On June 10th, 2025, Etsy silently rolled out policy changes to both the Services Policy and Creativity Standards, reshaping the marketplace rules for digital, handmade, vintage, and modified goods. We are here to give you a comprehensive breakdown of what Etsy sellers must know with these changes.
Etsy Creativity Standards Update
Etsy has updated their Creativity Standards, aimed at their mission to “Keep Commerce Human” and reduce mass-produced or resold items. Here’s a breakdown of what is not allowed under each seller category:
Disclaimer: This post is a general overview of policy changes made by Etsy on June 10, 2025. For the complete Creativity Standards update, please visit https://www.etsy.com/legal/creativity
Made by a Seller
Items under the “Made by a Seller” category are defined as “Physical items made by a seller by hand or using personal or computerized tools.”
Under this category, you cannot:
- Use someone else’s design file, template, or pattern, even if you personalize it.
- Sell pre-made items with minimal or no customization.
- List AI-generated physical items unless you significantly alter and produce them yourself.
- Outsource the creation to a manufacturer and list it as handmade.
Takeaway: If you’re using tools like a 3d printer, Cricut, CNC, etc. the design must be 100% yours. Do not use templates, no matter where you download them from, unless you are making significant changes to the designs. Not doing so can result in your listing being removed.
For more infomation on what can and cannot be sold under the “Made by a Seller” category, click here.
Designed by a Seller
Items under the “Designed by a Seller” category are defined as “Sellers’ original designs that are produced or printed by a third party or offered as a digital download.“
Under this category, you cannot:
- Use Canva templates, stock graphics, or fonts without significant customization.
- Sell digital vintage scans (e.g., old postcards, patterns, or public domain books).
- Upload AI-generated images without meaningful creative input or modification, and without disclosure of AI use within the listing description.
- Offer products created entirely by software with no real design work from you.
For more information on what can and cannot be sold under the “Designed by a Seller” category, click here.
Handpicked by a Seller
Items under the “Handpicked by a Seller” category are defined as “Vintage items, items from nature, and certain collections of items that a seller personally selected and curated for sale.”
Under this category, you cannot:
- Label products as vintage if they are under 20 years old.
- Sell digital versions of vintage items (e.g., scans of old books or photos).
- List mass-produced or generic items that are available elsewhere.
- Resold items from nature.
For more information on what can and cannot be sold under the “Handpicked by a Seller” category, click here.
Sourced by a Seller
Items under the “Sourced by a Seller” category are defined as “Items that enable buyer creativity, including craft and party supplies, and items that are personalized with a buyer’s custom text or image.”
Under this category, you cannot:
- Sell blank or generic items like mugs, shirts, or canvas bags without customizing them.
- List everyday tools or parts (e.g., gardening gloves, screwdrivers, baking molds) with no craft element.
- Resell generic holiday décor or party favors (unless part of a themed or handmade kit).
For more information on what can and cannot be sold under the “Sourced by a Seller” category, click here.
Etsy Services Policy Update
Disclaimer: This post is a general overview of policy changes made by Etsy on June 10, 2025. For the complete policy guide, please visit https://www.etsy.com/legal/policy/services/242665313101
Modification Services Now Allowed
One of the biggest updates is that Etsy has lifted the ban on services involving customer-supplied items. Sellers can now offer modification services that alter buyers pre-existing items. What does that include?
- Tailoring clothes
- Repairing/restoring garments, jewelry, or similar items
- Photo retouching/color correction
- Jewelry alterations (e.g. clasps, resizing)
Buyers may now ship applicable items for modification, as long as that item complies with all Etsy policies. However, Etsy policies state:
“When a buyer sends an item to a seller for modification, the buyer assumes risk for that item both during shipping and while in the seller’s possession. Under the Etsy Purchase Protection Program, Etsy may reimburse only the amount paid for the order if a qualifying issue arises—not the value of the buyer’s original item.”
Expanded Digital Creative Services
Etsy’s previous “Custom Writing and Design” policies have been updated and expanded to “Digital Creative Services”, further clarifying what is allowed to be sold under digital services. These additions include:
- Logo/brand design
- Custom writing
- Music/audio production
- Video editing
- Digital illustration/artwork
Delivery of the final file should be sent via Etsy Messages or email.
Prohibited Services Update
Etsy has expanded the list of banned services to be more explicit on what can not be sold on their platform. Those services include:
- Curated lists (e.g., contacts, AI prompts)
- Professional services (legal, coaching, therapy, tutoring)
- Memberships/subscriptions (Netflix, Spotify, Adobe, game passes)
- Virtual game assets/accounts (in-game items, access codes)
- Social media boosts (followers, likes, reviews)
- Metaphysical services (Reiki, spells, rituals,etc.)
- Rentals (goods or spaces)
- Monetary transfer listings (tips/donations without item)
- Digital-only add-ons (e.g., express shipping, referral codes, gift cards)
For the full list, including full examples of each service, visit Etsy’s Policy Update
One major change to be aware of with the updated prohibited list is that “Add-ons with no physical item associated (e.g., express shipping)” is now prohibited. Meaning if you previously offered a listing just for buyers to purchase an express shipping add-on, that is now prohibited, and must be removed.
Impact on Sellers
These new standards may feel strict, but they also make it easier for real creators to shine. If you’re building your products from scratch, designing with intention, or curating with care, then you are in the right place.
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