How to Run an Etsy Giveaway Without Breaking the Rules

Wouldn’t it be amazing if you could grow your Etsy shop and reward your followers at the same time? Giveaways are one of the simplest ways for Etsy sellers to do just that. Everybody loves winning free stuff, so giveaways are an easy way to grab attention, bring in new followers, and boost visibility for your Etsy store without investing in Etsy ads.

But if you’ve ever tried to figure out how to run a giveaway on Etsy, you’ve probably hit a wall. Etsy doesn’t allow its sellers to host giveaways directly on its platform, but that doesn’t mean you can’t run a giveaway that promotes your Etsy shop to interested buyers. You just have to do it the right way (that is, without breaking the rules).

In this article, you’ll learn exactly how to set up a compliant, creative, and effective giveaway that drives traffic, builds your following, and helps you grow your Etsy business, with a little help from Socialman.

Can You Host a Giveaway on Etsy?

Before you get too excited about giveaways, it’s important to know what Etsy allows and what it doesn’t. And it doesn’t allow sellers to host giveaways directly on the platform. Why? Well, it’s simple. Etsy makes money when a sale happens. If a giveaway doesn’t involve a purchase, there is no sale price, and Etsy doesn’t earn its fee.

There’s also another important rule: the no purchase necessary laws. This comes from gambling and sweepstakes laws, which prevent contests from being tied to purchases. Simply put, you cannot require someone to buy a product from your Etsy store, leave a review, or pay in any way to enter your giveaway. Doing so could land you in hot water legally.

The great news is that you can run an Etsy giveaway that drives traffic, builds your audience, and promotes your shop, all while staying fully compliant. You just need to run it off the platform.

How to Run an Etsy Giveaway Without Running an Etsy Giveaway

As an Etsy seller, you can't run giveaways directly on the platform, so the key is to host your contest externally, such as on your website or a social media channel. This workaround keeps you fully compliant while still letting you achieve your main goal: driving traffic to your Etsy shop.

For example, you could run a giveaway on Instagram or Facebook where participants earn entries by visiting your Etsy store. They don’t need to buy anything. This can work in your favor because visitors get to see detailed information about your store and its customer reviews and recommendations, which can encourage them to purchase something, not as part of the giveaway, but out of genuine interest.

Another advantage of hosting externally is the ability to capture email addresses. This gives you a ready-made audience for future promotions, sales, or product launches, turning a single giveaway into a long-term marketing asset.

Choose a Format & Prize

The first step is deciding how your giveaway will work and what you’ll offer. Keep it simple and engaging. A popular format is a points-based or viral share system, where participants earn extra entries by sharing your giveaway with friends or visiting your Etsy shop. This encourages more people to see your products while keeping the entry rules compliant.

When it comes to prizes, pick something that excites your ideal customer and adds relevancy to your giveaway as part of your brand, like a product from your store, a digital download, or a customized service. Tiered prizes or multiple winners can also boost participation and make the giveaway feel more fun and inclusive. Just make sure your prize isn’t tied to a purchase.

Run Your Giveaway on Another Platform

Since Etsy doesn’t allow giveaways on its platform, choose an external channel to host it, like Instagram, Facebook, or TikTok. By hosting externally, you can still drive meaningful traffic to your store while growing your audience on another platform.

For example, you can require your participants to follow you on Instagram and visit your Etsy store link to enter the giveaway. This way, you’re killing two birds with one stone: your store is gaining visibility without openly encouraging transactions, and you’re growing your IG following at the same time, without breaking any rules or investing in Etsy ads.

Set Up Your Etsy Giveaway on Socialman

​​Socialman makes it simple to structure your Etsy giveaway legally and efficiently. You can use our “Visit on Etsy” action to reward participants for every single link click that leads them to your shop. You can also add a description highlighting your products or your story, so participants understand why they should explore your shop. This way, each visit becomes a mini-promotion for your store.

Socialman tracks entries automatically, so you don’t have to worry about manual tracking, counting, or missing anyone. You can even assign extra points to viral shares, rewarding participants who spread the word about your shop.

Promote Your Giveaway

A giveaway is only effective if people know about it. So, share it across social media, your email list, or even partner with other creators to reach new audiences. Use visuals, teaser messaging, and deadlines to create excitement.

Make sure to explain clearly what participants need to do to enter (visit your Etsy shop, follow your Instagram, etc.) and highlight what they can win. The goal is to get new eyes on your products while growing your community of followers and potential customers.

Pick & Announce Your Winner

Once the giveaway ends, select your winner or winners using Socialman’s tracking system, either via random selection or weighted entries based on actions. Then, announce the winner publicly to build excitement and show transparency.

To build on the momentum, follow up with non-winners, too. Send a thank-you email or offer a small discount to encourage them to visit your Etsy shop or subscribe to your list. This turns one-time participants into long-term supporters and maximizes the impact of your giveaway campaign.

Things to Keep in Mind When Running an Etsy Giveaway

Breaking Etsy’s contest rules is the easiest way to get your Etsy store flagged. So, if you want to grow your Etsy shop with giveaways, there are a couple of things you need to take into account before you host one.

Don’t Host Directly on Etsy

Etsy doesn’t allow sellers to host giveaways directly on the platform, nor does it provide a way to do so. Free products don’t generate money for them, so naturally, they don’t want you to offer stuff for free. So, host your contest elsewhere – like on your website or social media platform – to keep your shop safe while still promoting it effectively.

Don’t Require a Purchase

Never ask participants to buy a product to enter your giveaway. This would violate the “no purchase necessary” rule and could fall under gambling regulations. Instead, reward engagement-based actions, like visiting your shop or sharing your store with friends.

Set Clear Rules

Transparent rules help participants understand how to enter, what the prize is, deadlines, and how winners will be selected. Clear guidelines build trust, reduce confusion, and encourage more people to take part. With Socialman, you can generate the terms and conditions of your giveaway automatically.

Use a Giveaway Tool

Long gone are the days when you had to track everything manually! A platform like Socialman automates your giveaway process, tracks entries, and gives you a simple, shareable landing page where participants can complete entry actions and see their progress.

Ready to Grow Your Etsy Store with a Giveaway?

Hosting a giveaway on Etsy is a great way to spread the word about your store, get more eyeballs on your products, and grow your social media following. Think of a giveaway as planting seeds for future sales: every participant who visits your shop, follows your social channels, or joins your email list is a potential long-term customer.

The catch? With Etsy, you need a workaround to run a giveaway without breaking the rules. And Socialman gives you a simple and smart way to do just that.

With Socialman, you can create a shareable landing page that makes it easy for your followers to visit your Etsy store to enter your giveaway. You can post the link anywhere you’re hosting your contest, giving participants an instant, simple way to engage with your shop. Plus, Socialman does everything automatically, from tracking entries and assigning points to picking a winner.

Ready to take the next step? Check out Socialman’s pricing plans and start growing your Etsy store with smart giveaways today.