Why Etsy is Shutting Down Spiritual Shops — And What it Means for Sellers

Witches and spiritual practitioners have been part of Etsy’s ecosystem for well over a decade. In 2015, Etsy formally banned spell casting services. However, the policy was loosely enforced for years, and many spiritual sellers continued operating without issue.

That changed recently.

Over the past year, Etsy has begun actively deactivating spell listings and suspending shops, often without prior notice. For many long-time sellers, this shift has been abrupt and disruptive.

Here is my experience, and what I believe it means for online businesses moving forward:

My Experience as a 6-Year Seller

I opened my Etsy shop in January 2020. Over the next six years, I built what was formerly known as Witch of Carolina LLC into a thriving spiritual business offering white magic spell casting services and tarot readings.

During that time, my shop accumulated:

• 3,000+ reviews

• A 4.9-star rating

• Zero cases or major disputes

• Consistent Star Seller Status

In 2025 alone, I paid over $4,000 in Etsy fees. Despite operating in good standing for years, my shop was ultimately deactivated without warning. Thankfully, I had already begun transitioning to my own independent website several years ago. That decision allowed me to continue serving my clients without interruption. But the experience revealed something important about platform-based businesses.

The Challenge of Platform Dependency

When you build your business on a marketplace platform, you are building on rented land.

• Policies can change.

• Enforcement can shift.

• Automated systems can make decisions without human oversight.

In my case, enforcement increased gradually. First came listing removals. Then message monitoring. Etsy’s automated systems began flagging even simple client support messages, such as sending file access links when customers had trouble downloading their readings due to app glitches. For sellers providing digital services, this created unnecessary friction for both practitioner and client.

Many sellers attempted to adapt. I personally removed all spell listings when enforcement began increasing and continued offering tarot readings while reviewing policy guidelines carefully. For months, everything appeared compliant — until it wasn’t.

This isn’t unique to spiritual sellers. Across industries, creators on platforms like Etsy and TikTok have experienced sudden shutdowns due to policy shifts or automated moderation systems.

The Larger Shift Happening on Etsy

Over the past few years, Etsy’s marketplace has evolved significantly.

Many sellers and buyers have voiced concerns about:

• The rise of drop-shipping

• AI-generated product saturation

• Increasing automation in enforcement

As platforms scale, automation often replaces human nuance. Niche or spiritually oriented businesses can become particularly vulnerable when policies tighten. Whether one agrees with Etsy’s stance on spiritual services or not, the inconsistency in enforcement over the past decade led many sellers to believe their businesses were stable. When enforcement suddenly changes, it exposes the risk of relying too heavily on a single platform.

The Real Lesson for Online Sellers

My takeaway is not bitterness — it’s clarity.

If you are building a business online:

• Diversify your platforms.

• Build your own website.

• Grow your email list.

• Use marketplaces as tools, not foundations.

A platform can amplify your reach. It should never be the sole pillar holding up your business.

Final Thoughts

Etsy provided a launchpad for many creative and spiritual entrepreneurs over the past decade. But the digital landscape is changing. The era of depending entirely on large platforms may be ending. The future belongs to independent creators who own their audience, their website, and their customer relationships.

If you’ve ever considered moving your business off a marketplace platform — take this as your sign. Build your foundation somewhere you control.