Dropshipping on Etsy: How to Start After Changes in Trade Policies

Dropshipping is not new to the world. In fact, there are now platforms sellers can use to start and grow a successful business. Etsy is one of those platforms. 

Dropshipping on Etsy has now emerged as one of the best e-commerce platforms. It has succeeded from a niche marketplace for handmade and retro items into one of the best e-commerce marketplaces. Right now, due to many changes in trade policies, sellers are more concerned with how to start dropshipping on Etsy amid the changes. 

Here today you will find out how to do dropshipping on Etsy and how to start Amid changing trade policies. 

Also Read: Impact of De Minimis Rule on Dropshipping: How to Adapt to New Import Regulations

How are Etsy's New Trade Policies working?

Etsy is one of the leading dropshipping marketplaces for Sellers. Recently, they updated their policies for sellers to optimize and maintain integrity, especially to prioritize handmade and unique products. Some of the changes sellers must know are as follows: 

Handmade Policies: A handmade policy requires a seller to prove their involvement in production or be a partner of a production company. In other words, the seller must be involved in the design process. There is no more Reselling of generic wholesale items. 

More Transparency: Etsy added a bit more transparency. Now, you will need to give information about your production partner so they know where the products are coming from. 

No more Reselling mass-produced goods: Etsy will immediately ban your account if you resell mass-produced products. The only way you can if these products are coming under the vintage category other than this category is you will get your account banned if you resell mass-produced products. 

Quick Action of New Policies: Etsy is taking quick responses against anyone violating policies. Any seller who doesn't follow these policies will be immediately suspended and permanently banned. So, as a seller, be very aware of it. 

How to start dropshipping On Etsy (Despite the current changes in policies)

Go for the right Niche:

It's always the first priority to do research on your Niche. But when it comes to Etsy, you need to focus on Handmade policies first and then decide what you want to resell in your dropshipping business. 

• You can go for Custom Printed items like t-shirts, Mugs, Posters, and more

• Some personalized gifts, like jewelry, etc, are good options on Etsy

• Digital products are trending in Dropshipping, like Templates, art prints, and more

• The most trending Niche on Etsy nowadays is handmade-style home decor, like wooden signs, pillows, candles, and more, which comes with custom labels to add a twist. 

Find out about Print on Demand Suppliers:

If you are hearing POD (Print on Demand) for the first time, then you need to find out more about it if you need to start dropshipping on Etsy. There are companies of POD that give you customization rights, or in simple words, they involve you in the design process, which is the requirement of Etsy if you want to do dropshipping. Some POD companies on Etsy you can join include:

• Printful: They are best for offering custom products and include Etsy Integration.

• Printify: Printify is more about networks. They have the best global suppliers, and you can use it with ease thanks to its interface.

• Gooten: Gooten is another option with product categories, including automation features that give you the best experience. 

• Apliiq: If you have a custom clothing business, they are the one for you. They have custom clothing facilities with very good design options. 

Also, Etsy now encourages its sellers for transparency. So make sure you list your supplier and describe your role in the design process you are selling. 

Optimize Pricing for better Profitability.

On Etsy, you will face a Listing fee of about $0.20 per Item, transaction fees of 6.5%, and payment processing fees, which depend on your country. So, based on these stats, calculate all the prices; in fact, you can use this formula. 

ALL THE COSTs + Profit margins = Retail Prices

Now, if you want to stay in the market and make a profit, you need to optimize your pricing, keep competitor pricing in perspective, and even offer some discounts.

Give the best Customer service Possible:

• Giving the best customer service is always a great way to streamline your business and attract more loyal buyers. Likewise, top-notch customer service is essential on Etsy. 

• Use POD and integrate it with Etsy. This will automate order processing, making it extremely easy for buyers to purchase. 

• Always communicate frequently and give updates on tracking. Customer satisfaction goes hand in hand with these attributes. 

• Keep engaged with your customers; you can use the prompt to respond to their queries and to get their loyalty go for personalized interactions, 

Promote your dropshipping store:

• Etsy is not like eBay or Amazon, where you can get the same level of organic traffic for non-handmade items. In the case of Etsy, you have to market your store. 

• Go for Etsy Ads. Etsy's Internal Advertising platform boosts your store, gives you more impressions, and increases your visibility. 

• Likewise, social media marketing is always a priority. You can promote your products on Instagram, Pinterest, and other famous social media platforms like TikTok. 

• You can partner with some influencers about your Niche and give them incentives to promote your products. 

• Email marketing is another way to keep your customers updated on new products and prices. 

How to Overcome Challenges on Etsy:

Etsy's new policies may trigger alarms for many sellers, especially non-handmade dropshipping businesses. However, you can overcome these challenges by updating your dropshipping method on Etsy. 

• Be transparent and participate in the customization designs of your reselling products. This way, you will not face any suspensions or other consequences. 

• Affiliate with the POD (Print on Demand) Partners. We mentioned several of them on Etsy above, and they offer quality assurance and swift shipping. 

• Update your refund and return policies. Customized products often need such policies. 

• The Etsy market is overcrowded, so there is competition. Make sure to offer unique designs and prioritize customer satisfaction. 

What the Future Holds for Dropshipping on Etsy

• Every platform refines its policies, and Etsy will do the same. Dropshipping will be regulated over time, but you must be prepared for it as a seller. 

• Etsy may introduce stricter policies for Handmade Verification, making the proof of seller involvement much more transparent. 

• More detailed information is needed to understand the origin of the product. 

• AI tools might be integrated into Etsy, especially to detect non-compliant stores. 

Conclusion

Dropshipping used to be the perfect idea for businesses, but nowadays, everyone is reluctant to do it because of its strict policies. Likewise, on Etsy, you may find more rigid terms and conditions for dropshipping businesses than on other Platforms like Amazon or eBay. 

Despite these changes, dropshipping on Etsy is still doable, and you can achieve success by keeping all the policies in mind and trying to avoid any violations. For a start, make sure to know everything about dropshipping on Etsy, and then begin your journey with Etsy.