I found this in the Etsy Dos and Don't Section
"Handmade by you
With the exception of Vintage and Supplies, categories on Etsy are for handmade items. Handmade items must be created by the seller operating the Etsy shop (or a member of that shop). Below are general policies regarding handmade items on Etsy, as well as special considerations for certain types of listings or activities in the handmade categories.
On Etsy, the term "handmade" can additionally be interpreted as "hand-assembled" or "hand-altered."
Simply tailoring, restoring or repairing an item is not considered handmade.
To be considered handmade, the seller must substantially alter the design of an item produced from a "ready to assemble" kit.
Upcycled, reconstructed or significantly altered vintage items are considered handmade. These items should be listed as handmade, not in the Vintage category.
Selling commercial or mass-produced items in Etsy's handmade categories is not permitted.
You may not list handmade items that you (or a member of your shop) did not create. This is considered reselling and is not permitted.
All items in the handmade categories must comply with Etsy's listing policies, including special policies for labeling handmade items."
