Etsy Shop Suspensions: Reasons and Solutions

Etsy is deactivating more shops than ever, with around 75% suspended for legitimate rule violations, urging sellers to follow policies diligently.

### Understanding Etsy Shop Suspensions: A Data-Driven Analysis
* 🛑 During the 2024 Q1 Investors Call, Etsy's CEO Josh Silverman mentioned that their automated deactivation system has been taking down more shops than ever, with "**tens of thousands of sellers**" affected.
* 🔍 A review of around 300 suspended shops in April 2024 found that approximately **75% of these sellers had unknowingly broken a legitimate rule**, often due to **lack of clear communication from Etsy**.
* 🛠 The list of potential reasons for suspension includes common issues like **not providing necessary account information**, **falsifying location**, **using a VPN**, **not paying Etsy fees**, and **shilling/review inflation**.
* 🖼 Specific to Print on Demand (POD) sellers, concerns include **not listing print providers**, using **misleading mockups**, and potential issues with stock sites like **Creative Fabrica**.
* 📚 The policy around intellectual property (IP) is highlighted, with a reminder that sellers cannot use **copyrighted or trademarked material without permission**, even if it's prevalent on the platform.
* 🛡 The text emphasizes that scammers offering to restore suspended accounts for a fee are not legitimate, as only Etsy can **reinstate accounts through their appeal process**.
* 🌐 For international sellers, it's noted that **selling from unsupported territories** or trying to **circumvent restrictions** can lead to **swift suspension**.
* 📢 The importance of following rules is stressed, as the current situation is making it harder for legitimately suspended sellers to receive the support they need, with the **appeal system resetting every 10 days**.

It’s no secret that a lot of shops are being suspended on Etsy right now. In fact, during the 2024 Q1 Investors Call, Josh Silverman shared that Etsy’s automated deactivation system over the last three quarters is taking down more shops than ever. As we've taken down, as we said in the call, millions of listings and tens of thousands of sellers. His exact words were “tens of thousands of sellers”. And if you’re watching this video, it means that there’s a good chance you’re either dealing with a suspension - or you’re terrified of it happening to you. With all of this widespread panic in the Etsy community, I wanted to learn more about what was really happening with these suspended sellers and what percentage of these suspended sellers were being deactivated for legitimate reasons. So in April of 2024, my husband and I reviewed the accounts of around 300 suspended shops in order to

get down to the bottom of what was really going on - and of those, we found that around 75% of these sellers had broken a legitimate rule. They just didn’t know it. Because Etsy didn’t tell them. So in today’s video, I’ll be sharing some of the reasons why we suspect many of these sellers were suspended, both through our own efforts, as well as what our friends over at Printify have noticed within their community. If you’re new here, my name is Starla Moore - founder of the Handmade Alpha Academy for Etsy sellers, and manager at eRank.com, Etsy’s most popular SEO tool. And let me start with a huuuuge disclaimer. I do not work for Etsy. I do not have any ties with Etsy. And no matter how much you beg and plead, I cannot unsuspend your Etsy account. It’s the number one email I get in

my inbox, and as much as I wish I could help, there’s nothing anyone can do to unsuspend an Etsy account outside of Etsy’s barely existent support. Which is insanely important to note because there are tons of scammers out there who are charging for Etsy account restoration. It’s just not possible, and anyone who is attempting to charge you money for this type of service is just trying to steal your money. I can’t unsuspend your account - but what I have done is communicate directly with Etsy’s head of customer support in a detailed and respectful request for Etsy to begin attaching justifications to suspensions. If you’d like to learn more about those initiatives, check out this video up here. But for now, we are stuck with Etsy’s appeal system, which seems to reset every 10 days or so. So if you are confident that you haven’t broken any of Etsy’s rules,

which we’ll be covering in just a moment. My biggest piece of advice is to continue submitting appeals whenever you have the ability to do so. With disclaimers out of the way, let’s get into the reasons we suspect that sellers are being deactivated. This list was a collaborative effort between Printify, as well as the research my husband and I performed on the 300 suspended shops submitted to us in April. And while many of these reasons are purely speculative, meaning they don’t exist within Etsy’s written policies, we still feel that sharing these speculations with you is important so that you can stay safe and protect your business. Especially since AI is being used to terminate these accounts. This is robot rule enforcement, and robots can only follow black and white rules. They don’t give room for context. To a robot, you either are breaking the rules or you aren’t.

Hopefully with this list, you can stay safe, 
follow the rules, and make way for sellers who were legitimately deactivated for no reason to get 
the support they so desperately need from Etsy. Let’s get into it. Providing necessary account information. When you join Etsy, you’re not just making 
a profile. You’re starting a business. So essential details like your tax information, 
your bank account details for Etsy payments, and possibly even your ID, must be provided. 
Failure to do so or adding invalid account details will lead to a suspension before 
you’ve even had a chance to open your shop. Falsifying your location. This is probably the most common reason I’ve 
personally noticed when it comes to suspended shops. It doesn’t matter if you ship with a POD 
provider who ships from a different country. When filling out anything related to your location, you 
absolutely must put your actual country. There are zero exceptions to this rule because this is 
legal information required for tax purposes.

Using a VPN. If your IP address shows as being in the US, 
then Canada, then the UK, then Australia, all within the same week, it’s going 
to look like you’ve been hacked. So if you use a VPN for web browsing, just make 
sure you’ve deactivated it before working on your shop. Though Etsy policies do not 
state that you can’t use a VPN, we strongly suspect that VPNs may be leading to suspensions, 
especially when used to falsify your location. Updates to your legal name. If your last name changes and no longer 
matches your Etsy account details, this can obviously lead to problems. So 
just be sure to go in and change your account details if you’ve gotten married or 
if you go through a legal change of name. Not paying your Etsy bill. I personally recommend turning on auto-billing 
if you’re afraid you won’t remember because Etsy is very unforgiving when it comes 
to outstanding balances. And it would be

really crappy to lose your business over something as silly as an unpaid $3 fee. Having a secondary shop shut down. If you have more than one shop and one of your shops gets suspended for a policy violation, it’s very likely that all of your shops will be shut down because they are all connected to your IP address. So again, just make sure you’re following the rules. Shilling and review inflation. On Etsy, you cannot buy your own items, or ask someone else to do so, in order to leave good reviews or to inflate the number of purchases in your shop. If you have family members who legitimately want to shop from you, this is totally fine. But I would be cautious of selling to family members living under the same roof and who may share your IP address, just to be safe. Repeatedly receiving bad reviews, cases against your shop, and repeatedly not shipping items on time. These are a given. On Etsy, providing good customer service to our shoppers.

is the most important thing we do. If Etsy 
suspects that you’re not providing a great experience for buyers, it’s very 
likely that you will be suspended. Dropshipping. This means selling anything 
that you did not make or design, and allowing another service to ship it for you. 
If you didn’t make it, you can’t sell it. This does not include Print on Demand items 
because POD products are designed by you, nor does it include craft supplies, tools, or 
vintage products, which are all allowed on Etsy. Not listing your print provider. As a POD seller, you need to 
make sure that you’ve listed your print provider as your production assistant, and that your listing attributes state that the 
product was made by “Another company or person”. Using mockups that don’t represent your items. Etsy’s policies state that, “If an item is created 
with production assistance, the listing’s photos should be of the finished product or an image 
supplied by the production partner that accurately

depicts the item the buyer will be receiving.”
A few years ago, Etsy told Printify and Printful that it was totally fine to use mock-ups purchased from sites like PlaceIt or even other Etsy sellers. But this is not what the policy says, and we have seen tons of POD sellers being suspended for seemingly no reason, which is why we speculate that mock-ups may be causing issues. Remember - if a robot is enforcing the rules, it’s seeing these rules in black and white. So POD sellers should be extremely careful using any mockups that do not come right from their print provider. I wish I could give more clarification on this one, but Etsy refuses to answer any questions about it unfortunately. So for now, we have to interpret the rules exactly as they are written. Using stock sites like Creative Fabrica Etsy policies state that you must have a hand in creating your products. This means

that you cannot buy a completed design, stick 
it on a shirt, and sell it. You can, however, use a site like Canva to combine multiple elements 
together to create an original and new design. Selling products like ShineOn jewelry, where 
only the backing card is designed by the seller. At one point, this was allowed by 
Etsy but because the jewelry itself is not made or designed by the 
seller, Etsy stopped allowing it. Remember - you have to hand in making the 
item itself, not the package it comes in. Metaphysical items. Etsy states that supplies related to spell 
work, such as herbs, crystals, candles, and tinctures, may be sold on Etsy as long as 
they are not listed with metaphysical claims, such as health benefits. If selling things like 
tarot or psychic readings, you must include a physical or digital copy of the readings, such as 
a recording, email, PDF, or tarot spread photo.

Selling handmade items that are not produced by you. If you’re working closely with shop helpers or a family member to make your items, this is fine, as long as they are listed in your shop members section. But you can’t buy a bunch of handmade items to resell with the claim that your business was responsible for making them. Selling Services. Etsy policies state that selling services is not allowed unless you’re providing a digital or physical item with that service, such as a PDF. Selling ANY prohibited items. These are all clearly stated in Etsy’s policies so feel free to pause the video if you want to review this full list. Your photos have been traced to a site like Alibaba or Temu. This one really sucks for sellers who have had their photos stolen… but unfortunately, in order to fight dropshipping, Etsy has been scanning photos on popular dropshipping sites and matching them with products listed on Etsy.

We assume right now that if 
that item exists on AliExpress, we assume it's mass produced, and we take 
it down. You as a seller can appeal that; you can tell us how you made it yourself 
and it still ended up on AliExpress, and by the way - that's true sometimes. You can appeal 
that. But our default now is we take that down. And if your photos match with the images of 
an Alibaba listing, this can result in your shop being suspended, even if the images 
were stolen from you. If this happens, the best thing you can do is file a DMCA takedown 
request with the site where the images are listed. If you’re suspended for this reason, make 
sure you supply Etsy with sufficient proof that you’re the original creator of the 
item, such as a photo of yourself making it. Hacked accounts. If your account is compromised, Etsy closes it 
to ensure that the scammer doesn’t do damage.

to you or their platform. So always make sure you’re following good practices when it comes to online safety. This includes never clicking links sent via Etsy messages or emails, never sharing your bank details outside of your Etsy setting pages, and identifying genuine messages from Etsy within your “From Etsy” tab in your shop. Selling in unsupported territories Etsy’s policies clearly state which countries are currently eligible to sell on the platform, and those attempting to work around those restrictions will almost always face swift suspension. We also speculate that, if you currently live in an area of Ukraine that has been occupied by Russia, unfortunately Etsy may suspend your account, due to the limits they have placed on Russian sellers. This issue is a bit trickier, since close proximity to a war territory isn’t a standard support issue. But for Ukrainian sellers, it is something to be aware of, based on our observations.

Lastly, Selling IP infringing items. Regardless of what anyone says, you legally 
cannot sell anything on Etsy, or anywhere else for that matter, that contains copyright or 
trademarked material. This includes references or imagery from tv shows, movies, video games, 
brands, celebrities, politicians, song lyrics, books, brands - essentially, anything that you 
did not invent within your own brain. And yes, this includes things like fan art. If any 
element of the product can be recognized for a larger piece of IP, you can’t sell it. And 
this isn’t just an Etsy rule. It’s the law. “But Starla - If Etsy really cared about IP, why do they let so many infringing 
sellers get away with it” I answer this question at least 10 times 
per week, which is why this Wednesday, I’ll actually be meeting with an IP lawyer 
to further seek factual clarification that I

can pass to my sellers. But until 
then, here are the blunt facts. As of right now, Etsy’s policies state that 
IP infringing items cannot be sold. When it comes to reporting and removing these items, 
only the owner of the intellectual property in question can claim and request the removal 
of that intellectual property. Etsy provides a reporting portal for brands to do, which 
is the legal extent of their obligation. In order for Etsy to apply a widespread initiative 
of removing infringing items, Etsy would need to open the floodgates of responsibility 
over all IP listed on the platform. This means that they don’t have the ability to just 
remove Disney items, or just remove Marvel items. Etsy would have to take on the 
responsibility of removing all IP violating items, making them liable for anything 
not removed under this legal responsibility. And since new intellectual property 
is created, copyrighted, and trademarked every single day, there is absolutely 
no way that this could be effectively done.

Etsy can’t pick and choose who to protect. And, not to mention, there are many sellers like 
myself who have legally binding contracts with IP holders, who have issued us licensing to sell 
these items. This will only apply to very specific cases such as authors, publishers, indie games, 
and local schools, as Etsy sellers can’t fork up the millions of dollars it takes to license with 
a brand like Disney. Yes. I did say missions. But it just adds the the layers of complexity 
that most sellers aren’t really aware of when they can’t figure out why that Disney sweatshirt 
they keep reporting is still active on Etsy. In the realm of legal responsibility, Etsy can 
either take down all IP - an impossible task, when we consider that even the word 
“parrot” is currently an active trademark for coconuts - which means an algorithm 
would have to learn what items are and are not applicable under that trademark, 
adding an additional layer of often

completely incorrect deactivations to Etsy - because yeah. That’s what we need right now. Or, Etsy can do what they are currently doing, which is what is legally required of them: To provide an accessible resource for IP owners to file reports. Add an explosion. More on IP law coming in the next few weeks later I’ve had a chance to meet with a lawyer. But in the meantime guys, a lot of the noise we’re seeing right now about shops being deactivated for no reason are stemmed from legitimate policy violations. And unfortunately, those who are breaking the rules tend to have the loudest voices. This makes it harder than ever for the legitimately handmade sellers to reach the support they so desperately need and deserve when they are wrongfully suspended, and it stretches Etsy’s customer support too thin. So, follow the rules. Keep fighting if you’ve been wrongfully suspended. And subscribe to my channel if you find my data-focused content helpful.

Why Etsy Shops Are Being Suspended

Starla Moore

Etsy's automated deactivation system has been taking down a record number of shops, with millions of listings and tens of thousands of sellers affected.

A review of 300 suspended shops in April 2024 found that around 75% of the sellers were deactivated for breaking a legitimate rule, without being informed by Etsy.

Starla Moore, founder of the Handmade Alpha Academy, has been advocating for Etsy to provide justifications for suspensions and has communicated with Etsy's head of customer support for this initiative.

Submitting essential account information is crucial for avoiding suspension, including tax and bank details.

Falsifying your location, using a VPN, or making frequent location changes can give the impression of suspicious activity and lead to suspension.

Updates to your legal name and failure to pay your Etsy bill can also cause problems and potential deactivation.

It is advisable to stay updated with Etsy's policies and to ensure compliance to avoid account suspension.

Unpaid fees and policy violations can lead to the suspension of all connected shops under the same IP address.

Engaging in shilling, review inflation, and poor customer service can also result in suspension.

Additionally, selling non-original items, not disclosing print providers, and using misleading mockups may lead to suspension, as well as using stock sites for products requiring handmade creation.

Selling on Etsy has specific guidelines: original designs are allowed, but reselling handmade items or using traced photos is prohibited.

The platform also restricts the sale of metaphysical items with health claims and services without a digital or physical item.

Furthermore, using images from prohibited sites like Alibaba can result in shop suspension, but creators can file a DMCA takedown request for protection.

If an account is hacked, Etsy will close it to prevent any further damage from scammers.

Etsy's Online Safety Practices and Selling Policies

Etsy users should prioritize online safety by avoiding clicking on links from messages or emails, refraining from sharing bank details, and verifying messages from Etsy.

Selling in unsupported territories, especially those occupied by Russia, may lead to the suspension of an Etsy account.

It is strictly prohibited to sell items that contain copyrighted or trademarked material on Etsy, as the platform does not have the capability to effectively remove all intellectual property violating items.

Etsy's Legal Responsibility in Protecting Intellectual Property

Etsy is facing challenges in protecting intellectual property while honoring legally binding contracts with some sellers.

The platform struggles to navigate the complexity of IP law, leading to incorrect deactivations and challenges for handmade sellers.

The situation is creating difficulties for legitimate sellers to receive the support they need and is putting a strain on Etsy's customer service.