Choosing between Amazon Handmade and Etsy comes down to a clear trade-off. Amazon offers massive reach and powerful logistics, while Etsy provides a dedicated community and greater brand control. The right platform depends on whether you want to tap into a huge, general audience or build a loyal following in a niche, craft-focused market.
Etsy vs Amazon Handmade: A Quick Comparison
Picking where to sell your handmade goods is a huge decision. It's not just about listing products; it's about finding the right customers, managing your costs, and building a brand in a space that aligns with your goals. Both Amazon Handmade and Etsy are top contenders, but they serve different sellers and buyers.
For years, Etsy has been the go-to marketplace for artisans. It built its reputation on a strong community feel and attracts customers actively searching for unique, handcrafted, and vintage items. It gives you tools to create a personalized storefront that reflects your brand's story.
On the other side is Amazon Handmade, which operates inside the massive Amazon ecosystem. This plugs you into an enormous pool of shoppers and the game-changing Fulfillment by Amazon (FBA) service, which handles your storage, packing, and shipping. That access, however, comes with a much stricter application process and less freedom to build your own brand identity.
To see how they stack up, let's break down the core differences.
A Quick Look: Amazon Handmade vs Etsy
This table offers a side-by-side summary of what separates these two platforms, from fees and audience to competition and seller benefits.
| Feature | Amazon Handmade | Etsy |
|---|---|---|
| Primary Audience | Broad, general shoppers looking for convenience and trust in the Amazon brand. | Niche buyers specifically searching for handmade, vintage, and unique items. |
| Seller Fees | A flat 15% referral fee per sale. No listing fees. The Professional seller account fee is waived for Handmade artisans. | 6.5% transaction fee, a $0.20 listing fee (renews every 4 months), plus payment processing fees (around 3% + $0.25). |
| Competition | Extremely high. You're competing against other Handmade sellers and the entire Amazon marketplace. | High within the handmade niche. The marketplace is saturated with artisans, but the focus is narrower. |
| Fulfillment | Full access to Fulfillment by Amazon (FBA), which handles all logistics for a fee. A major selling point. | Sellers are responsible for their own shipping and fulfillment from start to finish. |
| Brand Control | Limited. Your storefront customization is minimal, and your brand is always secondary to the Amazon brand. | High. You get extensive options to customize your shop page and build a distinct, memorable brand identity. |
| Ease of Entry | Strict application process. You must be vetted and approved as a genuine artisan. | Easy and fast. Anyone can open a shop in minutes with no approval required. |
This high-level view shows that your choice is a strategic business decision. Are you aiming for high volume and operational simplicity, or are you focused on building a boutique brand with a loyal following? The next sections will dig deeper into each point to help you decide.
Comparing Seller Fees and Profit Margins
Let's get straight to it: your profit margin depends on the fees you pay. Both Amazon Handmade and Etsy put your products in front of millions, but their fee structures are completely different. You have to understand how they take their cut to protect your bottom line.
1. Etsy's Layered Fee Structure
Etsy’s fees can feel like death by a thousand cuts. You're not paying one big fee; you're hit with several smaller ones on each transaction. You need to account for all of them.
Here’s how a typical sale on Etsy breaks down:
Listing Fee: It costs $0.20 to list an item. This fee recurs every four months if the product doesn't sell. If you have multiple units of the same item, you pay it again each time one sells. For makers with hundreds of products, this can add up.
Transaction Fee: Etsy takes a 6.5% cut of the total sale price. This includes the item price, shipping costs, and even what you charge for gift wrapping.
Payment Processing Fee: This changes by country, but in the U.S., it's usually around 3% + $0.25. This is calculated on the full amount the customer pays.
When you add it all up, you’re not just paying 6.5%. The real cost per sale is closer to 9.5% to 10%, plus the $0.20 listing fee. This model can be better for higher-priced goods where the flat listing fee is a tiny fraction of your revenue.
2. Amazon Handmade's Straightforward Approach
Amazon Handmade keeps things much simpler with a single, flat-rate commission. No juggling multiple fees.
Referral Fee: Amazon charges a clean 15% referral fee on the total sale price, which includes the item price and any shipping costs.
No Professional Seller Fee: While regular Amazon sellers pay $39.99/month for a Professional account, this fee is completely waived for approved Handmade artisans.
This simple structure makes it easy to calculate your profit. But there's no hiding from the fact that 15% is a bigger slice than Etsy's blended rate, and for some sellers, that's a deal-breaker.
3. Hidden Costs to Consider
Beyond standard commissions, both platforms have other costs that can sneak up on you.
A common mistake new sellers make is ignoring the "hidden" costs. On Etsy, it's the mandatory Offsite Ads fee for successful shops. For Amazon, it's FBA storage fees if your inventory sits too long.
On Etsy, once your shop makes over $10,000 in a 12-month period, you’re automatically enrolled in their Offsite Ads program. If a customer clicks an ad for your product on a site like Google and then buys it, Etsy hits you with an extra 12% fee on that sale. This is mandatory, not optional, and it can crush your margins.
With Amazon Handmade, if you use Fulfillment by Amazon (FBA), you've got to factor in storage fees. These are charged monthly based on how much space your products take up. If you have slow-moving items, those fees can pile up. You can learn more in our comprehensive guide on Amazon seller fees.
Understanding Your Audience and Traffic Potential
Getting your products in front of the right buyers is everything. A massive audience means nothing if no one is looking for what you sell. This is the core difference when comparing Amazon Handmade vs. Etsy. One platform offers sheer volume, while the other provides a highly targeted community.
1. Amazon's Massive, General Audience
Amazon is a global retail giant. Selling on Amazon Handmade opens a door to its 300 million active customers. This audience is diverse and comes to Amazon to buy something, fast. They trust the platform, are likely Prime members, and expect two-day shipping.
But that massive audience is also a distracted one. Most shoppers aren't visiting Amazon specifically for handmade goods. They're typing "leather wallet," not "handmade leather wallet." Your artisanal products often end up next to mass-produced items, turning it into a battle for visibility based on price, reviews, and the Prime badge.
2. The Etsy Buyer: A Niche Community
Etsy’s audience is smaller but more focused. With around 90 million active buyers, Etsy has cultivated a community that seeks out unique, handcrafted, and personalized items. They aren't just buying a product; they're buying into a story and a connection with the maker.
An Etsy shopper is more likely to appreciate your craft, understand that handmade items take time, and be willing to pay a premium for quality. Their search intent is different. They use descriptive keywords like "custom engraved wooden sign," meaning the traffic you get is highly qualified.
Data from SellerLogic shows this difference clearly. While Amazon's customer base is huge, its visibility share for handmade-specific searches is only 0.3% to 0.8%. In contrast, Etsy captures between 2.9% and 8.4% of that same traffic, proving it's the go-to destination for shoppers looking for artisan goods.
3. How Customers Discover Your Products
On Amazon, the A10 algorithm prioritizes sales velocity, conversion rates, and fulfillment speed. To get seen, you have to master Amazon SEO, run PPC campaigns, and ideally, use FBA to get the Prime badge.
Etsy's search algorithm considers listing quality, customer reviews, and how well your tags and titles match a shopper's query. There's more room for new sellers to gain traction organically. The platform encourages browsing and discovery through curated collections and personalized recommendations.
4. Using Search Data to Your Advantage
On Amazon, sellers with Brand Registry get access to powerful tools. You can see what customers are searching for, which is a goldmine for finding high-volume keywords. We break down how this works in our guide on how to use Amazon Brand Analytics.
Etsy provides its own analytics that show how shoppers find your store, but the focus is more on refining your niche. Success often comes from understanding subcultures and trends, not just chasing broad search volume.
The choice comes down to this: do you want to be a small fish in a massive ocean, or a big fish in a smaller, focused pond?
The Seller Experience and Building Your Brand
Beyond fees and traffic, the day-to-day experience of running your shop and your ability to build a real brand are completely different on Amazon Handmade versus Etsy.
Think of it this way: Amazon Handmade is like renting a kiosk in a massive department store. Etsy is like setting up your own boutique in a bustling artisan market.
1. The Application Process
Getting started couldn't be more different. Etsy has almost no barrier to entry. You can create an account, open a shop, and list your first item in under an hour. There’s no formal vetting process, which is great for new sellers.
Amazon Handmade is the opposite. You must fill out a detailed application and go through an audit to prove you’re a legitimate artisan. They want to see your workspace, creation process, and raw materials. The whole thing can take weeks, and approval isn't guaranteed. It keeps the marketplace clean from resellers, but it's a hurdle for beginners.
2. Creative Control and Storefront Customization
This is where Etsy pulls ahead for creatives. The platform gives you a ton of control over your shop's look and feel. You can design custom banners, write a detailed "About" section, and organize your listings into collections. It’s a space built for storytelling.
Amazon Handmade offers very little creative freedom. Your "Artisan Profile" page is a cookie-cutter storefront. Your brand name and logo are there, but they’re always secondary to the Amazon branding. You’re selling on Amazon, and the platform never lets you forget it.
3. Communicating With Your Customers
How you interact with buyers is another massive difference. Etsy encourages direct communication. Shoppers can message you with questions, request custom orders, and build a relationship with you. That personal touch is a powerful way to build a loyal customer base.
Amazon's ecosystem minimizes direct seller-buyer contact. Messages are filtered through its system, and Amazon handles much of the customer service, especially if you use FBA. It's efficient, but it strips away the opportunity to build personal rapport.
On Etsy, your brand is the experience. On Amazon, your product is just an item in a massive catalog. Sellers who prioritize storytelling and customer connection will find Etsy a more natural fit.
4. Community and Support Systems
For many artisans, the sense of community on Etsy is a major draw. The platform has vibrant seller forums, teams, and online groups where makers swap advice. It feels like you’re part of a larger movement.
Amazon’s support is all business. You get access to Seller Support for technical problems, but there’s no real "community." You’re an independent contractor in a vast machine. The support is functional but lacks the peer-to-peer warmth of the Etsy world. To stand out, learning how to build a strong personal brand is key.
If your goal is to forge a brand with a powerful identity, Etsy gives you the tools. If you're more interested in a powerful sales engine, Amazon’s structured experience might be the better path. Regardless of your choice, understanding how to build brand equity is vital for your business's long-term value.
Evaluating Marketing Tools and Growth Opportunities
Listing your products is one thing; getting them in front of buyers is what turns a side hustle into a business. Both platforms offer tools to get noticed, but they're built on different advertising philosophies.
1. The Advertising Showdown: Etsy Ads vs. Amazon PPC
Both platforms use a Pay-Per-Click (PPC) model, but the level of control and complexity is night and day.
Etsy Ads are built for simplicity. You set a daily budget, and Etsy’s algorithm shows your listings around the site. It's a set-it-and-forget-it system for makers who'd rather create than analyze ad data. The drawback? You have almost no say in keyword targeting.
Amazon PPC (Sponsored Products) is a powerful, intricate engine. You can build hyper-specific campaigns targeting keywords and competitor products. This control allows you to dial in your strategy, but it has a steep learning curve. If you don't know what you're doing, you can burn through your budget fast.
2. Offsite and Social Media Promotion
Etsy has an edge in marketing outside its walls. The platform is designed for social sharing, making it easy to push listings to platforms like Pinterest and Instagram.
Etsy also pushes your products for you with its mandatory Offsite Ads program for shops hitting a certain revenue threshold. They promote your listings on Google and Facebook. The 12-15% fee on these sales can be high, but it expands your reach with zero extra work.
Amazon is a more closed loop. While you can drive your own traffic, the platform is overwhelmingly focused on its internal tools.
According to Thunderbit, which analyzed Etsy's performance, the company’s revenue hit $2.81 billion in 2024, with its take rate rising to 23.3% in early 2025. This increase is largely fueled by Etsy Ads, now its fastest-growing revenue source. This shows how central paid advertising has become to visibility on the platform.
3. Advanced Brand-Building Tools
For serious sellers, this is where Amazon Handmade pulls away. If you enroll in Amazon's Brand Registry program (free for trademarked brands), you unlock marketing tools Etsy doesn't offer.
A+ Content: Build rich product pages with enhanced images and comparison charts that tell your brand’s story. It's a proven conversion booster.
Brand Store: Create your own multi-page storefront on Amazon to showcase your full collection.
Amazon Posts: A social media-like feed inside Amazon where you can share lifestyle photos and brand updates.
Etsy’s brand-building centers on your customizable shop page. While great for storytelling, it lacks the sophisticated, conversion-focused features of Amazon. You can learn more in our guide on Amazon digital marketing strategies.
How to Choose the Right Platform for You
So, which one is it? The "best" platform isn't about raw traffic or the lowest fees. It comes down to your business goals, where your brand is now, and how much control you want.
If you need more help, our guide on how to choose the right marketplace for your business is a great place to start.
1. Who Should Choose Etsy
Etsy is the natural home for artisans who want to forge a real connection with customers. It's the perfect launchpad for creators just starting out or those whose products are niche or personalized.
You're an Etsy seller if you're:
A Hobbyist or New Seller: The low barrier to entry makes it the ideal sandbox for testing product ideas without a huge investment.
A Brand Focused on Community: If you want to build a tribe of loyal fans and create a unique storefront experience, Etsy’s tools are unmatched.
A Seller of Custom or Personalized Goods: The platform's messaging system is designed for the conversations custom orders require.
2. Who Should Choose Amazon Handmade
Amazon Handmade is built for makers ready to scale up and willing to trade some creative control for operational power. It's a sales engine for sellers who have their production dialed in.
You're an Amazon Handmade seller if you're:
A High-Volume Seller: If you can handle making items in batches, leveraging Fulfillment by Amazon (FBA) is a game-changer. It frees you from daily packing and shipping.
A Business Focused on Reach: For those who want to get their products in front of the largest possible audience, Amazon's traffic is unbeatable.
A Seller with a Standardized Product: If your products are straightforward with little customization, the platform's logistics can supercharge your sales.
3. The Hybrid Approach: Selling on Both
Running shops on both platforms is a strategy for established sellers, not beginners. It lets you tap into two different types of shoppers: the craft-loving buyer on Etsy and the convenience-first shopper on Amazon.
Selling on both platforms can maximize your reach, but it doubles your administrative workload. The single biggest challenge is inventory management; overselling is a constant risk if your systems aren't perfectly synced. This is a strategy best saved for when you've already mastered one platform.
Before expanding, you need a solid system for tracking stock across both channels. You don't want to disappoint customers and hurt your seller ratings because you sold an item you didn't have.
Frequently Asked Questions
Here are answers to some of the most common questions from artisans weighing their options.
1. Can I Sell on Both Amazon Handmade and Etsy?
You can, but it's not a strategy for someone just starting out. Running two shops is double the work: twice the listings, customer service, and marketing. More importantly, you need an ironclad system for inventory management. Overselling is a fast way to get your seller ratings dinged. My advice? Master one platform first, build a solid foundation, and then think about expanding.
2. Which Platform Is Better for Personalized Items?
For anything personalized, Etsy is the hands-down winner. The platform was practically built for it. Etsy’s messaging system is designed for the back-and-forth communication that custom orders require. Shoppers there expect to collaborate with the artist. Amazon Handmade has customization options, but the interface feels clunky for anything more than simple requests.
3. Is It Harder to Get Approved for Amazon Handmade?
Yes, significantly. Getting started on Etsy is a breeze. Amazon Handmade has a strict, multi-step application and audit process. You must provide detailed proof that your products are genuinely handcrafted by you or your small team (fewer than 20 people). This vetting process keeps the marketplace exclusive, but it’s a major hurdle that doesn't exist on Etsy. Understanding this difference is a huge piece of the puzzle, as explained in this guide on how to choose between Etsy and Amazon Homemade.
