How to Start Etsy Dropshipping Business

Sharline Shaw

Etsy dropshipping is a popular business model for new and risk-averse entrepreneurs who want to start their e-commerce business.

This platform allows you to sell handmade, printable, wedding products, crafts, and antique pieces.

With more than 2.1 million sellers, the Etsy dropshipping appears to be a goldmine for selling and buying quality products.

So, if you are going to start the dropshipping business, you are in the right way.

In this article, a brief description related to the Etsy dropshipping has been provided. You can get through the article to learn about this business model.

Etsy Dropshipping

What is Etsy?

Etsy is an online marketplace. It allows people to sell and buy crafts, vintage, and unique products. And these products are difficult to find somewhere else. Everything on the Etsy is made and sold by the people just like you.

There are numerous benefits of using this platform. The Etsy gives you a chance to sell and buy handmade or vintage goods from different regions of the world.

You can use this platform to find the local crafts or to get advice on how to buy or sell the handmade items.

The site does not sell anything else by itself, and instead, the site acts as a middleman. The website does all the paperwork between the buyer and seller to avoid any sort of scam.

Buyers on the Etsy look for the handmade goods to create or complement their own unique or home décor styles. And others may just want to support the small scale artists or artisans in their neighborhood.

Some people also search for the vintage items; they may be collecting the antique pieces which they can display later on. It is challenging to find such types of products these days.

Well, the sellers on the Etsy try to get a huge profit margin by selling the products which they had made a hobby.

But for some of the professional artists and craftspeople, Etsy is a selling platform for their small business. At the same time, many sellers offer antique pieces just to clear out their old items.

Etsy is the popular website on the internet for both buyers and sellers, who are looking for unique, creative, or rare collections, either to sell or buy.

Does Etsy allow Dropshipping

What is Dropshipping?

Dropshipping is a fulfillment method, which does not require the business to keep the products in stock. Instead of it, the store sells the products and passes on the sales orders to the third party supplier.

The suppliers not only manufacture the products but also ship them to the customers. In this, the sellers do not handle the products directly.

The seller or dropshipper is unaware of the quality of the goods and depends on the supplier.

The most significant difference between dropshipping and standard retail is that the selling merchant does not stock the products. The seller purchases the goods from the third party according to its needs, to fulfill the orders.

Dropshipping is a huge business model for all the entrepreneurs to start the business because it is accessible. With the help of dropshipping, you can easily and quickly test the different business ideas with a limited downside.

This business model lets you learn about the most demanding products for the successful dropshipping business. The following are the benefits of the dropshipping business model:

  1. Less capital or startup cost is required
  2. You can quickly start the business
  3. Low overhead
  4. Flexibility in location selection
  5. A long list of goods to select from for the dropshipping
  6. A more natural way to test the demand for different products
  7. Easier to scale

Suggested reading:Dropshipping Business: Beginner’s Guide

What is Dropshipping


Does Etsy allow Dropshipping?

Yes, the Etsy allows the dropshipping. You need to create a store, and then you can start to sell the products. It can be a good option of you is interested in clothes, handmade items, crafts, or antique pieces.

In dropshipping, you need to make the decisions wisely. For instance, you should select the best and reliable supplier. And above all, you should choose the products which are high in demand, as they will offer you a huge profit margin.

The following are the features of the Etsy dropshipping:

  1. 35.8 million active buyers reported in 2018
  2. $441 million revenue was published in 2017
  3. Total number of active sellers on the Etsy is 1.98 million
  4. More than 86% of the registrants are women
  5. The Etsy stores are working in more than 83 countries of the world


Etsy Dropshipping

The Popularity of dropshipping over the years has led almost every trader to consider this new business model at least once in their life, especially with Etsy.

The pros and cons of Etsy dropshipping are given below.

· Pros

Dropshipping is a popular platform for every business person. There is Amazon dropshipping, eBay dropshipping, Shopify dropshipping, and many more. Then why are people interested in the Etsy drops shipping?

Being an online drop shipping destination, Etsy provides a large number of substantial advantages. A few of them are provided below.


The company is quite famous around the globe. It is an online marketplace, which provides convenient and reliable payment methods, strict yet a good usage reputation-policy, and a supportive environment. And all of these make the Etsy a favorite plat of both buyers and sellers for the Etsy Dropshipping.

That’s why you can safely sell and buy the products on the Etsy. And the credit goes to the transparency of the platform. Therefore, no one cannot fall victim to the scammers at this platform.

Product Range

In contrast to AliExpress, eBay, and Amazon, Etsy offers you a unique range of products. The platform is designed for the selling of handmade designer products, vintage items, crafting tools, and old items.

So, it can be said that Etsy provides you a unique range of products that no one can compete with. Therefore, Etsy dropshipping is a great option to consider if you are willing to start the dropshipping business.

Product Range


It is not only a marketplace, which brings the sellers and buyers together. The company aims to support the local craftsmanship and empower creative businessmen.

The company tries its best to support and help the artists all over the globe. So, they can get financial benefits from their meaningful and emotionally rewarding activity.

Therefore, through its altruistic behavior and user-friendly policies, a community has already been formed around the website.

Both the buyers and sellers enjoy working with Etsy. They try to maintain an inspiring, encouraging, and responsible atmosphere at the Etsy.

Etsy is considered to be an excellent platform for the dropshipping business. The traders feel the honor of working with them. Therefore, most of the people prefer the Etsy drop shipping over other platforms.

· Cons

The platform seems to be perfect for entrepreneurs. The company offers you a close and safe community that enables risk-free transactions.

Here you can find thousands of highly competitive products with amazing features. It will help you to create an unbeatable product offer for the customers.

But unfortunately, the site has some drawbacks too, which can make it quite challenging to use the Etsy for the dropshipping business for both the selling and purchase point. The limitations of Etsy dropshipping are listed below:

Legal Actions

There are only limited ways through which you can list the Etsy products in your store. So, you need to make sure that the machine you are using is not illegal. Otherwise, you may face legal actions from the Etsy management authority.

Profit Sharing

One of the significant Etsy problems is profit sharing. Getting Etsy’s seller products on your store will require an agreement between you and the original seller for the profit margin.

You will have to give a particular part of your profit to the seller, which will reduce your overall earnings. Therefore, it may discourage you from starting the business on this platform.


Currently, the company is working through the regulations and sanctions of the United States. If you are in a country that needs to get permission from the US for dropshipping, you may face problems in making deals with the supplier and conducting the entire dropshipping business.


Etsy Dropshipping Rules

Etsy is a unique marketplace where sellers and buyers come to sell or buy the products, which cannot be found somewhere else.

Everything listed at this platform sale must be handmade, vintage, or a crafty supply. Furthermore, all the handmade items should be made or designed by the seller.

If you are selling antique items, they must be more than 20 years old. And if you are dealing with the crafts, you can sell them from another supplier.

You should disclose from where you got the products and their environmental attributes like as if it is made from the recycled material.

· Ban On Reselling

Well, it is another reason not to use the Etsy platform for opening the dropshipping store. You cannot resell the items which are not produced or designed by the exact seller, and this type of trade is strictly prohibited at the Etsy platform.

Ban On Reselling

· Product Requirements

A wide range of items is allowed for the sale on the Etsy. But all of these items should be handmade, vintage, or a craft supply. Therefore, you cannot sell the clothes and other accessories ready for the retail sale here.

These types of policies make it impossible to use Etsy as a destination for creating the dropshipping store selling the AliExpress items through it.

· Geographic Restrictions

According to the Etsy Sanctions policy, the platform is operated according to the economic sanctions and trade restrictions of the United States.

If you are running a business from the sanctioned location, you will not be able to use the Etsy account for reselling your items. Furthermore, Etsy does not allow buying or selling the products which are coming from the sanctioned territories.

· Double Control

The Etsy dropshipping policy also states that the on-site payment processors like PayPal may monitor the purchasers.

And if they do not meet the sanctions complaints criteria, the transaction can be blocked. This type of third party actions may not be controlled or regulated by Etsy.

· Transparency

Your shop location must be visible on the Etsy store page. And you will have to mention the manufacturing partners in your profile.

Therefore, hiding the location or selling the products which are not physically produced by you will be possible at the store.

The primary purpose of these strict instructions or rules is to just create transparency in the Etsy drop shipping.

· Wholesale Program Termination

Well, once it was possible to register for the Etsy wholesale program as an independent retail location. And you can purchase the ready to use goods at the wholesale price.

Theoretically, this type of program was used as a loophole for the Etsy drop shipping. But after the 31st July 2018, the wholesale business is not allowed at the site.

· Fee Policy

If you are trying to sell the Etsy listed products through other websites, it will be taken as a fee avoidance action, which is not allowed at this platform. Therefore, an Etsy buyer is not permitted for any type of independent dropshipping store.

The Etsy store forces the sellers to pay various types of charges, for instance, listing fee, transaction fee, and many more. These charges include the product price, gift-wrapping cost, and Etsy shipping cost.


How to Dropshipping Products from AliExpress to Etsy?

AliExpress is a well-known marketplace for online business. The company allows dropshipping. You can use the platform of AliExpress to both companies to business and business to consumer drop shipping.

If you are interested in dropshipping the products from AliExpress to Etsy, it is a good option. It will give you a considerable profit margin. But you need to consider one thing that through Etsy you can sell those products which are made by you.

Suggested reading:AliExpress Dropshipping Guide

ow to Dropshipping Products from AliExpress to Etsy


How to Dropshipping Products From Etsy to Shopify?

If you are going to dropship the products from Etsy to Shopify, it is relatively simple. Pay attention on the little details, as you will not want that your buyer is forwarded to the Etsy seller.

Importify is an app, which provides you the opportunity to include the bestselling products of Etsy to your store on Shopify.

You will need to take permission from the sellers in doing so. The following are the steps you will need to follow while dropshipping from Etsy to Shopify.

  1. Visit the
  2. You will need the Chrome extension for the Shopify for this purpose
  3. Find the product on the Etsy and enter the URL of the product page
  4. Click the add button on the left side of your brewer, and it will enable you to add the products to your store
  5. Change the description of the products, price and other information, before you click the “Add Product” button
  6. And that’s it, and you have successfully added the products from the Etsy to your Shopify store

Suggested reading:Shopify Dropshipping :Ultimate Guide 2020

Products From Etsy to Shopify


How to Find the Best Etsy Dropshipping Suppliers?

In the business of dropshipping, the supplier is a crucial factor. The dropshippers entirely depends on the supplier for the supply of products. It is the supplier who can make you a success story, and it is the one who may waste all of your money.

So, while starting the China dropshipping, you must search for a reliable, trusted, and legitimate supplier. The following are the best platforms to get the supplier for your dropshipping business.

· Use Google

Google is the best way to find the list of most trusted suppliers. But while searching with Google, you may have to search through multiple pages of results.

You will have to modify your research carefully, not only using the dropshipper, wholesalers but with most of the relevant terms.

· Go To A Trade Show

Nothing can be better than the trade shows to find the best supplier for Etsy dropshipping business.  The trade shows give you the best chance to meet the suppliers and also to see the quality of the products.

You can get the people of all stages of the process there, including both the manufacturer and supplier. And indeed it will be a great way to get the supplier.

· Visit Dropshipping Related Websites And Databases

It is the most easiest and most comprehensive way of finding the dropshipping supplier, especially when you are searching for an economical one.

You can easily get a list of the most trusted and reliable suppliers there. Then you will have to select one from them, which suits your business the most. You can get the contact number, and many other related details of the supplier, so you can contact them.

There are many websites like Oberlo or SaleHoo, working on getting you the best suppliers. It is a speedy and quick way to get suppliers.

Suggested reading:Top Free Dropshipping Suppliers

Best China Dropshipping Suppliers


Are There Any Etsy Alternatives as Dropshipping Supplier on China?

If the cons of the Etsy drop shipping have made you think of the future problems, it’s better to search for alternative ways. The following are the best alternatives for your Etsy dropshipping business:

· Alibaba

Alibaba is China’s and the world’s largest online e-commerce company and handles more businesses than any other e-commerce company.

The company has millions of users and hosts thousands of merchants and companies. It has three main sites Taobao, Tmall, and

Alibaba is considered to be the most popular destination for online shopping in the fastest growing ecommerce market. The total amount of transaction sums up to be $248 billion last year.

Alibaba is one of the most valuable technology companies in the world after raising $25vbillion from its US IPO. It is the most expensive Chinese public company, ranking among some of the country’s state-owned businesses.

TaoBao is Alibaba’s most extensive shopping site. It is a home for millions of merchants, who sell everything from leather jackets to the origami decorations. It is free for the users, but the sellers can pay for the ads so they may stand out of the remaining.

· Chinabrands

Chinabrands is a global dropshipping or distributing powerhouse platform for e-commerce. The company cooperates with more than 400 logistic channels, which covers more than 200 countries and regions.

Chinabrands aims to provide a marketplace to the international sellers so that they can start their own business quickly and easily. The company is providing its multiple best services to more than 300,000 global sellers.

The website has more than 40+ warehouses worldwide, which makes it very easy to ship the products quickly to the customers.

The warehouses are located in the United States, United Kingdom, France, Canada, Australia, and Russia. Therefore, they deliver products in more than 250 countries, with the fastest delivery times.

· Made In China

Made in China is one of the best platforms for the dropshipping business. The site is flourishing day by day and is one of the best websites in China from online business.

The website has a high consumer rating, which shows the reliability of the consumers on the site.

Made in China is present in the 13th position among china sourcing agents. The company offers a product directory, sourcing request services, payment escrow, audit report s, and assistance in meeting the suppliers.

· DHGate

DHgate is a legal site with millions of members, which has been trading since 4004. DHgate offers a high quality of goods from reliable sellers. DHGate offers you more than 10 million products to buy from, and there are more than 1 million sellers on the website.

DHgate offers protection for buyers. For instance, if you do not receive the orders, or get a defected piece, they will provide a refund.

Some of the top-selling items on DHgate are wedding dresses and electronics. There is no minimum order quantity. Therefore, it is considered to be the best place to source Chinese products from all over the world.

DHgate offers low prices as compared to other sites. And the products you will get here are unique and are of good quality. The company also gives coupons and discounts to buyers. You will get $3 off on the new purchase.

Suggested reading:Is DHgate Safe? Is DHgate legit? DHgate Ultimate guide

Is DHgate Safe

· Global Sources

The company was founded in November 1970 by the merle A. Hinrichs and C. Joseph Bendy. It is based in Hong Kong and offers a platform for business to business e-commerce.

The site facilitates the trade from China to other parts of the world by using a long-range of English language media. The site also facilitates trade from the world to China by using the Chinese language.

The company tends to provide the sourcing information to the volume buyers and integrated marketing services to the suppliers.

The company acts to be your one-stop destination for sourcing the products. The company does not sell the products, but it is used as a platform to sell the products. Site is considered to be one of the biggest B2B platforms in the world, which promotes the delivery of Chinese goods all over the globe.


The company is a beautiful site to get the bits and bobs, gadgets for the kitchen, parts of the pictures, USB keys, and many more. The site provides free shipping worldwide.

It is a safe and scam-free site for online shopping. The company takes about 20 to 30 days to ship and deliver products all over the world, and it may take up to three months.

To supply high-quality products and to satisfy the customers, the company also gives a refund policy. So, if you did not get the products in any case or its different from what you ordered, you are going to have your money back.

· Focalprice

Focalprice is one of the Chinese leading e-commerce sites, which offers more than 70,000 products.

The products are provided from different categories and are available to anyone who is looking to make the individual purchase or wholesale orders.

The site gives you a 7 to 10% discount on all the products you purchase, as compared to other websites, including eBay.

Once you have made the orders, they will complete three different quality inspections before the shipment. The company offers free delivery all over the globe and gives you a three months guarantee.


· Light In The Box

It is an online retail company. Light in the box was founded in June 2007 and aimed to provide Chinese products at the international level.

The company gives you a wide range of goods, including wedding dresses, gardening tools, and clothing. The company provides multiple products successfully in more than 200 countries. It almost takes 3 to 4 business days to arrive.



FAQ about Etsy Dropshipping

The following are the most commonly asked queries related to Etsy dropshipping and Etsy shipping. The best possible answers are also given along with them.

·What Cannot Be Sold On Etsy?

Etsy is not a curated marketplace. However, a wide range of products is not allowed at the site because of various reasons.

For instance, these products present some legal risks to the community, and many other products may not be suitable for health.

The Etsy offers a policy, which is the part of terms of use. The following are the products restricted or prohibited for the Etsy dropshipping:

  1. Alcohol, tobacco, drugs, drugs paraphernalia and medical drugs
  2. Hate items which promote, support or glorify the hatred
  3. Animal products and human rights
  4. Dangerous items like hazardous materials, recalled items, and weapons
  5. Illegal items, items promoting the illegal activity, and highly regulated items
  6. Internationally regulated items
  7. Violent items which support, promote and glorify the violence
Restricted Commodities

· What Is The Most Sold Item On Etsy?

The following are the top-selling products in 2020 through Etsy dropshipping.

  1. Crafts and supplies
  2. Jewelry
  3. Handmade items
  4. Wedding items
  5. Clothing
  6. Accessories
  7. Home and living
  8. Paper and party supplies
  9. Art and collectibles
  10. Vintage items

· Does Etsy Sell Fake Stuff?

Some of the products on the Etsy are authentic, but many are not. Because the site is selling handmade goods, therefore there is a chance of fake products. And it is one of the significant Etsy problems.

· How Much Does It Cost To Ship On Etsy?

The Etsy shipping transaction fee is a 5% transaction fee on the cost of the shipping. For instance, you will sell a product of $30 and will cost an additional $5 for the Etsy dropshipping.

· What Should I Do If I Get Scammed On Etsy?

Whenever you feel that something wrong has happened, you should use the Etsy case system to resolve the disputes.

If you are unable to come to the resolution with the seller, left all the issues for the Etsy; they will try to resolve the whole problem on your behalf.


How Leeline Sourcing Help You Find The Best Chinese Etsy Dropshipping Suppliers And Wholesalers

Dropshipping has become one of the most favorite business models to earn a considerable profit margin. Dropshipping needs a little capital investment.

But most of the dropshipping businesses failed due to the wrong selection of the dropshipping supplier or wholesaler.

Therefore, you need to select the best dropshipping suppliers to run your business successfully. But it is a hell tough task.

You will find many fake dropshipping suppliers on the internet. They used to create more obstacles in your dropshipping business. Find a satisfied, affordable, and trustworthy supplier is a very time-consuming process.

To help you in finding the best dropshipping supplier, Leeline Sourcing offers its services.

The company gives you a list of the best suppliers for your dropshipping business. The company can provide you the details of both general and niche dropshipping suppliers.

Leeline sourcing not only gives you a list of reliable suppliers but also arranges the factory audits to ensure the quality of products. If you are interested, the company can also arrange a factory audit for you.

Final thoughts on Etsy Dropshipping

Dropshipping is a sustainable business model that ensures long term earnings. Etsy Dropshipping is an excellent platform for starting your dropshipping business.

You can sell crafts, antique items, clothes, and many more. But in Etsy dropshipping, you can sell only handmade products.

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Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.