Table of Contents
Introduction
In the world of e-commerce, the ability to sell handmade goods online has democratized the market for many artisans and crafters. With platforms like Etsy and Amazon Handmade, the barriers to entry have been significantly lowered. But which platform is the right fit for your business? Let's delve into the details to help you make an informed decision.
What is Etsy?
Etsy, established in 2005, serves as a global online marketplace primarily for vintage and handmade goods. With over 100 million items listed and almost 9 million sellers as of 2024, it has become a staple for crafters and vintage sellers. The platform boasts a large, engaged user base with 96 million active buyers worldwide.
Etsy's mission extends beyond commerce; it aims to foster a community-centric marketplace. The company is committed to reducing greenhouse gas emissions by 50% by 2030 and supports marginalized communities through its Etsy Uplift Fund.
Pros and Cons of Selling on Etsy
Pros of Selling on Etsy
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Large, Niche Market: Etsy’s user base is specifically geared towards those interested in handmade and vintage goods, making it easier for sellers to reach their target audience.
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Community Support: The platform offers a supportive community of like-minded sellers and buyers.
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Ease of Use: Setting up a shop on Etsy is straightforward and doesn't require advanced technical knowledge.
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Global Reach: With millions of active buyers, your products are exposed to a vast, global market.
Cons of Selling on Etsy
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Listing Fees: Etsy charges $0.20 per listing, which can add up for sellers with a large inventory.
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Transaction Fees: The platform takes a 5% commission on each sale, which can impact profit margins.
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Competition: The large number of sellers means that new shops may struggle to stand out without significant effort in marketing and SEO.
What is Amazon Handmade?
Launched in 2015, Amazon Handmade is a specialized section of Amazon dedicated to artisans selling handcrafted goods. While Amazon itself is a retail giant, Handmade provides a more niche market for custom products. Although Amazon does not frequently publish specific statistics for Handmade, it reported in 2020 that over 100 artisans on the platform had achieved over $1 million in annual sales.
Pros and Cons of Selling on Amazon Handmade
Pros of Selling on Amazon Handmade
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Vast Audience: With over 2.5 billion monthly visitors to Amazon, sellers have access to a vast potential customer base.
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Fulfillment Services: Amazon offers robust fulfillment options (Fulfillment by Amazon, or FBA), which can simplify logistics and shipping.
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No Monthly Fees: Unlike many other platforms, Amazon Handmade does not charge a monthly fee to list your products.
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Support Services: Amazon provides various tools for sellers, including advertising options and analytics to help optimize your business.
Cons of Selling on Amazon Handmade
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High Commission Fees: Amazon Handmade takes a 15% commission on each sale, which is significantly higher than Etsy’s transaction fee.
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Less Niche: While Etsy is specifically aimed at artisanal and handmade products, Amazon’s broader marketplace can dilute the artisanal nature of Handmade.
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Application Process: Sellers must go through an application process to join Amazon Handmade, which can be time-consuming.
Etsy vs. Amazon Handmade
When deciding between Etsy and Amazon Handmade, several key factors should be considered: fee structures, user base, ease of use, and fulfillment options.
General Website and User Interface
Etsy’s platform is designed to reflect its community-focused, artisanal roots. The user interface is intuitive, making it easy to list products and manage your shop. Amazon Handmade, on the other hand, integrates with the broader Amazon ecosystem. This provides sellers access to Amazon’s powerful selling tools but can also make the platform seem more complex to navigate.
Custom Products Offered
Both Etsy and Amazon Handmade specialize in custom, handmade goods. However, Etsy has a more extensive range of product categories specifically tailored to artisans and crafters. Amazon Handmade offers fewer categories but benefits from Amazon’s vast customer base and logistics network.
Listing and Selling Fees
Etsy charges a $0.20 listing fee per item and a 5% transaction fee. Amazon Handmade does not charge a listing fee, but it takes a 15% commission on sales. Depending on your business model, one platform may be more cost-effective than the other.
Product Category Organization
Etsy's product categories are tailored to vintage and handmade goods, making it easier for buyers to find what they’re looking for. Amazon Handmade integrates into Amazon's broader category structure, offering a slightly less focused shopping experience.
Sign-Up Process
Setting up an Etsy shop is straightforward and quick, suitable for new sellers getting their feet wet. Amazon Handmade requires an application process, which can be more time-consuming but adds a layer of exclusivity.
Payment Process and Fulfillment Services
Etsy manages payments through Etsy Payments, which simplifies the process but offers fewer features than Amazon’s extensive payment and fulfillment options. Amazon Handmade sellers can utilize Fulfillment by Amazon (FBA), which can handle storage, packing, and shipping. This is particularly beneficial for high-volume sellers.
Conclusion
Choosing between Etsy and Amazon Handmade depends largely on your business needs and goals. If you prioritize a supportive community, simpler fee structures, and a niche market, Etsy may be the way to go. If you need extensive seller tools, access to a vast audience, and robust fulfillment options, Amazon Handmade could be more effective.
FAQs
Is Amazon Handmade cheaper than Etsy?
No, Amazon Handmade generally has higher commission fees compared to Etsy. However, there are no monthly fees on Amazon Handmade, making it potentially more cost-effective for high-volume sellers.
Is Etsy or Amazon better for selling handmade goods?
The better platform depends on your specific needs and business model. Etsy offers a niche market for artisans, whereas Amazon Handmade provides access to a broader audience and advanced seller tools.
Is Amazon Handmade profitable?
Yes, Amazon Handmade can be profitable, especially with its high traffic and extensive selling tools. The absence of monthly fees also makes it accessible for smaller sellers.
What is the best site to sell handmade items?
Etsy is one of the most well-known and straightforward platforms for selling handmade items. Other platforms worth considering include Shopify, Storenvy, and BigCartel, depending on your specific needs.
By considering these factors, you can make a more informed choice between Etsy and Amazon Handmade, ensuring the best fit for your unique business needs.
