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Etsy launch kit · Etsy rules

Etsy rules for Designed by sellers

Digital downloads, print-on-demand products and AI-assisted designs are all allowed on Etsy when the design is yours, AI use is disclosed and your production partner is named. Here is what that means in practice.

Updated November 2026 · 6 steps · Every step ends with a checklist

Your label
Designed by
AI
Allowed with your prompts and finishing; disclose it
Digital files
Up to 5 files, 20 MB each
Fees on a $22 sale
About $2.54
Four cards explaining Etsy’s Made by, Designed by, Handpicked by and Sourced by labels.

The checklist, step by step

  1. Choose the right label

    Etsy labels every listing Made by, Designed by, Handpicked by or Sourced by.

    • Your own digital files: Designed by
    • Your own print-on-demand designs: Designed by
    • Reselling someone else’s files or graphics: not allowed as Designed by

    In Sidecrafts: Elias suggests the label based on how you made the item.

  2. Disclose AI use

    AI-assisted designs are allowed when you write the prompts and finish the piece.

    • You write the prompts
    • You edit and finish the design yourself
    • AI use stated in the description
    • No prompt bundles for sale
    “Designed by me with the help of AI tools, then edited and finished by hand.”

    In Sidecrafts: Elias adds a disclosure line to your listing draft.

  3. Name your production partner

    Every print-on-demand partner must be listed in your shop settings.

    • Partner added in Shop Manager → Settings → Production partners
    • “Who made it?” = Another company or person on each listing

    In Sidecrafts: Elias checks both fields before you publish.

  4. Keep it original

    Only your own designs count.

    • No commercial-use, PLR or ready-made graphics used unchanged
    • No trademarked characters or brands
    • Drafts, prompts and partner emails kept as proof

    In Sidecrafts: Elias flags trademark risks in your idea.

  5. Know the digital file limits

    A digital listing holds up to five files.

    • Five files at most
    • Each file under 20 MB
    • No variations on digital listings

    In Sidecrafts: Elias checks your files before upload.

  6. Know the fees

    Count every fee before you set a price.

    • Shop setup $15–29, once
    • $0.20 per listing, renews every 4 months
    • 6.5% transaction fee, including shipping
    • 3% + $0.25 payment processing
    • Offsite Ads 15% only on sales they bring (opt-out under $10,000 a year)
    Etsy seller fees (US, 2026)
    FeeAmount
    Shop setup (one-time, new shops)$15–29
    Listing$0.20 per listing, renews every 4 months
    Transaction6.5% of the sale price, including shipping
    Payment processing3% + $0.25 per order
    Offsite Ads (only on sales they bring)15% under $10,000 in yearly sales (opt-out allowed); 12% above, mandatory
    List of Etsy seller fees in the US with amounts.

    In Sidecrafts: Elias calculates what is left after fees.

If a listing is removed, you can appeal within six months with proof: your design files, or partner emails for print-on-demand items.

Sounds like a lot? It is. That’s why you won’t do it alone.

You don’t need to remember any of this. Elias walks you through every step, checklist by checklist, so you don’t miss a thing. You bring the ideas. He handles the rest.

Take the 5-minute quiz and help us launch Sidecrafts faster

Sources