If you’ve been waiting to launch your handmade or vintage shop on Etsy from India, there’s good news. As of June 2025, Etsy has officially resumed onboarding new Indian sellers. After a year-and-a-half-long pause that began in November 2023, Indian artisans, crafters, and entrepreneurs can once again join the global marketplace.
So, what has changed? And what do you need to create new seller account on Etsy in 2025?
Let’s break it down.
Why Was Etsy Onboarding Suspended in India?
Back in late 2023, Etsy paused new seller registrations in India. While the platform didn’t give an official statement initially, several reports suggested the halt was due to changes in Etsy’s payment processing systems and internal compliance restructuring. With the company focusing on streamlining its operations and regulatory alignment—especially concerning cross border payments and seller verification—the onboarding freeze continued through 2024.
What’s New in 2025?
Now, in a much-awaited move, Etsy has quietly reopened the gates for new Indian sellers to join the platform. While it’s a positive development, there are a few new guidelines and eligibility requirements sellers must meet to start selling internationally.
Key Updates for Etsy Sellers
| Feature | Details |
|---|---|
| Etsy India New Seller Status | Onboarding resumed for new Indian sellers as of June 2025. |
| One-time Setup Fee | A one-time onboarding fee of $10 USD is required during shop creation. |
| Sales Scope | Only international sales are allowed; domestic sales within India are not supported. |
| Payment Processor | Etsy Payments are exclusively handled via Payoneer. |
| Compliance Requirements | A valid GSTIN and PAN are mandatory for verification and compliance. |
| Payment Processing Fee | A standard fee of 5% + ₹25 applies on Etsy Payments. |
What is Etsy Payments and Why It Matters
Etsy Payments is the default and only way Indian sellers can get paid on the platform. It makes life easier for both you and your buyers by offering multiple payment methods including:
- Credit/debit cards
- PayPal
- Etsy gift cards
- Apple Pay and Google Pay
- Klarna, iDEAL, and other country-specific methods
Your buyers can choose from any of these options during checkout. Meanwhile, all your earnings land in your Etsy Payment Account (linked with Payoneer), where they’ll be managed and paid out in USD.
Note: PayPal availability varies by buyer country, not seller country.
Setting Up Etsy Payments with Payoneer
To receive money from your Etsy sales, you need to enroll in Etsy Payments using a Payoneer Payment Account. No PayPal or direct bank options here—Payoneer is the only supported method for Indian sellers.
During the setup, you’ll either:
- Sign in to your existing Payoneer account, or
- Create a new one by entering your personal and banking details.
Your payments will be automatically transferred every Monday at 9 PM IST, and you don’t need to manually schedule withdrawals. Payoneer will handle the currency conversion (USD to INR) and deduct any applicable fees.
Note: Etsy and Payoneer currently support sellers from countries including India, Argentina, China, Egypt, and more. To know the complete list, visit Etsy.com/sell.
International Markets Only for Now – No Domestic Sales Allowed
Currently, new Etsy shops opened from India can only sell internationally. Domestic sales (within India) are not available. That means:
- If you sell digital products, they’ll only be available to international buyers.
- Your shipping settings and payment setup must align with global sales.
So, make sure your pricing, shipping, and product details cater to an international audience.
Tax Details You Need
You must provide:
- A valid GSTIN (Goods and Services Tax Identification Number)
- Your personal PAN (Permanent Account Number)
Etsy has even partnered with ClearTax to help you apply for a GSTIN if you don’t already have one.
Your GSTIN helps with compliance and tax reporting. If you’re serious about selling internationally, getting one is essential.
Choosing Your Seller Type: Individual vs. Business
When you sign up, Etsy will ask whether you’re enrolling as an individual or a business. Here’s how to decide:
- If your bank account is in your personal name, choose individual.
- If your bank account is in your business/trade name, choose business and specify your type (e.g., Sole Proprietor, Private Ltd., NGO, etc.).
If your legal name doesn’t match your bank account, your verification may fail or be delayed.
Choosing the correct option is key—incorrect or mismatched information could block your enrollment.
Identity Verification
Etsy needs to verify who you are before it can send your earnings. Be ready to provide:
For individuals:
- Full name, address, phone number
- Date of birth, personal PAN
- Bank account details (with IFSC code)
- Live selfie + government-issued photo ID
For businesses:
- Legal business name, type, and GSTIN
- Primary owner details and PAN
- Beneficial owner details (optional)
- Bank account information
Verification is a must. Once completed, your shop will be ready to go live globally.
Etsy Fees and Billing
Apart from the one-time $10 USD set-up fee, here’s what you’ll be paying as a seller from India:
- Payment processing fee: In India, the payment processing fee on Etsy for Etsy Payments is 5% + 25 INR.
- Currency conversion/withdrawal fee: Charged by Payoneer
These charges are automatically deducted from your sales fund upon successful enrollment in Etsy Payments. If your sales don’t cover your fees, Etsy sends a billing statement on the 1st of each month, and you’ll need to clear dues by the 15th. Payments can be made using a debit or credit card.
Note: There’s a separate fess for product listing, advertising, and other services. To know the complete details, check Etsy’s official website.
Ready to Start Selling
If you’ve got a global product and a willingness to adapt to Etsy’s updated system, now’s a great time to start. Yes, the process is a bit more formal with the Payoneer setup, identity checks, and GST compliance—but it’s worth it for reaching millions of global buyers. Once your GSTIN and Payoneer account are set up, you’ll be ready to take your handmade or creative products global.
Your creativity deserves a global stage—and Etsy just opened the door again. So, polish your product photos, write detailed listings, and open that dream shop!
