AMAZON HANDMADE VS ETSY: A COMPLETE 2025 COMPARISON

Choosing the right platform to sell handmade goods can feel like navigating a maze of endless options, especially when two giants, Amazon Handmade and Etsy, dominate the space. Both platforms cater specifically to artisans, crafters, and small-batch creators, yet they operate with distinct models, seller expectations, and customer bases.

In this blog, we take a deep dive into Amazon Handmade vs Etsy, comparing everything from seller fees and product visibility to support systems and onboarding processes. Whether you're a seasoned artisan or launching your first handmade line, understanding the nuances between these platforms will help you make an informed decision aligned with your business goals.

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Amazon Handmade VS Etsy: The Main Differences

Amazon Handmade is a curated marketplace within Amazon dedicated to entirely handcrafted products, requiring seller approval to ensure artisanship and authenticity. Etsy is a global platform for handmade, vintage, and craft supplies, known for its community-driven storefronts and broad acceptance process.

1. Fee Structure

Amazon Handmade charges a 15% referral fee per sale under the standard Professional Seller plan (with the $39.99 monthly fee waived for Handmade sellers). Etsy’s fees include a $0.20 listing cost every four months, a 6.5% transaction fee, and a ~3% + $0.25 payment processing fee for U.S. sellers. Etsy generally offers lower upfront costs, while Amazon Handmade provides deeper exposure at a higher margin.

2. Audience & Reach

Amazon Handmade benefits from Amazon’s enormous customer base and streamlined logistics, including Fulfillment by Amazon (FBA). Etsy, on the other hand, attracts a niche audience specifically seeking unique or artisan goods, with over 96 million active buyers as of 2024.

3. Signup Process

Etsy has a simple signup and shop setup process, allowing sellers to list products immediately. Amazon Handmade requires a more rigorous application and approval process to verify that products are genuinely handmade, which can take several days but enhances credibility.

4. User Interface

Etsy offers a highly intuitive, visually driven interface focused on creative branding. Sellers can customize shop pages, use banner images, and create a boutique-like experience. Amazon Handmade operates within the broader Amazon interface, which is more standardized and less customizable but optimized for product search and conversion.

5. Advertising Tools

Etsy provides built-in ad tools like Etsy Ads and Offsite Ads, giving sellers control over daily ad spend and visibility. Amazon Handmade integrates with Amazon’s powerful advertising platform, offering options like Sponsored Products and Sponsored Brands, which can yield significant reach but may require more budget and expertise.

6. Fulfillment & Customer Support

Amazon Handmade supports FBA, offering global fulfillment and 24/7 Amazon customer service. Etsy does not have its own fulfillment network but allows integration with third-party logistics providers. Customer service is managed directly between buyers and sellers, supporting a more personal interaction.

7. Start-Up Costs

Etsy is typically more accessible for new businesses with minimal start-up costs. Sellers can begin with just a few dollars for listings and scale slowly. Amazon Handmade, while waiving the monthly fee, may involve higher marketing and fulfillment costs upfront due to the platform’s competitive nature and professional presentation standards.

Amazon Handmade suits sellers aiming for long-term scalability through access to Amazon’s massive global audience, advanced fulfillment options, and professional selling tools, though it requires a greater upfront commitment in terms of setup and advertising. In contrast, Etsy offers a more accessible entry point with lower initial costs, creative flexibility, and a community-oriented environment that favors boutique sellers and artisan-driven brands.

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Advantages Of Selling On Amazon Handmade VS Etsy

When choosing between Amazon Handmade and Etsy, understanding the strengths of each platform can help sellers align their strategy with their business goals. Both offer unique benefits, but they cater to different selling styles, audiences, and levels of experience.

Amazon Handmade: Key Advantages

1. Access to Amazon’s Global Customer Base:  Amazon Handmade gives artisans exposure to millions of Amazon shoppers worldwide. This access can dramatically increase visibility and sales volume, especially for sellers with scalable handmade products.

2. Fulfillment by Amazon (FBA): Sellers on Amazon Handmade can leverage FBA for streamlined storage, shipping, and customer service. This not only saves time but also enhances buyer trust with faster delivery and Amazon-backed support.

3. Higher Trust Factor: Products sold on Amazon carry the inherent credibility and trust of the Amazon brand. The platform’s strict vetting process also assures customers of the authenticity of handmade items.

4. Premium Advertising Tools: Amazon offers robust advertising options including Sponsored Products and Sponsored Brands. These tools provide advanced targeting and high-impact placement across the marketplace.

5. No Listing Fees: Unlike Etsy, Amazon Handmade does not charge per item listing fees. Sellers only pay a referral fee after a sale, which can simplify pricing models for high-volume sellers.

Etsy: Key Advantages

1. Lower Barrier to Entry: Etsy’s simple and fast sign-up process allows anyone to start selling quickly without lengthy approval. This makes it ideal for emerging creators or hobbyists entering eCommerce.

2. Community and Niche Audience: Etsy attracts a specific audience that values unique, handcrafted, and vintage products. This community-driven environment makes it easier for niche sellers to build a loyal following.

3. Highly Customizable Shopfronts: Etsy shops offer more control over branding with customizable banners, logos, shop sections, and storytelling options that help sellers create a personal brand presence.

4. Affordable Startup Costs: With low listing fees and flexible advertising options, Etsy is more budget-friendly for sellers who want to start small and grow organically.

5. Creative-Friendly Platform: Etsy is built with artists, crafters, and designers in mind. The platform supports creativity and originality, making it more intuitive for handmade and design-focused sellers.

For sellers seeking global reach, fulfillment services, and premium advertising tools, Amazon Handmade offers a robust and scalable solution. For independent creators looking to build a brand, engage with a niche audience, and start with minimal upfront costs, Etsy remains a top choice.

Each platform serves a different purpose, choosing the right one depends on your goals, product type, and long-term business vision.

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Disadvantages Of Selling On Amazon Handmade VS Etsy

While both Amazon Handmade and Etsy offer compelling opportunities for sellers, each platform comes with its own set of challenges. Understanding the limitations of both can help artisans and small business owners make more informed decisions.

Amazon Handmade: Key Disadvantages

1. Lengthy Approval Process: Amazon Handmade has a strict vetting procedure that requires sellers to apply and wait for approval before they can begin selling. This can delay launch times and deter those looking for a quick setup.

2. Higher Referral Fees: The platform charges a 15 percent referral fee per sale, which is significantly higher than Etsy’s transaction fees. This can impact profitability, especially for lower-priced handmade items.

3. Less Creative Freedom: Unlike Etsy, Amazon Handmade offers limited options for branding and store customization. Sellers must conform to Amazon’s layout and design restrictions, making it harder to stand out with a unique visual identity.

4. Complex Seller Dashboard: The Amazon Seller Central interface is more technical and less intuitive compared to Etsy. New or non-technical sellers may find it challenging to navigate listings, inventory, and analytics.

5. Strong Competition from Mass Products: Despite being part of the Handmade section, sellers are still within the broader Amazon ecosystem, which is dominated by mass-produced products. This can make it difficult for handmade sellers to maintain visibility.

Etsy: Key Disadvantages

1. Listing Fees Add Up: Etsy charges a listing fee for every item, and while the cost is low individually, it can add up quickly for shops with large inventories. Listings also expire every four months, requiring frequent renewals.

2. Lower Traffic Volume Compared to Amazon: Etsy's audience is smaller than Amazon's, which may result in lower overall traffic and sales potential for some sellers, especially those targeting mainstream consumers.

3. Limited Scalability: Etsy is ideal for small to medium sellers but can be restrictive for large-scale businesses. The lack of fulfillment options and advanced tools can hinder growth as your shop expands.

4. Increasing Competition: As Etsy continues to grow in popularity, the number of sellers has increased significantly. Standing out requires more effort in SEO, photography, and marketing.

5. Frequent Policy Changes: Etsy occasionally updates its policies, fees, and algorithms, which can affect visibility and seller performance. Adapting to these changes can be challenging without dedicated time and resources.

Choosing between Amazon Handmade and Etsy involves weighing both the benefits and limitations of each. Amazon Handmade offers global reach and advanced infrastructure but comes with higher fees and limited customization. Etsy, on the other hand, is more accessible and creative but offers fewer tools for scaling. Sellers should consider their priorities, business size, and long-term goals when selecting the best platform.

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Cost Comparison Between Amazon Handmade And Etsy

Understanding the cost structure of Amazon Handmade and Etsy is essential for sellers who want to maintain healthy profit margins. While both platforms cater to handmade and creative goods, their fee models and expenses differ significantly. Here's a breakdown of how they compare in terms of start-up costs, listing fees, selling fees, and additional expenses.

Amazon Handmade Costs

1. No Listing Fees: Amazon Handmade does not charge listing fees. Sellers can list unlimited products without any upfront costs, making it ideal for high-volume sellers.

2. Selling Fees (Referral Fees): Amazon charges a flat 15% referral fee on each sale, which includes payment processing and platform access. While this simplifies the pricing model, it is higher than Etsy’s combined transaction and processing fees.

3. Monthly Professional Selling Plan: Sellers typically need a Professional Selling Plan, which costs $39.99 per month. However, this fee is often waived for Amazon Handmade sellers, especially for new accounts.

4. Fulfillment by Amazon (Optional): If using Fulfillment by Amazon (FBA), sellers will incur additional fees for storage, packing, and shipping. These vary based on product size, weight, and time stored in Amazon’s warehouses.

Etsy Costs

1. Listing Fees: Etsy charges a $0.20 fee per item listed. Listings are active for four months or until the item sells. This recurring cost can add up for stores with many items.

2. Transaction Fees: A 6.5% transaction fee is applied to the item price (including shipping and gift wrapping). This fee is charged when a sale is made.

3. Payment Processing Fees: Etsy also deducts payment processing fees, which vary by country. In the US, the standard rate is 3% + $0.25 per transaction.

4. Optional Advertising Fees: Sellers can opt into Etsy Ads or Offsite Ads. Etsy Ads are budget-based and appear within Etsy search, while Offsite Ads can cost up to 15% of a sale if the buyer came from an external ad placement.

Amazon Handmade offers a simpler, commission-based structure with no listing fees, making it potentially more cost-effective for large inventories. However, the higher referral fee and optional FBA costs can impact profitability. Etsy has lower base fees but includes several layered charges, making it more predictable but potentially more expensive for high-volume sellers. The best platform depends on your business size, product pricing, and preferred selling model.

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Amazon Handmade VS Etsy: Which Platform Offers Better Seller Support?

Effective and accessible seller support can make a big difference, especially for small business owners managing their operations solo. Both Amazon Handmade and Etsy provide resources and assistance, but their approach, availability, and level of support differ in important ways.

Amazon Handmade Seller Support

Amazon Handmade sellers benefit from Amazon’s robust infrastructure and customer service system. Sellers have access to 24/7 support through the Seller Central dashboard, where they can get assistance via live chat, email, or phone. This global support network is particularly useful for handling urgent account or order issues.

Amazon also provides extensive documentation, training modules, and the Seller University platform, designed to educate users on topics like product listing, fulfillment, advertising, and customer management. For sellers using Fulfillment by Amazon (FBA), there is additional logistics and shipping support, streamlining back-end operations.

However, due to the scale of Amazon’s operations, some sellers report difficulty receiving personalized help or quick resolutions for more niche or handmade-specific concerns.

Etsy Seller Support

Etsy offers a more community-driven support experience. Sellers can reach customer support via email or request a callback during designated hours. Although Etsy does not provide 24/7 support, its Help Center is highly detailed and tailored to the unique needs of creative entrepreneurs and handmade sellers.

One of Etsy’s standout features is its vibrant seller community. Forums, groups, and webinars allow sellers to share advice, troubleshoot issues, and stay informed about platform changes. This peer-based support structure complements Etsy’s formal help services and makes it feel more personal and tailored to small creators.

Etsy also provides updates and resources specific to seasonal trends, shop optimization, and platform policy changes, helping sellers adapt and improve.

Which Is Better?

Amazon Handmade shines when it comes to availability and infrastructure, offering around-the-clock support and access to large-scale tools. Etsy, on the other hand, excels in community engagement and seller-centric resources, offering a more personal, artisan-focused approach.

The better platform for seller support depends on what you value most: immediate, enterprise-level assistance (Amazon Handmade) or personalized, community-rich guidance (Etsy).

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FAQs

1. What Is The Difference Between Amazon Handmade And Etsy?

Amazon Handmade is a curated marketplace under Amazon focused on artisan-made products, offering access to Amazon's vast customer base. Etsy is an independent marketplace tailored for handmade, vintage, and craft goods with a strong creative community.

2. Is It Profitable To Sell On Amazon Handmade?

Yes, it can be profitable due to Amazon’s large audience and trusted platform, though sellers should factor in higher fees and stricter application processes.

3. Who Is Etsy's Biggest Competitor?

Amazon Handmade is one of Etsy’s biggest competitors, especially for handmade goods. Other notable competitors include eBay, Shopify, and Faire.

4. What Is The Best Platform To Sell Handmade Goods?

The best platform depends on your goals. Etsy offers more creative freedom and a niche audience, while Amazon Handmade provides broader exposure and fulfillment support.

5. Is Etsy As Big As Amazon?

No, Amazon is significantly larger in terms of global reach, customer base, and sales volume. However, Etsy dominates in the handmade and creative goods niche.

Conclusion

Navigating the choice between Amazon Handmade and Etsy involves more than comparing fees or traffic. It’s about finding the platform that aligns with your brand values, product type, and long-term vision. Etsy shines with its artisan-focused community and creative freedom, while Amazon Handmade offers unmatched visibility and access to Amazon’s trusted fulfillment systems.

Whether you're just starting out or looking to expand your handmade business, understanding the key differences helps you make a confident decision. When you're ready to move beyond marketplaces and build a premium, high-converting eCommerce store that truly reflects your brand, SimplSo is the partner that can bring that vision to life.

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