In the Basket - 2nd May 2025

🔥 Hot Topic: AI & Handmade: Can They Coexist?

There’s growing tension in the Etsy world right now, and the cause is spelled A-I. Whether it’s product descriptions written by ChatGPT or artwork made with tools like Midjourney, and Dall-e artificial intelligence is showing up across the marketplace.

Some sellers see it as a shortcut. Others see it as a threat to what makes Etsy special.

🌟 Why It Matters Now

Handmade goods stand out for their human touch, unique, imperfect, and meaningful. But sellers are now spotting AI-generated listings in Etsy search results, from flawless product copy to digital art that doesn’t feel handmade.

It’s sparking debate: some see AI as a creative tool, while others worry it threatens the authenticity of the handmade category. Etsy’s new policy updates aim to bring clarity to the issue.

In July 2024, Etsy introduced new "Creativity Standards" to address the growing presence of AI in product creation. These standards categorize items based on the seller's involvement:

• Made by a seller: Physical items crafted by the seller.

• Designed by a seller: Original designs by the seller, including AI-assisted creations.

• Sourced by a seller: Items enabling buyer creativity, like craft supplies.

• Handpicked by a seller: Vintage or curated items selected by the seller.

Importantly, Etsy allows AI-generated art if it's based on the seller's original prompts and creative input. However, sellers must disclose the use of AI in their listings.

🧭 What Sellers Should Watch

• ⚠️ AI-generated art is a gray area. If you’re using tools that generate entire designs or visuals for you, Etsy may not consider those original works, especially if there’s no editing or personal design input involved.

• 🤖 Content written by AI might be fast, but it can feel generic. Sure, it’s tempting to let ChatGPT write your listings, but that often leads to copy that lacks your shop’s unique voice (and buyers can tell).

• 📣 Be mindful of how AI use affects trust. Many Etsy shoppers choose handmade because they want something personal and genuine. Using AI without disclosure could erode that trust, especially if it becomes widespread.

• ✅ Some behind-the-scenes use is okay. Using AI to help brainstorm ideas or tweak your SEO is fine, as long as you’re still the creative force behind your shop. Just don’t fall into the trap of relying solely on AI-generated keywords or descriptions. They might sound polished, but they often miss the nuance of your product, and that can hurt your visibility more than help it.

💬 Bottom Line

AI might be the newest trend, but does it belong at the heart of handmade? If you’re using it at all, tread carefully and stay transparent. Etsy’s not just a platform, it’s a community of creators who put care and craft into what they sell. Let’s keep it that way 💛🧶

Have thoughts on this one? We’d love to hear your take, pro, con, or somewhere in the middle.

❓ Ask Me Anything:

Should I offer free shipping on Etsy? I’ve heard it can boost visibility, But is it really worth it?

Great question, we hear this one a lot! And you’re right to think it through. Free shipping can be a smart strategy, but only if you protect your profit in the process. Here’s how to make it work without undercutting yourself:

• 📦 Don’t eat the shipping cost, build it in
  If you normally charge $28 + $5 shipping, just price your item at $33 and offer free shipping. Most buyers care more about the total than the breakdown, and "free shipping" still feels like a perk 🎁

• 📊 Know your numbers
  Before you adjust your prices, get clear on your average shipping cost (you can check this in Etsy’s shipping label history). If you ship heavier items or ship coast-to-coast, use a solid average to avoid surprises.

• 🎁 Factor in packaging too
  Mailer? Bubble wrap? Cute thank-you card? That all costs money, and it should all be part of your product pricing. Don't forget to pay yourself for the little things!

• 🚫 Don’t race to the bottom
  It’s tempting to compete on price, but your time, materials, and creativity are valuable. If a competitor is offering free shipping and pricing super low, let them. You’re building a sustainable shop, not a burnout machine 🔥🧵

✨ Quick Tip:
Use our Etsy Fee & Profit Calculator to make sure your price actually covers shipping, materials, Etsy fees and leaves you with real profit. It’s a simple way to double-check that “free shipping” still works in your favour, before you update your listings 🛠️🧾

Offering free shipping doesn’t have to mean losing money. With smart pricing and clear communication, it can be a win-win for both you and your customers 💸📈

Have a question? 🤔 Hit reply and ask, we might feature your question here in next week’s issue.