Founded in June 2005, Etsy is a global online marketplace originally known best for its wide selection of arts and crafts, handmade items and vintage items.
In 2013, the platform began allowing sellers to use mass manufacturing to produce their goods – a move that helped pave the way for strong international expansion.
Currently, Etsy supports payouts to third-party sellers in at least 60 countries, with many more being added to the list. Sellers from additional countries, particularly those with pre-existing shops, may also be able to sell on the platform.
But what about dropshippers? Some cursory Google results say they’re outright prohibited on Etsy, while Redditors complain the platform is “flooded” with them. In this step-by-step article, we’ll share what you need to know as an e-commerce business about dropshipping on Etsy, including:
- Can you dropship with Etsy?
- How to start dropshipping with Etsy
- Why AliExpress is a better alternative for dropshippers
- How WorldFirst can help you save money as an international seller
Want to start selling on global marketplaces like Etsy without opening separate bank accounts in multiple countries? Sign up to WorldFirst, an international business account with transparent fees.
Can you dropship with Etsy?
Yes and no. Etsy’s rules explicitly prohibit dropshipping of mass-produced items, with the exception of Craft and Party Supplies.
- Craft supplies include tools (knitting needles, sculpting tools, etc.), materials (yarn, beads, etc.), and project kits like unpainted figurines, craft kits, etc.
- Party supplies include balloons and streamers, gift wrap, table decorations, etc.
However, Etsy’s policies defines dropshipping as “the practice of selling ready-made products that are shipped directly from a third-party supplier to the customer, without any alteration or customization by the seller.”
Crucially, this clause leaves the door open for dropshippers to offer products produced and shipped by outside suppliers and mass manufacturers (which Etsy called “production partners”), as long as those products are designed by the seller and/or customised by the buyer.
In addition to dropshipping, Etsy also allows reselling, as long as the resale products are craft and party supplies, vintage items, or gift baskets assembled by the seller.
Note: There is one other way to use Etsy for dropshipping: You can source products from the site and sell them through your own online storefront. But this option isn’t recommended. Etsy isn’t the most affordable place to source, and you’ll have limited control over packaging, fulfillment and other aspects of the customer experience.
If you’re looking for suppliers so you can dropship on other sites, we recommend considering 1688.com or AliExpress instead of Etsy.
How to start dropshipping with Etsy
To get started dropshipping on Etsy, follow the steps below – but be sure to double-check Etsy’s website for the most current guidelines and policy updates.
1. Understand the rules
First, make sure you clearly understand what makes a product eligible for dropshipping with Etsy. Read the guidelines to determine which products constitute craft and party supplies before you decide what to source and sell.
If you choose to sell original designs or buyer customizations, be sure to adhere closely to Etsy’s creativity standards and follow associated requirements.
Etsy requires dropshippers to document their production processes thoroughly, and disclose all of their production partners transparently in their listing details. Etsy also asks sellers to use their shop’s About Section to explain how their items are designed and created.
2. Create an Etsy account and open your Etsy shop
Once you understand the rules and have ensured that the products you want to dropship meet Etsy’s product guidelines, it’s time to create your Etsy shop.
To get started:
- Create a free account and enter your personal details
- Create your Etsy shop, sharing details about your residential and business history, and adding shop details and preferences
- Set up your payment and billing details, choosing which country you’re selling from and what currency you’ll charge customers.
- You can only list products in one currency in your Etsy shop
- If you want to list in multiple currencies, you need multiple Etsy accounts with different email addresses. You will also need to disclose all of your Etsy accounts by listing them in the public profile for each seller account.
- Choose a shop name. Pick a memorable name that includes relevant keywords and isn’t trademarked, and isn’t already being used by another Etsy member.
- Customize your other store details, and get ready to sell!
3. Find suppliers and production partners
Once you have done product research and know what you want to sell, it’s time to decide how you’ll source it.
If you choose to create your own designs or offer personalised products to your customer base, you’ll need to find a production partner. For personalised items, you can look for a print-on-demand product partner like Printify or Printful. For craft and party supplies and other items, you’ll need a supplier or manufacturer.
One option is to use a Chinese sourcing platform like AliExpress or 1688.com. When you join WorldFirst, you get direct access to 1688.com, where you can access over 10 million products, including thousands of products eligible for dropshipping on Etsy. 1688.com connects you directly with suppliers in China, and simplifies the process of paying them in local currency.
Since 1688.com doesn’t offer direct international shipping, you’ll need a qualified dropshipping agent to sell outside of China. An agent can help you choose affordable, high-quality suppliers, as well as handle translation, quality checks and order fulfillment.
Want to form stronger relationships with your international suppliers? WorldFirst helps you pay suppliers fast. Learn more or sign up now.
4. Upload your products
Once you have your products ready to go, it’s time to upload them and display them in your shop. You’ll need to create a listing for each product, including details like how it was made (don’t forget to list your production partners and details) and the product category.
To create a listing on Etsy.com from your browser:
- Go to Shop Manager
- Select Listings
- Select Add a listing
- Create your listing
- Select Publish
To create a listing on the Etsy store seller app:
- Go to Listings
- Decide whether to copy an existing listing or start from scratch
- Choose a category
- Upload your photos
- Enter your listing information
- Select Publish
Be sure to upload clear, high-resolution images and videos, and take plenty of pictures from various angles. You can use up to 10 photos and one 5–15 second video. Follow the guidelines in Etsy’s Ultimate Guide to Product Photography.
Also be sure to use a clear, descriptive title with relevant keywords, and include plenty of descriptive information. Select Add Personalization if you want customers to have customisation options.
Thoroughly review your pricing, inventory information, product description and shipping options for each Etsy listing.
5. Decide how you’ll get paid
In order to get paid on Etsy, you need to connect your bank account to your shop.
First, head to the How you’ll get paid page and fill out some personal information. Next, find the “Where is your bank located?” header and select the appropriate country. Follow the instructions to add your bank information, verify your identity and confirm any additional details.
Like many other global marketplaces, Etsy requires local receiving account details in order for you to get paid as a seller on its marketplace. If you want to sell in multiple countries, that can mean registering for a local bank account in each.
When you sign up for a World Account, however, you can get local business accounts in 20+ countries and the ability to receive and hold funds in 20+ currencies. It’s free to open, receive and hold funds in your World Account, there are no monthly fees, and it only takes a few minutes to apply and set up online.
- Open 20+ local currency accounts and get paid like a local
- Pay suppliers, partners and staff worldwide in 100+ currencies
- Collect payments for free from 130+ marketplaces and payment gateways, including Amazon, Etsy, PayPal and Shopify
- Save with competitive exchange rates on currency conversions and transfers
- Lock in exchange rates for up to 24 months for cash flow certainty
6. Set up billing
Once you’ve set up payment, you’ll also need to share debit or credit card billing info in order to pay seller fees, account fees and more. Etsy requires all sellers on the platform to have either a debit or credit card on file.
You can use your card on file – including your World First virtual card – to pay various Etsy fees, including listing fees, transaction fees and payment processing fees. Etsy fees include the following:
- US$0.20 for each product listing
- 6.5% transaction fee of the total order amount (in the listing currency you chose)
- Payment processing fees, which include a set rate plus a percentage of the total sale price of each item. These fees vary by country
Want to pay in more currencies with fewer fees? When you open a World Account, you can pay partners, suppliers and marketplaces in 200+ regions and 100+ currencies, without any monthly account fees.
Why AliExpress is a better alternative for dropshippers
Instead of dropshipping on Etsy, consider sourcing products from AliExpress and selling them on your own site or another marketplace like Amazon or eBay. Backed by Alibaba Group, the platform was launched in 2010, and features over 100 million products from thousands of third-party sellers.
AliExpress is a great (and affordable) place to find unique products, which you can sell on Etsy, Amazon, another marketplace, or your own online store. It’s a dropshipper-friendly platform that makes it easier to earn high profit margins and use a better business model without following strict rules about what you can sell.
This dropshipping model works particularly well for popular items like t-shirts, phone cases, wall art and home decor products. Many entrepreneurs have built successful e-commerce business ventures using this approach, especially when combined with social media marketing on platforms like TikTok.
You can read more in our guide to the dropshipping model with AliExpress here: How to Set Up Your AliExpress Dropshipping Business.
How WorldFirst can help you save money as an international seller using e-commerce platforms like Etsy
When you get ready to start dropshipping on Etsy, you might run into the following challenges – especially if you’re selling in multiple countries or on multiple global marketplaces:
- You need local receiving accounts. Since Etsy’s buyers are predominantly based in the US, you’ll most likely need a way to receive payments in USD. Plus, many marketplaces, like Etsy, require you to have local bank accounts in order to sign up and receive payments in currencies besides your own. But setting up local bank accounts abroad – especially if you sell in multiple countries – is time consuming and impractical for most dropshippers.
- Currency conversions cost too much. Selling items on multiple marketplaces and handling payments in different currencies can cost you a lot in FX fees. These fees can hit hard when you’re already operating on thin dropshipping margins, especially when you add in monthly account fees and numerous marketplace fees.
- Paying suppliers can be tricky. To make your dropshipping store work on a marketplace like Etsy, you have to find suppliers that meet certain requirements, at a low enough cost to keep your margins sustainable. But paying suppliers in other countries without access to local payment rails can be slow and expensive, leading to cash flow problems and even inventory shortages.
Here are four ways a WorldFirst account solves these challenges, and makes it easier to sell on Etsy and other marketplaces:
Get paid with in 20+ currencies with local account details
When you dropship on Etsy, or any global marketplace, you need a way to receive funds in local currency. To meet platform requirements, you might also need to submit local bank account credentials for each country you sell in.
When you join WorldFirst, you can receive and hold funds in 20+ currencies, including GBP, USD, CAD, AUD, CNH, EUR, HKD, JPY, NZD and SGD. You also get local bank account details for each one, all with a single World Account.
It’s easy to connect your WorldFirst receiving account to your Etsy seller accounts and start collecting earnings in your currencies of choice. It’s free to collect marketplace payouts and hold funds until you’re ready to make a payment or withdrawal.
Save money with low-cost withdrawals and competitive FX rates
When you operate in multiple countries, you can wind up spending a lot on currency conversions and fees from traditional banks. Many banks charge a percentage-based fee, typically 1–3% of the transaction amount, and some also charge a withdrawal fee.
When you’re ready to convert your Etsy earnings to your local currency – or the currency you use to pay your suppliers – you can maximize profits with WorldFirst’s competitive FX rates and low fees. WorldFirst helps you get the most competitive exchange rates, and we cap our markup at 0.6% for major currencies.
WorldFirst also lets you lock in the rates you want for future transactions, or set target rates and then wait for the market to align. We watch the market for you, to help you get the best possible rates, maximising your earnings and your margins.
Pay your dropshipping suppliers faster (and cheaper)
Paying dropshipping suppliers can be a tricky and costly endeavor when you don’t hold an account in the country you source from. You might need to use wire transfer services and other intermediaries that are slow or expensive, and eat into your margins.
Your World Account lets you pay suppliers, partners and vendors affordably in 210+ countries and territories, in 100+ currencies, with same-day and next-day payments in most instances. Local currency accounts let you use local networks to pay even faster in countries and regions like Turkey, UAE, Saudi Arabia, the EU and the US.
Real-time notifications keep suppliers up to date on their payments, to help you build stronger supplier relationships. You can also schedule future invoice payments ahead of time, automating payments from your World Account.
Open an account for free in minutes
Opening a local bank account in another country, on the ground, can be impossible without expensive travel or costly partnerships. It can also take significant time to gather documentation and complete an application process. If you’re a dropshipper trying to scale, this can be an all but impossible task.
With WorldFirst, you can open an account in just minutes, all from a single web portal. Once your World Account is active, it’s only a matter of clicks to get local receiving account details, and link them to your Etsy account — and all your other marketplaces.
To connect your World Account to your Etsy account, go to Etsy’s payment settings page and add World Account as your receiving account. Anything you earn on Etsy will be automatically paid to your World Account, in the currency you select.
If you’re already receiving Etsy payments to another bank account, it’s simple to switch over to World First. Just keep in mind that there may be a short 5-day waiting period before you can receive your funds, and in some cases, you may need to download and submit an account verification letter.
Make more on marketplaces like Etsy with WorldFirst
A WorldFirst account can help you lower your international currency costs, to earn more from the marketplaces you sell on.
With your World Account, it’s incredibly easy to receive marketplace funds, pay suppliers and exchange currency at some of the best exchange rates available.
Open a World Account today to get started.
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