Amazon Handmade vs. Etsy: Which platform is better?

Choosing the right platform to sell your handmade products can be a game-changer for your business. Amazon Handmade and Etsy are two of the most popular options, each offering unique advantages and challenges.

This comprehensive comparison will help you navigate their key features, fees, audience reach, and seller support. Whether you want to expand your product line from jewelry to party supplies or streamline your operations, this guide provides valuable insights.

Let's dive in and find out which platform is best suited for your handmade creations.

• Amazon Handmade and Etsy are two prominent platforms for selling handmade products, each with unique pros and cons.

• Amazon Handmade online store offers significant audience reach and strong order fulfillment but has high fees and limited branding flexibility.

• Etsy provides a more customizable seller experience and lower fees, although it may have less extensive seller support and audience reach.

• Fees, audience, branding options, and seller support should be carefully considered when choosing between online marketplaces.

• Utilizing print on demand services like Gelato can streamline operations and enhance product offerings for all handmade sellers on either platform.

Amazon Handmade is a specialized section on the Amazon marketplace dedicated to artisans who sell handcrafted goods. It connects sellers with Amazon's vast customer base, offering a platform to reach millions worldwide. Products range from jewelry to home decor, benefitting from Amazon's extensive logistics and warehousing capabilities.

Deciding whether Amazon Handmade is the right platform involves weighing its advantages and drawbacks. 

Here’s a quick overview of what you can expect when selling your handmade products on Amazon Handmade.

Pros

Amazon Handmade sellers enjoy several benefits on the platform that can significantly boost their business. From a vast customer base to the credibility of the Amazon brand, there are numerous advantages to consider: 

• Large audience reach: Amazon's enormous customer base means more potential buyers for your handmade products.

• Trust and credibility: Being part of Amazon lends authority and trust to your products.

• Fulfillment by Amazon (FBA): You can use Amazon's logistics and shipping infrastructure to manage orders effectively.

• Prime eligibility: Products can qualify for Amazon Prime, attracting Prime members looking for quick delivery.

Cons

Despite the benefits, there are also some cons for selling on Amazon Handmade:

• High competition: Given Amazon's vast marketplace, handmade items may struggle to stand out amidst the extensive product listings.

• Stringent approval process: Getting your shop approved can be time-consuming, and not all applicants are guaranteed acceptance.

• Fee structure: Amazon handmade fees include a 15% referral fee on each sale, which can affect your profit margins.

• Limited customization: Unlike Etsy, Amazon Handmade offers fewer options for customizing your shop's appearance.

Etsy is a vibrant marketplace dedicated to handmade, vintage items and craft supplies. Launched in 2005, it empowers independent sellers to reach a global audience passionate about unique and creative products. It's an ideal platform for artisans looking to showcase their craftsmanship and buyers seeking unique treasures.

If you're considering Etsy as your selling platform, it’s essential to understand both the advantages and drawbacks. Let's explore what makes Etsy a unique marketplace and weigh the pros and cons of listing your handmade products here.

Pros

For Etsy sellers, the platform provides several advantages for selling handmade products. Here are some of the key benefits: 

• Large, niche audience: Etsy attracts buyers specifically searching for unique, handmade, and vintage items.

• Ease of use: Setting up a shop on Etsy is straightforward and beginner-friendly.

• Brand visibility: Etsy's marketplace helps boost your brand’s visibility among targeted customers.

• Community support: Benefit from a supportive community of fellow sellers and artisans.

• Customizable storefront: You can personalize your shop to reflect your brand identity.

Cons

While Etsy offers a unique platform for sellers of handmade items, it does come with its own set of challenges:

• High Etsy fees: Etsy charges a listing fee and takes a percentage of each sale, which can add up quickly.

• Stiff competition: Standing out in a sea of similar products can be difficult.

• Limited customization: Etsy's design options for shop layouts are somewhat restrictive.

• Policy restrictions: Strict policies can sometimes limit what and how you can sell.

Deciding between Amazon Handmade and Etsy can be challenging. Here, we’ll explore these platforms' key differences and similarities, helping you determine which is best suited for your handmade products. 

Product selection

When you compare Amazon Handmade and Etsy, consider the range and type of products you plan to offer. Both platforms have unique features that cater to different niches in the handmade market: 

• Amazon Handmade: Best for sellers looking for a broad market reach with a diverse range of handmade items.

• Etsy: Etsy shop's preferences include products and vintage items catering to a community focused on unique and creative offerings.

Amazon Handmade covers many categories, while Etsy allows for more specialized and themed listings.

Fees and pricing

Fees and pricing are crucial in choosing the right platform for your handmade products. Here's how Amazon Handmade and Etsy differ in this aspect: 

• Amazon Handmade: Charges a 15% referral fee on each sale, no listing fees, and a $39.99 monthly professional selling plan fee.

• Etsy: Charges a 6.5% transaction fee, $0.20 per-item listing fee, payment processing fees, and optional fees for advertising and promotions.

Audience reach

Audience reach is a vital factor when choosing your sales platform. Amazon Handmade and Etsy offer vast audiences, but their reach varies significantly. Here's a snapshot of both: 

• Amazon Handmade: Access to Amazon's massive customer base, millions of active buyers globally, and powerful retail infrastructure.

• Etsy: Niche marketplace with a loyal customer base that specifically seeks handcrafted and unique items, ideal for artisans looking to target a particular audience.

Branding and customization

Branding and customization are vital for creating a unique identity and customer experience. Both Amazon Handmade and Etsy offer different levels of customization to build your brand:

• Amazon Handmade: Limited customization options, but benefits include Amazon's professional look and feel.

• Etsy: Highly flexible with extensive customization options for your shop’s appearance and branding elements. Etsy allows for a more personalized store environment, while Amazon offers a more standardized but trust-inspiring platform.

Your brand can stand out more distinctly on Etsy, whereas products integrate closely with Amazon's branding.

Seller support and resources

Amazon Handmade and Etsy offer robust assistance regarding seller support and resources, but there are distinct differences:

• Amazon Handmade: Comprehensive seller resources and 24/7 seller support with an extensive knowledge base.

• Etsy: Fantastic community forums, direct support, and detailed seller guidelines.

Enterprise-level sellers on both platforms can access specialized support through solutions engineers and professional services teams.

Listing and selling experience

Both platforms offer unique experiences when listing and selling products. Let's examine each and break down its strengths: 

• Amazon Handmade: Provides access to Amazon's algorithms, making your products more visible, but the setup process can be more complex.

• Etsy: Known for its user-friendly interface that simplifies the listing process, but competition is high due to the large number of sellers.

Etsy allows for greater personalization in listings, while Amazon follows a more standardized format.

Marketing and promotion

Marketing and promotion drive traffic and sales to your handmade products. Both Amazon Handmade and Etsy offer various tools to help you reach a larger audience:

• Amazon advertising: Leverage Amazon's powerful advertising network to promote your products through sponsored ads and increase visibility.

• Etsy promotions: To attract more buyers, utilize Etsy's built-in promotional tools, such as sales, coupons, and ads.

Both platforms offer search engine optimization features to help your listings rank higher in search results, but Etsy's SEO tools are more customizable.

Order fulfillment

Order fulfillment is a crucial aspect to consider when choosing between Amazon Handmade and Etsy. Here are the differences between the two:

• Amazon’s logistics: Leverage Amazon’s extensive fulfillment network to handle shipping, returns, and inventory management.

• Etsy’s independence: Offers flexibility to manage shipping independently or use Etsy’s partnerships for discounted shipping rates.

Both platforms support integration with third-party order fulfillment services, allowing for scalable solutions as your business grows.

Integration and compatibility

Integration and compatibility are crucial for sellers wanting to streamline their operations and provide a seamless customer experience. Here's how Amazon Handmade and Etsy measure up in this aspect: 

• Amazon Handmade: Benefits from Amazon’s extensive third-party integrations allow you easier access to global marketplaces.

• Etsy: Offers robust integrations with various ecommerce tools and platforms, making it adaptable for diverse business needs.

Both platforms support a range of tools, from payment gateways to marketing software, ensuring that you can customize your selling experience.

Policies and regulations

Understanding the policies and regulations on each platform is crucial for compliance and smooth operations. Amazon Handmade and Etsy have specific rules sellers must follow:

• Amazon Handmade: Requires sellers to prove that products are genuinely handmade, submitting documents or photos for evidence.

• Etsy: Emphasizes the handmade, vintage, or craft supply nature of products, with clear guidelines to ensure authenticity.

Both platforms mandate compliance with regional and international regulations, including data security and payment standards.

Customer service

Customer service is a critical factor when choosing between Amazon Handmade and Etsy. Both platforms offer support, but they differ in terms of availability and quality: 

• Amazon Handmade: Provides 24/7 customer support through live chat, phone, and email, ensuring timely assistance.

• Etsy: Offers email support and a comprehensive help center, but response times may vary.

Gelato supplements both platforms with local, efficient production and order management, alongside round-the-clock support and professional services teams for enterprise customers.

Growth and expansion opportunities

Choosing between Amazon Handmade and Etsy can significantly impact your business's growth and expansion opportunities. Both platforms offer unique advantages to help sellers scale their businesses, but their approaches differ. Here's a closer look: 

• Market reach: Amazon's global presence can provide vast exposure, while Etsy's niche community targets dedicated handmade enthusiasts.

• Tools for scalability: Etsy offers robust SEO and marketing tools, whereas Amazon provides advanced seller analytics and fulfillment options.

Both platforms can facilitate collaborations, but Amazon's extensive network may offer broader B2B opportunities.

Choosing the right platform to sell your handmade items can feel overwhelming, but breaking it down into key factors can simplify decision-making. Both Amazon Handmade and Etsy have their own strengths and weaknesses; let's take a look at what to consider when making your choice: 

• Product type: Analyze if your products align more with Amazon Handmade’s broad marketplace or Etsy’s niche focus on unique and vintage items.

• Fees and costs: Compare both platforms' fee structures and transaction costs to understand which offers the best financial advantage for your business.

• Audience reach: Determine where your target audience spends their time and money. Amazon has a larger general customer base, while Etsy attracts buyers who are specifically looking for handmade and vintage products.

• Branding and control: Consider how much control you want over your branding. Etsy offers more customization options for your store, while Amazon’s branding is more uniform.

• Seller support: Evaluate the resources and support each platform offers to sellers. Reliable customer service and helpful seller resources can be crucial to your business’s success.

If you’re leaning towards an Etsy shop over Amazon Handmade, Gelato is here to help! 

Gelato's POD service handles everything from printing your designs on high-quality products to fulfilling customer orders and shipping them directly. This frees you up to spend more time on the creative and strategic aspects of running your Etsy shop to build something you’re proud of. 

Here's how Gelato empowers Etsy sellers:

• Focus on what you do best: Unleash your creativity and dedicate more time to design and marketing, leaving the production hassles to Gelato.

• Expand your product range: Experiment with new product offerings such as custom hats, bio phone cases, sustainable tote bags, and more without worrying about upfront inventory costs.

• Reduce risk: Minimize financial risks associated with unsold inventory.

• Scale with ease: As your shop grows, Gelato's global fulfillment network scales seamlessly to meet your increasing demand.

Ready to take your Etsy shop to the next level? Sign up for Gelato and subscribe to one of the affordable plans to harness its innovative POD solutions.

Is Amazon Handmade profitable?

Amazon Handmade can be profitable, particularly due to Amazon's massive customer base. However, profitability will depend on factors like product pricing, marketing, and fees. Sellers benefit from Amazon's advanced infrastructure but must consider competition and costs. It's essential to evaluate these aspects carefully to determine personal profitability.

Does it cost more to sell on Etsy or Amazon?

Selling on Amazon Handmade can generally be more costly than Etsy due to higher referral fees, which are around 15% compared to Etsy's 5%. Both platforms have listing and transaction fees, but Etsy is typically cheaper, making it a budget-friendly option for small sellers looking to minimize costs while reaching a large audience.

What percentage does Amazon Handmade take?

Amazon Handmade charges a 15% referral fee on each sale, which is higher than many other platforms, but offers access to Amazon's vast customer base. Additionally, professional sellers pay a $39.99 monthly subscription fee, although individual sellers can list for free but pay $0.99 per item sold plus the referral fee.

What is the best site to sell handmade items?

Choosing between Amazon Handmade and Etsy depends on your business goals. Etsy offers a stronger community for niche artisanal products, while Amazon Handmade provides unparalleled access to a global marketplace. Both platforms have unique strengths; your choice will hinge on the specific needs of your brand and customer base.