Amazon Handmade vs Etsy

If you’re an artisan or crafter looking to sell your handmade creations online, one of the biggest decisions you’ll face is choosing the right platform. Two of the most popular marketplaces for handmade goods are Amazon Handmade and Etsy. Both platforms offer unique opportunities, but they cater to different audiences and come with their own set of advantages and challenges.

In this guide, we’ll take a deep dive into the differences between Amazon Handmade and Etsy, exploring their strengths, weaknesses, and key features to help you decide which platform is best suited to your handmade business.

What Is Amazon Handmade?

Amazon Handmade is a section of the giant Amazon marketplace, launched in 2015, that focuses exclusively on handcrafted goods. The platform allows artisans and makers to sell their handmade creations to Amazon's massive customer base, which is one of the largest online shopping communities in the world. To maintain a curated environment, Amazon Handmade only permits sellers who can prove their items are handmade, ensuring that buyers can find genuine, one-of-a-kind products.

Key Features of Amazon Handmade

• Global Customer Base: As part of Amazon, Handmade has access to millions of shoppers worldwide, offering you an enormous potential market.
• Fulfillment by Amazon (FBA): Sellers can take advantage of Amazon’s fulfillment network to store, pack, and ship products directly from Amazon's warehouses, giving them access to Amazon Prime customers.
• Customizable Options: Sellers can offer personalized or customized items, a feature that appeals to shoppers looking for unique products.
• Shipping & International Reach: Sellers on Amazon Handmade have the ability to ship worldwide and access Amazon’s extensive logistics network.

What Is Etsy?

Founded in 2005, Etsy is a marketplace specifically designed for artists, crafters, and makers to sell their handmade, vintage, and craft supply items. Etsy is a dedicated community-driven platform where sellers can build their brand and connect with buyers who appreciate unique, one-of-a-kind creations. Etsy focuses on fostering creativity and individuality, making it the go-to platform for anyone looking to sell handmade items.

Key Features of Etsy

• Creative Freedom: Etsy offers extensive customization options for your store, allowing you to showcase your products and your brand in a creative and visually appealing way.
• Niche Audience: Etsy attracts buyers who are specifically interested in handmade and vintage products, which helps sellers find a dedicated customer base.
• Lower Fees: Etsy has relatively low fees compared to Amazon Handmade, which can be appealing for smaller artisans just starting out.
• Community-Oriented: Etsy provides a space for artisans to connect, share their stories, and market their creations in a community-focused environment.

Key Differences Between Amazon Handmade and Etsy

When deciding which platform is right for your business, there are several key differences between Amazon Handmade and Etsy that you’ll want to consider.

1. Audience Reach

• Amazon Handmade: One of the biggest advantages of Amazon Handmade is its global reach. Amazon is the largest e-commerce platform in the world, so your handmade products can be discovered by millions of potential customers. However, this comes with the challenge of standing out among millions of other products, not all of which are handmade.
• Etsy: Etsy’s audience is more niche and targeted, with a dedicated community of buyers who are specifically looking for handmade or vintage items. This can lead to higher conversion rates for artisans whose products align with Etsy’s core audience.

2. Fees and Costs

• Amazon Handmade: Amazon Handmade charges a 15% referral fee on each sale, which is relatively high compared to other platforms. However, it offers the option of using Fulfillment by Amazon (FBA), which can help you scale your business by automating shipping and logistics. FBA comes with its own set of additional fees, such as storage and fulfillment fees, which can impact your profit margins.
• Etsy: Etsy charges a lower 6.5% transaction fee and a $0.20 listing fee for each product. Additionally, there is a payment processing fee based on the seller’s country. While Etsy’s fees are generally lower, sellers have to manage their own shipping and fulfillment, unless they opt for third-party logistics services.

3. Seller Requirements

• Amazon Handmade: To sell on Amazon Handmade, you must apply and prove that your items are handcrafted. Amazon has a more rigorous application process that includes providing information about your production methods. This ensures that only genuine artisans are selling on the platform. The approval process can be time-consuming, but it adds a layer of exclusivity to the marketplace.
• Etsy: Etsy has an easier and quicker signup process. Anyone can open an Etsy store, as long as their products meet the platform’s guidelines (i.e., they are handmade, vintage, or craft supplies). However, Etsy has recently enforced stricter policies on what qualifies as “handmade,” especially for items like 3D-printed goods, which may impact certain product categories.

4. Customization and Branding

• Amazon Handmade: While Amazon Handmade does allow some customization of your profile and store, it doesn’t offer as much creative freedom as Etsy. The overall design of the platform is more uniform, which can make it harder for sellers to stand out in terms of branding.
• Etsy: Etsy allows for far more customization of your storefront. You can add banners, logos, and detailed shop descriptions to create a unique online presence. This flexibility is a huge benefit for makers who want to create a visually compelling brand and connect with customers on a personal level.

5. Fulfillment and Shipping

• Amazon Handmade: Amazon Handmade gives sellers the option to use Fulfillment by Amazon (FBA), which means that Amazon handles storage, packaging, and shipping. This service can be a great way to scale your business, but it comes with additional costs. FBA is particularly beneficial for sellers with high-volume products, as it also grants access to Amazon Prime customers.
• Etsy: Etsy doesn’t offer integrated fulfillment services like FBA. Sellers are responsible for managing their own inventory and shipping. While this gives you more control over your processes, it can also be time-consuming, especially as your business grows. However, Etsy does allow integration with third-party fulfillment services, which can help streamline the process.

Which Platform Should You Choose?

The decision between Amazon Handmade and Etsy ultimately depends on your product type, business model, and long-term goals. Both platforms offer significant advantages, but they serve different needs. Here’s a breakdown of when to choose Amazon Handmade versus Etsy, based on what matters most for your business.

Choose Amazon Handmade if

You Want Access to Amazon’s Global Customer Base

Amazon is one of the largest e-commerce platforms globally, with millions of customers. If your primary goal is to reach a massive audience and gain exposure quickly, Amazon Handmade offers an advantage. Unlike Etsy, where the audience is more niche and focused specifically on handmade products, Amazon Handmade opens your products to a broader market, including those who may not typically shop for handmade goods.

You’re Prepared for Higher Fees

Amazon Handmade charges a 15% referral fee on each sale, which is higher than Etsy’s transaction fee. While this may seem like a disadvantage, the trade-off is access to a much larger audience and the opportunity to use Fulfillment by Amazon (FBA). With FBA, Amazon handles storage, packaging, and shipping for you, which can save you time and effort. However, you should be aware of these additional costs, as they could impact your profit margins.

You Want to Scale Quickly

Amazon Handmade is ideal for sellers who want to grow their business rapidly. With access to Amazon’s robust fulfillment system and logistics network, you can focus on scaling your product offerings and driving traffic while Amazon handles the back-end operations. If you’re looking to handle larger volumes and expand quickly, Amazon Handmade provides the infrastructure you need.

You Want to Leverage Amazon Prime Membership

By using Fulfillment by Amazon, your products can become eligible for Amazon Prime, which offers fast shipping to millions of Prime members. Prime members are more likely to purchase products that come with the benefits of fast shipping, which can help boost your sales significantly.

Choose Etsy if

You Value Creative Control

Etsy provides much more freedom for customization compared to Amazon Handmade. On Etsy, you can fully personalize your shop’s appearance, including banners, logos, and your store’s overall layout. This level of customization allows you to build a unique brand identity and showcase your products in a visually compelling way, reflecting the true essence of your handmade items.

You Want a Niche, Engaged Audience

Etsy attracts a dedicated community of buyers who are specifically interested in handmade, vintage, and one-of-a-kind products. If your products fit into these categories, Etsy’s highly targeted audience can help you achieve higher conversion rates. Customers on Etsy are looking for unique items, so you’re more likely to find buyers who value and appreciate the craftsmanship behind your products.

You Prefer Lower Fees

Etsy charges a 6.5% transaction fee plus a $0.20 listing fee for each product. These fees are generally lower than Amazon Handmade’s, making it an affordable platform for those just starting out or for small businesses that want to minimize upfront costs. However, Etsy does also charge a payment processing fee depending on your country, so it’s essential to consider these costs when calculating your potential profits.

You Want to Build a Personal Brand

Etsy allows sellers to develop a personal connection with their customers, which is important when building a long-term business. With a strong focus on individuality and creative expression, Etsy helps sellers foster a loyal customer base. If you want to tell your story and build a brand around your handmade products, Etsy’s platform is the perfect place to do so.

Pros and Cons of Amazon Handmade vs Etsy

Both Amazon Handmade and Etsy offer unique benefits and drawbacks for sellers. Let’s break down the pros and cons of each platform to help you decide which one is right for your handmade business.

Amazon Handmade: Pros and Cons

Pros

• Massive Audience Reach: Amazon Handmade gives you access to Amazon’s enormous global customer base, which can lead to a significant increase in visibility for your products. Amazon’s market is vast, with millions of users searching for products daily. 
• Leverage Amazon's Fulfillment Services (FBA) : Amazon offers Fulfillment by Amazon (FBA), which allows sellers to store, pack, and ship their products through Amazon’s fulfillment centers. This service is ideal for scaling your business and taking advantage of Amazon Prime shipping, making your products eligible for faster delivery.
• Worldwide Shipping: Amazon Handmade supports international shipping, which gives sellers the opportunity to reach customers around the world. Amazon’s logistics network helps streamline international sales.
• Professional Customer Service: Since Amazon handles customer service for products shipped through FBA, it can save you time dealing with returns or shipping inquiries. This allows you to focus more on growing your business and less on administrative tasks.

Cons

• Limited Customization and Branding: Unlike Etsy, Amazon Handmade offers fewer options for store customization. You have limited control over the look and feel of your storefront, which can make it harder to create a personalized shopping experience for your customers.
• Higher Fees: Amazon Handmade charges a 15% referral fee on each sale, which is higher than Etsy’s fees. Additionally, if you use FBA, you’ll face extra storage and fulfillment costs, which can reduce your profit margins.
  
  
• Tougher Seller Application Process: To sell on Amazon Handmade, you need to submit an application and prove that your products are genuinely handmade. The approval process can be more rigorous and time-consuming compared to Etsy’s straightforward sign-up.
• Competition from Other Categories: Since Amazon Handmade operates within the larger Amazon marketplace, your products will be competing with a vast array of other items, not just handmade products. This can make it harder for sellers to stand out in a sea of listings.

Etsy: Pros and Cons

Pros

• Targeted Audience: Etsy attracts a niche audience that specifically looks for handmade, vintage, and unique items. This means you’re reaching buyers who are already interested in the types of products you sell, which often leads to higher conversion rates.
• Creative Freedom and Branding: Etsy allows for extensive customization of your storefront. You can design your shop, add banners, logos, and even tell your story through your shop profile. This gives you the chance to build a unique brand that resonates with your audience.
• Lower Fees: Etsy’s fees are lower than Amazon Handmade's. Etsy charges a 6.5% transaction fee and a $0.20 listing fee per product, with an additional payment processing fee. These fees are more manageable for small businesses or independent artisans just starting out.
• Strong Community Focus: Etsy is known for its community-driven environment. Sellers can engage with each other and with buyers through reviews, custom requests, and direct communication. This sense of community can help build trust and foster loyalty.

Cons

• Smaller Audience Reach: While Etsy’s niche audience is ideal for handmade goods, it also means you're not tapping into the massive global customer base that Amazon provides. Etsy’s audience is smaller, which might limit your potential sales if you’re looking for a broader reach.
• More Manual Effort in Fulfillment: Unlike Amazon Handmade, Etsy doesn’t offer integrated fulfillment services like FBA. Sellers are responsible for packaging and shipping their products, which can be time-consuming, especially for those with large inventories or orders.
• Higher Competition in Certain Categories: Since Etsy is widely known for its focus on handmade and vintage products, competition can be intense in popular categories. You’ll need to work hard to differentiate your products and stand out from other sellers offering similar items.
• Listing and Advertising Costs: While Etsy’s fees are relatively low, there are additional costs for things like Etsy Ads and promoted listings to increase visibility. These optional advertising fees can add up, particularly for sellers looking to scale their business quickly.

Conclusion

Both Amazon Handmade and Etsy provide unique opportunities for artisans to showcase their handmade products. Amazon Handmade offers access to a vast, global customer base and the benefit of Amazon’s fulfillment network, making it ideal for those looking to scale quickly and tap into Amazon’s massive reach. However, its higher fees and limited customization options might not appeal to every seller.

On the other hand, Etsy gives you more creative freedom with extensive store customization and a highly engaged audience specifically interested in handmade goods. While its audience reach is smaller, the targeted traffic can result in higher conversion rates, especially for niche products. Ultimately, the best choice depends on your business goals, the type of products you sell, and whether you prioritize scale or brand-building.