Is Etsy Legit? Etsy Scams to Know and Avoid

Do you adore personalised, unique and vintage items? Then you might have heard of Etsy! The site has become a go-to marketplace for shoppers on the hunt for unique, handmade, and vintage items. Whether you’re hunting for one-of-a-kind jewellery, custom art pieces, or quirky home décor, Etsy offers a selection you won't easily find elsewhere. You can find loads of unique pieces from independent sellers. 

But with so many online platforms popping up every other day, you might find yourself wondering “Is Etsy legit?” 

Well, we come bearing some good news. The short answer is yes. Etsy is a legitimate platform with millions of users worldwide. However, a large marketplace such as the size of Etsy does come with its own set of risks like scams or counterfeit goods. 

Whether you’re a buyer or a seller, our guide will help you remain safe on Etsy. You’ll also learn how to spot common scams. We’ll also talk about how you can protect yourself, and what to do if you think you’ve gotten scammed. 

What Makes Etsy Legit?

Over the past few years, Etsy has become immensely popular among shopping enthusiasts. One of the reasons behind the platform’s raging popularity is its legitimacy. Etsy has earned quite a reputation as a trusted marketplace over the years. Nowadays, it is the go-to destination for unique, often handcrafted products. 

Here are some of the factors contributing to Etsy’s legitimacy:

• Reputation and Growth: Established in 2005 and now with over 90 million active users, Etsy’s diverse community makes it one of the most trusted online marketplaces with a diverse community of buyers and sellers.
• Etsy Purchase Protection: Etsy has a purchase protection program. This is in place to protect both buyers and sellers. If something goes wrong —like a product not being delivered or arriving damaged—Etsy steps in to help resolve the issue.
• Secure Payments: Etsy has its own secure payment framework called Etsy Payments. It ensures that all transactions are secure for both parties. Payment methods include credit/debit cards, PayPal, and others. Sellers also receive payments securely, reducing fraud risks.

Ready to start selling on Etsy? You might enjoy learning more at Sellers Guide: How to Sell on Etsy UK.

Understanding Etsy’s Buyer Protection Framework

Did you know that Etsy has a system in place to protect buyers? In most cases, Etsy’s customer support tells buyers to resolve issues with sellers directly. However, in certain cases, Etsy will offer buyer protection. 

These include instances like:

• Late deliveries
• No delivery at all
• Receiving damaged or broken items
• Items that don’t match the listing description
• Receiving the wrong quantity of items  
• Misrepresented items

Unfortunately, scammers are very smart. They’ve found some loopholes in Etsy’s buyer protection terms. This can still leave you feeling helpless if you get scammed. 

For example, you can only request a refund if you can prove you’ve tried to resolve the issue with the seller directly. This can be very frustrating, especially with a noncooperative seller.

There are some other things to keep in mind as well. Etsy can deny your refund claim if:

• Your buyer’s account is not in good standing 
• You’ve altered the products in any way 
• You received the items late because of shipping delays
• The products were returned without a return agreement 
• You purchased things off of the Etsy platform 

Tips for Sellers:

As a seller, it’s essential to understand Etsy's buyer protection policies to avoid disputes and protect your business. Here are a few ways to stay compliant and safeguard your shop:

• Communicate Clearly: Respond quickly to buyer messages to show that you're actively working to resolve any issues.
• Upload Accurate Listings: Make sure your product descriptions, quantities, and photos are precise. This will avoid misunderstandings and misrepresentation claims.
• Track Shipments: Always provide tracking information to buyers. This can help in case of disputes about delivery delays or non-delivery.
• Follow Etsy’s Terms: Avoid handling transactions outside Etsy’s platform. Saving up on those fees isn’t worth the risk. By sticking to the platform,  you and your buyers are protected under Etsy’s policies.

Common Etsy Scams to Know and Avoid

While Etsy is a legit platform, it has a huge user base. We’re talking about more than 90 million users. That means that there will always be some risks to watch out for. It is important to stay vigilant and protect yourself against scams. 

Here are some common scams to keep an eye out for:

Fake Shops and Sellers

One of the most prevalent scams on Etsy is that of fake shops and sellers. These scammers create bogus shops that often display appealing, in-demand products at unbelievable prices. However, the truth is that these items don’t even exist.

Once buyers place an order, they either receive nothing, or something completely different from what they wanted.  

Look out for these telltale signs:

• No or Few Reviews: Fake shops often have little or no feedback from previous buyers. If a seller has no reviews or just a few 5-star reviews that seem generic or non-detailed, be careful. It’s a red flag.
• Too-Good-to-Be-True Prices: If the price of an item is much lower than similar items from other sellers, this could be a fake listing.
• Generic Product Descriptions: Many fake sellers use copied, grammatically incorrect, or vague product descriptions. They usually don’t offer any specific details about the product.
• Recent Shop Creation: Scam accounts are often newly created and have very few product listings.

Tip:  Always check:

1. Seller reviews
2.  Shop history
3. The seller’s “About” section.

Look for detailed, positive feedback from buyers. If a shop seems too new or has very few details, it's best to steer clear and avoid making a purchase.

Tips for Sellers:

As a seller, you have to protect your shop's reputation and make buyers feel confident when shopping with you. Here’s how you can avoid being flagged as a scam or fake seller:

• Focus on Building Trust: Regularly update your shop’s "About" section. Include your story, photos, and details about your business.
• Encourage Reviews: Politely ask satisfied customers to leave reviews. Customer feedback builds credibility and sets you apart from potential scammers.
• Maintain Transparency: Provide detailed and accurate product descriptions to ensure buyers know exactly what they’re getting.

Non-Delivery Scams

Another common scam is the non-delivery scam. In this, the buyer pays for an item, but the seller never ships it. This can happen with both fake sellers and legit sellers who fail to fulfil orders. 

Look for these warning signs:  

• Excuses for Delayed Shipping: If a seller constantly refuses to provide shipping details, or makes excuses about why an item hasn’t shipped, this could be a sign of a non-delivery scam.
• No Tracking Information: Sellers should provide tracking information for orders, especially for higher-priced items. If they refuse to do so, you should be suspicious. 

Tip: Keep all communications on Etsy’s communication system. This way, all interactions are documented within the platform. Stay on the lookout for sellers who refuse to provide shipping information or offer excuses for delays. If things look suspicious, file a case with Etsy. 

Tips for Sellers:

To avoid being involved in non-delivery scams and to build trust with your buyers, consider these options:

• Provide Tracking Information: Always provide tracking details for shipped items, especially for expensive purchases. This reassures buyers and helps prevent disputes.
• Set Realistic Shipping Times: Be upfront about processing and shipping times in your listings. If there are delays, inform your buyer early on before they get frustrated. 
• Keep Proof of Communication: Keep all buyer communications within Etsy’s messaging system. This protects you by maintaining a clear record of all interactions, which might be helpful if a dispute pops up.

Wrong Address Scams

Lots of buyers experience another scam where they never receive their packages. The seller often says that they shipped it, which is true. What they conveniently choose to leave out is that they shipped your package to the wrong address. When you try to request a refund or submit a claim with Etsy, the fraudsters can claim that the item was delivered. 

Scammers even go as far as to use stolen or fake tracking numbers to prove that the items were delivered. The end result? Your money gets stolen. 

Here are things to look out for to prevent this from happening: 

• Shipping Label Accuracy: Ask the seller to share the shipping label with you. Double-check the item name, size, weight, and shipping address to make sure it's going to the right place. 
• Track Your Package Through Etsy: Always track the shipment via Etsy’s built-in tracking system. This ensures the tracking is real and not a fake or stolen number from another unrelated order.

Tip: If you're unable to track your order, or the tracking information looks suspicious, contact Etsy's support team. They can intervene early before the seller can claim delivery.

Tips for Sellers:

To prevent misunderstandings and protect your business from being involved in wrong-address scams, keep these tips in mind:

• Verify Addresses: Always double-check the shipping address before sending out an order. Send a confirmation message to ensure the address is correct.
• Provide Shipping Confirmation: Share the shipping label with your buyers, confirming that their package is going to the right address. 
• Use Reliable Shipping Services: Use reliable shipping services that offer tracking information. Ensure the tracking numbers are accurate to avoid any confusion.

Counterfeit Items

While Etsy is a great place for handmade and vintage items, there’s always the risk of running into counterfeit items. Some sellers try to scam buyers by listing mass-produced, counterfeit goods as handmade. This happens most in categories like jewellery, clothing, and art.

Look out for these red flags:

• Unusually Low Prices for Premium Items: If you find a high-end, handmade product, but it's priced far below similar products, proceed with caution. It could be a counterfeit or mass-produced item.
• Overly Polished Products: Handmade items often have small imperfections that make them unique. If an item looks too perfect or polished, it might be mass-produced.
• Vague Product Origin Details: If the seller avoids answering questions about the product’s materials, origin, or production process, be careful. This is a red flag.

Tip: Ask specific questions about how the item was made. Find out more about the materials used and the seller’s crafting process. Authentic sellers will be transparent and eager to answer all your queries. Avoid shops that seem unable or unwilling to ask questions about their items.

Tips for Sellers:

To protect your shop from accusations of selling counterfeit items, consider these practices:

• Be Transparent: Clearly describe your products, including materials used and the crafting process. 
• Maintain Quality: Focus on quality craftsmanship. Small imperfections can highlight the uniqueness of handmade items, making them more appealing to buyers.
• Price Competitively: Ensure your pricing reflects the quality and craftsmanship of your products. Avoid setting lower prices than similar handmade products. This might make your buyer think there’s something suspicious with your item. 

Phishing Emails

Phishing scams are rampant in online marketplaces. Scammers pretend to be Etsy or other organisations to trick users into sharing sensitive information. They might ask for things such as login credentials, financial details, or personal information.

Here are some dead giveaways that you have a phishing situation on your hands: 

• Suspicious Links: If you receive an email that looks like it's from Etsy but includes strange or incorrect URLs, be careful. In most cases, it's a phishing attempt.
• Urgent Information Requests: Scammers often ask you to quickly provide sensitive data. They might scare you by claiming your account will be closed unless you verify your information. Etsy never asks for sensitive information through unsolicited emails.

Tip: Always check the sender’s email address before responding. Official Etsy emails will come from an Etsy domain (e.g., @etsy.com). If an email looks suspicious, delete it. Do not click on any links. Instead, log in directly through the Etsy website to check your account for any issues.

Tips for Sellers:

To protect yourself and your customers from phishing scams, try these steps:

• Educate Your Customers: Inform your buyers about potential phishing scams.  Encourage them to verify any suspicious messages before providing personal information.
• Use Secure Communication: Always communicate through Etsy's official messaging system when talking to buyers. 

Hacked Account Scams

In some cases, scammers get their hands on legitimate seller accounts. They then use them to list fake items or divert payments to their own accounts. This can happen if a seller’s account is compromised due to weak passwords or phishing attacks.

Here’s how you can spot a hacked account:

• Unusual Product Listings: If a shop that usually sells specific handmade goods suddenly lists unrelated things, be careful. It probably means that their account has been hacked.
• Change in Communication Style: If a previously responsive seller suddenly becomes unresponsive or doesn’t talk to you the way they usually do, proceed with caution. It’s likely that it’s not them behind the screen. Their account might be compromised.

Tip: Enable two-factor authentication (2FA) on your Etsy account for added security. If you suspect a seller's account has been hacked, report the issue to Etsy. Do not respond to the seller and avoid purchasing from the shop until the situation is resolved.

Tips for Sellers:

To protect your Etsy shop from being hacked and to maintain the trust of your customers, follow these recommendations:

• Strengthen Your Passwords: Use a strong, unique password for your Etsy account. Avoid easily guessable passwords. You can generate one from a password manager.
• Monitor Your Account Regularly: Frequently check your account for unusual activity or listings. If you notice anything suspicious, take action to secure your account.

Off-platform payment scams

Another famous scam takes place when users exist in the Etsy ecosystem. Some scammers will attempt to conduct transactions outside of Etsy’s secure system. They will often try to convince you by offering a discount or claiming it will avoid Etsy’s fees. Once a buyer agrees to do so, they lose the protection that Etsy provides, leaving them vulnerable to fraud. This means that the seller can run away with your money and leave you empty-handed. And if this happens, Etsy can’t help you at all.

Here are some signs of Off-Platform Payment Scams:

• Discounts for Direct Payment: If a seller offers a special discount if you pay via PayPal, Venmo, or bank transfer, this is a red flag. They are trying to remove any evidence of payment so that they can disappear with your money. 
• Request for Payment in Untraceable Methods: Some scammers may ask for payment in gift cards, cryptocurrency, or other untraceable methods. Again, this is done to prevent any evidence from existing. 

Tip: Never agree to make payments outside of Etsy’s platform. Etsy’s payment system protects both buyers and sellers. Moving outside of it voids that protection and leaves you at the mercy of the scammer.

Tips for Sellers:

To protect your shop and your buyers from off-platform payment scams, keep these strategies in mind:

• Promote Etsy Payments: Encourage buyers to use Etsy's secure payment methods. Clearly communicate that you only accept payments through Etsy's platform.
• Avoid Discussing Alternative Payment Methods: If a buyer asks about paying outside Etsy, politely decline the offer and encourage them to use Etsy payments.
• Educate Your Customers: Inform your buyers about the risks of off-platform payments and the protections that Etsy offers. This helps build trust and reduces your likelihood of being scammed.

Inconsistent Price Scams

Inconsistent price scams occur when a seller advertises an item at a low price, only to increase it later in the transaction process or demand additional fees after the purchase is complete. This bait-and-switch tactic is designed to trap buyers into paying more than expected.

Keep an eye out for these red flags: 

• Price Hikes During Checkout: If the price of your items suddenly changes at checkout or additional fees are added without explanation, it’s best to cancel your order. It could be part of an inconsistent pricing scam.
• Unexpected Shipping or Handling Fees: Some sellers may tack on extra shipping fees or hidden costs after the initial transaction. If that doesn’t look right to you, either cancel your order or bring it up with Etsy support. 

Tip: Always be sure to double-check the total price before completing your purchase. If there are any unexplained changes that look fishy, contact the seller. Ask them for clarification. Always avoid sellers who are not transparent about pricing upfront.

Tips for Sellers:

To maintain transparency and avoid being accused of inconsistent pricing scams, follow these tips:

• Clearly Display Prices: Display the full prices of your items, including any shipping or handling fees.
• Communicate Changes: If you need to adjust prices or add fees, inform your buyers as soon as possible.
• Avoid Hidden Fees: Be upfront about all costs associated with a purchase. Buyers appreciate transparency. 

How to Spot Etsy Scams

While Etsy does have its fair share of scams, not all hope is lost. There are still a lot of things you can do to protect yourself. By taking certain precautions, you can reduce the risk of falling victim to scams. 

In order to protect yourself, you must first be able to recognise the warning signs of a scam. Here’s what to look out for:

• Lack of Reviews: Steer clear of sellers with no reviews or recent negative feedback. Another important thing: If a seller has only stellar reviews within a short timeframe, that's suspicious too. Run! 
• Unrealistic Prices: If you think you found something at an unbeatable price, stop for a second and think again. If a product is priced significantly lower than similar items, it may be too good to be true. 
• Poor Communication: If a seller is giving vague answers to your questions, it means they have something to hide and may not be trustworthy. It’s better to avoid purchasing items from such sellers. 
• Suspicious Links or Messages: If you receive a suspicious link from a seller, you might be one click away from getting scammed. Never click on unsolicited links or provide personal information through email or messaging apps.

How to Avoid Etsy Scams

Just because others got scammed on Etsy, doesn’t mean you have to meet the same fate as them! In fact, there are some proactive steps you can take that can help you stay safe while shopping on Etsy. 

Take a look at some of our best tips that will help keep you safe: 

• Research the Seller: Do some research on the shop you’re buying from. Opt for well-established sellers with positive reviews and a history of good customer service.
• Use Secure Payment Methods: Steer clear of people who ask you to pay them off-platform. Always pay through Etsy’s secure system. This way, transactions are recorded and you’re protected by Etsy.
• Do a Reverse Image Search: Some sellers take photos from other sites and upload them on Etsy. Do a reverse image search of the product photos to see if they show up anywhere else. 
• Check the Product Description: Read product descriptions carefully so you know what to look for at delivery. Make sure the item meets your expectations. This will help avoid unexpected surprises later on. 
• Ask Questions: If you’re unsure about anything regarding the product, you should contact the seller. Make sure all your doubts are cleared before heading over to the checkout section. 
• Report Suspicious Activity: If you encounter a scam or suspicious behaviour, report it to Etsy immediately. Letting them know in time can help you protect your money. 

Want to learn more about how you can become scam-proof? Check out How to Avoid Marketplace Scams on eBay, Depop & More.

Steps to Take if You Get Scammed

So, you found a great steal and made a purchase. Or maybe you just sold an item. But something doesn’t look right. Did you get scammed? Maybe. What happens now? Well, first off, don’t panic! 

If you suspect you’ve been scammed, it’s important to stay calm and act quickly. Here are some of the immediate steps you should take: 

• Contact the seller or buyer to see if the issue can be resolved
• Open a case with Etsy if the user is unresponsive or uncooperative
• Request a refund if you’re eligible for one
• Report the user to prevent others from being scammed.
• Monitor your account for any unauthorised activity
• Change your passwords 

Once you’ve taken these immediate steps, you might think that you’re in the clear. However, there are some more things you should do. Scammers act fast and the effects of a scam attempt can be very far-reaching.

We recommend taking these additional steps to ensure your long-term safety, both on and off Etsy:

• Call your bank or financial institution associated with the transaction and tell them about the situation 
• If you used a credit card, call them and request a chargeback
• Freeze your credit to prevent any damage to your credit score 
• Report the scam to the police if you’re concerned about identity theft
• Use a VPN (Virtually Protected Network) to prevent scammers from getting access to your location 
• Set up 2FA (2 Factor Authentication) on your logins to protect your passwords from getting stolen or misused
• Use reliable antivirus software to protect your data in case you accidentally click on a malicious link 

Did you know that Etsy isn’t the only website on scammers’ radar? If you’re an eBay user, you might enjoy reading up on Common eBay Scams & How To Avoid Them.

Advice for Both Buyers and Sellers on Etsy

Etsy scams aren’t limited to just buyers. In fact, sellers also need to exercise just as much caution when using Etsy. Many sellers face different challenges such as fraudulent buyers, fake claims, and managing multiple platforms. 

Here are a few tips for sellers to stay safe and keep their business running smoothly:

• Verify Buyer Information: Be careful about who you’re selling your stuff to. Be wary of folks who request shipping to an unverified address or ask you to communicate outside of Etsy’s messaging system.
  
  
• Use Etsy’s Shipping Tools: Always ship through Etsy’s system.  This will ensure you have tracking information and proof of delivery. In case of any disputes, you’ll have evidence to fight your case.
  
  
• Stay Alert for Payment Scams: Be wary of buyers offering off-platform payments.  These often lead to fraud or disputes that Etsy’s Purchase Protection cannot cover.

• Document Item Conditions: Be sure to take pictures of your item before, during and after packaging in order to have proof of what the item looked like before it got shipped out. 

• Steer Clear of Payment Plans: Steer clear of buyers who ask to overpay, underpay, or pay in instalments. This can often lead to disputes later on. In most cases, recovering the remaining amount after you’ve shipped an item becomes impossible. 

• Beware of Fake Influencers: Do not send items to people claiming to be influencers. They might try to convince you by offering to review or promote your items, but this often doesn’t happen. 

• Meet in Public Places if Necessary: If you’re handing something to a buyer in person, make sure you do it in a public place. NEVER go to their homes or other unverified locations. 

Stay Safe and Get the Best Out of Your Etsy Experience

Etsy is a legit and reliable platform for finding unique, handcrafted items. But like any online marketplace, it’s important to use common sense and stay aware of potential scams. By taking steps like verifying sellers, using secure payment methods, and checking shipping details, you can confidently shop on Etsy and avoid falling victim to fraud.

For sellers looking to optimise their business, expanding their presence across multiple platforms can help reduce risk and increase sales opportunities. Don’t put all your eggs in one basket and always have a backup plan in case things go wrong. 

Try using Vendoo, a trusted cross-listing software that’s loved by sellers all over the world. It allows Etsy sellers to list and manage their products on several marketplaces like eBay, Depop, and Mercari. Not only does this diversify your reach, but it also helps minimise your dependence on a single platform.

Vendoo makes it easy to cross-list your products, track inventory, and keep all your sales channels organised. This gives you more time to focus on crafting high-quality, trustworthy products. 

With Vendoo, sellers can make the most of their Etsy experience while growing their business beyond a single platform. Give it a go for free today! 

FAQs

Etsy has a buyer protection programme that might help you in case of serious scams, though the customer support team usually encourages users to resolve issues mutually. 

What are some common signs of a scam seller?

Common signs include a lack of reviews, unrealistic prices, poor communication, and requests for off-platform payments.

What should I do if I suspect a scam on Etsy?

If you believe you've encountered a scam, report the seller to Etsy immediately through their support system. Document all communications and transactions to support your claim.

How can sellers avoid being scammed on Etsy?

Sellers should maintain transparent pricing, encourage positive reviews, communicate effectively with buyers, and avoid sharing links to external sites. 

Is it safe to share payment information on Etsy?

Yes, it is safe to share your payment information on Etsy as long as you use the platform's secure payment system. Avoid giving your payment information directly to people outside of Etsy.