The Ultimate Guide to Preventing Etsy Shop Suspensions

The Ultimate Guide to Preventing Etsy Shop Suspensions

Table of Contents:

  1. Introduction
  2. Reasons for Etsy shop suspensions
  3. Suspensions for no reason
  4. Failure to update payment processing
  5. Incorrect account details
  6. Violation of location requirements
  7. Failure to pay fees
  8. Breaking Etsy's rules
  9. Copyright and trademark violations
  10. Restricted items
  11. Hiring virtual assistants
  12. Running multiple Etsy shops
  13. Shilling
  14. Fee avoidance
  15. Conclusion


Top 12 Reasons Why Etsy Shops Get Suspended and How to Prevent It


Getting your Etsy shop suspended can be a nightmare for any seller. It's a situation filled with confusion and frustration, especially when it happens unexpectedly and without any clear reason. But you're not alone. Even I, the founder of the Handmade Alpha Academy for Etsy sellers, have experienced the panic of a suspended shop. In this article, I will share the top 12 reasons why Etsy shops get suspended and provide actionable steps you can take to get your account back.

Reasons for Etsy Shop Suspensions

  1. Suspensions for no reason

It's not uncommon for new shops to get suspended on Etsy for no apparent reason. This can be a bug in Etsy's system or a measure to eliminate scammers. If this happens to you, don't panic. Contact Etsy and request to reopen your shop, explaining the situation.

  1. Failure to update payment processing

If you're based in the US, Etsy may require you to verify your bank information through a service called Plaid. Some sellers mistake this communication as a scam and ignore it. Failure to comply or verify your bank information can result in shop suspension. If you have issues verifying your bank or get mistakenly suspended, file an appeal through the "Community & Help" tab on your seller dashboard.

  1. Incorrect account details

Make sure your legal name, bank information, and tax details match with the information Etsy has on file. Major life events like getting married or moving should prompt you to update your account information promptly. If your account is suspended due to incorrect account information, it can usually be easily appealed and restored.

  1. Violation of location requirements

Etsy values honesty regarding the location of your business. Trying to deceive Etsy by using a VPN or setting up a print-on-demand shop that ships from a different country can lead to permanent shop suspension. Always provide accurate location details when filling out your account information.

  1. Failure to pay fees

Listing and sales fees are an integral part of running an Etsy shop. If these fees remain unpaid, Etsy will suspend your seller privileges until the bill is cleared. Opting for auto-billing can help avoid forgetting to pay fees on time.

  1. Breaking Etsy's rules

Etsy takes rule-breaking seriously and doesn't tolerate repeated violations. Sellers who disrespect customers, repeatedly receive reports, or fail to fulfill orders risk being permanently banned from the platform. If you're banned for any of these reasons, appealing the suspension is unlikely to be successful.

  1. Copyright and trademark violations

Selling copyrighted or trademarked items without proper authorization is a common reason for permanent shop suspensions on Etsy. It's essential to understand and comply with copyright and trademark laws. Only list and sell products that you have the legal right to, and avoid fan art, infringing designs, or infringing materials.

  1. Restricted items

Ensure that the items you sell on Etsy fall within the permitted categories. Items that promote hate, violence, drugs, illegal animal parts, or offer metaphysical claims are strictly prohibited. Familiarize yourself with Etsy's list of restricted items to avoid inadvertently violating their terms.

  1. Hiring virtual assistants

While seeking assistance for your Etsy shop is tempting, sharing your login information with someone who may work with multiple sellers can be risky. If the virtual assistant you hire engages in activities that violate Etsy's rules, like shilling, it can result in shared IP addresses being flagged, causing multiple shops to get suspended.

  1. Running multiple Etsy shops

Running multiple Etsy shops can be a strategic move, but it's important to be organized and avoid listing the same items in different shops. Accidentally listing the exact same item in multiple shops can lead to shop suspension. Ensure clear separation between your shops to maintain compliance.

  1. Shilling

Etsy strictly prohibits any form of shilling, which includes biased positive reviews, using secondary accounts to manipulate reputation, or directing others to purchase your items as a way to inflate your shop's reputation. Genuine purchases and reviews should be made with the buyer's own money and must reflect their honest opinions.

  1. Fee avoidance

Directing customers off the Etsy platform to pay for custom orders or making purchases on your website violates Etsy's terms. Custom orders should be transacted through a custom order listing on Etsy, and linking to your website is only allowed in the About Section.


To effectively prevent Etsy shop suspensions, it's crucial to familiarize yourself with Etsy's rules, terms, and policies. Understand copyright and trademark laws, list only permitted items, and prioritize honest and transparent practices. Stay updated with Etsy's communications and promptly respond to any issues that may arise. By following these guidelines, and with the help of trusted Etsy experts, you can minimize the risk of shop suspension and pave the way for success on the platform.


  • Suspensions on Etsy can happen unexpectedly and without clear reasons, causing panic for sellers.
  • Etsy may suspend new shops for no apparent reason, but it can usually be resolved by contacting Etsy support.
  • Failure to update payment processing, incorrect account details, and violating location requirements can lead to shop suspensions.
  • Violating copyright, trademark laws, selling restricted items, and engaging in shilling practices can result in permanent shop suspensions.
  • Hiring virtual assistants and running multiple Etsy shops require caution to avoid suspension risks.
  • Directing customers off the Etsy platform for transactions and attempting to avoid fees are also grounds for suspension.
  • Familiarize yourself with Etsy's rules, terms, and policies to maintain a successful and compliant storefront.


Q: Is it possible to appeal a shop suspension on Etsy? A: Yes, you can appeal a shop suspension on Etsy, but the success of the appeal depends on the specific situation and Etsy's discretion.

Q: Can I sell copyrighted or trademarked items on Etsy if I have a license? A: Yes, you can sell copyrighted or trademarked items on Etsy if you have the appropriate license to sell them.

Q: How can I avoid Etsy shop suspension? A: To avoid Etsy shop suspension, familiarize yourself with Etsy's rules, follow copyright and trademark laws, list permitted items, and maintain honest and transparent practices.

Q: Can I link to my own website in my Etsy listings? A: No, you can only link to your website in the About Section of your Etsy shop. Adding links in listing descriptions, photos, or conversations with buyers is against Etsy's terms.

Q: What are the consequences of shilling on Etsy? A: Engaging in shilling practices, such as biased positive reviews or manipulating reputation, can result in shop suspension on Etsy.

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