Selling crafts online has become an increasingly popular opportunity! Although, deciding on the best platform to sell on can be a challenge.
In this article, we’ll compare two popular selling platforms: Amazon and Etsy.
(Also, consider checking out our article comparing Etsy and eBay selling platforms.)
Amazon Handmade was introduced in October 2015 to offer a platform for artisans to sell their products on Amazon. Amazon wanted a special area of their website reserved for unique, handcrafted items. All Handmade Artisans go through an application process that includes an audit from Amazon staff.
Here are the main advantages of using Amazon Handmade:
- Large customer base: Amazon has over 95 million prime customers… in the United States alone!
- Easy listing management: Amazon listings are easy to manage, and usually don’t need to be updated very often.
- Efficient supply chain: Amazon’s supply chain is a great advantage. Amazon can store/manage your inventory, ship your items, and provide customer service.
- No upfront fees: Amazon does not charge an upfront listing fee for sellers on the Handmade platform (Amazon will take a portion of the sale instead).
Etsy offers a wide variety of items for sale, such as art supplies, housewares, jewelry, handmade personal care items, jewelry, clothing, and even food.
Etsy’s popularity has been skyrocketing in recent years, so you’ll definitely want to consider this platform for selling your handmade items.
The main advantages of selling on Etsy are:
- Wide range of categories: Etsy has a huge selection of categories which opens up more opportunities. There are many different markets to enter into on Etsy!
- Easy to get started: Signing up for Etsy and getting your listings active is very easy and quick. There is no application process when signing up for Etsy, so your progress will not be delayed.
- Active community: The Etsy community is large and very helpful. You’ll have great opportunities for networking and getting support from other Etsy shop owners.
Etsy vs. Amazon Homemade Fee Structures
Amazon Handmade has a simple fee structure. They take a flat 15% fee for each sale (minimum fee of $1).
Etsy’s fee structure is a bit more complicated. Etsy takes $0.20 for each listing, or each product sold, and they also charge a 5% transaction fee. Since Etsy fees are more complicated, we have an article devoted to the cost of selling on Etsy.
While Amazon Handmade offers a flat percentage, Etsy charges a flat fee in addition to a percentage. This means lower-price items on Etsy may be at a disadvantage since this flat $0.20 fee will have a greater effect on the profit margin of each unit sold.
As you can see in this table, the percentage of the sale that Etsy takes is higher for items with low prices. Meanwhile, Amazon’s percentage fee does not change depending on the item price.
How to Get Started On Amazon Handmade:
Getting started on Amazon is relatively easy.
- Foremost, make sure that all your products are handmade.
- Fill out the application and answer the questions to ensure you are a qualified handmade seller.
- Make sure you understand the Amazon Handmade policies.
- Create a strong profile.
- Decide if you want Amazon to fulfill your orders for you.