Amazon Handmade Vs. Etsy: Which Platform Is More Suitable For You?

In the current digital era, numerous online marketplaces are available for creative entrepreneurs to display their products and expand their businesses. Amazon Handmade and Etsy are two popular platforms for selling handmade items. Each platform has distinct features and opportunities, making it difficult to determine the best fit for your handmade business. This article delves into the differences between Amazon Handmade and Etsy, offering a comprehensive comparison of their pros and cons. By the end of this article, you will have a clearer understanding of which platform aligns best with your business goals and target audience.

What is Amazon Handmade?

Amazon Handmade is a unique community on Amazon where artisans and crafters can offer their one-of-a-kind creations to a global customer base. This platform provides an opportunity for sellers to reach millions of potential buyers who value handmade and artisanal goods. Unlike regular Amazon seller accounts, Amazon Handmade accounts have a distinct business model tailored specifically for handcrafted items. Only handmade, hand-altered, or hand-assembled products are permitted on the platform, which means no mass-produced items are allowed.

Should you sell on Amazon Handmade: pros and cons

Pros:

1.Access to a Large Customer Base

Amazon Handmade allows sellers to reach millions of customers worldwide, significantly increasing the potential for sales and providing substantial exposure for handmade products. With Amazon being one of the most visited e-commerce platforms globally, artisans benefit from a vast and diverse audience actively searching for unique, high-quality items. This extensive reach not only boosts visibility but also enhances the likelihood of repeat purchases and long-term customer relationships. By tapping into Amazon's established customer base, handmade sellers can scale their businesses more effectively and achieve greater market penetration.

2.Comprehensive Seller Support

Sellers can use Fulfillment by Amazon (FBA) to take advantage of Amazon’s reliable shipping, handling, and customer service, which ensures efficient and timely delivery of products. This service allows sellers to focus more on their craft rather than logistics. Additionally, Amazon handles payment processing, reducing the complexity for sellers and providing a seamless transaction experience for buyers. This means that artisans do not have to worry about managing payments or dealing with payment issues, allowing them to streamline their operations and enhance customer satisfaction. Overall, Amazon's comprehensive support system helps sellers manage their businesses more effectively and efficiently.

3.No Monthly Subscription Fee

Unlike regular Amazon seller accounts, Handmade sellers do not incur a monthly subscription fee, making it a cost-effective option for artisans. By eliminating the monthly fee, Amazon Handmade reduces the financial barrier to entry for small-scale artisans, enabling them to start and grow their business with lower upfront costs.

4.Exclusive Community

The application process of artisan verification ensures that only genuine handmade products are sold, maintaining the platform’s integrity and quality. This vetting process fosters a trustworthy environment where buyers can confidently purchase unique, high-quality items. Being part of an exclusive community focused on handmade items attracts customers specifically seeking distinctive and artisanal products. This exclusivity differentiates Amazon Handmade from other marketplaces, allowing sellers to connect with a niche audience that values craftsmanship and authenticity. Consequently, artisans benefit from a dedicated customer base that appreciates and seeks out their unique creations, driving more targeted traffic and potential sales.

Cons:

1.High Competition

With many artisans selling similar products on Amazon Handmade, standing out can be particularly challenging. The platform's popularity means that there is a vast array of items in each category, making it difficult for individual sellers to attract attention. To differentiate themselves, sellers need to invest significant time and resources in marketing and branding efforts. This may include creating high-quality product listings with professional photos and detailed descriptions, engaging in social media promotion, utilizing Amazon's advertising tools, and developing a unique brand identity. These efforts can be time-consuming and costly but are essential for achieving visibility and success in a crowded marketplace.

2.Referral Fees

While there is no monthly subscription fee for Amazon Handmade, the 15% referral fee per sale can accumulate significantly over time. This fee structure can particularly impact sellers of lower-priced items, as the percentage taken from each sale reduces overall profit margins. For artisans who operate on tight budgets, this can be a considerable drawback, requiring them to carefully price their products to maintain profitability while still remaining competitive in the marketplace.

3. Rigorous Approval Process

The application and approval process for Amazon Handmade can be time-consuming and challenging. Providing thorough documentation and meeting Amazon's stringent criteria can take significant effort and time, potentially delaying the start of sellers' selling journeys and adding an extra layer of complexity for newcomers.

What is Etsy?

Etsy is an online marketplace designed for independent artists and crafters to sell their products. It is renowned for offering a diverse range of items, including handmade toys, collectibles, art, home goods, vintage furniture, jewelry, clothing, holiday items, and craft supplies. Founded as a small shop in Brooklyn in 2005, Etsy has grown exponentially over the years. The platform's user-friendly interface and emphasis on handmade items attracted a global community of sellers and buyers. Today, Etsy is a massive e-commerce hub, boasting more than 100 million items listed for sale. Many sellers are exploring dropshipping on Etsy to offer a wide range of products. By 2024, Etsy had grown to include 9 million sellers and over 96 million active buyers worldwide, making it one of the largest online marketplaces for handmade and vintage goods. Its global reach allows sellers to connect with customers from all over the world, providing opportunities for international sales and expanding market potential.

Should you sell on Etsy: pros and cons

Pros:

1.Easy to set up

Even with minimal technical skills, you can quickly get started on Etsy. The platform is user-friendly and designed to simplify the setup process for sellers. Of course, this doesn’t mean there is no work involved. You still need to create your products, take high-quality pictures, write detailed product descriptions, and handle other aspects of your shop. However, when it comes to the actual setup, Etsy makes it straightforward and accessible. This ease of use allows sellers to focus more on their products and less on the complexities of setting up an online store.

2.Low risk

Many new handmade businesses are drawn to Etsy because it requires minimal upfront investment. Etsy serves as an ideal platform for testing new products. Unlike starting an independent e-commerce website, which involves costs for domain registration, hosting, web design, and other expenses, opening an Etsy shop simply requires creating an account and setting up a shop profile. This low barrier to entry makes it easier for entrepreneurs to experiment with their offerings without significant financial risk.

3.Established reputation

Etsy has been a well-known marketplace for many years, recognized for its trustworthiness in offering handmade, vintage, and unique items. With over 15 years of experience, Etsy has built a solid reputation as a reliable platform for buying and selling distinctive and handcrafted products. Consequently, many buyers prefer Etsy when searching for handmade or one-of-a-kind items, confident in the platform's reliability and the quality of its offerings.

4.Supportive community

Etsy is renowned for its welcoming, supportive, and collaborative environment. The Etsy forum is a vibrant and friendly space where sellers can find resources, answers, and camaraderie. Etsy provides numerous tools and resources to help sellers thrive, including discussion forums, seller teams, and mentorship programs. These resources enable sellers to connect with one another, share advice, and learn from the more experienced members of the community, fostering a strong network of support and collaboration.

Cons:

1.Recurring fees

While Etsy's initial startup costs are low, the recurring listing fees every four months can be a drawback for some sellers. For instance, a seller with 100 listings incurs a cost of $20. If none of these items sell within four months, the seller must pay another $20 to keep the same listings active. This can make the platform expensive for users whose products require numerous individual listings. If sales proceeds do not exceed these listing costs, it is possible for sellers to lose money running an Etsy store.

2.Stiff competition

As the 12th largest online marketplace, getting noticed on Etsy can be challenging. The platform hosts numerous sellers offering similar products, making it difficult for any one seller to stand out. Additionally, customers on Etsy often prioritize finding the best price or the most convenient shipping options over brand loyalty, which means they may not stick with a particular seller. This competitive environment can make it harder for sellers to attract and retain customers.

3.Reliance on Etsy’s policies

Sellers on Etsy must comply with the platform's strict policies regarding what can be sold. These policies are designed to ensure the quality and authenticity of items, but they can be limiting for sellers. Non-compliance with these guidelines can result in severe consequences, including the suspension or closure of their shops. Additionally, any changes in Etsy’s policies can directly impact sellers, making it crucial for them to stay updated and adaptable to avoid potential disruptions. This dependency can be challenging for sellers who prefer more autonomy in their business operations.

Amazon handmade vs. Etsy: Differences and Similarities

Similarities

• Target Market:

Both Amazon Handmade and Etsy cater to artisans, crafters, and sellers of handmade, unique, and vintage items. They attract buyers looking for distinctive, high-quality handmade products.

• Global Reach:

Both platforms offer access to a global customer base, allowing sellers to reach international markets. They provide various tools to help manage international shipping and transactions.

• Seller Support:

Both Amazon Handmade and Etsy offer extensive resources and support to help sellers succeed, including forums, guides, and customer service.

• Product Categories:

Both platforms support a wide range of product categories, from jewelry and clothing to home goods and art.

• Customization:

Sellers can create personalized storefronts with banners, logos, and descriptions to build their brand identity.

Differences

• Fee Structure:

Amazon Handmade: Charges a 15% referral fee per sale but does not have a monthly subscription fee.

Etsy: Charges a $0.20 listing fee per item every four months, a 6.5% transaction fee on each sale, and a 3% + $0.25 payment processing fee.

• Approval Process:

Amazon Handmade: Requires a rigorous application and approval process to verify the authenticity of handmade products.

Etsy: Has a simpler registration process, making it easier for new sellers to start quickly.

• Market Size and Reach:

Amazon Handmade: Benefits from Amazon’s vast customer base, leveraging the platform's high traffic to gain exposure.

Etsy: While large, has a smaller customer base compared to Amazon, focusing more on niche markets for handmade and vintage items.

• Seller Tools and Analytics:

Amazon Handmade: Offers advanced tools and analytics through the Amazon Seller Central platform, including Fulfillment by Amazon (FBA) services.

Etsy: Provides a variety of seller tools, but with fewer advanced features compared to Amazon, focusing on simplicity and ease of use.

• Customer Interaction:

Amazon Handmade: Handles most customer service interactions, limiting direct contact between sellers and buyers.

Etsy: Encourages more direct interaction between sellers and customers, fostering a community feel.

• Brand Recognition:

Amazon Handmade: Leverages the well-established Amazon brand, attracting buyers who already trust the platform for various purchases.

Etsy: Has built its brand around handmade, vintage, and unique items, attracting a loyal customer base specifically looking for such products.

• Fulfillment Services:

Amazon Handmade: Sellers can use Fulfillment by Amazon (FBA), benefiting from Amazon’s reliable shipping and customer service.

Etsy: Does not offer a fulfillment service like FBA, so sellers are responsible for their own shipping and handling.

Conclusion

Although Amazon Handmade and Etsy vary in scale, buyer demographics, and fee structures, both are powerful online marketplaces capable of reaching millions of consumers worldwide.

When deciding between Etsy vs. Amazon Handmade, consider your business model and target audience. If you sell a high volume of products at relatively low price points, Amazon Handmade, with its fulfillment assistance and free product listings, might be the ideal choice. Conversely, if you have fewer listings and expect higher revenue per sale, Etsy’s lower percentage cost per transaction can offset the $0.20 quarterly listing fee.

If you’re still uncertain about whether Amazon Handmade or Etsy is right for you, try running the numbers on a few different scenarios to determine which platform best supports your shop's success. After all, you’ve invested your labor, creativity, and passion into your craft. Now it's time to showcase it to the world.