Home Amazon Amazon Handmade vs Etsy

Amazon Handmade vs Etsy: Which One Is Better?

by OneCommerce
272 views
Amazon Handmade vs Etsy: Which One Is Better?

Selling handmade has never been easier when the eCommerce world offers many chances for artisans to bring their products online. However, the challenge of choosing the right place to start your online business can cause you a bad headache.

At the moment, the market is witnessing an intense battle between the 2 most popular platforms for handmade items, Amazon Handmade vs Etsy.

You will need to compare both of them to figure out which one can work well for you. Take a look at our guide and comparative analysis, then you can find out soon!

Amazon Handmade vs Etsy – What are they?

Etsy is a renowned marketplace for selling handmade items

Etsy is a renowned marketplace for selling handmade items

Etsy was founded in 2005 with the idea of selling handmade and vintage goods, bringing the opportunity for creators and artisans to showcase their talents. You can sell items in up to 160 different categories on Etsy.

Etsy has become the most popular platform for selling handcrafted goods. According to the Etsy annual report 2020, the platform currently has 2.7 million active sellers and approximately 50 million active customers.

Amazon Handmade is a new platform for craftsmen to sell their products

Amazon Handmade is a new platform for craftsmen to sell their products

Amazon Handmade, which launched in 2015, is a sister microsite of Amazon that lets craftspeople sell their products online.

Amazon Handmade inherits Amazon’s massive customer base of over 300 million purchasers and a global active seller community of 2 million people. Yet, you can only sell things in Amazon Handmade’s 14 narrowly specified categories.

Amazon Handmade vs Etsy – Similarities & Differences

These marketplaces all have the same goal in mind: to assist sellers in reaching their target audience. Although they are similar in some aspects, there are some differences between them.

What’s similar about Amazon Handmade and Etsy?

The following are some of the similarities between Amazon Handmade vs Etsy.

  • Product Listings: Sellers can use numbered fields, text, drop-downs, and custom pricing to create product listings, etc. These functions are very similar on Amazon Handmade and Etsy.
  • Custom Products: Both platforms are designed to showcase handcrafted items and sell them quickly without the requirement for a store website or professional photography.

What are the differences between Amazon Handmade and Etsy?

There are a lot of aspects which make Amazon Handmade vs Etsy different from each other. 

Amazon vs Etsy – Customer base 

Customers interested in handcrafted things are familiar with both platforms. Amazon Handmade is a relatively new marketplace for handmade items, so not all enthusiasts of the craft are there. Etsy, on the other hand, is only dedicated to artisans.

Etsy’s customer base

Etsy currently boasts 81.9 million active purchasers, nearly doubling the previous year’s total of 35.55 million consumers. Besides, the platform receives about 422 million visitors per month.

Most Etsy buyers buy things for themselves, except when shopping for gift-giving events. Moreover, during the holiday season, they are more inclined to shop on Etsy.

Although the US is Etsy’s most popular market, the UK had the fastest growth in 2020, with a 145 percent increase over the previous year.

Amazon’s customer base

Amazon Handmade inherits a customer base from Amazon, with about 300 million active users. Furthermore, Amazon accounted for 50% of US eCommerce spending in 2021, according to Statista.

Around 26% of Amazon shoppers are from Generation Z. Besides the US, which is Amazon’s largest market, nearly 90% of buyers purchase on Amazon in the UK. 

Amazon has many loyal customers that can benefit your handmade business

Amazon has many loyal customers that can benefit your handmade business

Amazon has over 200 million Prime members who are considered loyal customers. They are willing to pay a monthly fee in exchange for exclusive advantages and faster deliveries.

Amazon vs Etsy, what is the difference between their fees?

When it comes to selecting a suitable marketplace for your online business, pricing is critical. In fact, lower seller fees provide you additional opportunities to offer your items more competitively and increase your profit margin. 

The total cost of an Etsy shop

Listing fee

Etsy is famous for having a low listing fee, which appeals to any seller looking for a low-cost E-marketplace. There are two types of fees you need to pay when creating a new listing:

  • Auto-renew sold fees: $0.20/ a new listing.
  • Multi-quantity listing fee: $0.20/ each time an item on your listing is sold.

Transaction fee

Etsy collects 5% of the product’s price in your chosen listing currency, plus shipping and gift wrapping costs. The fee will be added to your payment account automatically.

You will have to pay 5% of the total shipping charges if you choose to charge your customers for the separate shipping fee.

Payment processing fee

The payment processing fee is typically 3% + $0.25 but it varies depending on your country. Payment processing costs vary depending on where your bank account is located.

Advertising and Promotional Fees

Etsy offers two types of advertisements: Etsy Ads and Offsite Ads. On the other hand, it only charges the Offsite Ads cost if the item sells.

If your annual revenue exceeds $10,000, you’ll be charged 15% of it. Otherwise, you will only pay 12%.

Advertising is the most crucial factor that helps promote your Etsy business and you need to pay much for that

Advertising is the most crucial factor that helps promote your Etsy business and you need to pay much for that

Regulatory Operating Fees

On each transaction, sellers in certain countries will be charged a Regulatory Operating fee. This fee varies by nation and is imposed as a result of the higher cost of doing business in that country.

Pattern Fees

You can use the Pattern tool to design a customized website for free for 30 days. After the 30-day free trial, a monthly membership price of $15.00 will be applied.

Currency conversion

When you use Etsy Payments to list a product in a currency rather than your original payment account currency, Etsy will charge you a 2.5% percent currency conversion fee.

Subscription fees

Besides the free plan, you can use Etsy Plus, a subscription package offering an expanded set of tools for growing brands. This option costs $10 per month and is deducted from your current balance.

Shipping cost 

On Etsy, you will have to pay a 5% shipping charge. Shipping fees are reflected in your payment account and deducted from your current balance.

Total cost to sell on Amazon Handmade

Listing fees

Unlike Etsy, Amazon Handmade has no listing fees and no expiration date. However, there are other types of fees that might raise Amazon’s overall rates. 

Referral fees

Amazon Handmade takes a 15% referral fee on each product sold, plus $1 of an applicable per-item minimum referral fee. This is three times that of Etsy.

You should notice the referral fees which can increase your expenses. Source: Amazon. 

You should notice the referral fees which can increase your expenses. Source: Amazon.

Monthly subscription fees

You will need to pay $39.99 per month for the Professional Selling Plan if you sell more than 40 non-handmade items on one account.

However, the platform will make the subscription free for approved applicants after the first month. In other words, there are literally no monthly subscription charges.

Shipping charge

On Amazon Handmade, transaction fees are applied to shipping charges. The default delivery model is based on unit/weight. Standard delivery is $4.49, and per-weight shipping costs $0.50 per pound by default.

Amazon Handmade vs Etsy – Shipping and Order fulfillment

Speaking of shipping and order fulfillment, Etsy vs Amazon both have fantastic options for sellers.

Etsy

Sellers will be responsible for fulfilling and shipping their order. However, Etsy partners with the United States Postal Service, FedEx, and Canada Post to assist its sellers in speeding up the process and saving expenses.

You may save up to 30% on postage when you use Etsy Shipping Labels to customize your labels directly on the site. After you’ve purchased your label, Etsy will instantly mark your order as delivered.

Amazon Handmade
Amazon offers an amazing FBA service to deliver your products at a reasonable price

Amazon offers an amazing FBA service to deliver your products at a reasonable price

Fulfillment by Amazon (FBA) is a method for third-party sellers to automate their order fulfillment and update the shipping services. Sellers can use Amazon FBA for packing, product warehousing in Amazon’s warehouses, returns, and refunds to customer care. 

With Amazon FBA, Amazon will take care of your customer feedback and deal with complaints. Therefore, you will be less likely to be involved with your customer and learn about their experience.

Amazon Handmade vs Etsy – Advertising

Both platforms provide sellers with powerful tools for creating effective Ads campaigns.

Etsy

As mentioned above, there are Onsite and Offsite Ads on Etsy. 

When using Etsy’s Onsite ad, you will see the search result appear mostly among the organic search results on Etsy.com. Moreover, you can manage your onsite advertisements in your Etsy dashboard under ‘Marketing’ and ‘Etsy Ads.’

You have the ability to switch it on and off, adjust your budget, and choose which listings to advertise. It is optional and only charges you when customers click on your listing advertisements.

Etsy Ads will make your products visible to more customers

Etsy Ads will make your products visible to more customers

With Etsy’s Offsite ads, Etsy advertises listings all across the internet, including in search engine results, social networking sites, and applications, Etsy Publishing Partner sites, and Google Display Network sites.

The offsite ads plan is optional for your shop and only charges an advertising fee when you make a sale. Regardless of the order amount for an order attributed to an Offsite Ad, the advertising fee for that order will never exceed $100.

Amazon Handmade

Your sponsored advertisements may appear in the top results whenever a customer types in a keyword related to your product in the Amazon search bar. Also, Amazon will display your ads outside the platform. 

Amazon Ads can help grow your handmade business faster

Amazon Ads can help grow your handmade business faster

You will only pay the advertising fee when someone clicks on your ad. In addition, you can increase the chances of your product showing up in front of customers’ eyes by using Amazon bidding

There are other types of advertisements such as Display ads and Video ads you can utilize for your marketing campaign besides Sponsored ads.

Amazon Handmade vs Etsy – Customer support

Last but not least, both markets offer excellent customer service. When it comes to customer service, they always treat the customer with respect from the start.

Amazon Handmade vs Etsy both provide good customer care services 

Amazon Handmade vs Etsy both provide good customer care services

How to contact Etsy customer support?

You can reach out to the support team by email, live chat, or phone and receive instant help. Also, Etsy has a help center and a forum where answers to your common questions from millions of other sellers. 

How to contact Amazon Handmade customer support?

You can ask for support from Amazon’s customer service staff via phone, email, or live chat. Simply visit Amazon.com and choose Customer Service from the top menu bar. 

Also, Amazon’s help center, which includes dozens of subjects, will allow you to connect with millions of other sellers.

How to set up for Amazon Handmade vs Etsy

Registration on Etsy is a very easy process as you can get your shop set up with a few clicks. On the contrary, you will need to wait for approval of your application for weeks or even months when using Amazon Handmade.

Etsy

 

The setup process guide on Etsy

Amazon Handmade

 

The setup process guide on Amazon Handmade

Pros and Cons of selling on both platforms

Understanding every characteristic of Amazon Handmade vs Etsy is helpful in picking the right one. But if you haven’t made up your mind yet, we want to show you an analysis of what you can benefit from each option and their pitfalls which you need to pay attention to.

Amazon Handmade

Etsy

Pros
  • Access the high-quality FBA (Fulfillment by Amazon) 
  • Large customer base with 300 million customers.
  • Product listings don’t need many updates
  • Great customer support
  • No selling fees
  • The setup process is easy 
  • Product listing is fast 
  • User-friendly website
  • Offering 160 categories
  • A popular craft platform 
Cons
  • Not popular in the handcrafted market 
  • Long waiting application process
  • Highly competitive environment
  • Limited access to crucial customer information
  • Limited product categories
  • Sellers need to do shipping on their own
  • Charging selling fees
  • High shipping fee
  • Low customization possibilities
  • Etsy frequently changes SEO criteria

Wrapping up

The competition of Amazon Handmade vs Etsy may have a tie because each platform has its own strengths no matter how you compare them. 

Amazon Handmade is a high-quality service, offering an enormous customer base along with good selling, shipping, and customer care service. On the other hand, Etsy is easy to use and specializes in trading handmade items. 

If you want to reach more customers and are ready for a competitive market, go for Amazon Handmade. Yet, Etsy will be a wise pick if you want a simple setup and affordable service.

 

Related Posts