Etsy is an online e-commerce marketplace that specializes in handmade goods, craft supplies and vintage items. Much like EBay; Etsy offers no monthly fees, automatic deposits, and secure transactions. Etsy does however charge a listing fee and a transaction fee. This means that they receive a small commission based off of every item that you display and sell through their website.
Beginning October 2013, Etsy began to allow sellers to use fulfillment companies to help translate, produce and ship their products. As a refresher drop shipping is a type of service where your artwork and products are produced and shipped by another person or company. The process for drop shipping on Etsy is very similar to the drop shipping model on eBay. In this post we will break down the Etsy drop shipping model that is used during our fulfillment process.
The Etsy drop shipping model goes as follows. A visitor arrives at your online store. In this case your Etsy shop. They then make a purchase through your online marketplace. You (the merchant) receive the order. Then either manually or automatically that order is forwarded to your drop shipping partner. Your drop shipping partner produces the order. They then ship the order to your customer on your behalf.
When using drop shipping for an order on Etsy all customer interactions are handled directly between the merchant and the customer. The manufacturer does not send an invoice once the order is shipped, nor do they include the manufacturing address on the package. Also all interations are solely between the customer and the merchant. All issues, complaints or concerns are handled by the merchant directly.