Is Etsy Wholesale a Scam? Here is the Truth About Handcrafted Leather Goods

Be Wary of Off-Platform Transactions: Scammers often try to move conversations and payments off Etsy to avoid transaction fees and platform oversight. Legitimate wholesale inquiries and transactions should primarily occur within Etsy's messaging and payment systems. If a seller insists on communicating or receiving payment via email, external invoices, or other third-party platforms, it's a significant red flag. This practice circumvents Etsy's buyer and seller protections, making you vulnerable to fraud.

Stolen Portfolio Photos and Fake Artisans: Some sellers may use high-quality images of handcrafted leather goods that are not their own, often taken from legitimate artisans' portfolios or even from sites like AliExpress. This is a form of 'AliExpress Reseller Bait,' where the product received is vastly different from what was advertised, or of much lower quality. Always scrutinize the seller's profile, look for work-in-progress photos, and verify their authenticity. If a seller's entire portfolio looks inconsistent or uses generic, high-gloss product shots without any behind-the-scenes content, be suspicious.

False 'Handmade' Scalability and Ghost Manufacturers: A scam to watch out for is when sellers falsely claim they can scale 'handmade' production beyond their capabilities, often by using 'ghost manufacturers' or mass-producing items that are not genuinely handcrafted. For handcrafted leather goods, this can mean a seller claims to produce large quantities but is actually outsourcing to a factory that compromises quality or originality. Verify a seller's production capacity and craftsmanship claims directly.

Sample vs. Bulk Bait-and-Switch: Be cautious of sellers who offer attractive samples but then switch to lower-quality or different products when it comes to the bulk order. This 'bait-and-switch' tactic can leave you with a large quantity of unsatisfactory goods. Ensure your wholesale agreement clearly defines the exact specifications, materials, and quality standards for the entire order, not just the sample.

Copyright Infringement and Fake Artisan Certification: Some sellers might falsely claim artisan certifications or use designs that infringe on existing copyrights. This can lead to legal issues for you as the buyer and supplier. Always check for genuine certifications and be aware of designs that seem too similar to well-known brands or other artists' work.