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Sarah Waggoner

Myth vs Fact: Will Etsy Close Your Shop for No Reason?

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If you’ve spent any time in Etsy seller Facebook groups or on YouTube looking for Etsy tips, you’ve probably seen people complaining that Etsy close their shop down for no reason. So can this really happen on the Etsy marketplace? Learn more below.

Are shops really getting shut down for no reason?

Fortunately, most Etsy sellers won’t have any issues with getting shut down. Yes, Etsy does occasionally make mistakes, but it doesn’t happen often.

I coach hundreds of students at a time in my Etsy membership and have never had a single student get shut down.

As long as you’re following Etsy’s rules, your Etsy business is not usually at risk.

If Etsy does make a mistake, which is rare, you can usually get your shop reopened within a few business days. Yes, this is inconvenient, but the reports of shops getting closed are greatly exaggerated.

Why your shop can get shut down

There are a few reasons why shops validly get shut down. Let’s go over the most common next so you can avoid making these mistakes.

Copyright and trademark infringement

If you are selling a large volume of trademarked and copyrighted products, you are more likely to get shut down by Etsy. You can’t sell products with movie characters, book characters, brand names, team names, etc.

Bad customer experiences

Sellers who have multiple cases opened against them or aren’t shipping orders on time are more likely to get shut down.

Non-handmade items

On Etsy, you can sell handmade products, craft supplies, or vintage items.

Many of the shops complaining about getting shut down aren’t following Etsy policy when it comes to handmade items. Learn more about what you can sell on Etsy here.

Overdue balance

You have to pay your Etsy fees, my friend. You can get suspended for not paying an overdue balance in your payment account.

Incorrect tax information

Etsy will also suspend your account if your tax information doesn’t check out. Make sure to input your information correctly including your business information and bank details.

New Shops

New Etsy shops are more likely to get suspended immediately upon opening. Etsy is continuing to refine its process of getting scammers off the marketplace. If you open a new shop and get hit with a suspension message, Etsy clearly lays out steps to appeal the decision. You should get a response to this appeal quickly.

While you’re appealing the decision, make sure your bank account and tax information is correct. You’ll also be asked to submit an ID for verification.

Can I log in from public WiFi?

This myth was started years and years ago. Some sellers will tell you not to log onto public wifi because you’ll get suspended if anyone who has been shut down has ever logged onto that same wifi.

The good news is that you can join any wifi you want without worry because Etsy doesn’t actually shut shops down for this.


Etsy’s policies clearly state what you can and cannot sell on the platform. They also lay out clear customer service standards. Shops that follow these policies including avoiding trademark infringement violations and selling items that are prohibited, are rarely shut down on the platform.

Do your best to avoid bad reviews, ship orders before they’re due, and keep customers happy to avoid an account suspension.

Etsy does make mistakes sometimes. But most sellers who are shut down without cause when it happens on the rare occasion, can resolve these issues quickly.

Your Etsy account is safe as long as you’re following policy.


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About Author:
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Sarah Waggoner is a full time Etsy Seller with over $700,000 in sales. She helps handmade and digital sellers get daily sales on Etsy without all the complications.

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