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How to Dropship on Etsy

How to Dropship on Etsy

Dropshipping has become a popular business model in recent years, allowing individuals to start their own online stores without holding any inventory. Etsy, a marketplace for handmade and vintage items, has also become a popular platform for dropshipping. While dropshipping on Etsy may not fit the traditional model, it is still possible to outsource the production of goods to a third party and sell them on the platform.

There are two ways to dropship on Etsy: sellers can either purchase items from Etsy and resell them in their own store, or outsource the production of their goods to a third-party and sell them on Etsy. While the latter may require more upfront investment, it allows for greater control over the production process and can result in higher profit margins.

However, it is important for sellers to understand the guidelines and policies set by Etsy to ensure their store remains in good standing. This includes ensuring all items sold comply with Etsy’s policies on handmade, vintage, and commercial items, as well as properly disclosing any third-party production. With the right strategy and understanding of the platform, dropshipping on Etsy can be a lucrative business opportunity.

Understanding Dropshipping on Etsy

Dropshipping is a popular business model where the seller does not hold inventory. Instead, the seller lists products on their website or online marketplace, and when a customer places an order, the seller purchases the item from a third-party supplier who then ships the product directly to the customer. This model allows sellers to avoid the costs and risks associated with holding inventory.

What is Dropshipping?

Dropshipping is a retail fulfillment method where the seller does not keep the products in stock. Instead, the seller purchases the product from a third-party supplier who then ships the product directly to the customer. This allows the seller to avoid the costs and risks associated with holding inventory.

Dropshipping is a popular business model because it allows sellers to start an online store without investing a lot of money upfront. Additionally, it allows sellers to offer a wide range of products without having to hold inventory or manage shipping and handling.

Why Choose Etsy for Dropshipping?

Etsy is an online marketplace for unique and creative items. With about 81 million active buyers and a small entry fee for sellers (US$0.20 to list a product), Etsy is a good choice for first-time online sellers. Additionally, Etsy has a strong focus on handmade and vintage items, which makes it an ideal platform for dropshipping.

Etsy also has a large community of sellers and buyers, which means that sellers can get support and advice from other sellers. Additionally, Etsy has a strong reputation for quality and customer service, which can help sellers build trust with their customers.

Setting Up Your Etsy Store for Dropshipping

Before starting to dropship on Etsy, the first step is to create an Etsy account and set up a shop. Here are the steps to follow:

1. Creating an Etsy Account

To create an Etsy account, go to the Etsy homepage and click on the “Sign in” button. On the following page, click on “Register” and enter your email address, name, and password. Then, click on “Register” again to complete the process.

2. Setting Up Your Shop

Once you have created your Etsy account, you can set up your shop. Click on the “Sell on Etsy” button on the homepage and follow the prompts to set up your shop. You will need to choose a shop name, create a shop banner and icon, and fill out your shop policies.

3. Adding Products to Your Shop

After setting up your shop, you can start adding products to sell. To add a product, click on the “Add a listing” button in your shop dashboard. You will need to provide a title, description, price, and shipping information for each product you add.

4. Optimizing Your Product Listings for SEO

Optimizing your product listings for SEO is important to help your products appear higher in Etsy search results. To optimize your listings, use relevant keywords in your titles and descriptions, and fill out all of the available tags and attributes for each product.

Finding the Right Suppliers for Your Etsy Store

One of the most important aspects of dropshipping on Etsy is finding the right suppliers. In this section, we will discuss how to identify reliable suppliers, evaluate their performance, and negotiate with them to ensure that you are getting the best deals.

Identifying Reliable Suppliers

When looking for suppliers on Etsy, it is important to do your research and find ones that are reliable and trustworthy. One way to do this is to look for suppliers with high ratings and positive reviews from other Etsy sellers. You can also search for suppliers that offer free samples or have a return policy in case you are not satisfied with their products.

Evaluating Supplier Performance

Once you have identified potential suppliers, it is important to evaluate their performance to ensure that they can meet your needs. This can include looking at their shipping times, product quality, and customer service. You can also ask for references or speak with other Etsy sellers who have worked with them in the past.

Another important factor to consider is the supplier’s pricing. While it may be tempting to go with the cheapest option, it is important to ensure that the supplier’s prices are reasonable and that they are not cutting corners on quality to offer lower prices.

Negotiating with Suppliers

When working with suppliers, it is important to negotiate to ensure that you are getting the best deals possible. This can include negotiating prices, shipping times, and minimum order quantities. It is also important to establish clear communication with your suppliers and to have a written agreement in place to avoid any misunderstandings or disputes in the future.

Overall, finding the right suppliers is key to the success of your Etsy dropshipping business. By following these tips for identifying reliable suppliers, evaluating their performance, and negotiating with them effectively, you can ensure that you are getting the best deals and providing high-quality products to your customers.

Managing Your Etsy Dropshipping Business

Order Fulfillment

One of the most important aspects of managing an Etsy dropshipping business is order fulfillment. As a dropshipper, it’s your responsibility to ensure that the products you sell are delivered to your customers on time and in good condition. To do this, you need to work with reliable suppliers who can fulfill orders quickly and efficiently.

You should also keep track of your inventory levels to avoid overselling and disappointing customers. Use an inventory management tool to help you keep track of your stock levels and reorder products when necessary.

Customer Service

Customer service is another crucial aspect of managing an Etsy dropshipping business. You need to be responsive to customer inquiries and concerns, and you should aim to provide excellent customer service at all times. This means responding to emails and messages promptly, handling returns and refunds professionally, and addressing any issues that customers may have with their orders.

It’s also a good idea to ask customers for feedback and reviews, as this can help you improve your products and customer service over time.

Marketing and Promotion

Marketing and promotion are essential for any business, and Etsy dropshipping is no exception. To attract customers to your store, you need to invest in marketing and promotion activities such as social media advertising, email marketing, and influencer partnerships.

You can also optimize your Etsy store for search engines to help customers find your products more easily. Use relevant keywords in your product titles and descriptions, and make sure your store is well-organized and easy to navigate.


Dropshipping on Etsy can be a great way to start a business without the need for a large upfront investment. By following the rules and guidelines set by Etsy, sellers can create a profitable business selling handmade, vintage, or craft supplies.

When starting out, it is important to focus on finding unique and profitable products, selecting a selling channel, and using marketing to increase store traffic. By fulfilling orders promptly and communicating with customers, sellers can build a loyal customer base and grow their business.

However, it is important to keep in mind that dropshipping on Etsy does come with some drawbacks, such as high fees and limited control over the shipping process. It is important to carefully consider these factors before deciding to pursue dropshipping on Etsy.