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If you're looking to sell handmade or unique products online, you've likely narrowed your options down to two major marketplaces: Etsy vs Amazon. While both platforms offer access to millions of potential buyers, each one caters to a different type of seller, offering a distinct fee structure, setup process, and audience demographics that will affect every aspect of your selling experience. Making the right choice between Etsy and Amazon is not just a matter of choosing the bigger marketplace, it's a decision that will be influenced by your selling preferences, product selection, and long-term business goals.
In this guide, we'll break down everything you need to know about selling on Etsy vs Amazon to help you make the right choice for your business. It's important to note that when comparing Amazon to Etsy, we're specifically discussing Amazon Handmade, Amazon's marketplace-within-a-marketplace that offers a curated section for handcrafted goods, rather than the broader Amazon marketplace. In this guide, we'll explore both platforms, assess and compare them on a variety of factors, and help you determine which one is the best fit for your unique selling needs and goals.
Key Takeaways
Understanding the fundamental differences between Etsy and Amazon Handmade is the first step in choosing the right platform for your products.
Etsy launched in 2005 as a marketplace dedicated exclusively to handmade goods, vintage items, and craft supplies. The platform was built from the ground up to support independent creators, artisans, and small businesses, and quickly grew to become one of the most popular ecommerce marketplaces in the world. Today, it boasts approximately 90 million active buyers and 5.6 million active sellers, and has cultivated a community of shoppers specifically seeking unique, personalized, and creative products. The buyers on Etsy tend to value craftsmanship and are often willing to pay a premium for one-of-a-kind items.
Amazon's answer to Etsy, Amazon Handmade, was launched in 2015 as a dedicated marketplace-within-a-marketplace for selling handmade items within the broader Amazon ecosystem. It's important to note that while Amazon has over 300 million customers worldwide, Amazon Handmade products primarily appear when shoppers specifically navigate to the Handmade section or filter search results for handmade items. Handmade listings can appear in general Amazon searches alongside mass-produced products, but their visibility depends heavily on variables which are less relevant for handmade items, such as sales history and competitive pricing. The buyers who do discover Amazon Handmade items value original, one-of-a-kind pieces, but still tend to prioritize the convenience and fast shipping ecommerce buyers typically associate with the Amazon shopping experience.
Fee structure is one of the most important factors when choosing where to sell, as it directly impacts your profit margins. Understanding the expected costs of selling on Etsy vs Amazon Handmade should be your first step when deciding between one platform or the other, as it offers a snapshot into what your revenue might look like with each choice. Below, we'll explore the selling fees on Etsy vs those on Amazon Handmade, so you can understand them before committing to either platform.
Etsy's fee structure is made up of several components:
There's no monthly subscription fee unless you opt for Etsy Plus at $10 per month, which provides 15 listing credits and $5 in monthly Etsy Ads credits each month (which expire if not used), plus access to additional shop customization tools, restock request notifications, and discounts on business cards and packaging. If your shop generates less than $10,000 annually, you'll automatically be opted into Etsy's Offsite Ads program, which charges a 15% commission on sales generated through those ads.
Amazon Handmade takes a simpler approach to fees in comparison to Etsy. The platform charges a flat 15% referral fee on each sale, with a minimum fee of $1 per item. This percentage applies to the total sale amount, including the product price and shipping costs. Furthermore, Amazon Handmade has no listing fees, meaning you can list as many products as you want without paying upfront, and the monthly Professional selling plan fee of $39.99 is waived for approved Handmade sellers, making it effectively free to list products on Amazon Handmade.
When comparing the two, Etsy generally has lower overall fees for most sellers, especially on higher-priced items. For a $50 item with $5 shipping, you'd pay approximately $5.80 in fees on Etsy compared to $8.25 on Amazon Handmade. However, Amazon's lack of listing fees can be advantageous if you have a large catalog or frequently add new products.
The type of products you plan to sell can play a significant role in determining whether Etsy or Amazon will work better for your business. While some types of items perform equally well on both platforms, some might have better luck on one over the other, while certain products might not even be permitted on both marketplaces. In this section, we'll explore what kinds of items you can sell on Etsy and Amazon Handmade to help you understand which marketplace is most suited to the products you sell.
Etsy allows three main product categories: handmade items, vintage goods (defined by Etsy as items that are at least 20 years old), and craft supplies, giving sellers a wide range of items that can be sold on the platform. This allows sellers to list and sell everything from handmade jewelry and custom artwork to vintage clothing and craft materials, as well as print-on-demand products, personalized mass-produced items, and even items made with production partners, provided that the seller is involved in the design process.
Some of the best-performing categories on Etsy are jewelry, accessories, home decor, personalized gifts, and digital downloads.
Amazon Handmade has stricter requirements for what is allowed on their platform. Products must be genuinely handmade, hand-altered, or hand-assembled by you or a small team of no more than 20 people. Unlike Etsy, Amazon doesn't allow vintage items or craft supplies in the Handmade category, and they have specific restrictions against mass-produced goods. The platform offers 13 main categories for handmade products, including Accessories, Jewelry, Home & Kitchen, Artwork, and Beauty & Personal Care. Each listing must include a "Handmade Classification" attribute specifying whether the item is handcrafted, hand-altered, hand-designed, repurposed, or upcycled, and the veracity of these claims will sometimes be checked by Amazon to ensure that the product meets the platform's standards.
Due to the different requirements and approaches each marketplace takes to handmade selling, the ease and speed of getting started varies significantly between Etsy and Amazon. While Etsy has a very open-door policy that welcomes sellers of all kinds, Amazon Handmade requires its sellers to go through an application process just to be able to list their items. Below, we'll give you a brief overview of how to set up shop on Etsy vs on Amazon Handmade to help you better understand what you can expect when opening a selling account on each platform.
Setting up an Etsy shop is straightforward and can be completed in less than an hour. You simply create an account, set up your shop preferences, add your payment and billing information, and start listing products. There's no approval process or waiting period, but you will need to pay a one-time shop setup fee of $15 to help with security verification. Once your shop is live, you can start listing your products.
Amazon Handmade, on the other hand, requires an application and approval process before you can start listing and selling. You'll need to open an Amazon seller account (or use the seller account you already have), then apply specifically for the Handmade category through the general selling account.
The application asks detailed questions about your products, production methods, and business model to verify that your items meet Amazon's standards for handmade goods. Amazon Handmade's approval process can be rigorous, and may take anywhere from a few days to several weeks. Once approved, you'll gain access to the Professional selling plan tools without the monthly fee, and you can begin listing your handmade products.
The platform you choose to sell on will affect every aspect of your selling experience, from what you can sell to how you can fulfill orders. Many sellers, especially those new to the ecommerce world, tend to underestimate the impact of each platform's policies on their day-to-day selling practices and workflows. As such, it's important to understand the factors that affect not only your bottom line, but your daily selling operations, before deciding on one platform over the other. In this section, we'll explore some of the key factors that will shape your selling experience on Etsy vs Amazon, including seller support, fulfillment methods, available marketing tools, and optimization requirements.
Seller support might not be the first thing you think about when deciding where to set up shop, but it's an important consideration. The seller support options on your platform of choice will affect how quickly and effectively you'll be able to handle the unexpected challenges of selling, whether they be surprise account restrictions, verification requirements, or out-of-the-blue listing removals.
Despite being one of the better marketplaces for sellers early on, Etsy's seller support has faced criticism in recent years as the platform has grown. The company removed live chat support and offers only email-based help, expecting its sellers to rely on the Etsy seller handbook, as well as the help center articles and tutorials. Response times can vary, and many sellers report that resolving complex issues can take time, which often directly translates to lost revenue. There is a silver lining, however; due to these circumstances, the seller community on Etsy has become one of the strongest among third-party-seller marketplaces, with active forums and teams where you can connect with other sellers for advice and support.
In contrast to Etsy's pared-down approach, Amazon provides a more robust seller support infrastructure, including email support, phone support for urgent issues, and an extensive knowledge base. As an Amazon Handmade seller, you have access to the same support resources as other Amazon sellers, which means you can typically get help relatively quickly for account or listing issues. Amazon also offers a Seller University with training resources and a Handmade Hub specifically for artisan sellers. In our experience, however, Amazon's support isn't always as helpful as it could be, and with Amazon's complex and stringent policies, you might find yourself needing to communicate with seller support more often than you'd like.
Order fulfillment is an important consideration for any seller, and knowing what your fulfillment options and obligations are on every marketplace will help you understand what your fulfillment workflows might look like when the sales start rolling in.
On Etsy, sellers are responsible for their own warehousing and order fulfillment. When an order comes in, you handle packing, shipping labels, and delivery yourself, and have the freedom to determine your shipping and handling times. Etsy does offer sellers the option of purchasing shipping labels at discounted rates via Etsy Shipping, which simplifies a significant portion of order fulfillment. While Etsy shipping is typically more involved than fulfillment on other marketplaces, many sellers enjoy the more hands-on approach as it allows them to include personalized packaging, handwritten thank-you notes, and other touches that enhance the handmade experience.
Amazon Handmade sellers also have the option of fulfilling orders on their own, (known as Fulfilled by Merchant, or FBM), or using Amazon's extensive logistics network to store and ship their stock through the FBA (Fulfillment by Amazon) program. Most sellers choose this route, since Amazon handles storage, packing, shipping, and even customer service related to orders and returns. Another benefit is that FBA products are eligible for Amazon Prime, which can significantly boost sales. With all its benefits, however, FBA does have some drawbacks. Firstly, it comes with additional fees for storage and fulfillment. For handmade sellers, FBA might not be suitable, since many sell items that are made-to-order or customizable, making it more suitable for sellers with ready-made inventory.
As a seller in specialized product niches such as handmade pieces or curated vintage items, your ability to build a unique brand identity is important. While it varies considerably between Etsy and Amazon, the general rule is that Etsy gives you more freedom to craft a unique brand identity, while Amazon Handmade will require you to operate within more a more restrictive framework.
For starters, Etsy provides extensive branding opportunities to its sellers. You can customize your shop banner, create a compelling About section with video to tell your story, organize products into sections, and add short videos directly to product listings to showcase your creative process or products in action. You can send store coupons directly to interested buyers, and even take things a step further with a Pattern subscription, which lets you create a separate, standalone website with a custom domain that syncs with your Etsy Shop's inventory. Etsy encourages sellers to share their creative process and connect personally with buyers, and this storytelling aspect is central to the Etsy experience. In fact, buyers often choose to support specific makers whose values and aesthetics resonate with them.
In comparison to Etsy, Amazon Handmade offers a far more limited branding experience. While you can create a custom storefront and build an artisan profile to share your story, the overall Amazon experience is more standardized. Your products appear within Amazon's familiar interface, which provides trust and consistency but less seller and brand individuality. Sellers can leverage this as an advantage, as buyers trust the Amazon brand and shopping experience, but if building a distinctive brand identity is central to your business strategy, Etsy will offer you far more opportunity and flexibility.
Optimization is crucial for visibility on any online marketplace, and Amazon Handmade and Etsy are no exception. The thing is, optimization looks slightly different on every marketplace – Etsy SEO gives more weight to keyword optimization and product images, while Amazon prioritizes technical product information and positive product reviews first.
On Etsy, successful optimization starts with keyword research. You'll need to conduct in-depth keyword research to find the search terms buyers use, then strategically incorporate these terms into your titles, tags, and descriptions. Use high-quality product photos and videos, and focus on creating visually appealing listings that not only attract clicks, but also generate sales. Etsy's algorithm rewards listings that shoppers engage with, so strong photos, clear descriptions, and good pricing all help you rank higher.
Amazon Handmade works similarly, but with a few key differences. When creating a product listing, it's important to include your brand name and main keyword at the start of your title, use detailed bullet points, and price competitively. Customer reviews matter more on Amazon than almost anywhere else, so building positive reviews quickly is essential for visibility.
As you settle into selling and start looking towards growth options, paid advertising will usually form a core part of your growth strategy. Both Etsy and Amazon have paid advertising options, and understanding what each marketplace offers you in terms of advertising can help you better understand how growth might look on each one.
Etsy's paid advertising system is simple, and offers two types of ads: onsite and offsite ads. For onsite ads, known as Etsy Ads, sellers can promote their listings within Etsy search results and category pages. The ads work on a PPC model, and you set a daily ad spend budget for each campaign. The cost of each click varies, typically ranging from a few cents to over a dollar depending on competition. Etsy also runs Offsite Ads, which promote your products on Google, Facebook, Instagram, and other external sites. For Offsite Ads, you only pay when a sale is made through the ad (12-15% commission), but enrollment is mandatory for sellers making over $10,000 annually.
Amazon offers Sponsored Products ads that also work on a PPC model. You can set campaigns targeting specific keywords or let Amazon automatically target relevant searches. Amazon's advertising platform is sophisticated, and gives sellers access to a vast advertising network with detailed performance analytics. While it can be a little overwhelming for beginners, many Amazon Handmade sellers are able to use Sponsored Products successfully to gain initial visibility and reviews for new products, then reduce ad spend as organic rankings improve.
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Rather than choosing one platform over the other, many successful sellers use both Etsy and Amazon Handmade to maximize their reach and revenue.
Selling on both platforms has clear benefits – you're diversifying your revenue streams, reaching a wider audience, and getting the best of both ecommerce worlds. Multichannel selling allows you to reach Etsy shoppers who specifically look for unique and personalized items, while also reaching Amazon Handmade buyers that shop primarily on Amazon and prefer its structured shopping experience. But multichannel selling can be impossible to manage without the right tools – updating and syncing inventory, tracking orders, and managing listings manually takes hours, and inevitably leads to mistakes like overselling or inconsistent pricing.
With EasyChannel, multichannel selling is not only manageable, but genuinely easy. With integrations for Etsy, Amazon, and many more major selling channels, EasyChannel allows you to cross-list products between platforms, sync inventory automatically, and manage your entire multichannel business from one place. With AI-powered tools to help you optimize listings for each marketplace, localize listings for global markets, map product categories across marketplaces, and even provide fast responses to buyers, EasyChannel has all the selling and management tools you need to manage and grow your business.
Q: Can I sell on both Etsy and Amazon simultaneously?
Yes, you can absolutely sell on both Etsy and Amazon Handmade at the same time. In fact, many sellers use both platforms to reach different audiences and diversify their sales channels. You'll need to manage inventory carefully to avoid overselling, which is where tools like EasyChannel become invaluable for syncing inventory and managing orders across both platforms. As long as you're able to manage multichannel selling behind the scenes, there are no exclusivity requirements on either platform that would prevent you from listing your handmade products in multiple marketplaces.
Q: Which platform has lower fees for sellers?
Etsy generally has lower overall fees compared to Amazon Handmade.
Etsy charges a 6.5% transaction fee plus a 3% payment processing fee (plus $0.25), totaling approximately 10% in fees, along with $0.20 listing fees. Amazon Handmade charges a flat 15% referral fee on all sales. However, Amazon has no listing fees, which can be advantageous if you have a large product catalog.
For most sellers, especially those with higher-priced items, Etsy's fee structure results in lower overall costs.
Q: Is Etsy or Amazon better for handmade products?
Both platforms offer a solid foundation for selling handmade products, but they serve different purposes. Etsy is better if you want an audience specifically seeking handmade and unique items, more branding control, and lower fees. Amazon Handmade is better if you want to leverage FBA for fulfillment, benefit from the Amazon brand trust, and don't mind the approval process, higher fees, and more limited visibility compared to Etsy. Many handmade sellers find success by selling on both platforms with the help of tools like EasyChannel.
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