Your alternative to Etsy dropshipping in 2025

If you want to sell on Etsy, dropshipping products is not allowed.

The good news:

Selling on Etsy with Print on Demand (POD) is allowed. It works like Etsy dropshipping, with one key difference: you design the product with unique prints.

Production partners like Printful print and ship custom products for you. It’s 100% Etsy-compliant, no inventory needed, and fulfillment is automated once you’re set up.

Let’s break it down.

Rules for selling on Etsy

The online marketplace does not allow running an Etsy dropshipping business. You can’t list mass-produced items from overseas suppliers or resell products you didn’t design. That kind of dropshipping goes against Etsy’s core policies and will get your shop suspended or shut down.

Why? Because it’s a marketplace built for creators, not resellers.

According to Etsy’s House Rules, sellers must be directly involved in creating or designing their products. Reselling items from third-party suppliers is against Etsy’s core value of supporting original, independent makers.

Here are the main Etsy rules:

1. You can only sell handmade, vintage, or craft supplies

Etsy sellers are expected to offer unique items that reflect their creativity. Every Etsy product must fall into at least one of three categories:

• Handmade – you created or designed it yourself
  
  

• Vintage – at least 20 years old
  
  

• Craft supplies – tools or materials for creating
  
  

Note: The Handmade category also covers ready-made items, but only if you’ve added your own creative input – like a custom-printed design on a blank t-shirt made with Print on Demand.

2. You must be involved in making or designing the product

Etsy sellers must create or design their products themselves. Selling factory-made goods you didn’t help create is reselling, and it’s banned. But if you modify custom products personally, it’s allowed.

This is why traditional dropshipping doesn’t work on Etsy – you’re a middleman for someone else’s products. Etsy buyers expect authentic designs and a direct connection to the creator.

3. Disclose your production partners

If Etsy merchants work with a production partner – like Printful – they must list them in their Etsy Dashboard under Shop Manager > Settings > Production partners. Make sure to also disclose suppliers on each relevant Etsy listing to stay compliant with Etsy’s policies. This keeps every listing and Etsy storefront transparent and compliant with the marketplace’s rules.

4. Reselling is strictly forbidden

Etsy merchants who rely on undisclosed Etsy suppliers for mass-made goods risk suspension under Etsy’s policies. The marketplace outlines prohibited reselling activities, including: 

• Repackaging and rebranding commercial items (like gift baskets with non-handmade items)

• Offering a collection of others’ handmade goods that you didn’t design or make

• Selling items made or designed by another seller who isn’t part of your shop

• Selling traditional handicrafts you didn’t design or make

• Offering personalization (as an option or featured as a separate item) without altering the commercial item itself
  
  

Make sure to follow these rules when starting your Etsy business.

The best alternative to dropshipping on Etsy

Dropshipping is banned on Etsy – but Print on Demand (POD) is the perfect alternative.

Here’s the difference:

• Dropshipping: You resell generic, mass-produced wholesale goods from suppliers like AliExpress or Temu. You had no role in creating them. Etsy prohibits this.
  
  

• Print on Demand: You sell your own design on a wholesale product. A production partner, like Printful, makes and ships it only after a customer orders. Etsy allows this because it’s your design and the product is made-to-order for each individual customer.
  
  

Example:

Allowed: Your original design on a POD mug, with Printful listed as a production partner

Not allowed: Reselling generic mugs from a supplier without your design or supplier disclosure

With POD, you get the same no-inventory, low-risk benefits of dropshipping while staying 100% within Etsy’s rules for creative engagement.

Why POD Works on Etsy:

1. It’s handmade – by Etsy’s definition
   If you design the product, Etsy considers it handmade, even if a partner helps with production.
   
   

2. Made-to-order = No inventory risk
   Products are only made after a sale, which avoids waste, upfront costs, and the burden of holding inventory.
   
   

3. Full creative control
   Your designs create unique products. You won’t compete with generic listings.
   
   

4. Brand-friendly fulfillment
   With Printful, you can add custom packaging, branded inserts, and labels – so your customers remember you, not just the product.
   
   

Print on Demand offers the scalability of dropshipping within Etsy’s rules. You create the design. Printful handles the rest. Your shop stays compliant, and your customers get something truly unique. 

How to sell print-on-demand products on Etsy

Now that you know POD is the best dropshipping alternative if you plan to make money on Etsy, here’s how to set it up with Printful to start selling.

1. Sign up with Printful

Sign up with Printful for free. The Dashboard will guide you through the initial setup so you can start adding your first products.

2. Connect your Etsy account to Printful

1. Set up your Etsy store: Set up your Etsy seller’s account with store preferences, billing details, and at least one test listing to launch your sales channel.
   
   

2. Add Printful as a production partner: In your Etsy Dashboard, go to Settings > Production Partners > Add new production partner. Fill in the details and click Save.
   
   

3. Authorize Printful: In your Printful Dashboard, go to Stores > Choose platform > Etsy. Click Connect to Etsy. Then, log in to your store and authorize the Etsy integration.
   
   

4. Sync your store: After authorizing, click Connect store. Printful will import products and automatically handle order fulfillment as your Etsy orders come in.
   
   

Once your Etsy store is synced with Printful, you can start selling immediately. To expand your ecommerce business, you can also do the same with other sales channels, for example, integrating a Shopify store.

3. Select products

Below are trending products – simple to design and popular with Etsy shoppers. Start with one or two. After you choose what to sell on Etsy, expand with various products in different categories. This helps you grow your Etsy shop strategically while reaching a broad audience.

Custom t-shirts

Custom t-shirts are a POD staple, working for any niche, from slogans to detailed artwork. Design custom t-shirts for different printing methods or create high-quality embroidered shirts. Update your designs around holidays, seasons, and trends to keep sales steady.

Custom hoodies

Custom hoodies are high-value, cozy, and perfect for colder months or sports-themed designs. Embroidered hoodies often look more premium, allowing you to price higher and protect your profit margins.

Posters and wall art

Custom posters and wall art are excellent for artists and designers. Custom prints, quotes, or maps make excellent home decor items and personalized gifts.

Tote bags

Custom tote bags are functional, eco-friendly, and in demand year-round. The roomy print area is ideal for bold, eye-catching designs that turn everyday carryalls into unique items Etsy buyers love.

4. Create your designs

Strong designs make your POD products sell. Focus on originality, quality, and your target audience. Printful offers 440 products to choose from, but unique designs are what drive sales.

• Know your audience: Identify your niche on Etsy and any gaps where demand is high but competition – low. Align designs and personalization options with what your ideal customers look for.

• Brainstorm ideas: Build mood boards and pull inspiration from your niche. Let customer preferences guide your concepts.

• Start designing: As part of your design process, use tools like Canva, Adobe Illustrator, or Printful’s Design Maker to create custom artwork. Keep colors, fonts, and style consistent – this is how you build a recognizable brand, not just a single listing.

• Refine your designs: Test your designs, get feedback, and improve. Double-check that all your files meet Printful’s print requirements for sharp, vibrant results.

5. Calculate your pricing

Price for profit, not guesses. Use this simple formula to price your Etsy products:

Product cost + Shipping + Etsy fees + Your target margin

We recommend a profit margin of at least 20%-40%, then adjust it by demand, niche, and season. Set clear shipping profiles so buyers see the total price upfront.

Review pricing weekly. Raise prices on designs with steady sales and strong reviews. Lower them on slow movers or bundle them to increase cart value.

Your goal: protect profit margins, stay competitive, and scale without surprises.

6. Publish listings

Before going live on Etsy, make sure your listing is complete and optimized:

• Add eye-catching, high-quality product images that showcase your design

• Write keyword-rich titles and descriptions to help buyers find you

• Select accurate tags and categories for better Etsy search visibility

• Disclose Printful as a production partner on the Etsy listing (not just in Shop Manager) to comply with Etsy’s policies
  
  

Click Publish to make your product live, and update product details over time for better Etsy SEO and to keep up with trends.

Example:

First, lead with the benefit in ~40 characters. Front-load the main keyword and the style (e.g., Minimalist flower t-shirt – eco cotton). Use all 13 tags and mirror key terms in the description.

Keep product details scannable: fabric, fit, print method, and care.

Use 7-10 photos: lifestyle, close-ups, size chart, and mockups. Make the cover photo eye-catching and clear at thumbnail size.

End the description with a direct call-to-action (e.g., Add to cart for fast shipping).

Finally, update older listings regularly to ride trends, test pricing, and keep your Etsy SEO fresh.

7. Manage sales and fulfillment

After launch, focus on the customers. Set up automated order and shipping messages, add care tips, and publish clear processing times – this keeps your fulfillment process smooth and predictable.

• When customer orders arrive
  Printful starts order fulfillment and ships products directly to the buyer. You’ll see real-time updates in your Printful Dashboard and in Etsy’s Orders & Shipping – your fulfillment process, end to end.
  
  

• Communicate early
  Send a quick thank-you after a customer orders. Share processing and delivery windows, and confirm any personalization to prevent reprints.
  
  

• Fix issues fast
  Track shipments. If something is late or damaged, reply the same day. Offer a reprint or refund when it’s right. Protect ratings and repeat sales.
  
  

• Review performance
  Improve titles, tags, and product details on slow movers; double down on winners with new colorways, bundles, or seasonal drops. Adjust pricing and shipping profiles to maintain healthy profit margins.
  
  

You’re not holding inventory – use that time and money to launch new designs and sharpen listings. Ask for a review after delivery; a friendly note improves customer satisfaction and repeat sales.

Ready to launch your Etsy business?

Etsy dropshipping isn’t allowed because the marketplace values self-made artists and designers – and that’s exactly why Print on Demand and Etsy pair so well. You get the convenience of on-demand production without breaking Etsy’s rules or handling inventory.

When you partner with a POD provider like Printful, your role is creativity – designing products your audience will love. Meanwhile, the printing, packing, and shipping happen automatically in the background. It’s lean, low-risk, and built for growth.

If you’re ready to sell on Etsy without breaking the rules, our print-on-demand Etsy integration is the best path forward. You create the designs, and Printful handles the rest.