Etsy vs Amazon Handmade: Which Should You Choose for Business?

Etsy and Amazon Handmade are both great and terrific marketplaces where you can sell your products online. Their customer bases are huge and you can attract decent clients. In fact, we believe every business owner should use both.

But what if you’re just starting out? Amazon is where you can sell anything and everything. Whereas Etsy is more suited for arts, crafts, cosmetics, and custom items. If you want to debate between Etsy vs Amazon Handmade, then this guide is for you. Let’s check them out.

What is Etsy?

Etsy is an online marketplace that was built for artists and creatives. It features crafters who sell unique hand-crafted and vintage good. Most of the products sold on Etsy fall under jewelry, arts, crafts, homeware, and baked goods. And as for vintage items? You can even sell antiques dating back to beyond 20 years. 

Etsy has over 1,000,000 active shops and the platform is gaining serious popularity. Online shoppers know that when it comes to gifts and handcrafted items, Etsy is the place to be.

What is Amazon Handmade?

Amazon Handmade is a special marketplace found within the Amazon.com website. It focuses exclusively on handcrafted goods and is made for artisans and craftspeople to sell their unique goods.

You can join a growing community of creatives there and Amazon Handmade has customers from all over the world. Handmade gives you access to a suite of tools and programs with the Professional selling plan, without paying the monthly fee. You can save up to $480 per year.

And, to showcase your authenticity, they have stringent application and audit processes. You can focus on creating while the platform takes care of selling. Amazon Handmade provides many resources worth exploring in the Handmade Hub and in the Handmade Community Group in Seller Forums. Creating a Handmade storefront is free. When you make a sale, Handmade will deduct a 15% referral fee. You won't have to pay any other listing charges or payment processing fees.

Pros of Selling on Amazon Handmade

If you’ve ever wanted your handmade goods to sit next to everyday essentials in front of millions of shoppers, Amazon Handmade is the place to be. Here are its pros when it comes to selling online:

• Massive customer reach. Amazon isn’t just big—it’s everywhere. Your handmade shop instantly gets exposure to millions of buyers who might never go browsing on a niche site like Etsy. Even casual shoppers who weren’t planning on buying handmade could end up adding your product to their cart while shopping for something else. That kind of visibility is tough to find anywhere else.
• No listing fees. On Etsy, every product costs 20¢ just to put it up for sale, and that fee repeats every four months whether or not the product sells. On Amazon Handmade, listings are free, so you can upload as many items as you want and not worry about the clock ticking down. This is especially handy if you have a wide catalog and want to experiment with what sticks.
• Professional Plan perks without the monthly bill. To sell on Amazon, you normally need to pay $39.99 a month for a Professional Seller account. Handmade sellers are required to sign up, but after the first month, the subscription fee is waived. You get the same perks—bulk uploads, pricing tools, and eligibility for certain programs—without the ongoing cost.
• Fulfillment by Amazon (FBA). If packing boxes and shipping orders stresses you out, Amazon gives you the option to send your goods to their warehouses. From there, they handle storage, packaging, and delivery. That also makes your items eligible for Prime shipping, which buyers love. It’s not for everyone, but for some makers, it can save time and help reach customers who demand fast shipping.
• Advertising tools with keyword control. Amazon’s ad system is far more sophisticated than Etsy’s. You can target keywords directly, set bids, and keep track of performance in detail. Sellers who like to fine-tune their marketing often prefer this setup because it feels less like a gamble and more like a strategy they can adjust in real time.
• Responsive seller support. Amazon isn’t always warm and fuzzy, but Handmade sellers report quicker and more consistent responses compared to Etsy’s customer support. If you open a case, you’re more likely to hear back within a day instead of waiting a week. That can make a big difference when you’re dealing with urgent issues like lost shipments or payment problems.
• Freedom to test products. Since listings are free, you can throw new ideas onto the platform without worrying about the cost of unsold inventory. For creative sellers who want to experiment, this low-risk environment encourages testing without nickel-and-dime listing fees dragging profits down.

Pros of Selling on Etsy

Here are the pros of selling on Etsy vs Amazon Handmade:

• Lower transaction fees per sale. Etsy charges 6.5% on each sale plus payment processing, which usually adds up to less than Amazon’s flat 15% fee. Even though Etsy also takes 20¢ per listing and adds a small processing fee, the math often works out cheaper, especially if your products are higher-priced or sell consistently.
• High-intent shoppers. People go to Etsy specifically because they’re looking for handmade or vintage goods. That means they’re already in the mindset to buy a personalized necklace or hand-painted planter, rather than stumbling across it while shopping for electronics. Sellers often find that Etsy buyers are more engaged with their craft and willing to pay a fair price for quality work.
• Customizable storefront. Unlike Amazon’s uniform product pages, Etsy lets you give your shop some character. With Etsy Plus, you can add banners, featured listings, and branding elements that help your shop feel like an actual boutique. For artists, that visual identity is almost as important as the product itself—it’s part of what keeps customers coming back.
• Easy to set up and manage. Uploading products on Etsy is far less intimidating than Amazon. Most sellers can create a listing in minutes, and there’s no approval process that slows you down. For someone just dipping their toes into online selling, this simplicity lowers the barrier to entry and keeps frustration at bay.
• Digital product sales allowed. This is a big one: Etsy sellers can offer digital downloads like printable artwork, sewing patterns, or planners. These products can be sold endlessly without shipping costs or inventory management. Amazon Handmade doesn’t allow digital files, so if that’s part of your creative business, Etsy is the natural home.
• Friendlier return policies for makers. On Etsy, you can set clear terms that limit returns on personalized or made-to-order products. That kind of protection is valuable when you’re crafting one-off items that can’t easily be resold. Amazon Handmade’s stricter return culture makes this a major plus for Etsy.
• Supportive community. Beyond the storefront, Etsy offers forums, seller groups, and an overall vibe that’s more artist-centered. Many sellers appreciate being surrounded by other creatives instead of feeling like a tiny part of a massive corporate marketplace. That sense of community can be encouraging, especially when you’re just starting out.

Amazon Handmade vs Etsy Startup Costs

Talking startup costs is where the contrast between Etsy vs Amazon Handmade really shows. With Etsy, opening a shop is almost painless financially. You don’t pay a subscription fee, and the only upfront cost is the 20¢ listing fee per product. If you’re starting small with just a few items, you can launch for under $10. Etsy Plus, the optional upgrade, costs $10 a month, but plenty of sellers stick with the free plan at first.

Amazon Handmade takes a different route. To open a Handmade shop, you need to sign up for the Professional Seller account, which is $39.99 a month. That sounds steep if you’re comparing it to Etsy, but here’s the twist: Handmade sellers get that fee waived after the first month. So while there’s an upfront hit, the ongoing subscription cost doesn’t linger. Still, the 15% selling fee that applies to every order means the cost conversation doesn’t end there.

Startup costs also include things that aren’t platform fees: photos, packaging supplies, maybe even branding if you want to look polished from day one. On Etsy, you can ease into these investments gradually. On Amazon, the buyer expectations are higher, so most sellers feel pressure to start with professional photos and ready-to-ship stock. It’s not just about which platform is cheaper—it’s about how much you’re prepared to invest in setting up shop and looking competitive from the start.

Etsy vs Amazon Handmade Listing Fees

Listing fees are one of the biggest contrasts between these Etsy vs Amazon Handmade, and they influence how sellers manage their catalogs. On Etsy, every item you list costs 20¢, and that fee renews every four months whether or not the item sells. If you’ve got 100 items in your shop, that’s $20 up front and another $20 if nothing sells within the renewal period. It’s not backbreaking, but it can add up, especially if you experiment with lots of different products.

Amazon Handmade doesn’t charge listing fees at all. You can upload your entire catalog without worrying about recurring costs, and the only time you pay is when you actually make a sale. This makes Amazon attractive for sellers who want to test new designs, seasonal items, or just maintain a large inventory online without the pressure of paying to keep products visible.

That said, listing fees on Etsy serve as a small filter. Because every listing costs money, sellers tend to be more selective with what they upload. Amazon Handmade’s no-fee model encourages quantity, but it also means standing out in the mix takes more effort. If you’re the kind of seller who likes to try new product ideas constantly, Amazon gives you freedom to experiment. If you prefer a curated shop where every item is intentional, Etsy’s system keeps things tidier while still affordable.

Etsy vs Amazon Handmade for Dropshipping

Before diving in, it’s worth clearing up a common point of confusion: dropshipping isn’t really supported on either Etsy or Amazon Handmade. Both platforms were designed for handmade goods, which means they expect the seller to have a hand in creating or finishing the product. On Etsy, sellers sometimes work with print-on-demand companies, which technically isn’t pure dropshipping but can be allowed as long as you disclose the production partner. That’s why you’ll see Etsy shops offering custom t-shirts, mugs, or posters printed by third-party companies.

Amazon Handmade is stricter. Since you must apply and prove your products are handmade, traditional dropshipping—where you never touch the item—isn’t accepted. Sellers are expected to either craft the items themselves or oversee production in a small-scale workshop. If your business idea revolves solely around dropshipping, neither platform is the right fit. Etsy has some wiggle room with POD, but Amazon Handmade largely shuts the door. However, you can sell Amazon Handmade products through the Amazon Affiliate Program or join an Amazon affiliate platform to increase your sales.

Amazon Handmade vs Etsy for Print-on-demand 

Etsy has become a natural home for print-on-demand sellers, especially artists who design graphics but don’t want to handle production or shipping. As long as you name your production partner, Etsy allows products like shirts, mugs, and phone cases to be printed and shipped by third parties. This makes it easier for designers to scale without worrying about stock or packing boxes, and it blurs the line between handmade and manufactured.

Amazon Handmade takes a very different stance. Because of its application process and rules, it excludes most print-on-demand operations. Amazon’s goal is to keep Handmade as close to artisan-driven as possible, so products need to be crafted or finished by you. That can feel restrictive if you’re trying to sell POD designs, but it also means less competition from sellers uploading mass-designed catalogs. If print-on-demand products are your focus, Etsy is better.

Etsy vs Amazon Handmade: Seller Support

Amazon Handmade, while not perfect, generally responds more quickly. Sellers often hear back within 24 hours when opening a case. The tone might feel less personal—it’s still Amazon, after all—but having a faster answer can be the difference between losing sales and keeping your shop running smoothly. 

Getting your products seen is half the battle, and Etsy and Amazon take different approaches. Etsy relies heavily on search optimization. Titles, tags, and photos influence whether your item shows up when buyers search. Etsy ads exist, but they’re simple: you set a daily budget, and Etsy decides where the ads run. Many sellers find themselves constantly tweaking listings to improve placement, since organic visibility is the main driver of sales.

On Amazon, competition for ad spots can be fierce, especially in popular categories like jewelry or home décor. Etsy rewards patience with SEO, while Amazon leans toward sellers who are ready to treat ads like a business investment. 

Fulfillment and Shipping 

Shipping is one of the sharpest contrasts between Etsy and Amazon Handmade. On Etsy, sellers handle their own fulfillment. Etsy provides discounted shipping labels and tools, but the boxing, packing, and mailing are up to you. This setup gives flexibility—you can control packaging style and add personal touches like thank-you notes—but it also means you’re tied to the logistics side of running a shop.

Amazon Handmade ties directly into Fulfillment by Amazon (FBA). Sellers can ship inventory to Amazon warehouses, and Amazon handles the rest: storage, packaging, and delivery. Products fulfilled this way become Prime-eligible, which is a huge selling point for buyers. The catch is that it comes with storage fees, strict requirements, and less control over presentation. Your products are also always competing with millions of others, but the traffic volume smooths out some of the highs and lows.

Returns and Refunds

For artists, returns can be the nightmare that eats into both profits and creativity. Etsy gives sellers more room to set their own policies, which is important when dealing with original pieces or made-to-order work. You can clearly state that personalized or custom items aren’t eligible for return, and Etsy generally respects those terms. This protection helps artists avoid the heartbreak of losing both the artwork and the sale.

Amazon Handmade is stricter. Buyers on Amazon are trained to expect easy returns on almost everything, and Handmade sellers aren’t exempt from that culture. Even one-of-a-kind art pieces may be sent back, leaving you with a returned product that can’t be resold. Some sellers work around this by sticking to prints or products that can survive a return process, but for true originals, the risk is higher. Artists who value firm control over returns usually find Etsy more forgiving.

Conclusion

So, if your goal is to just get set up fast and sell artistic products, try Etsy. You’ll have to promote your Etsy store organically via various social media channels and YouTube. But if your goal is to have a widely accessible customer base and get your products pushed into a competitive creative marketplace, then Amazon Handmade is right for you. 

Try them both, experiment, and see what works. Because most artists find the best results by using the best of both worlds. That ends our Etsy vs Amazon Handmade debate for good. And oh, if you’re looking to source Amazon dropshipping products, check out Spocket.