If you’re a craftsperson, artisan, or small-scale entrepreneur selling handmade goods, you’ve likely heard of both Amazon Handmade and Etsy. These platforms have established themselves as top destinations for buyers seeking unique, handcrafted items. But for sellers, choosing the right platform is crucial for growth and profitability. In this article, we’ll explore the differences between Amazon Handmade and Etsy, and help you determine which might be the better fit for your business.
What Are Amazon Handmade and Etsy?
Amazon Handmade is a curated section of Amazon’s marketplace that features only handcrafted products. Launched in 2015, it’s Amazon’s answer to the growing demand for artisanal goods. Sellers must apply and be vetted to ensure their products are handmade.
Etsy, founded in 2005, is a dedicated platform for handmade, vintage, and craft supply items. With a long-established community and a strong reputation, Etsy has become synonymous with handmade shopping online.
Ease of Setting Up a Shop
Opening a shop on Etsy is relatively straightforward. You can set up a store in a matter of minutes with minimal requirements. Etsy is friendly to hobbyists and first-time sellers, allowing more flexibility and creativity in your shop design and branding.
Amazon Handmade, on the other hand, has a more rigorous application process. Sellers must go through a vetting stage and meet Amazon’s criteria for handmade goods, which can be intimidating for new sellers. However, once approved, your products are listed on one of the world’s largest online marketplaces—an advantage that can’t be overlooked.
Fees and Costs
When it comes to fees, both platforms have unique structures:
- Etsy: Charges a $0.20 listing fee per item and a 6.5% transaction fee on the sale price (including shipping).
- Amazon Handmade: Does not charge a listing fee but takes a 15% referral fee per sale. However, there’s no monthly Professional Seller fee (usually $39.99) for Handmade sellers.
Depending on your pricing and volume of sales, one may be more cost-effective than the other. High-volume sellers may appreciate Amazon’s lack of listing fees, while smaller sellers might prefer Etsy’s lower commission structure.
Audience and Reach
Amazon boasts a massive global customer base, giving your products exposure to millions of potential buyers. This wide reach can result in higher sales, especially if you already plan to leverage Amazon’s advertising and fulfillment tools.
Etsy, on the other hand, caters to a niche audience specifically looking for handmade or vintage items. Buyers on Etsy are often more willing to pay a premium for originality and craftsmanship. If your brand identity is important, Etsy offers more room for developing a unique aesthetic and building customer loyalty.
Branding and Store Customization
Etsy allows you to build your own shop identity with banners, logos, and an “About” page, giving sellers more control over how their brand is perceived. This customization can help differentiate your shop in a crowded marketplace.
Amazon Handmade listings are more standardized and follow Amazon’s uniform product listing format. There’s limited scope for expressing individuality through your store’s visual branding. For artisans with a strong focus on brand storytelling, this could be a drawback.
Fulfillment and Shipping
One of Amazon Handmade’s major strengths is its integration with Fulfillment by Amazon (FBA). This means sellers can store their products in Amazon’s warehouses, and Amazon handles packing, shipping, and customer service. Although many handmade sellers prefer a more personal touch, FBA offers speed and convenience.
Etsy doesn’t have an equivalent service at the same scale, so sellers are usually responsible for managing their own shipping or using third-party logistics. However, this allows for a personal touch with packaging—something valued in handmade transactions.
Seller Support and Community
Etsy shines in terms of community support. It offers forums, teams, and educational resources that help new or struggling sellers find support and inspiration. Etsy’s seller dashboard is user-friendly, especially for creatives not familiar with technical e-commerce tools.
Amazon provides robust support services too, but they tend to focus more on volume-driven sales than community development. It’s more business-oriented and can be daunting for artisans who prefer a small-business feel.
Which One Is Better?
The answer depends on your goals:
- If you’re looking for massive reach and tools for scalability, Amazon Handmade may be your best bet.
- If you value creative independence and a targeted, artisan-friendly audience, Etsy could be the ideal platform.
Ultimately, many successful sellers use both platforms, maximizing their visibility and tapping into different customer bases.
Final Thoughts
Choosing between Amazon Handmade and Etsy doesn’t have to be a one-or-the-other proposition. Both marketplaces offer distinct advantages and appeal to different types of buyers. The key is to understand your business model, branding needs, and long-term goals to make an informed decision. Start with one, test the waters, and consider expanding to the other as your business grows.
