5 min read

Amazon Handmade vs Etsy: Comparison for Sellers

Written by
Vanessa Hung
January 25, 2024

When it comes to selling handmade goods online, two names immediately come to mind: Amazon Handmade and Etsy. Both platforms offer a vast selection of unique, handmade items, but they differ in several ways. In this article, we'll compare Amazon Handmade and Etsy to help you decide which platform is best for you.

First, let's take a closer look at Amazon Handmade. Launched in 2015, Amazon Handmade is a relatively new platform that allows artisans to sell their handmade items directly to customers. With over 10,000 sellers and millions of products available, Amazon Handmade offers a wide range of handmade items, from jewelry and home decor to clothing and accessories. But how does it compare to Etsy, the more established platform?

Understanding Amazon Handmade

If you're looking to sell handmade items online, Amazon Handmade is a great platform to consider. Launched in 2015, Amazon Handmade offers a variety of handmade products from jewelry to home decor.

One of the benefits of selling on Amazon Handmade is the large customer base. Amazon has a massive audience, so your products are likely to be seen by a wider audience than they would be on other platforms. Additionally, Amazon offers fulfillment services, which can save you time and hassle.

To sell on Amazon Handmade, you must apply and be approved as a seller. Amazon has strict guidelines for what qualifies as "handmade," so make sure your products meet their criteria before applying. Once you're approved, you can start listing your products and setting your own prices.

Amazon Handmade charges a 15% referral fee on each sale, which is similar to Etsy's fee structure. However, Amazon also charges a monthly subscription fee of $39.99 for professional selling accounts.

Overall, Amazon Handmade can be a great option for selling handmade items online, especially if you're looking to reach a wider audience and take advantage of Amazon's fulfillment services.

Understanding Etsy

Etsy is an online marketplace that primarily focuses on handmade, vintage, and unique items. It was founded in 2005 and has grown to become one of the most popular e-commerce sites for artisans and small businesses.

One of the biggest advantages of Etsy is its community of sellers and buyers. Sellers can connect with other artisans, share tips and advice, and collaborate on projects. Buyers can find unique and personalized items that they wouldn't be able to find anywhere else.

Etsy also offers a variety of features to help sellers grow their businesses. This includes customizable storefronts, analytics tools, and promotional opportunities.

However, it's important to note that Etsy does charge fees for its services. This includes a listing fee, transaction fee, and payment processing fee. These fees can add up and significantly impact a seller's bottom line.

Overall, Etsy is a great platform for artisans and small businesses looking to sell unique and handmade items. Its community and features make it a valuable resource for sellers looking to grow their businesses.

Product Range and Diversity

Amazon Handmade

Amazon Handmade offers a wide range of products from various categories such as jewelry, home decor, and clothing. The platform provides a vast selection of handmade products from artisans across the globe. You can find unique items that are not available on other marketplaces. Amazon Handmade allows you to filter your search by category, price range, and customer review rating to help you find the perfect product.

Etsy

Etsy also offers a diverse range of handmade products, including jewelry, home decor, and clothing. The platform has a large number of sellers from around the world, providing a variety of unique products. Etsy has a search function that allows you to filter by category, price range, and customer review rating. You can also search for items by keywords or browse through curated collections.

Overall, both Amazon Handmade and Etsy offer a wide range of handmade products from various categories. Amazon Handmade has a larger selection of products, while Etsy has a more diverse range of sellers.

Seller Fees and Profit Margins

Amazon Handmade

Amazon Handmade charges a 15% referral fee on the total sales price, including shipping costs. This fee is deducted from the seller's earnings. Additionally, there is a $39.99 monthly subscription fee for professional sellers, which includes access to additional features and tools. However, individual sellers can sell on Amazon Handmade for free, but will be charged a $0.99 per item fee.

Sellers on Amazon Handmade can set their own prices for their products, but it is important to keep in mind the referral fee and other costs when determining profit margins. It is also worth noting that Amazon Handmade offers discounted shipping rates for sellers, which can help increase profit margins.

Etsy

Etsy charges a 5% transaction fee on the total sales price, including shipping costs. In addition, there is a $0.20 listing fee for each item listed on the platform. Sellers can also choose to use Etsy's payment processing system, which charges an additional 3% + $0.25 per transaction fee.

Sellers on Etsy can set their own prices for their products, but must consider the fees and other costs when determining profit margins. Etsy also offers various tools and services for sellers, such as promoted listings and Etsy Ads, which can help increase sales and profit margins.

Overall, both Amazon Handmade and Etsy charge fees on sales made through their platforms. It is important for sellers to consider these fees and other costs when setting prices and determining profit margins.

Customer Base and Market Reach

Amazon Handmade

Amazon Handmade is a newer platform than Etsy, having been launched in 2015. However, Amazon has a much larger customer base and market reach than Etsy. This means that sellers on Amazon Handmade have the potential to reach a much wider audience than they would on Etsy alone.

Amazon has over 300 million active users worldwide, with a large percentage of those users being Prime members. This means that sellers on Amazon Handmade have the potential to reach a large number of customers who are already loyal to Amazon and may be more likely to make purchases on the platform.

Etsy

Etsy has been around since 2005 and has built a strong reputation as a marketplace for handmade and unique items. While Etsy's customer base is smaller than Amazon's, it is still significant, with over 81 million active buyers as of 2021.

Etsy's customer base tends to be more niche and focused on handmade and unique items, which can be an advantage for sellers who specialize in those types of products. Additionally, Etsy has a strong community aspect, with buyers often seeking out and supporting small businesses and independent sellers.

Overall, both Amazon Handmade and Etsy have their own unique customer bases and market reach. Sellers should consider their target audience and the types of products they sell when deciding which platform to use.

Ease of Use for Sellers

Amazon Handmade

Selling on Amazon Handmade is relatively straightforward and easy to use. The platform offers a step-by-step guide for setting up your shop and listing your products. The interface is user-friendly, and the process of adding new products is simple. Amazon Handmade also provides a range of tools to help sellers manage their shops, such as inventory management, order tracking, and customer communication.

One of the most significant advantages of selling on Amazon Handmade is its integration with Amazon's massive customer base. With millions of customers already using Amazon, sellers on Amazon Handmade have access to a vast audience that they may not have been able to reach on their own.

Etsy

Etsy is also relatively easy to use, with a user-friendly interface and a step-by-step guide for setting up your shop. The platform provides sellers with a range of tools to manage their shops, such as inventory management, order tracking, and customer communication.

One of the most significant advantages of selling on Etsy is its focus on handmade and unique products. The platform has a dedicated customer base that is interested in buying handmade and unique items, which can be a significant advantage for sellers who specialize in these products.

Overall, both Amazon Handmade and Etsy are easy to use platforms for sellers. They offer a range of tools to help sellers manage their shops, and both have a user-friendly interface. However, Amazon Handmade has the advantage of being integrated with Amazon's massive customer base, while Etsy has a dedicated customer base that is interested in handmade and unique products.

Brand Image and Reputation

When it comes to buying handmade items, the brand image and reputation of the marketplace can be an important factor. In this section, we will compare the brand image and reputation of Amazon Handmade and Etsy.

Amazon Handmade

Amazon is a well-known brand that has built a reputation for being a reliable and trustworthy online marketplace. Amazon Handmade is a relatively new addition to the Amazon family, but it benefits from the overall reputation of the Amazon brand. The fact that Amazon is a large and established company can help to instill confidence in buyers who are considering purchasing handmade items on the platform.

Etsy

Etsy is a marketplace that has built its reputation around handmade and vintage items. The platform has been around since 2005, and over the years, it has become synonymous with handmade goods. Etsy has a strong brand image and reputation within the handmade community, and many buyers and sellers prefer to use Etsy because of this.

Overall, both Amazon Handmade and Etsy have strong brand images and reputations within the handmade community. However, Etsy has been around for much longer and has built a reputation specifically around handmade items. This may make Etsy a more attractive option for buyers who are specifically looking for handmade goods.

Conclusion

In conclusion, both Amazon Handmade and Etsy offer a great platform for selling handmade items. Each has its own unique features and advantages, so it ultimately comes down to personal preference and needs.

If you're looking for a larger audience and more exposure, Amazon Handmade may be the better option for you. However, if you value community and a more personal touch, Etsy may be the way to go.

Both platforms have their pros and cons when it comes to fees, seller tools, and customer service. It's important to carefully consider these factors before making a decision.

Ultimately, whether you choose Amazon Handmade or Etsy, it's important to put effort into creating quality products and building a strong brand to succeed in the competitive world of handmade goods.

Frequently Asked Questions

1 - What are some alternatives to Etsy?

If you are looking for alternative platforms to sell your handmade goods, there are several options available. Some of the popular alternatives to Etsy include ArtFire, Handmade at Amazon, Zibbet, and Folksy.

2 - What are the fees associated with selling on Amazon Handmade?

Amazon Handmade charges a 15% referral fee on each sale made on the platform. This fee is deducted from the total sale amount, including the cost of shipping and gift wrapping.

3 - How does Amazon Handmade compare to Etsy in terms of revenue?

While Amazon Handmade is a newer platform compared to Etsy, it has been growing rapidly. According to a report by eMarketer, Amazon Handmade's gross merchandise volume (GMV) is expected to reach $1.2 billion in 2020, compared to Etsy's $4.4 billion. However, it's important to note that Etsy has been around for much longer and has a larger user base.

4 - What percentage does Amazon Handmade take from sellers?

Amazon Handmade charges a 15% referral fee on each sale made on the platform. This fee is deducted from the total sale amount, including the cost of shipping and gift wrapping.

5 - Is Amazon Handmade a profitable platform?

Many sellers have reported success on Amazon Handmade, but the profitability of the platform ultimately depends on several factors, such as the quality of your products, pricing strategy, and marketing efforts.

6 - Which platform is more cost-effective for sellers: Etsy or Amazon?

It's difficult to determine which platform is more cost-effective for sellers, as it depends on several factors, such as the type of product you are selling, your pricing strategy, and your marketing efforts. However, it's worth noting that Amazon Handmade charges a higher referral fee compared to Etsy, so sellers may need to adjust their pricing accordingly.

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