Indian Sellers Still not Allowed on Etsy as on 2025

Main Reasons Behind Etsy’s Decision to Deprioritize the Indian Market

Etsy’s move to deprioritize India as a key market in 2024–2025 is the result of several interrelated challenges and strategic considerations:

1. Intense Competition from Established E-commerce Platforms

Etsy struggled to compete with dominant players like Amazon, Flipkart, and eBay, which already had a strong presence and loyal customer base in India. These platforms offered broader product selections, better logistics, and more aggressive pricing strategies, making it difficult for Etsy to carve out a significant share of the domestic market.

2. Cultural and Product-Market Fit Issues

Etsy’s platform and product curation have a strong Western influence, which did not resonate with the majority of Indian consumers. Indian buyers tend to be more price-sensitive and prioritize value over uniqueness, while Etsy’s marketplace is built around unique, often premium-priced handmade goods. This mismatch limited Etsy’s appeal beyond a small niche audience.

3. Lack of Effective Localization and Marketing

Etsy failed to adequately localize its platform for Indian users. This included insufficient brand awareness campaigns, lack of integration with local payment systems (such as INR payments), and a user experience that did not cater to Indian buying habits. As a result, Etsy struggled to build meaningful connections with Indian consumers.

4. Operational and Logistical Challenges

Logistics in India posed significant hurdles, including unreliable delivery partners, high shipping costs, and delays due to complex export laws and customs duties. These issues affected both domestic and international sales for Indian Etsy sellers.

5. Payment System Complications

The transition to Etsy Payments (via Payoneer) and the discontinuation of previous payment options like Razorpay and PayPal created additional friction for Indian sellers. The new system was described as cumbersome and slow, further discouraging participation.

6. Low Domestic Buyer Base and Limited Growth

Despite a large pool of Indian sellers, Etsy’s domestic buyer base remained small, preventing the company from reaching its growth targets in India. Most sales from Indian sellers were to international buyers, not within India.

7. Rising Platform Costs and Seller Dissatisfaction

Increasing platform fees and advertising costs made it less profitable for small and medium Indian businesses to operate on Etsy. Many sellers exited the platform, citing diminishing returns and high operational costs.

8. Leadership and Strategic Shifts Amid Global Challenges

The exit of key leadership figures in India and layoffs reflected Etsy’s broader global challenges, including declining sales, a falling stock price, and increased competition worldwide. These pressures prompted Etsy to focus resources on more profitable markets and streamline operations.

Summary Table: Key Reasons for Etsy’s Deprioritization of India