Etsy vs. Amazon Handmade: Which One Should You Pick?

If you do a quick Google search for “which platform should I sell my handmade goods on,” two of the top results that will pop up are Etsy and Amazon Handmade.

The next question, of course, is “which one do I choose?” Well, both the platforms have their own strengths and weaknesses, so it all depends on your needs and goals (and how much you’ll have to fork over in fees).

Whether you’re looking to pick only one of these platforms for your e-commerce crafts business, or are considering both and just want to look into their features, we’ve got you. Let’s jump into an in-depth comparison of Etsy and Amazon Handmade.

Etsy vs. Amazon Handmade at a glance

Features	Etsy	Amazon Handmade
Target audience	Smaller; focused on craft enthusiasts	Larger; focused on casual shoppers who want something handmade
User interface	Clean, easy to use, allows for storefront personalization	Clean, easy to use, allows for storefront personalization
Store set-up	Very easy; can sign up and start selling	Need to apply and pass a strict review
Product categories	Anything unique that’s made, designed, handpicked, or sourced by you; digital items allowed	Anything that’s handcrafted, hand-altered, hand-designed, upcycled, or repurposed by you; no digital items allowed
Setup fee	$15-$29	$39.99 for the Professional Seller Account
Listing fee	$0.20/item/listing; need to renew after 4 months	No listing fees
Transaction fee	6.5%	15%
Payment processing fee	3% + $0.25	No payment processing fees
Advertising tools	Onsite and offsite ads	Onsite ads; sponsored placements
Fulfillment	Seller is responsible; discounted USPS shipping labels available through Etsy	You can use Fulfillment by Amazon (FBA) or ship on your own

Now, an in-depth examination and comparison of each feature. 

The basics

Both Etsy and Amazon Handmade are spaces focused on handmade goods. Both of them have a clean interface (although we are partial to the Etsy one), are easy to use, and come with a readymade audience.

Both platforms also let you customize your seller profile with custom banners, bios, and featured products. However, Etsy does offer more personalization options to make your storefront your own. With Amazon Handmade, their branding always comes first, so your options are limited.

They do have some differences, though, mainly pertaining to their customer base. While Etsy’s focus is exclusively on selling handcrafted items, Amazon Handmade is simply a part of the larger Amazon ecosystem. 

This means that even if you sell on Amazon Handmade, your items will still show up in the search results of the general Amazon store. While this does give you a larger customer base, your buyers likely won’t be people looking for unique handmade pieces.

Getting started with a storefront 

Anybody and their grandmother can sign up to Etsy, list their products, and start selling. All you have to do is create an account, come up with an Etsy shop name, create your first listing, and boom! You’re all set. 

Getting started with selling on Amazon Handmade is a little bit more complicated than that. First, you need to sign up as a professional seller — something that costs $39.99/month (although it can be waived later). 

The next step is applying to become an Amazon Handmade seller. As part of this process, you’ll need to answer detailed questions about your business and provide any necessary documentation (including info about your production process and designs, and photos about your tools and workspace). 

You can only start selling if Amazon approves your application. This is Amazon’s way of making sure that only handmade goods are being sold on Handmade. 

What type of sellers get approved? 

• Sellers who work individually, or with fewer than 20 others
• Co-operatives
• Non-profits, charities, and NGOs
• Social enterprises

It’s worth noting that the vetting process may take a few weeks. If you don’t get approved, you’ll have to wait 30 days before applying again. 

Product categories

Etsy has 17 main product categories, with hundreds of sub-categories. You can list and sell anything that’s artisan-made (even if the artisan wasn’t you). In short, Etsy lets you sell anything unique that you made, designed, handpicked, or sourced.

Thrifted a vintage product that’s one of a kind? You can sell it on Etsy. Similarly, digital goods (such as printable planners, art, etc.) are also allowed, so long as they were designed by you. 

Here’s a brief overview of the type of products you can sell on Etsy:

• Made by a seller: Physical items handcrafted by you. Also includes hand-altered and hand-assembled items
• Designed by a seller: Your original designs that are being sold as digital files, or are being printed on third-party products
• Handpicked by a seller: Vintage items, things from nature, or curated collections
• Sourced by a seller: Items that have been personalized by you. Also includes craft and party supplies

Amazon Handmade, on the other hand, has stricter rules about what is and isn’t allowed. For starters, there are 15 main categories. Any item that doesn’t fall into these categories can’t be sold on the Handmade platform. 

To sell on Amazon Handmade, your product must be: 

• Handcrafted or hand-designed:: Physically designed and produced by you. Shouldn’t be mass-produced
• Hand-altered: Adding significant personalizations to pre-made items
• Upcycled: Upgrading an already existing product
• Repurposed: Creating a new product out of an old product

Unlike Etsy, though, you cannot sell digital items or crafting supplies (unless the items included in the crafting supplies, such as the yarn, etc. were made or hand-altered by you).

Fees

Each platform comes with various fees that will eat into your profit. Let’s look at how much each platform will set you back. 

Setup fee

Etsy charges you a one-time setup fee between $15 and $29, depending on your location. 

While Amazon doesn’t charge you a setup fee, per se, you do need a Professional Seller Account to sell on Handmade. This costs $39.99/month. However, once you get approved as a Handmade seller, this fee will be waived for you, so it’s essentially a one-time fee. 

Listing fee

You need to pay a fee of $0.20 for each listing you create on Etsy. You’ll have to shoulder this fee even if your item doesn’t sell. Multiple quantities are considered as different listings, meaning if you list 10 pieces of a doll, each piece is subject to the listing fee. 

Another thing to note is that this listing fee is valid only for 4 months. After this time period ends, you’ll have to renew your listing and pay the fees again. 

Amazon Handmade doesn’t charge any listing fees.

Transaction and payment processing fees

Amazon Handmade has higher transaction fees than Etsy. While Etsy charges you a 6.5% fee on the total sale amount, Amazon Handmade charges a whopping 15%. 

However, when it comes to payment processing fees, Amazon Handmade fares better, as it doesn’t charge anything. Etsy does. 

The payment processing fee you’ll pay for an Etsy sale depends on your region. 

For US sellers: 3% + $0.25
For UK sellers: 4% + £0.20

💡 Use Crosslist’s free Etsy Fee Calculatorto do the math on how much you owe the platform.

When it comes to payouts, though, Etsy takes the lead as the funds of a sale become available to you instantly after the purchase has been made. You can also transfer the funds to your bank account on your own schedule. 

Amazon Handmade, however, only makes the funds available to you once products are marked as “shipped.” You can also transfer the payments only once every 2 weeks.

Advertising fees

Both Etsy and Amazon Handmade have a pay-per-click advertisement model where you’ll only have to pay if a potential buyer clicks on your ad. 

Other than that, Etsy also runs offsite ads for you, and you can’t opt out of them (unless you made less than $10,000 in a year). However, you’ll only pay for these ads if a user clicks on your ad and then purchases the item within 30 days. 

If your annual Etsy revenue was less than $10,000, you’ll pay a 15% commission fee on any sales you made through Etsy ads. If your annual revenue crosses $10,000, you’ll only pay 12% in fees.

Other fees

Some other fees that you may incur on both of these platforms include currency conversion fees and shipping fees. These depend on your location, the place you’re delivering to, and the size and weight of your packages. 

Advertising tools

Both platforms have various advertising tools that you can use to boost your sales. 

On Etsy, you have:

• Offsite ads where you pay a commission fee only when a sale is made directly through the ads
• Pay-per-click onsite ads
• Coupons and discounts
• Dedicated Etsy teams
• Etsy Shop Optimization Outreach Program
• Affiliate programs

Amazon Handmade gives you the following advertising options:

• Pay-per-click ads
• Sponsored placements
• Amazon Live
• Promotions and coupons

External promotional strategies

In addition to these, we highly recommend that you also use external promotional methods to increase your shop visibility. Here are some strategies that work for Etsy and Amazon Handmade:

• Getting reputable websites to link back to your store through backlink services
• Partnering with influencers
• Building an email list
• Promoting your listings on social media
• Collaborating with other artisans
• Taking part in local crafts fairs
• Delisting and relisting your listings through a platform like Crosslist to enhance their visibility

Fulfillment

E-commerce shipping is a whole other beast to tackle. How do these platforms fare in this regard?

With Etsy, you’re responsible for shipping the items, although you can purchase discounted USPS shipping labels directly through the platform. Once the label is generated, all you have to do is print it out, stick it to your package, and schedule a USPS package pick-up.

As soon as you get the label, Etsy will automatically mark the item as shipped and give the buyer a tracking number. 

Amazon, however, goes one step further and offers an entire fulfillment option. This means the platform will handle all the logistics of shipping for you, including warehousing. You do have to pay a warehousing fee for storing all your products, though. 

How does it work? You send your inventory to Amazon, who will store it in a warehouse. Once a product is sold, Amazon will pick it up, pack it up, and ship it. A completely headache-free option for those who prefer a hands-off shipping approach. 

Which is better for artisans? Etsy, or Amazon Handmade?

Both Etsy and Amazon Handmade come with their own strengths and weaknesses, so the better question is: which platform is the right pick for your business needs?

You should pick Etsy if: 

• You sell highly customizable or one-of-a-kind products
• You sell digital items
• You want to create a personal brand online
• You’re focused on selling to niche shoppers who can appreciate your craft
• You want brand loyalty 

You should pick Amazon Handmade if:

• Your handcrafted products can be produced relatively quickly
• You want a very large customer base 
• You’re focused on just the selling, and don’t mind selling to casual shoppers
• Building a personal brand isn’t a priority

Of course, there’s no rule saying you can’t sell on both. 😉