Hi LindaB -
Here's what I posted last week:
Hi there!
Re: Gift wrapping:
You must list gift wrap as a supply and not a service to comply with the policies in the DOs & DON’Ts of Etsy. These guidelines should help:
The gift wrap should be a stand-alone listing in your shop. The buyer must not be required to make a separate purchase from your shop in order to buy the gift wrap.
List the gift wrap as a commercial supply or if the gift wrap is handmade by you, you may list it as a handmade supply or paper good.
Be prepared to sell only the gift wrap if someone purchases it without also buying an item from your shop. (You’re selling the gift wrap as an item, not the service of wrapping. It’s possible a shopper might just want the wrapping paper.)
You cannot sell shipping upgrades as Etsy items (because they just aren't a handmade item, supply or vintage item). Your shipping options should be clear in your shop policies. I suggest also mentioning your shipping options in your item listings. You can ask your buyers to leave a note for you at check out if they would like to expedite shipment. Then I suggest sending them a Paypal invoice.
Hope that helps!
Danielle