Etsy's AI rules
Etsy sets these rules in its Creativity Standards (last updated 10 Jun 2025) and a July 2024 Seller Handbook article on AI. Etsy's site blocked our reader on 20 Oct 2026, so the wording below is as quoted and dated by PrintShark's policy review, which checked the same pages on 1 Oct 2026. Open the Etsy page yourself before you list.
| Topic | Etsy's rule |
|---|---|
| AI-assisted designs | Allowed as "Designed by a seller" when generated from the seller's own original prompts |
| Disclosure | Required, "within their listing description," on each AI item. A shop-wide note isn't what the rule describes |
| AI prompt bundles | Prohibited. They don't qualify as "Designed by a seller" |
| Other people's work | Not allowed: no copied artists, brands or characters |
| Print-on-demand partner | Must be added as a production partner, with accurate ship-from locations |
| Nudity or sexual content | Must follow the Prohibited Items Policy, as with any listing |
| Enforcement | Etsy "reserves the right to remove listings that do not follow our policies" |
Etsy hasn't published how, or whether, it detects AI images. The rule is disclosure, so disclose and there's nothing to detect.
A disclosure line that works (our wording, not Etsy's): "This design was created with AI image tools under my creative direction, then edited and finished by me." Put it near the top of the description.
What Etsy's fees leave you
Etsy's fees, from its fees and taxes page, payment processing page and Offsite Ads page, read 20 Oct 2026 Verified:
- Listing: $0.20 per listing, renewed every 4 months or when it sells.
- Transaction: 6.5% of the order total, including shipping and gift wrap.
- Payment processing (US bank account): 3% + $0.25 per order. It's 4% + €0.30 in most of the EU and 4% + £0.20 in the UK.
- Offsite Ads: 15% of an order that Etsy's ads bring in, or 12% once your shop passes $10,000 in sales over 365 days. Capped at $100 per order.
- Set-up fee: a one-time fee that "varies by location."
A $5 digital download in the US Estimate:
Price $5.00
Listing fee -$0.20
Transaction fee (6.5%) -$0.33
Processing (3% + $0.25) -$0.40
You keep $4.07 (about 81%)
If an Offsite Ad made the sale: -$0.75 more -> $3.32
For a print-on-demand item, subtract the production partner's base price and shipping too. That's why POD prints and shirts need a higher price than digital files. Our arithmetic, from Etsy's published fees; sales tax and VAT are left out.
The risks that close AI shops
- Trademarks and characters. Fan art of Disney, Marvel, anime or sports brands is the fastest way to get listings removed. It's no safer because an AI made it.
- No disclosure. It's the one rule that's simple to follow, and listings that skip it can be removed.
- No copyright for prompt-only images. In the US, the Copyright Office says prompts alone don't make you the author, so you have little recourse when a competitor copies a raw AI design. Your edits, typography and collection layout are what you can protect. See Can you sell Midjourney images?
- The generator's own terms. Selling needs commercial rights from your AI tool. Midjourney requires a paid plan, and some free tiers are personal use only. Check the commercial-rights matrix.
- Low-effort saturation. Generic AI clip art is everywhere. Shops that sell are niche, edited and consistent.
What sells, and how people make it
- Printable digital products (wall art, planners, worksheets, clip art sets): no inventory, highest margin. See Etsy shop with AI-assisted digital art and printable planners.
- Print-on-demand (posters, shirts, mugs) through a partner such as Printful (paid link), which charges no monthly fee and bills you per order. See Print-on-demand with AI art and Printful vs Printify.
- Generators people use: Midjourney for style, Adobe Firefly for commercially cautious work, and Leonardo to start free. Thinking about other marketplaces? See Shopify vs Etsy.
FAQ
Does Etsy allow AI-generated art?
Yes. Etsy's Creativity Standards (updated 10 Jun 2025) list seller-prompted AI creations as an example of "Designed by a seller" items, as long as they come from your own original prompts and you disclose AI use.
Do I have to say my Etsy listing is AI-generated?
Yes. Etsy requires you to disclose AI use in the listing description of each item made with AI. A note on your About page alone isn't what the rule describes.
Can I sell Midjourney prompts on Etsy?
No. Etsy prohibits selling AI prompt bundles. You can sell the finished artwork, not the prompts behind it.
How much does Etsy take from a sale?
In the US: $0.20 per listing, a 6.5% transaction fee and 3% + $0.25 payment processing, checked 20 Oct 2026. On a $5 digital download you keep about $4.07, or about $3.32 if an Offsite Ad brought the sale (15% fee).
Can Etsy detect AI art?
Etsy hasn't published any detection method. It requires disclosure and can remove listings that break its policies.