New Etsy Seller Rules Explained: Identity Verification, Fees, and Payment Delays

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Miroslav Novohradsky
Founder of NechEmpire

I'm Miroslav, a passionate graphic designer, Etsy seller and AI enthusiast. At NechEmpire, I'm here to share my knowledge and skills. I want to turn...Read more

Are you thinking about opening a shop on Etsy?

That’s so exciting!

Etsy is a fantastic place to sell handmade or digital products.

But before you can start selling, there are a few rules you need to follow, especially if you’re a brand new seller.

Don’t worry, I’m here to break it all down for you in a super simple way.

We’ll go through the new rules together, and by the end, you’ll feel ready to tackle them like a pro.

So, let’s talk!

The First Rule: Verify Your Identity

Etsy wants to make sure that everyone selling on their site is a real person, not some scammer or fraudster.

That’s why they’re asking all new sellers to prove their identity.

How do you do that?

Well, first, you’ll need to upload a photo ID, like your driver’s license or passport.

Then, you’ll have to take a quick selfie to show that the face in the photo is really you.

Etsy has teamed up with a company called Persona to help with this process. Persona’s job is to make sure that the person in the ID matches the person in the selfie.

Why is proving your identity such a big deal?

In the past, Etsy has had some problems with fake accounts causing trouble.

  • By making sure every new seller is a real human being, they’re hoping to get rid of any potential troublemakers before they can cause issues in the marketplace.

It might seem like a bit of a hassle, but think about it this way: wouldn’t it be worth it to go through a few extra steps if it meant your shop would never get shut down unexpectedly?

That peace of mind is priceless!

The Second Rule: Pay a One-Time Fee

The second rule is that you’ll need to pay a small fee of $15 to get your Etsy shop up and running.

Now, $15 might not seem like a lot of money, but Etsy is doing this for a reason.

If you’re willing to pay a little cash, it shows that you’re serious about selling on their platform.

It’s like a little commitment fee, and it helps Etsy weed out any sellers who aren’t really committed to the process.

The Third Rule: Delayed Payments

The last rule is all about when you get paid for your sales. If you’re a brand new seller, Etsy might delay your payments for a little while.

  • Instead of getting your money right away (or setting your own payment periods), Etsy might create a threshold for your payments, maybe 30 days or so.

Why do they do this?

Well, Etsy wants to make sure that you’re actually shipping out the products that people are buying from you.

If someone needs a refund for whatever reason, Etsy wants to have the cash on hand to make it right.

Once you’ve proven that you’re a trustworthy seller who delivers on your promises, then you’ll likely get paid a bit faster.

But in the beginning, Etsy is just being extra careful to protect themselves and their customers.

My Thoughts on These New Rules

So, those are the three main rules for new Etsy sellers: verify your identity, pay a small fee, and maybe wait a bit for your first paychecks.

I know it might seem like a bit of a hassle, but I actually think these rules are a step in the right direction.

Etsy is trying to make its platform a safe and trustworthy place for small business owners like you and me.

Sure, there’s still more work to be done.

There are tons of scams out there, and I don’t believe that just a few extra rules can stop them all. But these new rules are a good start.

And let’s be honest if you had to go through all those steps, but you knew for sure that your shop wouldn’t randomly get shut down after all your hard work, wouldn’t you do it?

That peace of mind is worth it.

Plus, these changes are designed to get rid of the sketchy sellers and make Etsy a safe place for legitimate small business people like us.

But I’ll be real with you: these rules might make life a little harder for new print-on-demand (POD) sellers since they’ll need more money to invest upfront.

Still, I think it’s a small price to pay for the opportunity to sell on such a great platform.

So, if you’re a new seller, just be prepared to upload that ID, pay $15, and maybe wait a little while to get paid at first. It’s a small inconvenience, but it’ll be worth it to have a successful and trustworthy Etsy shop.

And who knows?

Maybe these rules will help weed out some of the bad apples and make Etsy an even better place to buy and sell handmade and digital products.

I’m excited to see what the future holds, and I can’t wait to see your shop up and running!

Recommended Tools For Etsy


I have made an entire section of helpful and mostly free tools you can use to build a successful online business on Etsy. See the tools here.

Kittl – A go-to place for any person, who wants to make money with print-on-demand on Etsy.

Creative Fabrica. They have millions of cheap graphics that can elevate your t-shirt design.

Vectorizer – This tool transforms your image into a vector with seconds. scalable without losing the quality.

Simplified – Create mockups, designs, and photos with the power of AI in a matter of seconds.

Disclosure: Some of the links above may contain affiliate partnerships, meaning, at no additional cost to you, NechEmpire may earn a commission if you click through to make a purchase.

Personal picutre
Miroslav NovohradskyFounder of NechEmpire

I'm Miroslav, a passionate graphic designer, Etsy seller and AI enthusiast. At NechEmpire, I'm here to share my knowledge and skills. I want to turn your design passion into a successful online business.

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