Etsy dropshipping is a great way to make money online. Etsy is a simple platform to begin selling online, and dropshipping on Etsy makes things much more straightforward.
Consider not having to store inventory or worry about shipping. With Etsy dropshipping, you can design the product and have it fulfilled by someone else.
It’s that easy.
In this blog, we will go through what Etsy drop shipping is and how you can use it to make money online.
What is Etsy?
Etsy, founded in 2005, is an online e-commerce platform for independent manufacturers, artisans, and collectors who may set up online stores to sell their products.
Almost 80% of vendors are women, and they are all independent creators.
It’s similar to Amazon for independent sellers that sell handcrafted, unique, or niche products. The objective is to build a large marketplace of products from various sellers so that buyers may find excellent vendors.
Some sellers create things on demand as orders arrive, while others have an inventory ready to ship.
It has been in business since 2005 and made a stunning $200 million in revenue in 2019. Most importantly, it has attracted over 40 million buyers to date.
Despite these figures, many business owners, customers, and creators believe it is undervalued. Etsy has tremendous potential, especially as eCommerce moves closer to being the primary shopping experience.
What is dropshipping?
Dropshipping is a business model in which a seller sells things without manufacturing, stocking, or shipping them to buyers. The business model is popular among new entrepreneurs looking to launch a low-risk online business.
Historically, businesses were compelled to purchase goods in bulk at wholesale costs. Great if a thing sells! They were stuck with a container of unsold merchandise if it didn’t.
Dropshipping involves purchasing items from vendors on an individual level. Hence, if a consumer orders a product from your store, you order only that product from the supplier.
What is Etsy dropshipping?
Dropshipping on Etsy implies that when a customer purchases your store, you buy handcrafted items from the suppliers. The remainder, including production, packing, and shipping, will be handled by suppliers in the following phase.
It would help to focus on marketing, customer support, and shop management while dropshipping on Etsy.
Based on the responsibilities listed above, you may create an effective plan for running your Etsy dropship business:
Marketing
Investing in visual aids may help you differentiate yourself from other Etsy dropshippers. Because most Etsy products are DIY or handmade, having stunning photographs may help sellers attract buyers more easily.
Furthermore, other marketing strategies, such as SEO, can help advertise your items and approach potential customers more efficiently.
Customer services
Make sure that your clients’ delivery status is informed in real time. Because certain handmade or craft things take time to make, providing your consumer with delivery tracking information may satisfy them.
Furthermore, you should develop a return policy for your customers if the item breaks during shipping.
Store management
Starting a dropshipping company means managing an online store and looking for and listing items. Furthermore, a dropship integration strategy, which entails running your dropshipping business across many selling channels, may be beneficial if you want to increase your sales.
It is a less dangerous and time-saving business model because you do not need to make things for sale or handle the fulfilment procedure.
How does dropshipping on Etsy work?
Establishing an Etsy dropshipping business is more straightforward than it appears. While there is no specific limitation on dropshipping, the wording around comparable business models, such as reselling and print-on-demand, might be hard to understand.
There are two primary ways to “dropship” on Etsy. However, neither fits the classic dropshipping concept.
Start an Etsy shop and outsource your product manufacturing (Print on Demand)
It means having your products manufactured by a third party so you don’t have to invest much money upfront. Nonetheless, you must still handle the order fulfilment. Furthermore, Etsy demands sellers to participate in the design process, which means you may only outsource the manufacture of goods you developed yourself.
Use Etsy to find things to sell on your e-commerce store
This business plan entails purchasing items from other Etsy sellers and reselling them in your shop. It gives you more freedom and autonomy in your business but necessitates more significant marketing efforts.
NOTE: You cannot source things from Etsy and then resell them on Etsy.
How to dropship from Etsy?
Dropshipping from Etsy to a website might be a terrific method to start an e-commerce business without managing inventory. Here’s how to dropship from Etsy.
You can simply import products to your store from Etsy and fulfill orders with a few clicks by selecting a trusted supplier on Etsy and using dropshipping software. You can develop a successful dropshipping business and achieve your entrepreneurial goals with the appropriate approach and hard work.
Is Etsy Dropshipping worth it?
Yes, we can dropship Etsy products. However, you can sell only those products with no copyrights. Connect with any of the sellers on Etsy, sell their products to your store or social media, and let Etsy fulfil your orders. However, the profit margins are less when you dropship etsy products.
Sell on Etsy statistics
Etsy receives 377.4 million visitors each month on average. (SimilarWeb)
In the previous six months, Etsy generated $1,164,401 in income. (July 2022 Etsy Quarterly Report)
On the platform, there are around 43 different Etsy product categories. (Via Venture Beat)
76% of merchants view their online stores as a business. (Building an Etsy Economy)
Females account for 86% of Etsy sellers. (Building an Etsy Economy)
Can we dropship etsy products?
As of June 2022, Etsy has had a revenue of $1,164,401 in the last six months.
If you have a creative spark and wish to enter a less competitive market, dropshipping on Etsy is worthwhile.
It’s terrific for small dropshipping companies, but don’t expect to become a fortune through Etsy dropshipping.
Because of the transaction charge, the platform is not ideal for medium to large-scale enterprises.
Consequently, if your store’s sales increase significantly, you may need to relocate.
Why should you sell on Etsy?
After being open for over a decade, Etsy remains popular among creators and entrepreneurs eager to sell unique handcrafted products.
- It assists its sellers by charging fair rates, providing various tools, and providing assistance and education to help them optimise their selling potential.
- Nevertheless, Etsy’s reach continues to expand, gaining millions of new consumers. This online marketplace also concentrates on promoting niche products, assisting merchants in connecting with like-minded customers worldwide.
- As an Etsy seller, you’ll have access to a simple interface that eliminates the need to create your website.
- Furthermore, Etsy provides appropriate tools, such as built-in analytics, to help you measure your business performance.
What are Etsy's dropshipping policies?
While Etsy does not explicitly mention dropshipping on its website, it does provide several guidelines for similar business models:
- Etsy requires all things for sale to be handmade, vintage, or craft supplies.
- The seller must make and design all products offered in Etsy’s Handmade category. It is illegal to resell.
- Production partners are not permitted to be Etsy store members or vendors from whom the merchant obtains ready-made items for resale.
- AliExpress dropshipping is not permitted for Etsy businesses.
- When dealing with them, sellers must declare the relationship with “producing partners” on product listings.
- Craft supplies can be handmade, commercial, or vintage and purchased from a third-party vendor.
- Vintage objects must be at least 20 years old.
- Repackaging and rebranding commercial items; curating others’ handmade goods you did not design or make; selling items made or designed by another seller who is unaffiliated with your shop; selling traditional handicrafts or fair trade items you did not create are all prohibited reselling activities.
- Every Etsy listing must promote and sell physical or digital goods directly. Etsy listings for a referral code, a want ad, or a “similar activity” are prohibited.
In summary, you can technically discover workarounds and techniques to dropship on Etsy, but it’s more complex. Etsy isn’t doing anything to make things simpler.
What are the pros of Etsy dropshipping?
Is Etsy dropshipping worthwhile? These are some of its advantages that may help you decide:
Massive customer base
Marketing is the most challenging aspect of running an eCommerce shop. To attract the attention of potential clients, you must have an online presence.
Nevertheless, if you dropship on Etsy, things get a little simpler. This is because, although targeting a specific demographic, Etsy has a massive consumer base of over 80 million purchasers.
You need to concentrate on ranking better in Etsy listings. You may accomplish this by uploading quality product photos, creating search engine-optimized product descriptions, and receiving positive early feedback.
Room for innovation
Etsy dropshipping will be your ideal business strategy if you’ve always had a creative touch.
The platform thrives on inventiveness, and you can’t just sit back and do nothing as a dropshipper. You must apply your creativity by participating in the design process.
It might inspire you to develop your unique brand while also assisting you in creating an entrepreneurial attitude.
Less competition
Because of the product limits on Etsy, many entrepreneurs are hesitant to start a shop there. It implies that dropshippers have less competition on the site.
Furthermore, registering on the marketplace is simple. Within five days, your account will be validated.
The only challenging aspect is locating a source, but a lot of money awaits you once you do.
Profitable margin
Dropshipping entrepreneurs generate money by maintaining a set profit margin on each transaction. This margin will vary based on the product and your time in business.
Dropshippers often preserve a profit margin of 10-15%, while more experienced enterprises can aim for 20 and, in rare instances, 30%.
Thankfully, Etsy consumers realize the time and work it takes to create a handcrafted item. People are okay with paying a premium if the quality is good.
This means you may maintain a profit margin of 40% or greater if your consumers get what they pay for.
Market segmentation
Etsy, as you may know, caters to a specific market.
It’s hardly surprising, therefore, that it’s generally the first site people search on when they’re looking for a unique item or product.
Several businesses sell home décor, apparel, crafts, and supplies on the site. If you want to offer a speciality product, you can’t go wrong with Etsy.
Patient consumers
The most significant advantage of selling on Etsy is the patience of its buyers. They recognize that handcrafted things take longer to produce, especially if you don’t work with a large staff.It provides vendors flexibility, even if the shipment is occasionally delayed.
We are not, however, encouraging you to fail to fulfil your orders on schedule. We’re only mentioning it because you need to engage a competent dropshipping agency to maintain track of your packages as a dropshipper.
If the cargo takes too long, your clients may not be as upset.
Con's of Etsy dropshipping
When you begin dropshipping on Etsy, consider the following disadvantages:
Dropshippers uncertain future
Because Etsy’s standards do not mention dropshipping, the platform’s future for dropshippers needs to be better.
You never know when Etsy will implement a policy that entirely prohibits dropshippers and closes any loopholes that they may use.
That is why, rather than focusing just on opening an Etsy business, we propose developing a brand.
Even if you cannot continue working on Etsy, you will find it easier to use other platforms and create your eCommerce site.
High transaction costs
The most significant disadvantage of Etsy is the high cost of transactions. Vendors must pay 6.5% of the displayed price for each sale.
There’s also a listing fee of $0.20 for each item. It might not sound like a lot, but as your business grows, it can eat away at your profits.
It is one of the main reasons why we don’t recommend Etsy for larger businesses.
If you plan on selling hundreds of products, then Shopify dropshipping would be a better alternative.
Limited scalability
You’ve undoubtedly realized by now that there are better sites for obtaining hundreds or even dozens of orders daily than Etsy.
Paying $0.20 for each listing and a 6.5% commission on each sale does not look enticing.
Thus, consider switching platforms if you’re getting this many orders.
Listings expiration
The most annoying aspect of Etsy is that your listings expire every four months. To renew them, you must pay an extra $0.20.
One solution is to display a limited quantity of things and only add new products when the prior supply has sold out.
Therefore, the expiration date should be prolonged by at least a year, if not longer.
Engagement in design
Dropshipping on Etsy deviates somewhat from the typical dropshipping method. It demands your participation in the design process in some form.
Etsy isn’t your platform if you need more time or a creative spark.
There are ways to get around it, but we don’t advocate it because it might risk your account.
Strict rules and regulations
The most challenging aspect of starting a dropshipping business is deciding what to sell. It is more complex than looking through AliExpress listings and picking the product with the most outstanding ratings.
The primary need for Etsy is that the goods incorporate your thinking, creativity, or input, necessitating a lot of brainstorming.
Getting around this constraint is especially tough since you must submit information about where your items are created when you sign up on Etsy.
How to find a manufacturer for Etsy dropshipping to sell on Etsy?
The tricky thing is not creating an Etsy shop. The issue is finding a manufacturer to help you manufacture unique products on Etsy.
Etsy used to assist designers in discovering manufacturers, but they’ve now discontinued that service.
You must now hunt for an Etsy manufacturer on your own. One method is looking online for manufacturers who make custom products in your niche.
Here are five things to consider while looking for an Etsy manufacturer:
- Do your investigation and identify a manufacturer whose essential expertise fits the product you want to sell.
- Negotiate the terms and conditions with the sellers, and inform them they cannot sell your product design to anyone else.
- Check to see if the vendor is willing to deliver the merchandise.
- Create an effective communication channel and agree on how many days it will take to complete the product.
- Before you collaborate, we recommend making a test order to determine the manufacturer’s dependability.
Dropshipping from Etsy to Shopify
Regarding Etsy dropshipping on Shopify, you may use Shopify applications to advertise Etsy products on your store.
Note that because vendors frequently sell handcrafted things, numbers are limited. If you send a lot of paid traffic to a particular product, the seller may need help to process all your requests or even fail to fulfil your orders.
Also, because the product is unique, you need time to find another vendor, which may result in happier customers.
Dropshipping from Aliexpress to Etsy
AliExpress dropshipping is not a recommended platform for use as a supplier on Etsy. The made-in-China items on this site are not handmade; they are bulk manufactured for extremely low pricing.
Formerly, several Etsy sellers utilised AliExpress as a dropshipping supplier, for example, to offer t-shirts with personalized printing. When the platform spotted these merchants, they removed their accounts for noncompliance with the product guideline, as these t-shirts were not handmade.
But, crafts materials that comply with the Etsy product guideline may be found on AliExpress. This sort of product may be offered on Etsy by employing AliExpress merchants as dropshipping suppliers.
Dropshipping from Amazon to Etsy
Amazon is the world’s largest e-commerce company, selling many products. Dropshipping from Amazon to Etsy is viable if you choose things that comply with the platform’s policies, such as crafts, handcrafted, or vintage items at least 20 years old.
You may locate numerous things that meet Etsy’s specifications on Amazon and upload them to your platform shop to make them available to Etsy users.
Dropshipping from eBay to Etsy
eBay is a marketplace that fits nicely with the Etsy dropshipping model since it provides many properly aged antique items that may be lawfully sold.
Putting these eBay products in an Etsy shop allows you to offer many things to shoppers seeking vintage and antique items, making this an up-and-coming method of earning sales.
Conclusion
While there are advantages and disadvantages to selling on Etsy, as we’ve mentioned, the fact is that it’s similar to a creator’s heaven in many respects.
Etsy has a big, engaged, and trustworthy audience. Because the purpose is to uncover handcrafted things from niche artists, people are more inclined to buy from tiny creators than they may be on a site like Amazon.
The prices are very reasonable compared to other platforms, and the convenience of setup and continuing use is hard to beat.
Etsy is a few clicks away if you’re ready to start your creative business. It could be time to begin.
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Frequently Asked Questions
What is Etsy Dropshipping, and how does it work for sellers in India?
Dropshipping on Etsy entails purchasing handcrafted things from suppliers when a buyer purchases your business. In the following phase, suppliers will handle the remaining, including production, packing, and shipping.
Dropshipping on Etsy links an Etsy seller’s store with a supplier, who sends products directly to the buyer.
When a buyer purchases an item from the seller’s Etsy shop, the seller places the order with the supplier. The supplier would then ship the product to the customer directly, and the seller would keep the difference between the amount they charged the consumer and the product cost.
It enables Etsy sellers to provide various products without stocking them in their stores.
Is dropshipping allowed on Etsy, and are there any specific rules for Indian sellers?
While Etsy’s website does not directly mention dropshipping, it does offer some tips for similar business models:
- All items for sale on Etsy must be handmade, vintage, or craft supplies.
- All things sold in Etsy’s Handmade category must be manufactured and designed by the seller. It is against the law to resell.
- Etsy shop members or merchants from whom the merchant acquires ready-made things for resale are not permitted to be production partners.
- Dropshipping from AliExpress is not permitted for Etsy merchants.
- When dealing with them, sellers must indicate their affiliation with “producing partners” on product listings.
- Craft supplies can be obtained from a third-party source and can be handmade, commercial, or vintage.
How can Indian sellers set up a dropshipping business on Etsy?
Sellers from India have been using Etsy since its launch in 2018, and there are over 650,000 products available on Etsy from Indian merchants, including ethnic jewellery, traditional clothing, parasols, textiles, bed-covers, and quilts, among other things.
Etsy has established a team in Delhi to assist more local entrepreneurs in expanding internationally. It is one of the company’s initial few seller-focused teams.However, GST is mandatory to sell on Etsy dropshipping.
What are the best products for dropshipping on Etsy from India?
The best products for dropshipping on etsy are
- Artworks
- Pottery
- Clothing
- Jewellery
- Handmade products
How to find reliable suppliers for Etsy dropshipping in India?
Here are the best and reliable suppliers for Etsy dropshipping in India
- Qikink
- Printful
- Vendorboat
- Gelato
- Printwear
- Owl prints
With over 6+ years of experience in the industry, Ayushi excels in building strong customer relationships and guiding clients toward growth as a Brand Partnership Manager. She enjoys sharing her experience in her content.
