On June 10th, Etsy implemented several rule changes which sparked a big reaction across the internet. The changes were primarily focused on its Creativity Standards—in other words, the guidelines Etsy uses to determine whether an item reflects a seller’s creativity and effort. These standards are part of Etsy’s broader effort to maintain its identity as a marketplace for unique, special, and handmade items, as creative technologies continue to evolve.

While Etsy has asserted that the new rules are intended to protect small companies and makers, many users have expressed concern that their sales would be negatively impacted, or that their shops would be removed altogether. In today’s blog, we will break down Etsy’s new rules so that you can know how they will affect your creative business.

Big changes to machine-made items 

The most significant new rule, and the one which has sparked the most controversy, is one which concerns computerized tools, like laser printers, laser cutters, 3D printers, and CNC machines (like Cricuts). Under the new guidelines, sellers who utilize these tools to create items must also use original design templates. Products that are not made with a seller’s original design template may be automatically flagged and removed.

While this policy is still being interpreted and debated by sellers, some believe that Etsy will still accept templated designs which have been heavily modified, altered, or adapted. For example, if a seller were to purchase a wooden sign cut in the shape of an ice cream cone, and then spent a significant amount of time sanding, painting, and embellishing it, Etsy may still consider it to be an original creation. However, Etsy has not officially clarified whether or not this is the case.

Scans of vintage items are prohibited

Previously, Etsy explicitly stated that sellers could sell “digital files of scanned vintage content like photographs, books, or patterns, as long as they comply with our Intellectual Property Policy.” However, this wording has now been removed from the Creativity Standards. Therefore, it appears that many shops selling these types of digital downloads might be in violation of the updated policy. It is possible, however, that some vintage items could be sold as “craft supplies,” if sellers make it clear that they are to be cut up or repurposed, and not used as-is.

New rules concerning “Items From Nature”  

Many Etsy stores sell “natural” items like rocks, gemstones, and seashells in the Items From Nature category. However, these are often items which have been purchased from large commercial retailers, like Amazon.com or Lowes Home Improvement. Now, Etsy is apparently making an effort to remove these listings. Moving forward, all rock and gem specimens, plants, and natural items that are not “personally found or cultivated” by a seller will be prohibited. Natural items that have been painted, carved, or otherwise altered can still be sold.

Changes to “Holiday Decor” categorization

 In past years, vendors have gotten away with selling everything from Christmas trees to throw pillows by listing the items as “party favors” or “party supplies.” Now, Etsy has closed that loophole by removing “holiday décor” from its list of allowed items in the “Sourced by a Seller” category. In addition, the definition of party supplies has been narrowed to focus on items whose primary purpose is “to decorate a special event, giving it a unique or personal aesthetic.” This includes items like festive table decorations, balloons, streamers, and gift wrap. The revised standards exclude “generic tableware,” “costumes,” “party favors,” and “seasonal/holiday decor [that is] not specific to a single gathering or celebration.”

No more household goods, except craft supplies

Etsy has long been cluttered with items that have no relation to art, crafting, or vintage collecting. Everything from cooking utensils, to home improvement tools, to cleaning supplies can be easily found on multiple pages. Etsy’s new rules crack down on these listings, however, by specifically prohibiting “cooking tools or ingredients; chemical compounds; automotive/bicycle parts and repair tools; [and] office, construction, gardening, cosmetic, or home DIY supplies.” Party supplies and craft supplies can still be sold, however.

More flexibility for “Sourced By A Seller” item displays

Previously, items in the “Sourced by a Seller” category could not use commercial images obtained from a manufacturer or distributor. Etsy’s updated Creativity Standards now state that these sellers can use commercial images. This change seems to grant sellers of “sourced” items more flexibility regarding their product photography. Those selling items in other categories, like “Made by a Seller,” are still required to use original photos of the final product.

Final thoughts: pros and cons of Etsy’s new rules  

There is no doubt that the new rule changes have been controversial. Many Etsy sellers have objected to the new requirements regarding computerized tools. Some have expressed concern about whether Etsy’s automated software will erroneously remove legitimate listings.

However, others believe Etsy is making an effort to return to its roots as a marketplace for original, handcrafted items. It is possible that the changes will help small, local artists and artisans gain visibility and make more sales.

Advice for Etsy sellers in 2025

Are you an Etsy seller who would like to continue to use the platform? If so, you can ensure proper compliance with the new rules by following the guidelines below.

  • Carefully review the new Etsy Handmade & IP GuidelinesUnderstand the new restrictions on holiday decor and party supplies, as well as changes to other categories.
  • Assess your current listings. Remove any items that are no longer compliant with the updated standards.
  • Focus on handmade, vintage, or craft supply items.These are still the core focus of the Etsy marketplace.
  • Ensure transparency. Clearly describe your creative process and the origin of your items in your listings.
  • Ensure commercial compliance. Make sure to secure proper commercial licenses for any third-party content used. Avoid using brand names or characters that you do not own in your listings.

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