When you're selling online, scams are part of the reality. Large marketplaces attract honest buyers and sellers, but they also attract shady people looking for quick money. If you sell on Etsy, knowing what scams look like and how to prevent them is just as important as pricing your items correctly.
In this guide, we will cover common Etsy scams, how they work, and what sellers can do to protect their shops before problems start.
Understand Etsy Policies, Terms of Service, Shipping, and more for Scam Protection
As an Etsy seller, understanding Etsy’s rules is one of the best defenses against scams. Knowing the Terms of Service, shipping rules, and return policies helps prevent disputes and protects your shop when problems happen.
Remember: If you follow all of Etsy's rules and you are scammed, Etsy is more likely protect you. Etsy protection will not apply if you do not follow their terms of service.
Purchase Protection Program for Sellers
Etsy's purchase protection program is not insurance. Etsy decides on a case-by-case basis if protection applies.
If sellers follow Etsy’s rules, Etsy may refund buyers for certain orders up to $250, including shipping and taxes, without charging the seller. This usually applies to non-delivery or listing accuracy issues. It does not cover damaged items.
To qualify, sellers should:
- Use valid tracking or Etsy shipping labels
- Mark orders shipped and upload tracking information
- Use Etsy Payments
- Ship to the address Etsy provides (do not change it upon buyer's request)
- Package items carefully
- Ship within the stated processing time
- Have shop policies filled out and compliant
- Keep your shop in good standing
If an order is over $250, the seller may be responsible for the full refund. Etsy recommends third-party shipping insurance for higher-value items.
If you are found in violation of any of Etsy's policies, Etsy will not offer protection.
If the total cost of the item (including shipping and taxes) is more than the $250 threshold, the seller is responsible for refunding the cost entirely. Etsy strongly recommends buying third-party insurance to cover any items that may be lost or damaged in transit.
You might also like the article Is Etsy Legit?
Common Etsy Scams and How to Avoid Them
Be aware of these common Etsy scams and how to avoid them 👀
| Scam | What It Looks Like | How to Avoid | What to do |
| Fake/Counterfeit Items | Branded or vintage items priced far below market | Check reviews, compare prices, reverse image search | Open a buyer dispute case with photos and proof. |
|
Fake Etsy Shops |
New shops with few reviews and no shipping | Buy from established shops with positive reviews | Open a non-delivery case |
| "Bait-and-switch" Scams | Item received doesn’t match listing | Read descriptions, check reviews | Document and open a case |
| Wrong-Address Shipping (or buyer says they did not receive) | Tracking information shows delivered, but the buyer says they did not receive | Verify address and tracking information | Open a case and provide proof of tracking. |
| Off-Platform Payments | Asked to pay via Venmo, Zelle, PayPal, CashApp, gift cards, etc. | Pay and accept payments only through Etsy | Report the account |
| Phishing Messages | Messages asking you to “verify” info | Never click links or share info | Report the message/account |
| Fake Photos/Reviews | Stock, AI, or stolen images | Reverse image search, or request video from seller | Avoid or report account. |
Let's look at each of these a little deeper 👀
Fake or Counterfeit Product Listings
Some sellers list items that appear to be branded, handmade, or vintage but are actually knock-offs. These may be presented with polished photos and descriptions that mimic legitimate products. Common signs include:
- Deals on branded items that are significantly below market prices.
- Photos that lack clear images of tags, logos, or identifying details.
- Listings without detailed descriptions that explain materials and origin.
To avoid these scams, study the seller’s reviews, compare prices with known standards, and use reverse image search tools to see if photos were copied from elsewhere.
Fake Etsy Shops
Fraudulent shops are set up by scammers who take payments and never ship products. These shops may disappear quickly after collecting orders. Red flags include:
- Very few or no genuine reviews.
- Generic shop sections with a wide range of unrelated products.
- Poor or inconsistent shop details
Before buying, check how established the shop is, how many reviews it has, and how detailed its policies and product descriptions appear.
Bait-and-Switch Listings
In bait-and-switch schemes, the listing promises one item but delivers something of significantly lower quality or a completely different product. This often happens with items advertised as handmade or custom but shipped as mass-produced goods. You can spot this by:
- Vague product descriptions.
- Lack of original photos showing the actual item being sold.
- Discrepancies between listing photos and buyer reviews.
If you suspect this has happened after purchase, document the differences and open a case with Etsy.
Wrong-Address Shipping Scams
Some scammers deliberately ship to an incorrect address they control so they can later claim the item was delivered if you open a protection case. Some buyers intentionally purchase with one address but then send a message requesting the item be shipped to a different address. To reduce this risk:
- Confirm your shipping address before and after checkout.
- Check tracking to ensure the package is headed to your correct address.
- Always ship to the address provided by Etsy (not the buyer in a message)
If a package shows delivered but you did not receive it, open a case promptly with supporting documentation. If a package shows delivered and a buyer is claiming they did not receive it, contact Etsy and provide tracking information.
Off-Platform Payment Requests
A major scam involves sellers/buyers asking buyers/sellers to complete payment outside of Etsy via Venmo, Zelle, cash apps, gift cards, cryptocurrency, or other methods. Etsy strictly prohibits this. Risks include:
- Loss of Purchase Protection.
- Increased likelihood of fraud with no recourse through Etsy.
- Higher vulnerability to chargebacks or refusal to deliver products.
Legitimate buyers and sellers have no reason to request off-platform payments because Etsy has a built-in payment processing system. Report any such request and keep transactions within Etsy’s system.
Phishing and Account Takeover Attempts
Scammers sometimes send messages pretending to be Etsy support, urging you to “verify” information or log in through a link. Etsy will never ask for passwords or sensitive data through unsolicited messages. If you receive a suspicious link, do not click it. Instead, verify through official Etsy channels and report the message.
Fake Reviews or Misleading Photos
Some scammers use stolen, AI, or stock photos that are unrelated to the actual item being sold. Using a reverse image search can help confirm whether images are original or copied. Listings with generic stock photos, inconsistent image styles, or unrelated backgrounds should be approached with caution.
While Etsy scams do exist, they are largely avoidable when buyers understand the most common red flags and follow Etsy’s on-platform rules. Etsy Purchase Protection often applies when a transaction goes wrong, as long as payment and communication stay on Etsy and the order meets eligibility requirements.
How to Spot Etsy Scams Early
When buying and selling on Etsy, watch for these red flags:
- Requests to move off Etsy
- Pressure to act quickly
- Strange payment requests
- Conflicting shipping information
- Messages that feel scripted or vague
⭐️ Most importantly: Trust your instincts. If something feels wrong, pause before shipping or responding.
What Sellers Should Do If a Scam Happens
If you think you are dealing with a scam, act fast but stay professional.
Keep all messages and evidence
Do not delete conversations. Take screenshots if needed. Save tracking numbers, receipts, and photos of the item before shipping.
Check tracking and delivery status
Look at carrier scans. Confirm the address on the order matches the label. Screenshot delivery confirmation pages.
Respond politely through Etsy messages
Stay calm and factual. Emotional messages can be used against you in disputes. Keep replies short and professional.
Report the buyer to Etsy
Use Etsy’s reporting tools so that Etsy can review the account. This protects other sellers, too.
Contact the shipping carrier if needed
If a package is lost or damaged, file a claim with USPS, UPS, FedEx, or DHL right away. Delays can void insurance claims.
Document everything before refunding
If Etsy requires a refund, keep proof that you followed policies. This helps if the buyer files a chargeback later.
Act quickly. Waiting can make disputes harder to resolve.
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Best Practices to Prevent Etsy Scams
Preventing scams is easier than fixing them. Here are some ways to avoid such situations:
- Use tracked shipping on all orders. Tracking protects you in non-delivery claims. For expensive items, require signature confirmation.
- Photograph items before shipping. Take clear photos of the item, packaging, and shipping label. This protects you against false damage claims.
- Keep communication on Etsy. Never move conversations to email or social media. Etsy needs a record to support you.
- Never accept off-platform payments. It violates Etsy rules and removes seller protection.
- Fill out shop policies clearly. Return policies, shipping times, and custom order rules reduce disputes. Clear expectations prevent scams.
- Verify unusual requests. Address changes, rush orders, and special requests should be confirmed carefully before shipping.
- Package items carefully. Poor packaging leads to real damage claims that look like scams.
- Check buyer history when possible. Repeated complaints or strange requests can signal a problem buyer.
Good habits reduce most scam risks, or at least make buyers and sellers more likely to receive protection from Etsy.
You might also be interested in Top-Selling Items on Etsy
Selling Safely While Growing Your Etsy Business
Scams are frustrating, but awareness helps. Understanding Etsy policies, documenting shipments, and watching for red flags protect your shop and your income.
Many sellers also reduce risk by selling on more than one marketplace. Tools like Vendoo help manage listings across platforms like eBay, Depop, Mercari, and Etsy, so one bad buyer or dispute does not disrupt your whole business.
Staying informed, organized, and cautious lets you focus on what matters most: running a profitable and trustworthy Etsy shop.
Have you ever been the victim of a scam on Etsy? Tell us about it below! 👇🏽
