Etsy vs Amazon Handmade: How Do They Stack Up?

Listen up, talented artisans.

If you’re eager to share your creations with the world but unsure whether Etsy or Amazon is the right space for you, don’t go away.

Etsy is an established marketplace of similar sellers that saw a growth of 160% in its habitual buyers last year (2020).

The ecommerce giant that is Amazon has a dedicated section for handmade products, giving sellers like you access to its unparalleled visitor numbers.

Neither should be sniffed at, but like with all comparisons, there are pros and cons of each platform.

And that’s what we’ll explore here.

In this guide on Etsy vs. Amazon Handmade:

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Let’s kick things off with a little bit of background on each of the platforms.

Setting the Scene: Etsy vs. Amazon Handmade

Etsy was launched in 2005, around a decade after Amazon.

Today, it is worth over $2 billion on the NYSE.

Whilst Amazon may be vast in size in comparison to Etsy, the success of the latter should not be understated.

And with its niche firmly rooted in handmade, vintage and craft supply items, you know that all Etsy buyers are looking for items just like yours.

But should that put you off the biggest platform in the world? One that welcomes billions of visitors every single day?

No, it shouldn’t. But the numbers should be put into context, and that’s what we’ll do here.

Here’s a quick overview:

• Etsy is a dedicated marketplace to handcrafted items. Amazon Handmade is a dedicated category on Amazon.
• New Amazon Handmade sellers must have seller central accounts already, and be approved before they can open shop. But they do have simpler fees.
• Etsy allows digital downloads as products, Amazon does not.

Let’s get into the details.

Market Share

First up, Etsy vs. Amazon Handmade by numbers.

The bottom line

Whilst these numbers are helpful in illustrating the relative sizes of Etsy and Amazon, they are far from the whole story.

Amazon’s gigantic visitor numbers do not reflect targeted buyers looking for handmade items. With Etsy, you can trust that the vast majority of buyers are there looking specifically for these.

Keep these numbers in mind, but they should not alone dictate which you choose for your business.

Buyers

So we have some idea how many buyers are visiting Etsy and Amazon, but who are they? And what do they want?

The bottom line

Amazon has made a name for itself for deals and convenience. This is what buyers associate the platform with, and why they flood it every day.

Etsy sees a more concentrated group of buyers that look for products and brands who reflect their own values.

Relationships tend to reach beyond the Etsy marketplace, as demonstrated by this seller’s experience below:

“I’ve found that Amazon customers almost never contact me, and our conversations are extremely short and to the point.

This means we’re not really bonding the way I do with Etsy customers (who often love chatting about their purchases before and afterwards), but this gives me even more reasons to make their purchase extra special with fancy wrapping and personalized notes when they open their package.”

• Amanda Siska, Bread and Badger.

Sellers

What about the seller experience for both platforms? Are the rules for one more restrictive than the other?

The bottom line

Sellers are required to demonstrate full transparency as to the production of their items, regardless of platform.

Etsy is more flexible in general, with greater room for movement with types of products sold.

A key difference is that designers can’t sell their designs or templates on Handmade.

Here’s one artisan seller’s perspective on the difference:

“In 2013 Etsy changed its policy allowing sellers to hire people to run their businesses and to partner with manufacturers to produce their goods … my business slowed … [cheaper] designs that were once unique to my shop flooded the platform.

… to sell on Amazon Handmade you need to qualify by submitting an artisan application. [This process, in my opinion] encourages a more authentic artisanal space by auditing each shop prior to accepting them to ensure the items are genuinely handmade.”

- MimicDesigns, artisan seller.

Fees

Before we go much further, you’re probably wondering how much each platform will cost you. Let’s explore that next.

The bottom line

These fees are just a topline overview. Most ecommerce selling fees are circumstantial - in other words, you may acquire fees for different reasons.

For example, you may have payment processing fees on top of those mentioned above, depending on the methods you choose to offer your buyers.

For this reason, we have more detailed guides for each platform below. If fees are a particular concern for you upfront, check those out.

Find our dedicated Etsy fees guide here for more information.

Find our dedicated Amazon Handmade fees guide here for more information.

Fulfilment

Ecommerce sellers need to get their fulfilment strategy right from the start.

Amazon Prime offers unparalleled shipping speeds, so staying competitive means, at the very least, excellent communication and convenient services.

Both Etsy and Amazon Handmade sellers are able to manage fulfillment themselves.

They are also both able to use the services of Fulfilment by Amazon (FBA).

The main benefit of being an Amazon seller using FBA is that your fees would be slightly lower.

Non-Amazon sellers still need an Amazon account, and would use the service through MCF (Multi-Channel Fulfilment). But this does mean that selling on Etsy doesn’t rule out the fast shipping options that come with Amazon FBA.

The Setup Process

So how does the setup work for each? Is one longer or more difficult than the other?

The bottom line

It’s quick and simple to get set up on Etsy.

Handmade takes longer to get set up because you have to apply to sell on Handmade and be vetted as an artisan first.

In fact, you will need to disclose a number of details about your business that might require you to do some planning first. Check out our Amazon business plan template for ideas on what to include.

Dashboards, Reports and Analytics

When it comes to the daily running of your store, you need the platform to keep you updated on your store activity. Let’s check out what this looks like on Etsy vs. Amazon Handmade.

Etsy

The Etsy dashboard, depending on your store type and channels, can look like this:

Etsy’s shop dashboard includes the following information:

• Shop advisor for alerts, notifications and overdue tasks.
• Recent activity of orders, reviews and favorites.
• Open and unpaid orders.
• Listings.
• Stats overview for orders, revenue, views and listings.

Amazon

You’ll be using Amazon’s seller central dashboard as a Handmade seller.

It will look something like this:

Amazon’s dashboard includes the following information:

• The statuses of your orders.
• Seller-fulfilled item tracking.
• Fulfilled by Amazon item tracking (if you use it).
• Seller forums for discussions and community posts.
• Inventory planning features.
• Notifications about your business activity.
• Payments summaries.
• Sales summaries.

You can learn more about seller central here.

The bottom line

Both platforms give you plenty of tools and resources to help you manage your business.

You’ll also find advertising functions for both if you want to boost and promote your listings.

Learn more about Etsy advertising here, and Amazon advertising here.

Listings and Categories

Picking the right category for your product is important.

It dictates which customers see your listings, so if you’re not showing up to the most relevant buyers, you’re not giving your business the best chance at a sale.

Let’s check out what options you have on Etsy and Amazon.

Etsy

Etsy has 160 product categories listed under 15 main categories:

• Accessories
• Art & Collectibles
• Bags & Purses
• Bath & Beauty
• Books, Films & Music
• Clothing
• Craft Supplies & Tools
• Electronics & Accessories
• Home & Living
• Jewelry
• Paper & Party Supplies
• Pet Supplies
• Shoes
• Toys & Games
• Weddings

Amazon

Amazon Handmade has 14 product categories:

• Accessories
• Artwork
• Baby
• Beauty & Personal Care
• Clothing
• Shoes & Handbags
• Home
• Outdoor & Home Care
• Jewelry & Watches
• Kitchen & Dining
• Pet Supplies
• Sporting Goods
• Stationery & Party Supplies
• Toys & Games

The bottom line

You might find it easier to reach targeted traffic on Etsy. This really depends, however, on your items and which category they belong to.

It may be more productive to look at your potential competitors in the relevant category on both sites, and make some decisions about where you’re best placed that way.

Payment Processing

The checkout process can cement a sale, or it can prompt a customer to abandon their items. Ensuring that your payment options are attractive, and the experience is smooth, is crucial.

The bottom line

Amazon Handmade and Etsy both offer payment flexibility to buyers, although Amazon Prime members who use an Amazon Store Card can actually earn benefits through the program.

Etsy pays out faster, and to the sellers’ own schedule.

Advertising

Regardless of your selling platform, if you want to grow, you’ll want to know your advertising options.

The bottom line

You have options on both sites which are relatively similar. Etsy’s relatively recent updates to its off-site advertising program have proved unpopular with some sellers, but this won’t affect you until you see your revenue pass $10,000 in a year.

So if you’re planning speedy growth, look into what this might mean for your business and whether you’re on board.

Support for Sellers

Lastly, let’s look at the kinds of support that you can expect from the platforms when you join.

The bottom line

Etsy doesn’t quite stack up to Amazon here: You can get help instantly on Amazon.

Emailing Etsy may take time to get an answer, but both provide extensive articles and guidance on their sites to answer the most common questions. And both offer seller forums where you can get help from other sellers.

You can also find plenty of resources for both Etsy and Amazon via the A2X blog, and the Ecommerce Accounting Hub.

Still Unsure Which Is Best?

Here are a few thought-starters to help you make your decision.

• Do you see outsourcing in your business’ future? Amazon Handmade doesn’t currently allow you to sell items not made by you.
• Would you be looking to sell designs, templates or digital products in the future? Etsy will be less restrictive for you.
• Are you eager to have more control over customization? Etsy has developed an additional service similar to Shopify, called Pattern, which gives you this flexibility and allows you to transfer your listings over with ease.
• Are you eager to join the ecommerce giant and potentially attract Prime customers? Then Amazon would be the way to go.

We recommend putting together a business plan to help you clarify your goals and the best solution for you.

We have templates for Etsy and Amazon, but you can use either to help make your decision.

Get the Money Right, Whatever Happens

Whether you choose Etsy or Amazon Handmade, your settlement statements won’t always give you the level of detail you need to reconcile your accounts accurately.

A2X integrates with your ecommerce platform (or platforms) and accounting software to do this for you.

Every bank deposit receives a corresponding journal summary, so that you know exactly how much you paid in fees, collected for shipping, took in sales tax, received in reimbursements, and spent on costs of goods sold - all automatically.

A2X also splits any settlements that span months and organizes your books via the accrual method of accounting, which gives you more reliable data that you can use to forecast your business’ performance month to month.

It’s accurate accounting without the fuss.

Try it for free today!

FAQs and Helpful Tips

Is Amazon Handmade better than Etsy?

Handmade is a category on parent site Amazon. Sellers benefit from the massive global audience of this ecommerce giant. Etsy has a dedicated, established audience looking for niche artisan and vintage products. Sellers have to be vetted to sell on Handmade, whereas Etsy is open to anyone.

Can you make money on Amazon Handmade?

Handmade is part of Amazon, a global ecommerce giant with massive buyer reach. Once vetted by the site, sellers selling unique artisan and handmade products have potential to make good earnings, with a relatively simple fee structure.

Is it worth it to sell on Amazon Handmade?

Handmade offers the benefit of product exposure on Amazon - the world’s most dominant ecommerce site. It may well be worth it.

Should I sell on both Etsy and Handmade?

This may be a good strategy because you can build your brand on Etsy (especially if you sign up for Etsy Pattern to create your own site), and you can leverage a huge buyer reach on Amazon.

Also on the blog

• The Ecommerce Accounting Hub
• How to Sell on Amazon
• How to Sell on Etsy in 2021
• How to Set Up Your Etsy Seller Account
• A Tour of Amazon Seller Central