Etsy and Amazon Handmade are two of the biggest marketplaces for selling handmade goods, but they cater to sellers in different ways. While Etsy is known for its community-driven marketplace and artisan-focused branding, Amazon Handmade offers access to a massive customer base with the power of Amazon’s infrastructure.
But which one is the better fit for your business? Should you go for Etsy’s niche appeal or Amazon’s global reach? In this guide, we’ll break down the key differences – fees, audience, shipping, and more – so you can confidently choose the best platform to grow your handmade business.
Etsy vs Amazon Handmade
Let’s break down Amazon Handmade and Etsy by categories! You will see how they compare, what are the differences and what they have in common.
Amazon Handmade vs Etsy overview
Amazon Handmade overview
Amazon Handmade is a global marketplace for handmade items. It has strict rules regarding what products can be sold and how they must be made.
For example, Amazon Handmade does not allow print on demand products made with third-party services.
Etsy overview
Etsy is a niche marketplace for unique, creative, and vintage products. Although it has guidelines on what can or cannot be sold, it allows more flexibility on the manufacturing side and offers more broad selling categories.
For example, Etsy allows print-on-demand products with third-party services (like us! Printseekers.com) if the design is unique and made by the seller.
Amazon Handmade vs Etsy customer base
Amazon Handmade customer base
Amazon and therefore Amazon Handmade has a very wide audience and more than 300 million active users globally. Amazon users are open to different shopping options – from handmade to mass production.
Etsy customer base
Etsy has a smaller audience, around 92 million active users. However, Etsy users are more niche – they are looking specifically for handmade, unique, and custom-made items.
Amazon Handmade vs Etsy Fees
Amazon Handmade seller fees
Once your Amazon Handmade store is approved by Amazon officials (which can take a few days to four or more weeks), you only need to pay 15% referral fee for a sale.
However, to apply for Amazon Handmade store, you need to have a professional Amazon account which costs $ 39.99. That said, Amazon offers a 1-month free trial for the professional account. So, if you get approved within that month, you may not need to pay the $39.99 at all.
Etsy seller fees
Etsy has a more complex fees system. First, you have to pay 20 cents for every listing you create or re-publish. Second, Etsy takes a 6.5% transaction fee of the total price of the listing once a sale is made. And third, Etsy takes 2.9% + 30 cents per transaction as a processing fee.
An optional choice is an Etsy Plus subscription of $10 per month. It gives shop owners more features to grow their shops, but you don’t need it to start selling on Etsy.
Etsy vs Amazon Handmade seller fees comparison with an example
Let’s imagine you are making mugs and selling them on Etsy and Amazon Handmade for $40 a piece including shipping and taxes.
Amazon Handmade fee for a sale: $40 x 15% = $6
Etsy fee for a sale: $0.20 + $40 x 6.5% + $40 x 2.9% + $0.30 = $4.20
Both Etsy and Amazon take the fees from the full price, including shipping and taxes.
Amazon Handmade vs Etsy shipping fees for the seller
Amazon Handmade shipping fees
Amazon Handmade sellers can manage shipping themselves or use Amazon FBA (fulfillment by Amazon). However, FBA is available only to products not customized to every client. For self-managed shipping, a seller sets the shipping prices and can choose the best options for their product. If they use the FBA, Amazon sets the shipping price.
Etsy shipping fees
As an Etsy seller, you have to fulfill the shipment yourself. However, Etsy offers a service called “Shipping Labels” which costs starting from $0.93 per label. Through this service Etsy often offers discounted prices for shipping of third party carriers like UPS, etc. You can also easily track all your shipping information through Etsy seller dashboard.
Amazon Handmade vs Etsy, creating a shop
Amazon Handmade creating a shop
Many Amazon Handmade users have confirmed that the shop backend can be overwhelming and not friendly to beginners. Amazon also asks to fill out lots of information about your shop and yourself, and your shop needs approval before you can start selling. The listing creation process can also be exhausting and a seller needs to meet very precise demands.
Etsy creating a shop
On Etsy, the shop interface is more user-friendly and intuitive. You can also get to selling as fast as after creating the profile, and you don’t need to submit lots of personal information – just the basics. The listing creation process is fast and easy to understand.
Amazon Handmade vs Etsy customer support
Amazon Handmade customer support
Amazon ensures customer support. They manage customer disputes and take care of all aspects of customer service. The seller doesn’t have direct communication with the customer. It’s a plus because sellers can purely concentrate on creating amazing products. As a downside – a seller cannot build customer relationships and their personal brand effectively.
Etsy customer support
The seller has to take care of customer service themselves. It’s a plus because the seller can build relationships with customers and create a loyal customer base. On the other hand, it takes a lot of time out of workday.
Amazon Handmade vs Etsy third party integrations
Amazon Handmade third party integrations
Amazon Handmade doesn’t allow any third party integrations. So you cannot use a print-on-demand supplier to fulfill your design orders.
Etsy third party integrations
Etsy allows third party integrations. You can connect your print on demand supplier with Etsy and make your order fulfilment process seamless! See our guide on Etsy integrations.
Amazon Handmade vs Etsy SEO and marketing
Amazon SEO and marketing
You can use sponsored posts on Amazon to push your products forward. But you can advertise only on Amazon. For example, no Google Ads to your Amazon listings are allowed.
As for SEO, you can use keyword optimization and other techniques to boost your Amazon listing.
Etsy SEO and marketing
On Etsy you can create Etsy Ads to make your listing more visible. Etsy also allows you to advertise your Etsy shop and listings on other platforms, like Google.
The same as on Amazon, you can use Etsy SEO techniques to outshine your competitors.
Amazon Handmade vs Etsy business scalability
Amazon Handmade business scalability
Amazon Handmade offers limited categories and sub-categories of what can be sold on there. There are also no third-party integration allowed and there are rules how many people can work at a Amazon Handmade seller company (less than 20 people).
Etsy business scalability
Etsy, on the other hand, offers many categories and subcategories, including digital products. Etsy also allows third-party integrations, and there are no limitations on how many partners you can work with or how many people have to work in your company. This flexibility can really boost your shop and give you options when thinking long term.
Amazon Handmade pros and cons
Amazon Handmade pros
- Huge customer base. Amazon has more than 300 million active users.
- Easily understandable fees. One solid fee of 15% from every sale.
- Amazon handles customer service. You get more time to work on your products.
- Access to FBA (fulfilments by Amazon). You don’t have to handle shipping if you don’t want to.
- No recurring fees or subscriptions (once your application is approved).
- Very targeted Amazon advertising. You can closely manage your ads, optimize them and get great results.
- Fast seller customer support. Support replies to queries in less than 24 hours and gets issues resolved quickly.
Amazon Handmade cons
- Sseparate shop for every country. So, you have to manage more than one shop for an international audience, such as Amazon U.K., Amazon Germany, etc.
- A lot more returns (and they are automated!). People are used to sending items back to Amazon. Also, Amazon sets the return rules and process.
- No communication with customers. You don’t get to create a loyal customer base or chat about returns and other questions.
- Long and detailed shop approval process. You need to meet strict guidelines to qualify for Amazon Handmade.
- Shop backend is overwhelming. There is a learning curve when it comes to creating listings and managing the shop.
- Third-party integrations are not allowed. You cannot use outsourced services to fulfill your orders.
- Only in-Amazon advertising is allowed. You are not allowed to advertise your shop with third-party ads, for example, Google.
- Limited categories of what you can sell. For example, there are no digital products on Amazon Handmade.
- Limited size of your company (no more than 20 employees). Important if you want to make room for future growth.
- Handmade products can be mixed with other listings. Your handmade products might appear next to mass-produced items when a user uses the search option.
Etsy pros and cons
Etsy pros
- User friendly interface. Quick and easy shop and listing creation.
- Targeted audience. Customers are people who are looking for unique items – artist made, vintage, or unique.
- Third-party integrations and suppliers. You can use different integrations and suppliers to make your shop management easier. For example, print on demand suppliers.
- Outside Etsy advertising is allowed. For example, you can use Google Ads to promote your Etsy shop and listings.
- One shop for all clients. You don’t need separate shops for different countries or regions.
- Seller handles customer service. You get to speak to your clients and provide a personal experience, creating a loyal customer base.
- There is a huge category list. And you can sell digital products! Etsy offers a much wider variety of items you are allowed to sell.
Etsy cons
- Huge competition between sellers. Etsy is a saturated market, and it can get competitive to start out and make your listing visible.
- Several fees that can be hard to track. Etsy has a transaction fee of 6.5%, payment processing fee of 2.9% + $0.30 and a listing price of $0.20. You can also buy Etsy Labels, Etsy Ads, Etsy Plus, and other services.
- The seller handles customer service. You have to spend time replying to customer questions and solving disputes which can take time out of your workday.
- Slow seller customer support. Etsy support can take 7 or more days to respond.
- Unpredictable system changes. Etsy is more flexible which leads to more changes down the road. For example, sudden policy changes or algorhytm updates.
Which is better for Print-on-Demand products – Etsy or Amazon Handmade?
If you are planning to do a print on demand dropshipping business, for example, sell custom prints, canvas or apparel, you have to choose Etsy.
At this point, Amazon does not allow third-party integrations, so you cannot sell anything that you haven’t printed yourself.
For easy store management, you can use our Etsy integration. That way you can just create amazing designs, make breathtaking listings and manage your customer service while we will print your orders and ship them for you.
FAQ
Is Etsy better than Amazon Handmade?
Etsy is better if you want to do categories that Amazon Handmade does not support, for example, print on demand business or sell digital products.
Is Amazon Handmade better than Etsy?
Amazon handmade is better if you know how to optimize listings for Amazon and want to access their large, global audience.
Is it cheaper to sell on Amazon or Etsy?
It depends on what kind of services you use from each marketplace. When it comes to just listing fees, Etsy is cheaper. But you also have to include shipping, returns, ads and platform fees (for example, Plus versions). So, which is cheaper depends on your choices on each platform.
Is Amazon Handmade profitable?
Yes, Amazon Handmade can be profitable! You need to have a great handmade product, good knowledge of listing optimization for Amazon, and a profitable marketing strategy.
Can you do Amazon FBA with Amazon Handmade?
Yes, you can do FBA (fullfilment by Amazon) with Amazon Handmade. It is available to pre-made items. For custom-made items you need to use FBM (fullfilment by merchant).
