Etsy and Amazon Handmade are two of the most popular online marketplaces for handmade and vintage goods. Both platforms offer a wide variety of unique and one-of-a-kind items that you can’t find in traditional brick and mortar stores. Whether you’re looking for handmade jewelry, vintage clothing, or custom home decor, you can find it on Etsy or Amazon Handmade.
While both marketplaces offer similar products, there are some key differences between them that buyers and sellers should be aware of. For example, Etsy charges fees for transactions, listings, and processing, while Amazon charges a flat fee of 15% per sale. Additionally, Etsy offers a more curated selection of handmade and vintage items, while Amazon offers a much wider selection of items.
Whether you’re a buyer looking for unique handmade goods or a seller looking to start your own handmade business, it’s important to understand the differences between Etsy and Amazon Handmade. In this article, we’ll explore the pros and cons of each platform, so you can make an informed decision about which one is right for you.
Overview of Etsy and Amazon Handmade
Etsy and Amazon Handmade are two popular online marketplaces that specialize in handmade and unique items. Both platforms offer a wide range of products, from jewelry and clothing to home decor and art. However, there are some key differences between the two that sellers and buyers should be aware of.
History of Etsy and Amazon Handmade
Etsy was founded in 2005 as a way for artists and crafters to sell their handmade goods online. Since then, it has grown into a global marketplace with over 4 million active sellers and 83 million active buyers. In 2015, Amazon launched Amazon Handmade as a competitor to Etsy. Amazon Handmade offers a similar platform, but with the added benefit of being backed by the well-established Amazon brand.
Features of Etsy and Amazon Handmade
One of the main differences between Etsy and Amazon Handmade is the types of products that are sold on each platform. Etsy offers a more curated selection of handmade and vintage items, while Amazon Handmade offers a much wider selection of items. Depending on the item you are looking for, one might be better than the other.
Another difference is the fee structure. Amazon charges a flat fee of 15% per sale, while Etsy charges fees for transactions, listings, and processing. Most often, sellers on Etsy don’t offer free shipping, and that’s mainly because items are shipped directly from the artisan. Despite the differences in fees, both platforms offer a way for sellers to reach a large audience and for buyers to find unique and handmade items.
Comparison of Etsy and Amazon Handmade
Pricing and Fees Comparison
Amazon Handmade charges a flat fee of 15% per sale, while Etsy charges fees for transactions, listings, and processing. However, Etsy’s fees are more complicated, with a $0.20 fee for each listing or each product sold, and a 5% transaction fee. International sellers on Amazon Handmade pay a variable fee between 3% to 6%, while Etsy charges a flat 5% fee for all international sales.
Product Selection and Quality Comparison
Etsy offers a more curated selection of handmade and vintage items, while Amazon offers a wider selection of items. However, Amazon Handmade is particular about what qualifies as handmade, while Etsy is more inclusive. For example, Etsy allows the sale of handcrafted items made and/or designed by sellers. Meanwhile, Amazon Handmade is strict about its policy that the product should be made entirely by hand, without the use of machines.
Seller Community and Support Comparison
Etsy has a strong seller community and provides resources and support for its sellers, including discussion forums, educational resources, and a dedicated seller support team. Amazon Handmade also offers seller support, but it is not as robust as Etsy’s. Amazon Handmade sellers can access a knowledge base and a seller support team, but they do not have access to discussion forums or as many educational resources as Etsy sellers.
Pros and Cons of Selling on Etsy
Pros of Selling on Etsy
Etsy offers a more curated selection of handmade and vintage items, making it easier for sellers to find their niche audience. The platform has a large audience of customers who are specifically looking for unique and personalized items, which can be a major advantage for sellers who specialize in these types of products.
Etsy also offers a user-friendly interface that makes it easy for sellers to set up and maintain their shops. The platform provides a variety of tools and resources to help sellers optimize their listings and improve their sales, including analytics tools, advertising options, and customer support.
Another advantage of selling on Etsy is the opportunity to connect with other sellers and buyers in the community. Etsy offers a range of forums, groups, and events where sellers can share tips and advice, network with other professionals, and stay up-to-date on industry trends.
Cons of Selling on Etsy
One major disadvantage of selling on Etsy is the competition. With millions of active sellers on the platform, it can be difficult for new sellers to stand out and attract customers. This is especially true for sellers who are offering products in highly saturated markets, such as jewelry or home decor.
Etsy also charges fees for listing and selling products on the platform, which can eat into a seller’s profits. The platform charges a $0.20 listing fee for each item, as well as a 5% transaction fee for each sale. These fees can add up quickly, especially for sellers who are just starting out.
Another potential downside of selling on Etsy is the lack of control over the platform. Etsy has the right to change its policies and algorithms at any time, which can have a major impact on a seller’s visibility and sales. This lack of control can be frustrating for sellers who are trying to build their businesses on the platform.
Pros and Cons of Selling on Amazon Handmade
Pros of Selling on Amazon Handmade
Selling on Amazon Handmade provides access to a vast customer base, including Prime customers, which can lead to increased sales and profits for sellers. According to the 2021 State of the Seller Report, 33% of Amazon Handmade sellers saw profit margins of 20% or higher.
Amazon Handmade offers free product listings with no expiration, making it easy and cost-effective for sellers to list their products. Additionally, Amazon provides tools and resources to help sellers optimize their listings and increase their visibility on the platform.
Amazon Handmade also offers a streamlined fulfillment process for sellers through Fulfillment by Amazon (FBA), which allows sellers to store their products in Amazon’s warehouses and have Amazon handle the shipping and customer service for them.
Cons of Selling on Amazon Handmade
One of the biggest drawbacks of selling on Amazon Handmade is the competition from Amazon’s in-house brands, which can make it difficult for small businesses to stand out and compete effectively.
Amazon Handmade charges a monthly fee of $39.99 for sellers who sell non-handmade products that number more than 40 in one account. Additionally, Amazon gets a 15% commission on all sales that are charged in the shipping fees.
Sellers may also find that Amazon’s policies and guidelines can be strict and difficult to navigate, which can lead to account suspensions or other penalties if not followed correctly.
Which Platform is Right for You?
Considerations for Choosing Etsy
For those who want to sell handmade, vintage, or unique items, Etsy is a great choice. Etsy’s audience tends to be more niche and interested in handmade goods, which can be a great fit for sellers who specialize in a particular craft or product. Etsy also offers more customization options for sellers to create a unique storefront and brand.
However, Etsy does charge fees for transactions, listings, and payment processing, which can add up. Additionally, Etsy’s search algorithm can be difficult to navigate, and it can be challenging for new sellers to get their products noticed.
Considerations for Choosing Amazon Handmade
Amazon Handmade is a good option for sellers who want to reach a wider audience and take advantage of Amazon’s massive customer base. Amazon’s platform is also more user-friendly and easier to navigate, making it easier for sellers to set up shop and manage their storefront.
However, Amazon Handmade is still a relatively new platform and doesn’t have the same level of brand recognition or audience as Etsy. Additionally, Amazon charges a flat fee of 15% per sale, which can be higher than Etsy’s fees depending on the product and transaction amount.
Both Etsy and Amazon Handmade offer a unique platform for artisans and crafters to sell their handmade and vintage items. Etsy provides a more curated selection of items, while Amazon Handmade offers a wider variety of products.
When it comes to fees, Etsy charges a listing fee of $0.20 per item and a 5% transaction fee for each sale. Amazon Handmade, on the other hand, takes a flat 15% fee for each sale (minimum fee of $1).
While Amazon Handmade is still building its reputation and seller base, Etsy remains the go-to platform for handmade and vintage items. However, Amazon’s massive customer base and brand recognition cannot be ignored, and it may be a better option for sellers looking to reach a wider audience. Ultimately, the choice between Etsy and Amazon Handmade will depend on the seller’s unique needs and preferences.