Amazon Handmade and Etsy are two leading online platforms for selling handmade and vintage items. These marketplaces allow artists, craftsmen, woodworkers, and designers to showcase their creations to a wide audience of potential buyers.

Although both platforms offer various tools and advantages for sellers, they also have some notable differences.

In this blog, we’ll dive into the contrasts and similarities between Amazon Handmade and Etsy, discuss why you might choose to sell on each platform, and help you decide which is the best fit for your products.

What is Amazon Handmade?

Amazon Handmade is a dedicated section of Amazon for selling unique, handcrafted items. Sellers can set up their storefronts and use Fulfillment by Amazon (FBA) for easier shipping. Listings don’t expire, and sellers have access to performance analytics. Additionally, Amazon Handmade allows the use of sponsored ads to boost visibility and reach a broader audience.

In the third quarter of 2024, Amazon’s net income reached approximately 15.3 billion U.S. dollars, an increase compared to the previous quarter.

One key feature is a more organized product categorization system, offering 12 distinct categories for handmade products. Other benefits include the ability to use FBA for fulfillment, access to Amazon’s marketing tools, and detailed analytics. However, Amazon Handmade is more expensive than Etsy, charging a 15% commission on each sale plus a monthly membership fee.

The Pros and Cons of Selling on Amazon Handmade: What You Need to Know

Pros of Amazon Handmade:

Wide ReachSelling on Amazon Handmade offers undeniable advantages that can elevate your business. Here are the key benefits you must consider:

• Wide Reach: Amazon Handmade provides access to Amazon’s enormous global customer base, with over 3.1 billion monthly visitors. This allows sellers to potentially reach a much larger audience compared to other platforms.
• Profit Potential: Selling handmade goods on Amazon can be very profitable, with many sellers achieving strong profit margins according to industry reports.
• Customizable Storefront: While Amazon Handmade’s customization options are somewhat limited, sellers can still create a shop profile to showcase their brand and products, giving them the chance to present their identity to customers.
• Trust and Exclusivity: Amazon Handmade is an “artisan-only” platform with a strict approval process, ensuring only handmade products are sold. This separate marketplace boosts exclusivity, and sellers benefit from Amazon’s trusted reputation. Sellers can choose between Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM) for shipping.

Cons of Amazon Handmade:

While selling on Amazon Handmade offers unique opportunities, it also presents several challenges that could influence your business. Here are some important drawbacks to keep in mind as you navigate this platform. Selling on Amazon Handmade comes with certain disadvantages that could impact your business. Here are the key drawbacks to consider.

• Higher Transaction Fees: Amazon Handmade takes a 15% transaction fee per sale, which is higher than Etsy’s 6.5% fee.
• Strict Seller Criteria: The platform has strict eligibility requirements, meaning not all sellers can join Amazon Handmade.
• Intense Competition: With a large number of sellers, standing out on Amazon Handmade requires unique, high-quality products.
• Amazon’s Policies: Amazon enforces strict policies that all sellers must follow. These policies can be complicated and may change frequently, so it’s important to stay updated on their terms of service and selling guidelines.

What is Etsy?

Etsy is a popular starting point for crafters, artisans, and vintage sellers, and it’s easy to see why. The platform was specifically created for these groups.

When searching for Etsy alternatives, it’s crucial to consider platforms that focus on handmade and one-of-a-kind items. Each of these options comes with its own set of features, benefits, and potential downsides. 

In 2023, Etsy earned $2.74 billion in revenue, reflecting a 7% growth compared to the previous year. This growth has led many sellers to embrace the platform due to its benefits.

The Pros and Cons of Selling on Etsy: Key Insights for Sellers

Pros of Selling on Etsy:

Let’s dive into the exciting advantages of selling on Etsy and explore why it’s such a great platform for your business!

• Affordable Startup Fees: Setting up an Etsy shop costs $15, with a $0.20 listing fee for each item. Listings last for four months and are automatically renewed unless canceled. Additionally, there’s a 6.5% transaction fee on each sale, along with potential shipping and payment processing charges.
• Analytics and Customization Options: Etsy provides a free analytics tool to track traffic and customer insights. For more customization, Etsy Plus is available, offering features like personalized banners, featured listings, and other shop enhancements.
• Flexible Advertising Plans: Etsy allows sellers to run both on-site and off-site ads. On-site ads use an auto-bidding system where sellers set a daily budget, and ads are displayed based on search terms and product categories. Off-site ads are charged only when a user clicks and makes a purchase within 30 days.
• On-Site Advertising: Etsy’s internal ad system operates on an auction basis, where sellers set a daily budget for ad space. The platform bids for ad placements based on the seller’s budget and product category.
• Off-Site Ads and Fees: Off-site ads operate on a pay-per-click model, where a percentage of the total transaction is charged for shops that earn below a certain annual threshold. Shops that surpass this threshold pay a slightly reduced fee. Sellers only incur this fee if the ad leads to a completed sale.

Cons of Selling on  Etsy:

While Etsy offers a great platform for creative entrepreneurs, it’s important to consider a few challenges that come with selling on the site. Understanding these potential drawbacks will help you make a well-rounded decision before diving in.

• Ongoing Listing Fees: Etsy charges recurring listing fees every four months. For sellers with many listings, these fees can add up quickly, especially if the items don’t sell.
• Limited Product Categories: Etsy only allows the sale of handmade, vintage, and collectible items. Products outside these categories can be flagged or removed.
• No Fulfillment Services: Etsy doesn’t handle shipping. Sellers must manage their own logistics or find third-party fulfillment services.
• Potential for Loss: If sales don’t cover listing fees, it’s possible for sellers to lose money operating an Etsy store.

Amazon Handmade vs Etsy: Which Platform Is Right for You?

Choosing between Amazon Handmade and Etsy depends on your business goals and what you’re looking for in an online marketplace. Here’s a breakdown to help you decide:

1. Setting Up Shop:

Amazon Handmade is committed to offering a curated selection of handcrafted items, which is reflected in its thorough application process. Sellers must complete a comprehensive review, which can take several weeks or even months, to ensure their products meet Amazon’s handmade standards.

In contrast, Etsy offers a quicker and more straightforward registration process. Anyone can open a shop and begin listing products almost immediately, making it an easy platform for new sellers to get started.

2. Fees and Costs: 

Amazon Handmade: Higher fees compared to Etsy, including a 15% transaction fee plus a monthly membership cost. However, you can take advantage of Fulfillment by Amazon (FBA) for shipping.

The Etsy Standard account doesn’t have a subscription fee, but sellers are required to pay a listing fee for each product they post. This fee is renewed either when an item is sold or after the listing expires in four months. On top of that, Etsy has several additional small fees that sellers should be aware of.

3. Competition:

Amazon Handmade: Due to the large number of Amazon sellers, competition can be fierce, and standing out might require extra effort.

Etsy: While Etsy has a large number of sellers, it’s focused specifically on handmade, vintage, and unique items, so the competition is more targeted to your niche.

4. Fulfillment:

Amazon Handmade: You can use FBA for automated order fulfillment, which is a major advantage if you want to streamline shipping and handle larger volumes.

Etsy: It doesn’t offer fulfillment services, so you’re responsible for managing your own shipping or using a third-party service.

5. Customer Support:

Efficient customer support is key to resolving issues quickly and keeping both sellers and buyers satisfied.

Amazon Handmade offers 24/7 support and manages customer interactions for you, focusing on store efficiency. In contrast, Etsy’s support can be harder to reach, relying on the Help Center and community forums. However, Etsy allows direct communication with customers, offering a more personal experience, which can be ideal for small businesses.

Below is a detailed comparison of the subscription and fee structures for both platforms to help you understand the costs involved in selling on Amazon Handmade and Etsy.

Choose Amazon Handmade if you want to tap into Amazon’s huge customer base, utilize FBA, and don’t mind higher fees in exchange for more global reach.

Choose Etsy if you want to sell to a more specific audience of handmade or vintage enthusiasts, prefer lower upfront costs, and enjoy more control over your shop’s customization and branding.  

Summary

Both Amazon Handmade and Etsy offer unique advantages, but the right platform for you depends on your business needs. 

If you’re looking for massive exposure, streamlined fulfillment, and 24/7 support, Amazon Handmade might be the ideal choice. 

However, if you value a more personalized, creative selling experience with a lower upfront cost, Etsy could be the perfect fit. Carefully weigh the fees, competition, and support options to decide which platform aligns best with your goals and resources.

FAQs on Amazon Handmade vs Etsy

1. What’s the main difference between Amazon Handmade and Etsy?

Amazon Handmade offers a larger audience, FBA, and strict seller criteria, while Etsy focuses on a more personalized experience, lower fees, and easier setups.

2. What fees are charged on each platform?

Amazon Handmade has a 15% transaction fee plus a membership fee. Etsy charges a $0.20 listing fee, a 6.5% transaction fee, and additional advertising costs.

3. Which platform is easier to start on?

Etsy has a faster, simpler registration process, while Amazon Handmade requires a more detailed review.

4. Does Etsy offer FBA?

No, Etsy doesn’t provide fulfillment services, while Amazon Handmade offers FBA for easier shipping.

5. How does customer support differ?

Amazon Handmade offers 24/7 support, while Etsy’s support is less direct, relying on the Help Center and forums. Etsy allows direct communication with customers.