Selling on Amazon Handmade vs Etsy
Both popular e-commerce platforms, Amazon Handmade and Etsy, are worth exploring when starting your business.
If you're a creative looking for the best space to share your work and handmade products, navigating the technicalities of the e-commerce world can be a bit challenging, especially if you've only been selling through physical locations or on social media.
Fortunately, there are communities and e-commerce marketplaces dedicated to creatives, like Amazon Handmade and Etsy, that support the community, helping various art forms and artists thrive in the e-commerce world.
In this article, we'll explore both platforms: Amazon vs. Etsy, and take a quick dive into Shopify, while examining their pros and cons so you can make the right choices for you!
Let's get started.
Etsy Overview
Etsy began in 2005 and has since become a successful hub for artisans to share their craft and work. It is an online marketplace for unique and creative items, vintage pieces, and handmade goods. Etsy strives to "keep commerce human," as many of the products sold on their platform offer buyers a more human connection through artisanal and handmade products. A platform that hosts unique creations and a vibrant community of merchants, many sellers also offer custom pieces for customers.
Sellers must meet Etsy's marketplace criteria, discussed below. It's important to note that items that violate intellectual property rights and policies cannot be sold on Etsy.
Pros of Etsy:
In 2020, Etsy had over 4.3 million sellers, 81.9 million users, and $1.7 billion in revenue.
While anyone can sell goods on Etsy, it's an e-commerce platform designed to sell unique and handcrafted items made by artists, artisans, and designers. It's also a place for those selling vintage items and other unique pieces. When it comes to artwork sold on the platform, Etsy also allows digital downloads of products, such as prints and posters.
It's worth noting that people who buy items from Etsy tend to be women, with a younger age range of 15 to 35, making this platform perfect for merchants who wanted to work with this specific demographic.
People who support brands on Etsy also tend to be value-oriented, looking for niche products, and happy to support handmade products and the works of individual artisans.
Disadvantages of Etsy:
Selling products on Etsy isn't for everyone, as they only allow you to list craft supplies, handmade items, and vintage items. Handmade products must be made by the seller, while selling items has restrictions. According to Etsy, only vintage items and craft supplies are allowed. Everything listed on Etsy must be made or designed by the seller.
For example, if you're an online entrepreneur looking to open an online clothing boutique on Etsy, you can only do so if you've designed or made the clothes yourself, or they must be vintage pieces produced at least 20 years ago.
Etsy Pricing and Fees
Etsy's standard plan is free and comes complete with the tools you need to set up a shop, however, there are listing fees and transaction fees.
Each product listed on Etsy will be subject to a €0.20 listing fee. This fee is charged regardless of whether you sell your items. Listings expire after four months, so please note that when the listing automatically renews, you will be charged the fee again.
Etsy also charges a 6.5% transaction fee per sale, deducting this percentage from the total cost of the item, which includes shipping and gift wrapping. Etsy also has its own payment gateway, which charges 4% + €0.30 per transaction, all factors merchants considering the platform should consider.
Amazon Handmade Overview
Amazon, the world's largest e-commerce company, launched the Amazon Handmade category in October 2015. Much like Etsy, Amazon Handmade is a handcrafted marketplace where artists and designers can sell their unique works to people around the world.
Amazon Handmade's vision is to empower artisans and support a growing artisan community by giving them a platform to showcase their handmade products globally and grow their crafts into successful businesses.
Amazon's "Handmade" category allows you to easily add handmade products to your cart, along with other Amazon products, using your regular Amazon account, which many shoppers will find convenient.
Pros of Amazon Handmade:
As the world's largest and most successful e-commerce company, Amazon has made a name for itself as a store for everything shoppers associate with fast shipping and convenience. There are an estimated 103 million Amazon Prime members in the United States—nothing comes close to its size and success in the e-commerce world.
Like Etsy, the Amazon Handmade category is exclusively for artisans and designers, and merchants must go through an application process to qualify for Amazon's Handmade category. This encourages transparency and authenticity when it comes to the products sold in the category: everything must be genuinely handmade, recycled, or repurposed.
The biggest draw for merchants looking at Amazon Handmade is that Amazon handles millions of site visits and customers from around the world every single day, and shoppers can easily add handmade products to their carts alongside their regular purchases. Merchants using the platform have access to Amazon's vast customer base. Additionally, Amazon listings are more likely to appear on Google Search.
Disadvantages of Amazon Handmade:
Unlike other Amazon categories, Handmade does not accept mass-produced products. Products manufactured in large quantities in a standardized manner are not welcome, and sellers cannot have a team of more than 20 people. Operations must be kept small and authentic, just like on Etsy.
Because Amazon wants to ensure that products are genuinely handmade, merchants must also go through an application process. This process is reportedly slow, taking up to two weeks before sellers are vetted and ready to open their store.
Payment methods are also worth commenting on. Amazon holds your payment until the products purchased from your store are shipped, and payments are only sent to merchants every two weeks.
Amazon Handmade Pricing and Fees
Amazon Handmade merchants must have a professional selling account, which costs €39 per month. However, this fee will be waived once you become an approved Amazon Handmade account after the first month.
There are no listing or subscription fees, but there is a 15% per sale commission to consider.
Shipping and fulfillment
Another important consideration is how both platforms handle shipping. Both Etsy and Amazon offer their own shipping and fulfillment tools and protocols to simplify things for sellers and offer logistical convenience to customers.
Etsy
Unlike Amazon, Etsy sellers are fully responsible for shipping their orders. Etsy has partnered with USPS, FedEx, Canada Post, Australia Post, Global Postal Shipping, and Royal Mail to help merchants streamline the process, ensuring everything runs smoothly for both seller and customer.
Etsy offers shipping labels for the carriers mentioned above. Purchase and print shipping labels, then Etsy marks an order as shipped.
Amazon Handmade
Amazon Handmade offers two options: Fulfillment by Amazon (FBA) or Merchant Fulfillment (Merchant Fulfillment).
Fulfillment by Amazon means that Amazon will handle the shipping for you. This is also a great option for merchants who want to offer Amazon Prime to customers. With merchant fulfillment, you'll ship the orders yourself.
The Shopify option
Etsy and Amazon marketplaces are saturated. Yes, both platforms have a built-in audience searching for products like yours, but they also have a lot of competition.
To stand out, many businesses are taking their branding into their own hands and launching their websites on e-commerce platforms like Shopify, even syncing their Shopify sites with their Etsy and Amazon pages to maintain richer, stronger connections with customers, providing a seamless shopping experience.
The biggest advantage of creating your own store and owning your own domain is your brand. Selling exclusively on Amazon or Etsy will make your customers loyal to the platform, not necessarily to your brand. Having your own website gives you creative freedom and independence as an artist, with full control over your products and the brand associated with what you do and create.
For many online sellers, growing with Amazon and Etsy is the first step, but building your own website is how many e-commerce entrepreneurs take things to the next level. If you find yourself selling your products on a marketplace while dreaming of your own website, choosing to create a website that syncs with your favorite marketplaces could be a strategic decision aligned with your growth.
You'll be able to offer customers an omnichannel shopping experience and will also appreciate the customization options that come with owning a website.
Get in touch
Are you exploring your e-commerce options? If you're ready to take the next step and would like to learn more about building your site with Shopify, don't hesitate to contact us today. At Yastime, we help entrepreneurs like you build better and more successful e-commerce businesses. We don't just build the foundation, we also help you take your online business to the next level.
