Etsy Gives AutoDS, ShineOn & CShip The Boot In Dropshipping Crackdown

Liz Morton
Liz Morton


It appears Etsy may finally be beginning to crackdown on dropshippers violating handmade and prohibited items policies, starting with disabling API access for popular dropshipping services offered by AutoDS, ShineOn, and CJDropshipping (CShip).

Sellers are discussing the update on Reddit after a screenshot lifted from Facebook was posted, purporting to show an email allegedly received by a seller who was notified by Etsy some items had been removed and the integrations had been blocked.

We have recently evaluated several third-party integrations that sellers can link to their shop to manage their business. We identified three integrations - CJDropshipping (orCShip), ShineOn, and AutoDS - that did not align with our policy for third-party integrations.

Consequently, we removed these integrations as they allowed sellers to create listings for mass-produced items that contravened our Handmade Policy and Prohibited Items Policy.

Upon reviewing your account, I noticed the beautiful art in your listings. However, it appears that your shop utilized one or more of these integrations, leading ot the removcal of items created/generated through them.

Redditors responded mostly positively to the post, saying it was well past time for Etsy to take action against these sellers and they hoped it would be a first step in the site returning to its handmade roots.

"Wow. If this is legit, this is amazing news. I really hope Etsy works their way back to the proper handmade site they used to be! In the meantime, I continue to report shops that are obviously drop shipping."

"I so hope this is truly a new Etsy policy and that they continue to crack down on drop shipped garbage. This would really help improve Etsy’s reputation."

But some worried that sellers who follow the rules for using Print On Demand or other product partners could be unfairly caught up in the dragnet if Etsy takes this too far.

These types of dropshipping services aren't just a problem on Etsy - many sellers also use them for online arbitrage that also often violates terms of service on eBay, Amazon, Walmart and more.

Why Did My eBay Order Ship From Amazon?
Dropshipping from retail sites breaks policy, ruins buyer experience & hurts legitimate sellers-why does eBay allow it?

While the message supposedly from Etsy shared above has not been verified, information in Etsy's recently released 2023 Transparency Report seems to bolster the claim that a dropshipping crackdown is coming or already in process.

Etsy’s 2023 Trust & Safety highlights and our plans for 2024
Hi everyone, I’m Alice Wu and I lead Etsy’s Trust & Safety team. Today, I’m excited to share some insight into the progress we made in 2023 to keep Etsy safe and special—and a look ahead at how we plan to build on and expand this work. We just published our 2023 Transparency Report, which gives a d…

All of these efforts help ensure that you can feel safe and secure on Etsy, so you can focus on what matters most—managing your shop, connecting with buyers, and growing your business.

You can read the full 2023 report here, but I’ve pulled out a few highlights below:

  • We made our automated detection systems more precise, meaning we can more accurately identify problematic listings on Etsy. Because of this improvement, as well as other enhancements, we removed more than double the total number of listings that violated our policies compared to the year prior.
  • We focused on enforcing our Handmade Policy to ensure Etsy is a place where your special, one of a kind, and handcrafted items can shine. As a result of our investments in improving our technology and expanding our detection capabilities, we removed more than four times as many listings and suspended two times more sellers for violating our Handmade Policy than the previous year.
  • In addition to removing listings, we’re getting better at keeping items that violate our Handmade Policy from being seen or listed in the first place. We've reduced the number of policy-violating listings that shoppers see by 60%, have more clearly highlighted our policies during the listing process, and are ensuring badges like Star Seller and Etsy’s Picks are reserved for items that comply with our policies.

Etsy has been come increasingly under fire in the last year for the proliferation of counterfeit, IP infringing and not really handmade items on the platform with Citron Research lambasting the company for being the "largest organized clearinghouse for counterfeit goods in the world."

Pressure to do something about the issue has only increased as notorious activist investor Elliott Management has taken a significant stake in Etsy and a seat on the board.

Etsy Gets New Board Member As Elliott Management Takes 13% Stake In The Company
Etsy is getting a new board member this month as Elliott Management partner, Marc Steinberg, is set to join on February 5, 2024.

What do you think of Etsy reportedly cracking down on this third-party dropshipping integrations? Are there others they should add to the list? Let us know in the comments below!

EtsySeller Updates

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Liz Morton is a seasoned ecommerce pro with 17 years of online marketplace sales experience, providing commentary, analysis & news about eBay, Etsy, Amazon, Shopify & more at Value Added Resource!

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