Etsy Dropshipping: The Ultimate Side Hustle For Creatives

etsy dropshipping business in india qikink

Etsy dropshipping is a great way to make money online. Not only is Etsy a simple platform to begin selling online, but dropshipping on Etsy makes things much more straightforward.

Consider not having to store inventory or worry about shipping. With Etsy, you can design the product and have it fulfilled by someone else.

It’s that easy.

etsy dropshipping mobile sales percentage over the years chart qikink

Look at the chart showing the surge in sales on Etsy in recent years. That indicates the number of mobile sales has been consistently increasing year-year, showing that mobile shopping is becoming more popular.

This trend emphasizes the importance of optimizing your Etsy store since most customers use Etsy to shop.

In this blog, we will go through how to sell on Etsy 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 revenue in 2019. Most importantly, it has attracted over 40 million buyers to date. 

Many business owners, customers, and creators believe it is undervalued despite these figures. Etsy has tremendous potential, especially as eCommerce moves closer to being the primary shopping experience.

What is Dropshipping Business?

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:


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 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 eCommerce 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.

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.

Nevertheless, Etsy’s reach continues to expand, gaining millions of new consumers. This online marketplace also concentrates on promoting best dropshipping niche products, assisting merchants in connecting with like-minded customers worldwide.

It assists its sellers by charging fair rates, providing a variety of tools, and providing assistance and education to help them optimize their selling potential. 

Furthermore, Etsy provides appropriate tools, such as built-in analytics, to help you measure your business performance.

As an Etsy seller, you’ll have access to a simple interface that eliminates the need to create your website. 

What Can You Sell On Etsy?

Additionally, you can offer craft supplies like fabric, beads, and yarn, as well as digital products like printable art, invitations, and planners.

You can also sell vintage items at least 20 years old, such as clothing, accessories, home decor, and collectibles.

Etsy is a handmade marketplace that sells handmade, vintage, and craft supplies. That means that if you’re looking to sell on Etsy, you can list items such as handmade jewelry, clothing, accessories, and home decor.

Etsy 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.

Pros And Cons Of Selling On Etsy

With a vast global audience and a supportive community of creators, Etsy can be a great place to start your online selling journey. We will break down the pros and cons of selling on Etsy. You can make an informed decision.

What Are The Pros Of Selling On Etsy?

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

Selling on Etsy 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, Etsy registration to sell products 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.

distribution of revenue on etsy dropshipping qikink

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.

etsy dropshipping sales by category qikink

Patient Consumers

It provides vendors flexibility, even if the shipment is occasionally delayed.

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.

If the cargo takes too long, your clients may not be as upset.

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.

Con’s of Selling On Etsy

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.

Even if you cannot continue working on Etsy, you will find it easier to use other platforms and create your eCommerce site.

That is why, rather than focusing just on opening an Etsy business, we propose developing a brand.

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.

If you plan on selling hundreds of products, then Shopify dropshipping would be a better alternative.

It is one of the main reasons why we don’t recommend Etsy for larger businesses.

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.

If you need more time or a creative spark, Etsy isn’t your platform.

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 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 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

Formerly, several Etsy sellers utilized 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.

AliExpress dropshipping is not a recommended platform for use as a supplier on Etsy. The made-in-China items available on this site are not handmade; they are bulk manufactured for extremely low pricing. 

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

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.

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 items, or vintage items at least 20 years old.

Dropshipping from eBay to Etsy

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.

eBay is a marketplace that fits nicely with the Etsy business model since it provides many properly aged antique items that may be lawfully sold.


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. The purpose is to uncover handcrafted things from niche artists who sell art online. 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.

Frequently Asked Questions

Is Dropshipping on Etsy Worth It?

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 selling business.

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.

how to dropship on Etsy?

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 Etsy available in India?

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.

What are the statistics for selling on Etsy?

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)

Is Etsy a good side hustle?

If you want to make quick cash, Etsy isn’t your side hustle. It takes a lot of effort to create your items, set up your shop, take stunning pictures, and optimize your product names and descriptions so people can locate your amazing things!

The larger the marketplace, the more difficult it is to sell. Making your first transaction and gaining traction may take some time.

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