The Legalities of Selling Crafts on Etsy

 

Using Etsy as a platform to sell crafts

As a minimum, you want online craft selling to make up a decent portion of your business. Spreading your products across as many platforms like Etsy as possible is generally the best way to sell as much as possible (consider also selling crafts on eBay).

Etsy is a particularly popular choice for craft selling because it allows you to list custom handmade items with low listing/transaction fees, and it already has a strong customer base of people looking for deals on handmade items.

 

What you need to know about regulations when selling on Etsy

There are some regulations you need to follow when selling on Etsy in order to retain your account on the platform:

 

• • Product eligibility – Etsy is a marketplace reserved for items which are handmade, vintage or craft supplies.

 

• • Intellectual property – Selling copyrighted or stolen work without permission can lead to immediate account closure.

 

• Listing accuracy – Like with most online marketplaces, your listings must be accurate and
• Prohibited items – Etsy does not allow the selling of items such as drugs, alcohol, medical devices, hazardous materials, or materials inciting hatred.
• Insurance considerations – Etsy does not require you to have insurance to sell on the site, but it’s highly recommended that you look into your craft insurance options before you start selling.

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Etsy’s creative standards

Etsy’s creativity standards are essentially a list of rules Etsy published in order to maintain a creative community of sellers. Etsy believes that items should maintain a human touch, and they state that each item sold on their site should consider the following:

• • • Made by a human – Items must be made by hand or computerised programs by the seller.

   

  • • Designed by a human – Items containing designs created by the seller, which may then have been produced or printed by a third party.

   

  • • Handpicked by a seller – Items carefully handpicked or curated for sale on Etsy.

   

  • Sourced by a seller – Items that empower creativity, such as art supplies or party equipment.

   

  Visit the official Etsy creativity standards for more information.

   

  Do you need insurance to sell crafts on Etsy?

  You do not legally need insurance to sell your crafts on Etsy, but it is highly recommended in order for you to protect yourself, your business and your customers.

  When selling online, the primary insurance type you need is product liability insurance, which protects against claims from damage or injury caused by the products/item you’ve sold. Whilst unlikely, your crafts could contain sharp or pointy edges, or even become damaged in transit in a way that makes them dangerous. As a result, being protected with product liability protects you against unexpected claims.

  Another form of insurance to consider is employer’s liability insurance (only if you hire employees), which covers legal costs and compensation if an employee gets injured whilst crafting/selling for you.

  Do you have to tell HMRC if you sell on Etsy?

  If your gross income from selling crafts on Etsy and other trading activities exceeds the £1,000 trading allowance in a tax year, you are legally required to notify HMRC and register for self-assessment.

  Once registered for self-assessment, you must maintain precise records of all income and expenses, such as the cost of materials and postage fees.

  Preparing to sell handmade crafts on Etsy

  

  Here is an overview of what you need to prepare to sell your handmade crafts on Etsy:

  • • • Craft High Quality Items – Don’t cut corners when crafting. Make sure your items are consistently high quality and made with care. Failure to do so could lead to bad reviews and reduced trust within your target audience.

     

    • • Optimise listings – Ensure you use multiple high-quality images to clearly showcase different angles of your product(s). Provide detailed descriptions, including information about the materials and the creation process.

     

    • • Shipping – To increase buyer confidence and encourage positive reviews, be transparent about your shipping details. Either clearly list all postage costs or offer free shipping. Additionally, establish and clearly state a straightforward returns policy.

     

    • Insurance Considerations – We always advise that online sellers purchase craft insurance. This coverage offers protection in case of unexpected claims arising from damage caused by your products.

  For a quick, free craft insurance quote, press the button below.

  Start Selling Crafts Online Today