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Star Seller Eligibility with Pickup/Local Delivery
I am no longer available for the star seller badge, because I completed an order (EARLY) that was for local pickup/delivery. I don’t believe this should be the case at all. My neighbor surprised me by ordering a product from my Etsy shop, and I didn’t want to waste money on shipping, nor was it necessary to ship the item at all. I instead walked the item 10 seconds across the street to hand deliver it to her. She was THRILLED, yet I was penalized by Etsy for not having tracking info. I am beyond annoyed.

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Re: Star Seller Eligibility with Pickup/Local Delivery
The Star seller rules are very clear and have been for 2 years.
Etsy is not going to change this. If you want to qualify for the star seller, you have to have tracking on your orders.
From the help pages:
What if I offer local pick-up or delivery for my items?
At this time, orders that don't have tracking because they are delivered or picked up in person will be considered shipped without tracking, and will not meet the Star Seller criteria for shipping.
More info on Star seller on the help link below:
How to Become a Star Seller – Etsy Help

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Re: Star Seller Eligibility with Pickup/Local Delivery
Since you're a new shop, there's other things required to be a star seller besides tracking on packages.
The SS badge is based on the previous 3 months, message rate, sales, orders, on time shipping/tracking, review ratings.
For example, if the Assessment Date is on September 1, 2023, then a seller’s performance from June 1, 2023 through August 31, 2023 is measured.
You also have to have $300 in sales for that 3 month period.
More info here:
Star Seller Terms and Conditions - Our House Rules | Etsy

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Re: Star Seller Eligibility with Pickup/Local Delivery
Etsy claims to have been working on this issue for two years now….I wouldn’t hold my breath. For the Star Seller program, I don’t believe they have any intention to make allowances for hand delivery. Ever. So much for reducing the carbon footprint.

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Re: Star Seller Eligibility with Pickup/Local Delivery
holysheepcrochet I have some very large items in my shop that I only list for local pick up only. I don't like the fact that there is no option under shipping to click Local Pick Up Only, ebay has that option on there shipping choice. So I have to use the Free Shipping option. Which is misleading to buyers. And I agree with you it is a shame to lose your badge for hand delivering an item. The star seller program has many faults when it comes to shipping. If I sell one of my photography prints they go by letter mail, so no tracking.