This is the official rules, cut & pasted from Etsy (I highlighted what pertains to me):
"Commercial crafting supplies"Hi Kris, Thanks so much for the email, and I'm sorry for the trouble caused by this. I have re-instated your listing privileges, but unfortunately the sweaters do not qualify to be sold on Etsy. On Etsy, a supply is an item that is specifically manufactured to facilitate the creation of new crafts. Unfortunately, sweaters would not fit this requirement. http://www.etsy.com/dosdonts.php#selling http://www.etsy.com/terms_of_use.php You may list sweaters that are 20 years old or older in the 'Vintage' category, but any other sweater that does not meet our Vintage requirements cannot be sold in your shop. Thanks again for your cooperation in this! Best, Amber Etsy Support"
* These are not items handmade by you.
* This section is for items that can be used to make other items you might find
for sale on Etsy (such as yarn, beads, instructional books, patterns, tools, etc.
* Shipping supplies and packaging materials are also allowed in the Supplies
* These listings must be placed in the Supplies category, and tagged as
commercial. (Categories such as Books and Zines are for handmade items only.) "
This was their email:
Notice they link the passage I quoted from the rules. Apparently they can just make things up as they go along.
I will be starting my own website soon, so hang in there! In the meantime if you need sweaters, please feel free to contact me directly at email@example.com. I'll post my new website here when it is up.