Etsy Policy Changes 2025: What You Need to Know

On June 10, 2025, Etsy quietly rolled out policy changes to both the Services Policy and the Creativity Standards, reshaping marketplace rules for digital, handmade, vintage, and modified goods.

We’re here to give you a comprehensive breakdown of what Etsy sellers need to know about these changes.

Etsy Creativity Standards Update

Etsy has updated its Creativity Standards to support its 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 production to a manufacturer and list the item 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 design. Failing to do so can result in your listing being removed.

For more information 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, such as old postcards, patterns, or public domain books.
• Upload AI-generated images without meaningful creative input or modification, and without disclosing AI use in 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 less than 20 years old.
• Sell digital versions of vintage items, such as scans of old books or photos.
• List mass-produced or generic items that are widely available elsewhere.
• Resell 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, such as gardening gloves, screwdrivers, or baking molds, with no craft element.
• Resell generic holiday décor or party favors unless they are 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 the item complies with all Etsy policies. However, Etsy states:

“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 into “Digital Creative Services,” further clarifying what can 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 its list of banned services to make it more explicit what cannot be sold on the platform.

These prohibited 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 an item)
• Digital-only add-ons (e.g., express shipping, referral codes, gift cards)

For the full list, including detailed examples of each service, visit Etsy’s Policy Update.

One major change to be aware of in the updated prohibited list is that “add-ons with no physical item associated” (such as express shipping) are now prohibited.

That means if you previously offered a listing for buyers to purchase an express shipping add-on, it 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’re in the right place.

Ready to give Etsy a try? Head over to RankHero and try our tools for free!