Handmade marketplaces differ from regular e-commerce sites in that they make authenticity and craftsmanship the focal point. Most focused on niche artisan markets, allowing small businesses to sell their unique goods to a focused audience.
This emphasis on being unique enchants consumers. They appreciate the history and intention that goes into every single handcrafted piece, which is what makes these marketplaces so different from their mass-produced counterparts.
Why Choose Online Platforms for Selling?
Selling on marketplaces such as Amazon Handmade and Etsy provide numerous benefits. You can get discovered by customers all over the world, which greatly increases your potential market.
Even though it requires a lot of work, opening an online store can be done from almost anywhere, saving time and money. In comparison to brick-and-mortar shops, online marketplaces tend to have less overhead.
For instance, Amazon Handmade, with its 96 million buyer base, offers a vast market but charges a 15% referral fee, which can impact profits. Etsy does lure some sellers away with their lower fees and more customizable storefronts.
These features offer them more control and more cost effectiveness for their businesses.
Comparing Platform Features
1. Key Features of Each Platform
Feature
Etsy
Amazon Handmade
User Interface
Simple and community-focused
Integrated with Amazon’s ecosystem
Seller Support
Strong community and forums
24/7 support with Amazon resources
Marketing Tools
Off-site ads, social media sharing
Advanced options with Amazon Ads
Listing Process
$0.20 per listing, expires in 4 months
No listing fees, but 15% referral fee
Inventory Management
Manual updates
Seamless integration with Amazon’s systems
Etsy’s focus on community-driven initiatives and sustainable practices create an inviting atmosphere for lovers of the handmade.
Amazon Handmade offers sellers extensive exposure thanks to Amazon’s massive customer base and resources.
Amazon Handmade sellers gain unique access to powerful analytics tools, built right into their platform.
Etsy provides more basic analytics with smaller businesses in mind.
Amazon Handmade: Broader categories including personal care and home goods
Etsy restricts vintage items and craft supplies, focusing on handmade items, making it a suitable marketplace for independent sellers.
3. User Experience for Sellers
From a user experience perspective, it is easier to navigate and set up both platforms, but there are differences.
Etsy provides users with an easy-to-navigate setup and an intuitive dashboard that is attractive to first-time sellers.
Amazon Handmade is strict on sellers following Amazon’s rules, giving you a more complicated but more powerful dashboard.
An intuitive, simple interface will make or break your seller experience, allowing you to keep happy, healthy stores on your platform.
4. Marketing and Advertising Tools
Advertising Option
Etsy
Amazon Handmade
Pay-Per-Click (PPC)
Modified PPC model
Standard PPC
Social Media Tools
Basic sharing options
Extensive social media integration
Role in Traffic
Drives traffic with targeted ads
Enhanced visibility through Amazon
Etsy’s offsite ads operate on a pay-per-click (PPC) model with a twist.
Sellers only pay when an ad directly results in a sale within 30 days.
Amazon Handmade offers sophisticated advertising tools, such as PPC and social media integration, to help you generate traffic.
Analyzing Selling Processes
Registration Steps Explained
Opening a store on Etsy or Amazon Handmade comes with its own unique process. On Etsy, you start by signing up for an account, then picking a name for your shop, and customizing the look and feel of your storefront.
Next, you’ll need to list your products, select which payment methods you want to accept, and configure shipping options. Amazon Handmade focuses on avoiding mass-production through a strict application process.
You’ll need to meet specific eligibility criteria, submit detailed information, and await approval, which can take weeks or even months. Providing complete and accurate information at the time of registration is key to avoiding processing delays.
Store Setup Guidelines
When setting up your store, certain elements are essential. Decide on a catchy retail name and create a logo that’s easy to recognize. Craft clear and detailed product descriptions.
Use high-quality images to showcase your products. Branding is everything, especially when trying to acquire customers. Create a shop brand.
A strong, cohesive brand identity will help make your shop memorable and unique. Concise, compelling product descriptions and high-quality images help customers envision the product and make them more comfortable making a purchase.
Fulfillment and Payment Options
Etsy and Amazon fulfill your orders and take care of payments for you. Etsy gives you more control over your shipping, but Amazon Handmade’s fulfillment services can save you time and effort by taking care of it for you.
Payment processing on Etsy now costs a 6.5% transaction fee, and Amazon Handmade takes 15% selling fees. Excel at fulfillment. Timely, accurate fulfillment is the quickest way to earn customer loyalty and establish a solid reputation for your brand.
Evaluating Costs and Competition
Subscription and Fee Structures
To effectively price your work, it’s important to understand Etsy and Amazon Handmade’s fee structures. Here’s a quick comparison:
Platform
Listing Fee
Transaction Fee
Subscription Cost
Referral Fee
Etsy
$0.20 per listing
6.5% per sale
None
N/A
Amazon Handmade
None
N/A
None
15% per sale
On Etsy, listing fees are charged every quarter. Its transaction fees are currently 6.5%. Even then, total selling fees are competitive — especially compared to Amazon Handmade’s referral fee of 15%, which includes no listing fees.
This affects your overall profitability. Etsy has lower initial costs but does have recurring fees, affecting long term financial projections.
Marketplace Competition Levels
All this popularity brings intense competition. With thousands of sellers offering the same products, you’ll find pricing is often the most important factor for you to remain competitive.
On Amazon Handmade, quality is more important than quantity. The platform’s highly selective application process means that only the most innovative, quality products are accepted.
Differentiate yourself by going deep on specialty products. Utilize smart marketing techniques such as SEO optimization and social media engagement to ensure you’re getting the most exposure possible.
Integrations and Support Resources
Both platforms provide tools to help grow your shop:
Etsy Integrations: Printful, QuickBooks, Google Shopping
Support Seller resources such as customer service and seller forums. Implementing them can provide both perspective and guidance, allowing you to avoid the pitfalls of the online marketplace and find fair, workable solutions.
Weighing Pros and Cons
Here’s a table that outlines the advantages and disadvantages of being an Etsy seller versus utilizing Amazon Handmade.
Platform
Advantages
Disadvantages
Etsy
Focus on handmade and vintage goods, lower fees (max 10%), and a large monthly visitor count of over 500 million
High competition, listings expire every four months, and 15% ad fee for shops making less than $10,000 annually
Amazon Handmade
Large customer base with 66% of US consumers starting their product search here, no listing or renewal fees, and professional selling plan at no cost
High 15% referral fee, listing process can be complex, and the interface might be challenging for some sellers
Advantages of Selling on Each Platform
Etsy’s focus on handmade and vintage products allows for deeper connections with niche audiences who are looking for more unique products. This new direction allows you to tap directly into the buyers market that most values craftsmanship.
Amazon Handmade provides unprecedented access to a huge customer base, all made possible through Amazon’s brand recognition and reach. The platform acts as a springboard into Amazon’s already booming and massive marketplace.
This increased visibility can lead to a huge increase in your product sales.
Drawbacks to Consider
You’ll encounter limitations on Etsy such as intense competition and fees, including a 3% + $0.25 payment processing fee. Listings expire after four months, requiring frequent renewals.
The process and interface for creating a listing on Amazon Handmade is a nightmare. There is no listing fee, but the high 15% referral fee is a significant downside.
Finding these drawbacks weighed against benefits is key to making the best possible decisions about where to sell.
As of the end of 2023, Etsy had 96.6 million active buyers and 8.8 million active sellers.
Selecting the right platform for selling handmade goods involves evaluating personal goals and product offerings. If your aim is full-time eCommerce engagement, Amazon Handmade might be your best bet. It suits those prepared for a more demanding process, with the potential for high earnings.
For instance, over 100 makers on Amazon Handmade surpassed $1 million in annual sales by September 2020. This comes with a 15% referral fee and a challenging application process. Etsy is perfect for part-time sellers looking for a less stringent environment.
Etsy has lower fees and simpler setup, but the competition is fierce, given the platform’s growth.
Which Platform Fits Your Needs?
What are your sales goals?
How much time can you commit?
What is your budget for fees?
Is the target audience aligned with your products?
How saturated is the market for your product type?
Knowing who your potential customers are and making sure your product aligns with that marketplace’s niche is key. Effective strategic planning will guide you in making these crucial decisions.
It’s critical when budgeting for Etsy’s ad auctions and navigating Amazon’s fee structures.
In 2023, U.S.-based sellers on Amazon Handmade sold more than 4.5 billion items, averaging over 8,600 items every minute.
Etsy is a place where artisans and small business owners flourish, enjoying the benefits of Etsy’s large reach and smaller fees. The competition is fierce, but vintage sellers carve out a niche here.
Amazon Handmade is for artisans who want serious eCommerce, designed for makers who are prepared to grow with advanced selling plans.
Points to Note
Ultimately, deciding between Amazon Handmade and Etsy comes down to what you want most.
Handmade marketplaces, such as Etsy and Amazon Handmade, are designed for independent artisans and small businesses. They create a platform for unique, handcrafted items. These marketplaces focus on handmade and small batch items, attracting consumers who are looking for unique goods.
Selling through online platforms allows you to access a worldwide market. You’ll be able to run your shop from anywhere, and you’ll likely benefit from overhead costs that are less than physical retail spaces.
Etsy has made strides in community-driven initiatives and sustainable practices, where Amazon Handmade can benefit from Amazon’s extensive reach and resources. Sellers on both platforms can take advantage of impressive third-party analytics tools, developed by either platform’s developers.
Sellers will have to navigate registration and setup processes that vary heavily by platform. Providing correct information while registering is important to preventing registration-related delays and getting off to a great start.
Understanding the fee structures and competition levels on Etsy and Amazon Handmade can significantly impact pricing strategies and overall profitability for sellers.
Choosing the right marketplace involves evaluating personal goals, product offerings, and understanding the unique needs of artisans, vintage sellers, and small businesses to align marketplace features with business strategies.
Frequently Asked Questions
What are the main differences between Amazon Handmade and Etsy?
Amazon Handmade — Like Etsy, Amazon Handmade provides access to a large customer base, making it a suitable marketplace for independent sellers. Etsy, being a smaller, niche platform dedicated entirely to handmade and vintage goods, offers unique features that can benefit your ecommerce store depending on your specific needs.
Which platform is more cost-effective for sellers?
Etsy typically has lower fees, making it a suitable marketplace for smaller sellers, while Amazon Handmade has a monthly subscription fee but could provide higher sales volume potential.
How does the competition compare on these platforms?
Etsy faces much more developed competition from established sellers in the handmade niche, as Amazon Handmade competes with its extensive ecommerce platform, creating visibility dilution.
What are the key selling process differences?
Amazon Handmade is an invitation-only selling platform, whereas Etsy is a suitable marketplace available to everyone. While Amazon provides fulfillment by Amazon services, Etsy offers more artisan-friendly shop customizations for its sellers.
Is one platform better for certain types of products?
Etsy is a fantastic platform for creative, unique, niche, handmade, and vintage products, while many sellers find that Amazon Handmade offers a better fit for their ecommerce store, providing more widespread exposure.
How do platform features impact seller experience?
Etsy provides easy-to-use tools designed with makers in mind, making it a suitable marketplace for independent sellers. In contrast, Amazon Handmade offers deep customer service and logistics support, which is a big advantage to larger ecommerce sellers.
Which platform should new sellers choose?
New Etsy sellers may find the platform more inviting due to its lower Etsy seller fees and artisan-centered environment, while those seeking a wider reach might consider Amazon Handmade despite its steep costs.
After graduating with a degree in German and Philosophy from the University of Nottingham, Kirsty worked in Munich gaining valuable experience in international SEO before joining BusinessTechWeekly.com team. Kirsty has more than a decade's experience in SEO marketing and digital advertising across a range of sectors and industries including retail, leisure and finance.
