Amazon Handmade vs. Etsy – Are You Selling on the Right Platform?
Selling handmade goods online? Then this question has certainly crossed your mind before: Amazon Handmade vs. Etsy, which one’s more suited to your business needs? While brick-and-mortar stores offer the unmatched look-and-feel, e-commerce platforms now rival them with reach and convenience. In this article, we’ll compare Amazon Handmade and Etsy across pricing, audience, costs, features, and branding. On top of that we’ll also take a closer look at both platforms and assess which one is the safest bet for you as a seller in the future.
TL;DR Amazon Handmade vs. Etsy
We get it, there are products to be created and business deals to be made. Here’s a rundown of the most important facts when choosing between Etsy vs. Amazon Handmade:
What Is Amazon Handmade?
Amazon Handmade – launched in 2015 – is a section of the Amazon marketplace dedicated to buyers looking for handcrafted items and sellers that sell these handcrafted items. Unlike Amazon’s general marketplace, where mass-produced, competitively priced products dominate, Amazon Handmade was designed for unique, custom, and handmade goods.
Key features Amazon Handmade
Pros and Cons of Amazon Handmade
Pros
With Handmade, the biggest benefit for you as a seller is Amazon’s unparalleled reach – an audience that continues to grow year after year. The option to use Amazon’s in-house logistics (FBA) leaves you with more time to focus on creating products and pursuing profit-oriented goals, such as improving your craft and marketing your brand. Another major advantage is that Handmade does not charge listing fees (unlike Etsy). Plus, making your products Prime-eligible through FBA can significantly boost visibility and conversions. The downside, however, is that you’ll be operating under Amazon’s rules and regulations, with limited options for branding. Finally, selling on Amazon vs. Etsy offers one key benefit: competition. While Amazon overall is known for its intense competition, Amazon Handmade is gatekept through an approval process.
Cons
Naturally, there are also a few drawbacks to selling on Amazon Handmade. One of the biggest is the high cost: Amazon charges a 15 % referral fee on each sale, which can quickly add up depending on your stock and prices. However, Amazon has addressed this by waiving its professional seller fee for sellers selling over Handmade. This saves you $39.99 a month. A further challenge is that you can’t contact your customers directly when using Amazon FBA – something many buyers of artisanal products value – which can make your business feel a little detached from the selling process and customer journey. Finally, Handmade has a strict approval process, so getting started often takes longer than with Etsy.
What Is Etsy?
Since 2005, Etsy is the dedicated marketplace for handmade, vintage, and craft supply products. Etsy is known worldwide as the go-to platform for buyers who want something personal, unique, and story-driven.
Key features Etsy
Etsy, unlike Amazon, gives artisans a direct channel to creative-minded customers and the flexibility to express their brand identity.
Pros and Cons of Etsy
Pros
Etsy offers several advantages for artisans. It has a strong handmade brand identity, attracting buyers who come specifically in search of unique, artisan products. The platform also has lower fees overall, with transaction charges that are smaller than Amazon’s 15 % cut. Sellers benefit from customizable storefronts, enabling them to build a recognizable brand through logos, banners, and storytelling. On top of that, Etsy fosters a sense of community, and many customers become repeat buyers who return to their favorite shops.
Cons
That said, Etsy also comes with a few challenges of its own. Competition is fierce, with millions of active sellers vying for visibility. Listing fees, though small at $0.20 per item, can add up quickly if you have a large catalog. If you want to be successful on Etsy, this will require you to step up your marketing game – strong SEO and paid advertising are often necessary to stand out against the other 5 million sellers on the platform. Finally, while Etsy’s buyer base is by no means insignificant, it doesn’t have the same global reach that Amazon offers.
Amazon vs. Etsy: Side-by-Side Comparison
| Feature | Amazon Handmade | Etsy |
| Application | Required (vetting process) | No approval needed |
| Listing Fees | None | $0.20 per listing |
| Transaction Fees | 15 % referral fee | 6.5 % + payment processing (~3 %) |
| Audience | Amazon shoppers, broad reach | Handmade-focused, niche buyers |
| Branding | Minimal, Amazon-first | Strong customization, storytelling |
| Shipping | Self-ship or FBA (Prime eligible) | Seller-handled, Etsy label discounts |
| Competition | Lower (curated) | Higher (millions of sellers) |
| Global Reach | 300M+ Amazon users | 90M+ Etsy users |
| Customer Loyalty | To Amazon, not seller | To seller/shop |
Selling on Amazon vs. Etsy – Why Amazon Is Your Safest Bet for the Future
As an e-commerce seller, you should be looking at Amazon as the increasingly safer long-term bet compared to Etsy. There are several reasons for this. In 2025 Etsy’s stock tumbled significantly due to weaker revenue than expected and a heavy decline in goods sold. In the wake of this downturn, Etsy’s role as industry powerhouse was questioned, especially since aggressive competitors like Shein, Temu, and TikTok Shop entered the market. Moreover, Etsy has seen a significant decline in participation from its own community, losing over a million active sellers within a year. It has also reported drops in both buyer engagement and overall sales volume. All these challenges point in one direction: a shrinking marketplace with rising competition and weak growth prospects for the future.
Amazon, on the other hand, is expanding its seller base by nearly a million new sellers each year, – and is becoming less competitive at the same time. Especially sellers on Amazon Handmade benefit from a less competitive landscape due to the Amazon approval and vetting processes mentioned earlier.
For artisans and entrepreneurs planning for the future – between Etsy and Amazon – the latter is the only option when it comes to a stronger, more stable foundation.
Final Thoughts
What are your priorities as a seller? Choosing between Amazon and Etsy ultimately depends on what you value. If it’s creative freedom, brand-building, and a loyal artisan-focused community, Etsy is the right fit. But if long-term stability, global reach, and access to hundreds of millions of potential buyers matter most, Amazon Handmade is the safer choice. In 2025 and beyond, Amazon’s scale and resilience gives you as an artisan a stronger foundation for sustainable growth.
FAQs
Amazon Handmade charges a 15% referral fee on each sale, which already includes payment processing. Unlike Etsy, there are no listing fees, and Handmade sellers don’t pay the usual $39.99 Professional Seller subscription fee that other Amazon sellers face. Shipping costs depend on whether you fulfill orders yourself or use Fulfillment by Amazon (FBA). Overall, while listing is free, the higher referral fee makes Amazon Handmade more expensive per transaction.
As an artisan seller, yes, Amazon is the platform to sell in the future. Not only does Amazon waive the Professional Seller fee of $39.99, but it is also less competitive than other platforms like Etsy.
No, Etsy isn’t the only competitor to Amazon Handmade. While Etsy is the most known marketplace for artisans, platforms like eBay, Shopify, and niche-focused sites such as Zibbet and ArtFire also attract handmade sellers. Additionally, fast-rising giants like Shein, Temu, and TikTok Shop are luring both buyers and sellers with aggressive pricing and reach.
