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Etsy dropshipping: The complete guide to do dropshipping on Etsy

April 09 2021 10:42
Winnie
70

With the world advancing so fast in technology, the business world is not an exemption. Every industry in business is working tirelessly to embrace technology in doing businesses. E-Commerce is among the innovations that people have invented to assist them in doing business. One of the technological advancements in ecommerce is dropshipping, whereby a seller sells a product to the customer who receives the item from a supplier that the seller has contacted.

On dropshipping, the seller does not keep stock of the products that they sell, but they manage an online list of items that their suppliers can provide. Once the client makes an order on e-commerce platforms, the information goes to the seller who prepares the order and delivers it but with your details like the name and contacts. The supplier benefits by selling their products while the seller will get some fee from the product. However, some sellers have their stock on the platform since they are at liberty to buy and stock products.

There are many platforms where one can do dropshipping, but we will focus on dropshipping on Etsy for now.


What is Etsy?

Etsy is a unique e-commerce platform that brings together people with creative minds and products: Crafted, handmade, and vintage products. The platform that has existed for more than a decade began in 2005 with its numbers rising significantly. Statistics indicate that by 2019, the site had more than 40 million customers compared to the 9.3 million people in 2012. Besides, it covered a total of 83 countries by 2019. Etsy contains 0ver 2.6 million sellers and 60 million-plus products on board.


Etsy drop shipping rules: is dropshipping on Etsy allowed?

The first thing that people ask is whether Dropshipping on Etsy is legal. The answer is yes but with some rules. Unlike other e-commerce platforms, Etsy allows the sellers to sell their products or products they have taken part in the production. The activities of selling products from a supplier are illegal here. Since that products are handmade, we expect you to be part of their making directly or indirectly.

Etsy does not allow reselling of products, but it will enable the selling of products you have designed. The buyers of your products should know your location and that of the products. The operators will not allow you to sell a product that another person made.

Products at Etsy should relate to art, vintage, and handmade.

Etsy takes from your sale some fee for listing a product, transaction, and processing the payment: This makes it hard for one to direct a client to another website since the operators will assume that you want to evade paying this fee. If you do so, Etsy will open a lawsuit against you. When you want to conduct business at Etsy, you will need to put up with those limitations.


Why is dropship on Etsy popular?

Etsy dropshipping has its roots in selling unique products. The platform is not suitable for those who wish to resale products from other suppliers, but it aims to uplift those who make these products. In short, for those who have handicrafts and want to sell them, this is the right platform. If you must outsource the products, then you will sell vintage products. The products that have existed for more than twenty years but not necessarily made by you. That brings about the two methods of dropshipping on Etsy: that of selling your handicrafts (which Etsy widely accepts) and that of selling vintage products (for the few).

 

Etsy dropshipping: pros & cons

Etsy dropshipping pros

We have many benefits of using Etsy in dropshipping as follows.

1.       The products are unique.

For those who need products that people have made by the hands, Etsy is the best e-commerce website to get them. Those items that make events like weddings memorable and jewels are plenty at Etsy. Many of these products are unique because you will never get them on other commercial websites. You can get the market quickly for new sellers since the total number of products is about 60 million when you compare with over 300 million products on Amazon. So, getting a customer and maintaining them is accessible here.

2.      The products are niche-specific

For handmade, wedding, vintage, and printable products, join Etsy. Those with interest in these kinds of products will make huge sales on Etsy.

3.      Has conscious consumers

Etsy brings together only like-minded people who form a community of consumers and makers. Consumers enjoy this platform because they enjoy and love artistry, uniqueness, and human-centric shopping. People on this platform remain united since they share some qualities.

4.      Etsy allows creativity

The platform allows for the sellers to be creative as they produce their products. The sellers become fully involved in the production of their products, which makes them more creative. Direct involvement in the making and selling of your products enhances creativity. In the process, one will have it easy to differentiate their products and craft their brands. Stocking your virtual shelves with original and one-of-a-kind products is breathtaking.

5.      High-profit scales

The pricing of products at Etsy is higher than other profits. When selling products at Etsy, one can make profits of more than 40%. Though the prices here are above the market prices on other platforms, the platform holds a record of people reaching those prices.

6.      Etsy has 100% transparency

Some may take it negatively, but the transparency at Etsy has made it grow. Since one should disclose their shops' physical locations, the customers have confidence when transacting business because they know that there are zero chances of getting into traps and hoodwinking. Sellers on other platforms may easily con you because you will get it at your doorstep without knowing which shop it has come from after buying the product. Some may have fake accounts, but they do extensive due diligence by collecting details from all sellers before approving them to continue selling.


Etsy dropshipping cons

1.      Presence of heavy fee submissions

At Etsy, you will need to pay the following fees:

The listing fee is $0.20 and expires every four months.

5% processing fee for each product on order. It does not include the shipping fees.

Other fees include ad fees, in-person fees and pattern fees.

2.      Extensive Etsy dropshipping guidelines

If you want to dropship on Etsy, then you need to brace up yourself for intense guidelines. The guidelines affect the communication language of a buyer and a seller and codes of conduct. Some of these guidelines are:

        1) No reselling of products unless they are vintage products

One can sell items that they participated in its design even though they did not make them.

        2) You must reveal the physical location of your shop

In order to dropship on Etsy, one has to reveal the physical locations of their shop. This is targeted at improving transparency since they expect you to be involved in the production process.

        3)  Possession of an elaborate seller community policing

Though Etsy has so many rules to follow, one needs to know them all. Failure to be conversant with them will expose you to penalties and fines. The owners of the platform also have other third-party gateways for monitoring your activities. There is so much scrutiny at Etsy.


Alternative marketplaces for dropshipping

Apart from Etsy dropshipping, there are other sites you can do dropshipping as follows:

eBay: This platform is the second-most-popular after Amazon, which allows for selling unusual items and provides an auction place.

Newegg: The site focuses much on electrical and tech products at low prices. Sellers here are free to list up to 5000 items without any fee.

Walmart Marketplace: Many know Walmart for its physical stores, but it has a good catchment online of about 4%. The platform is new, but it has shown rapid growth.

ASOS Marketplace: Found in the UK, ASOS Marketplace contains small fashion brands. Besides, it has vintage clothing and deals with small sellers.

Amazon: it is the world's leading e-commerce site. Contain s a variety of products that every household needs. You can find the kitchenware, clothes, office equipment, books and many more items at Amazon.

We may not exhaust the e-commerce sites since they are so many.


Final word

Etsy may not be like other sites like Amazon and eBay, but it has the potential of growing faster in sales, sellers, and buyers. This fast-growing platform allows for only handmade products and vintage products. For creative people, Etsy will be the most suitable platform for displaying your talent and skills. However, the site has many regulations and guidelines that only want strong-willed people can handle.

The site is unique and allows small business people in the creative industry to transact business. It has no suppliers since one will display the products that they have made. In line with that, one will provide their physical address for verification before they sell their products. These regulations are aimed at boosting buyers’ trust. Consider joining Etsy today. The site has loyal customers that you will never find anywhere.