to create a harmonious and profitable marketplace where all who participate play on equal footing.
Whether you intend to sell on Etsy or to leverage the already proven products other merchants are selling on another platform like Shopify, you have multiple options to use Etsy as a strategic piece to your dropshipping empire.
Is Drop Shipping on Etsy Allowed?
Etsy is a highly regulated website with a detailed stance on seller handmade policies, code of conduct, and buyer/seller communications. It does not allow the reselling of handmade products, but it is possible to dropship craft supplies or vintage goods. In other words, you can stock craft supplies and vintage goods on virtual shelves as long as you have a written agreement with the seller. However, you cannot resell handmade items you didn't help make.
Some points to remember:
An Etsy dropshipping AliExpress connection is not allowed as goods need to be vintage, craft supply, or handmade.
Dropshipping from Etsy to eBay is allowed.
Dropshipping from Etsy to Facebook Marketplace is allowed.
Dropship from Etsy to a Shopify online store is allowed.
The Etsy platform also allows production assistance for original designs, and you'll have to disclose some details of your production process and the location of your manufacturer to Etsy. However, the readymade customer base, creative freedom, and high-profit margins still make Etsy a great platform to sell or dropship products.
Can you Connect Your Shopify Store to Etsy?
Yes, you can easily connect your Shopify dropshipping store to Etsy. You can upload products from Etsy to your Shopify store by first finding Etsy sellers that align with your mission and brand. You can then reach out to them and agree to your dropshipping terms.
You'll have to add the Shopify extension to your Chrome browser. Once done, you can visit the product page of the Etsy item you want added and proceed by clicking the Shopify extension. Then, you'll have to enter, add the required information and change the wording. That's it!
Does Etsy Offer Print-on-Demand?
Print-on-demand is very much allowed on Etsy, and the only condition is that all products must be designed and/or made by hand.
The sellers of their products must create designs.
Sellers are required to prove their involvement in the entire creative process.
The outside manufacturer must satisfy the standards of Etsy.
Sellers should be transparent and accountable about their products and how they have been made so that everything is authentic and nothing is copied or mass-produced.
Does Etsy do Fulfillment?
When an item is sold online, the process of fulfillment gets initiated. This includes all possible transaction steps (from the time of the sale until the delivery has been completed and generally includes returns).
Etsy provides a wide range of fulfillment solutions and shipping support options. Etsy sellers can handle their shipping as well as fulfillment. You can avail of Etsy resources to help you with order fulfillment, including label creation, shipping profiles, customs forms, tracking, and more.
It would help if you remembered here that Etsy doesn't handle fulfillment for sellers but does make shipping easier for entrepreneurs by letting you ship orders with USPS, FedEx, and Canada Post. The best thing is that everything can be handled right from your Etsy shop.