Are you looking to start your dropshipping business and want to know how to dropship on Etsy and maximize your store’s potential? If so, you’ve come to the right place!
This article will provide a comprehensive guide to the world of Etsy dropshipping. It will highlight the numerous advantages of this business model and walk you through the steps to get started with Etsy dropshipping.
Etsy doesn’t allow dropshipping on its platform, but you can use a third-party provider to dropship on Etsy:
Key Takeaways: How to Dropship on Etsy
Etsy Selling Fees & Payment Methods
Before we know how to dropship on Etsy further, let’s first understand the platform’s different selling fees and payment methods. Here are the fees that we will encounter when dropshipping on Etsy:
- Listing Fee
- Transaction Fee
- Payment Processing Fee
- Etsy Ad Fees
- Offsite Ad Fees
- Etsy Plus Program
Listing Fee
In addition to the listing and transaction fees, Etsy dropshippers must also account for payment processing costs. Depending on the seller’s location, this payment processing fee typically ranges from 3% to 4.5% of the sale, plus an additional $0.30 per transaction.
Given these various fees, Etsy dropshippers must set competitive product prices to maintain profitability. To help with this, tools like the AutoDS Price Optimization Tool can assist in determining the best pricing for Etsy dropshipping products.
Etsy Ad Fees
Investing in marketing tools is crucial to establish a strong presence and differentiate your Etsy dropshipping business within the marketplace. One effective way to promote your Etsy shop is to subscribe to the paid advertising options available through the Etsy Advertising Dashboard in the Shop Manager.
While purchasing paid advertisements on Etsy is optional and dependent on your marketing budget, it can be a valuable strategy to increase visibility and drive more traffic to your Etsy dropshipping store. When subscribing to Etsy ads, you can set a daily maximum budget or follow the predetermined minimum value required by the platform.
Offsite Ad Fees
The off-site advertising fees are in addition to the other Etsy selling fees, such as the listing fee, transaction fee, and payment processing costs. As an Etsy dropshipper, it’s important to factor in these off-site ad fees when determining your overall pricing strategy and profitability.
To summarize the key points:
- Etsy offers an off-site advertising option where they promote the product listings on external sites like Google.
- When customers purchase products through these off-site ads, an additional fee of 12% or 15% is applied, depending on the seller’s store’s collective sales.
- Sellers who have made at least $10,000 in sales within the past 365 days are automatically eligible for the off-site ads program.
- However, these eligible sellers can choose to opt-out of the off-site ads by contacting Etsy’s customer service.
Etsy Plus Program
The decision to subscribe to Etsy Plus would depend on the specific needs and goals of the Etsy dropshipping business. The additional tools and credits provided with the Etsy Plus plan may be beneficial for some sellers, but the monthly subscription cost would need to be factored into the overall business expenses.
To summarize the key points:
- By default, Etsy sellers are on the standard Etsy selling plan.
- However, sellers have the option to subscribe to the Etsy Plus plan, which costs $10 per month.
- Under the Etsy Plus plan, sellers gain access to additional tools and features to help expand their Etsy dropshipping business.
- Specifically, the Etsy Plus plan provides:
- 15 listing credits, worth $3 in total
- $5 worth of Etsy Ads credits
- The Etsy Plus subscription fee is automatically renewed each month, unless the seller chooses to cancel their subscription.
How To Start Dropshipping On Etsy
Yay! After getting an overview of the shop manager, it’s time to start dropshipping on Etsy. Here are the eight simple steps toward establishing a winning Etsy dropshipping business:
- When choosing products to dropship on Etsy, consider the following best practices:
- Research popular and trending product categories on Etsy. Look for items that have consistent sales and demand.
- Identify unique, niche products that stand out from the competition. Unique offerings can help your Etsy store differentiate itself.
- Evaluate product margins and profitability. Factor in the Etsy selling fees, supplier costs, and shipping expenses to ensure healthy profit margins.
- Select products that are lightweight and easy to ship to minimize fulfillment costs.
- Opt for products that allow for easy product customization or personalization to provide more value to customers.
- Continuously monitor product performance and customer feedback to refine your dropshipping product selection over time.
Let’s get into the action, beginning with creating our account.
Begin by going over to Etsy’s website and clicking ‘Register.’ Then, input your name, e-mail address, and password. To proceed, click ‘Get Started,’ and we will be directed to Etsy’s homepage.
How to Dropship on Etsy: A Step-by-Step Guide
Dropshipping on Etsy can be a great way to start an online business without holding inventory. Here’s how to do it effectively:
Step 1: Understand Etsy’s Policies
Before you start, familiarize yourself with Etsy’s terms of service. Etsy encourages sellers to create their products, so ensure you comply with their guidelines regarding handmade and vintage items.
Step 2: Choose a Niche
Select a niche that interests you and has market potential. Consider:
- Handmade items
- Vintage products
- Craft Supplies
Research trends and popular items on Etsy to identify gaps in the market.
Step 3: Find Reliable Suppliers
Look for suppliers that offer dropshipping services. Some popular platforms include:
- Printful: Ideal for custom apparel and home goods.
- Gooten: Good for a wide range of print-on-demand products.
- Oberlo: Works well with Shopify and offers a variety of products.
Ensure your suppliers are reliable and provide quality products.
Step 4: Create Your Etsy Shop
- Sign Up: Register for an Etsy account and set up your shop.
- Branding: Choose a catchy shop name, logo, and banner that reflects your niche.
- Shop Policies: Clearly outline your shipping, return, and refund policies.
Step 5: List Your Products
- Product Titles: Use relevant keywords that buyers might search for.
- Descriptions: Write detailed descriptions highlighting the benefits and features.
- Photos: Use high-quality images. If you’re dropshipping, ask your supplier for professional photos or create mockups.
Step 6: Set Your Pricing
Consider the cost of the product, shipping, and Etsy fees when setting prices. Ensure you maintain a competitive yet profitable pricing strategy.
Step 7: Market Your Shop
- SEO: Optimize your listings with relevant keywords to improve visibility in Etsy search results.
- Social Media: Promote your products on platforms like Instagram, Pinterest, and Facebook.
- Etsy Ads: Consider using Etsy’s advertising options to reach a wider audience.
Step 8: Manage Orders and Customer Service
When you receive an order:
- Order Fulfillment: Forward the order details to your supplier for fulfillment.
- Communication: Keep customers informed about their order status and shipping.
- Feedback: Encourage reviews and respond to customer inquiries promptly.
Step 9: Analyze and Optimize
Use Etsy’s analytics tools to track your shop’s performance. Pay attention to:
- Sales trends
- Customer feedback
- Listing performance
Adjust your strategies based on this data to improve sales.
Conclusion
Dropshipping on Etsy can be a rewarding venture if done correctly. By following these steps, you can build a successful shop and connect with customers looking for unique products. Always stay updated with Etsy’s policies and market trends to adapt your business strategy. Happy selling!
