The Ultimate Guide to Etsy Dropshipping in 2023

Do you want to start an eCommerce business on Etsy? Etsy dropshipping is a straightforward way for most dropshippers. You purchase items from a third-party supplier and sell them on Etsy. With our ten years of experience, we’ve sourced quality inventory from top suppliers. But achieving high-profit margins requires meticulous research. In this comprehensive guide, we will delve into Etsy’s policies and the world of dropshipping on Etsy.

What is Etsy?

Etsy is an online marketplace that allows people to sell and buy craft supplies, vintage items, unique products, and Etsy prints. Everything on Etsy is made and sold by people just like you. This platform offers a chance to sell and buy handmade products or vintage goods from different world regions. Etsy users look for handmade goods to create or complement their own unique home decor styles, and others want to support small-scale artists.

What is Dropshipping?

Dropshipping is a fulfillment method that doesn’t require a business to keep its own products in stock. Instead, the store sells the products and passes on the sales orders to a third-party supplier.

Does Etsy allow Dropshipping in 2023?

Yes, Etsy allows dropshipping. To start, you need to create a seller’s Etsy store and adhere to Etsy’s dropshipping rules. It’s a good option if you’re interested in clothes, handmade items, craft supplies, or antique pieces. Success in dropshipping relies on making wise decisions, like choosing a reliable supplier and selecting high-demand products to ensure a substantial profit margin.

Here are some key features of Etsy dropshipping:

  • 97% of Etsy sellers run their stores from home.
  • In 2021, Etsy’s annual income reached $493 million.
  • In 2021, 7.5 million sellers sold their inventory.
  • More than 86% of registrants are women.
  • Etsy stores operate in more than 83 countries worldwide.

Pros and Cons of Etsy Dropshipping

The popularity of dropshipping has led many entrepreneurs to consider it, especially on platforms like Etsy. Let’s explore the pros and cons of Etsy dropshipping.


  • Reputation: Etsy is a globally recognized online marketplace known for convenient payment methods, a good usage reputation policy, and a supportive environment.
  • Product Range: Etsy offers a unique range of products, including handmade designer items, vintage goods, crafting tools, and more. This diversity allows you to sell a wide variety of products with fair profits.
  • Community: Etsy goes beyond being just a marketplace; it supports local craftsmanship and creative business people, aiming to empower artists financially.


  • Legal Actions: Etsy has strict rules about what products can be listed, and violating these rules can lead to legal actions.
  • Profit-Sharing: Collaborating with original sellers on Etsy may require sharing a portion of your profits, which can impact your overall earnings.
  • Restrictions: Etsy operates under the regulations and sanctions of the United States, which can pose challenges for dropshippers in certain countries.

Etsy Dropshipping Policy

Etsy is a unique marketplace where sellers and buyers come to sell or buy dropship products that cannot be found elsewhere. Every item listed on Etsy must be handmade, vintage, or craft supplies.

  1. Ban On Reselling: Etsy strictly prohibits the reselling of items not produced or designed by the seller, making it unsuitable for dropshipping.
  2. Product Requirements: Etsy allows a wide range of items for sale, but they must be handmade, vintage, or craft supplies. This policy makes it impossible to use Etsy as a platform for dropshipping items directly from AliExpress.
  3. Geographic Restrictions: Etsy operates according to the economic sanctions and trade restrictions of the United States. If you are in a location subject to these sanctions, you won’t be able to use Etsy for reselling.
  4. Double Control: Etsy’s policy allows on-site payment processors like PayPal to monitor purchasers, which can lead to blocked transactions.
  5. Transparency: Etsy requires your shop location to be visible on your store page, promoting transparency in the dropshipping process.
  6. Wholesale Program Termination: Etsy no longer allows registration for the Etsy wholesale program, closing a potential loophole for Etsy dropshipping.
  7. Fee Policy: Selling Etsy-listed products through other websites is considered fee avoidance and is not allowed on the platform.

How to Dropship from Etsy to eBay

To start dropshipping from Etsy to eBay, you need to understand the product listing process, outsourcing production, identifying manufacturing partners, and adhering to Etsy’s handmade policies. Here are some steps to guide you:

  1. Visit Etsy’s marketplace and find small business stockists or suppliers.
  2. Contact different suppliers, negotiate prices, and choose the best one.
  3. Import products from the supplier’s listing to your product listing, making sure to check the listing’s expiration date.
  4. Receive orders from your eBay customers and ship products directly from the suppliers.

Selling on eBay or Etsy requires high-quality products, whether they are handmade goods or branded items. Dropshipping from AliExpress to Etsy can generate higher income due to the popularity of the platform.

How do Dropship Products from AliExpress to Etsy?

AliExpress is a well-known online marketplace that allows dropshipping. It offers a substantial profit margin, but there’s a catch—you can only sell products that you make. If you’re interested in dropshipping products from AliExpress to Etsy, consider this option carefully.

How to Dropship Products From Etsy to Shopify?

If you plan to dropship Etsy products to Shopify, follow these steps carefully to ensure a smooth process:

  1. Visit
  2. Use the Chrome extension for Shopify.
  3. Find the product on Etsy and enter the product page’s URL.
  4. Click the “add” button on your browser’s left side to add the products to your store.
  5. Modify the product’s description, price, and other information before clicking the “Add Product” button.

This process allows you to integrate top-selling Etsy products into your Shopify store with the permission of the sellers.

How to Find the Best Etsy Dropshipping Suppliers?

In the dropshipping business, the choice of supplier is critical. Success depends on selecting the right supplier for your products. Here are some strategies to find the best Etsy dropshipping suppliers:

  1. Use Google: Search for trusted dropshipping companies using Google. Refine your search with relevant terms to find the most reliable suppliers.
  2. Attend Trade Shows: Trade shows provide an excellent opportunity to meet suppliers and assess product quality. You can meet manufacturers and suppliers at trade shows, making it a great way to find the right supplier.
  3. Visit Dropshipping-Related Websites and Databases: Utilize dropshipping resources to discover the best suppliers for your niche. This approach offers an easy and comprehensive way to identify trusted and reliable suppliers.

If you’re new to the business, these methods can help you find the right supplier for your Etsy dropshipping venture.

FAQs about Etsy Dropshipping

Here are some frequently asked questions about Etsy dropshipping:

What Cannot Be Sold On Etsy?

Etsy has a policy that restricts or prohibits certain products, including:

  1. Alcohol, tobacco, drugs, and medical drugs.
  2. Items promoting hatred or violence.
  3. Animal products and human rights violations.
  4. Dangerous materials, recalled items, and weapons.
  5. Illegal items and items promoting illicit activities.
  6. Internationally regulated items.

What Is The Most Sold Etsy Item?

In 2023, the top-selling products on Etsy include:

  1. Craft supplies.
  2. Jewelry.
  3. Handmade products.
  4. Wedding accessories.
  5. Clothing.
  6. Digital products.
  7. Accessories.
  8. Home and living items.
  9. Paper and party supplies.
  10. Art and collectibles.
  11. Vintage products.
  12. Etsy print items.

Does Etsy Sell Fake Stuff?

Etsy’s marketplace primarily caters to authentic products, but there is a risk of fake items due to the sale of handcrafted goods.

How Much Does It Cost To Ship On Etsy?

Etsy charges a 5% transaction fee on the shipping cost in addition to the product price. For example, if you sell a product for $30 and charge an additional $5 for shipping, Etsy will deduct 5% from the total amount.

What Should I Do If I Get Scammed On Etsy?

If you encounter an issue, use Etsy’s case system to resolve disputes with the seller. If you cannot reach a resolution, Etsy will step in to help resolve the problem.

What’s Next

Do you have your own brand in your local area? Some people don’t have storage houses, so they opt for the dropshipping business and boost their sales with effective marketing campaigns. This success is possible due to quality products and services within their chosen category.

If you’re looking to source quality items for your business, reach out to Ningqu for a quote. We offer top-notch services for product sourcing, helping you find the best products made in China with high quality and attractive costs.

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