Remember when selling handmade goods meant setting up a booth at your local craft fair, hoping enough people would stop by to make the booth fee worthwhile? Those days feel like ancient history now. The digital revolution has transformed how artisans connect with buyers, and two platforms stand at the forefront of this transformation: Etsy and Amazon Handmade.
But here’s the thing – choosing between these platforms isn’t just about picking the one with lower fees or better search visibility. It’s about understanding how each marketplace’s DNA affects your business’s growth potential. And trust me, as someone who’s helped countless brands navigate these waters, the differences run deeper than most sellers realize.
Amazon Handmade vs Etsy: A Tale of Two Very Different Marketplaces
Think of Etsy as that cool indie coffee shop where everyone knows your name, while Amazon Handmade is more like setting up shop in the world’s biggest mall. Both can work brilliantly, but they serve different purposes and attract different kinds of customers.
The Etsy Experience: Community-Driven Commerce
Etsy launched in 2005 with a simple mission: create an online marketplace for crafters, artists, and vintage collectors. It was the digital equivalent of a permanent craft fair, where makers could reach customers worldwide without leaving their workshops. The platform grew organically, building a tight-knit community of sellers who shared tips, celebrated successes, and supported each other through challenges.
But Etsy’s growth hasn’t been without growing pains. Recent policy changes have sparked heated debates about what “handmade” really means. Should print-on-demand products count? What about designs created with AI tools? These questions reflect deeper tensions between Etsy’s artisanal roots and its responsibilities as a public company.
Amazon Handmade: The Corporate Cousin with Benefits
When Amazon launched its Handmade category in 2015, many saw it as a direct challenge to Etsy’s dominance. But Amazon took a different approach. Instead of building a separate community, they integrated handmade sellers into their existing ecosystem – giving artisans access to Amazon’s massive customer base and sophisticated fulfillment network. Learn more about this approach in this comparison of Amazon Handmade and Etsy.
The verification process for Amazon Handmade sellers is notably stricter than Etsy’s. You can’t just sign up and start listing – you need to prove you’re actually making your products. This higher barrier to entry helps maintain quality standards but also means it’s not the right fit for every seller.
Platform Deep Dive: What Really Matters to Sellers
Getting Started: The Onboarding Experience
Let’s talk about what it actually takes to get up and running on each platform. Etsy’s process is straightforward – create an account, set up your shop, and start listing products. The platform guides you through each step, and you can have your first item listed in under an hour.
Amazon Handmade’s application process is more involved. You’ll need to provide detailed information about your production process, including photos or videos showing how you make your items. This extra scrutiny can take several days or even weeks, but it helps maintain the platform’s handmade integrity.
The Fee Factor: Understanding True Costs
Here’s where things get interesting – and potentially expensive. Etsy charges $0.20 per listing (whether it sells or not) plus a 6.5% transaction fee. Add in payment processing fees, optional advertising costs, and potential subscription fees, and your margins can get tight fast.
Amazon Handmade’s fee structure is simpler but not necessarily cheaper. There’s no listing fee, but you’ll pay a 15% referral fee on most items. The upside? No monthly subscription requirement, and if you use FBA (Fulfillment by Amazon), you can offer Prime shipping – a major attraction for many buyers.
Visibility Wars: Getting Found in the Crowd
Both platforms have sophisticated search algorithms, but they work differently. Etsy’s search favors relevancy, recency, and customer experience metrics. The introduction of their Star Seller program has added another layer to visibility, rewarding shops that maintain high service standards.
Amazon’s search algorithm is famously complex, incorporating factors like price competitiveness, fulfillment method, and customer reviews. The good news? If you can crack Amazon’s code, you’re tapping into the world’s largest online marketplace. The challenge? You’re competing with everything from mass-produced items to other handmade goods.
Customer Base and Market Reach
This is where the platforms really diverge. Etsy buyers typically come looking specifically for handmade or unique items, in contrast to buyers on platforms like Facebook Marketplace local only, which often focuses on nearby, in-person transactions. They often value the story behind the product and are willing to wait longer for something special. The platform’s average order value tends to be higher than mass-market alternatives.
Amazon’s customer base is… well, everyone. Prime members especially are trained to expect fast shipping and competitive pricing. While this means potentially higher sales volume, it can also mean more pressure to compete on price and delivery speed – factors that aren’t always compatible with handmade production.
The Battle of Features: David vs Goliath?
It’s fascinating how these platforms have evolved. Etsy’s like that indie band that went mainstream – they’ve got the soul of a craft fair but the ambitions of a tech giant. Their features reflect this identity crisis:
- Shop customization that lets you actually look different from your competitors
- Built-in analytics that actually make sense (most of the time)
- The controversial Star Seller program (don’t get me started)
- Marketing tools that range from useful to “why does this exist?”
Amazon Handmade, meanwhile, is like that corporate executive who decided to start a pottery studio. They’ve got:
- Integration with Prime shipping (huge for conversion)
- Access to Amazon’s ridiculous customer base
- FBA options (if you’re into that sort of thing)
- Brand Registry benefits that can be game-changing
Product Visibility and Search: The Hidden Game
Here’s where things get really interesting – and by interesting, I mean potentially frustrating. Both platforms use complex algorithms to determine product visibility, but they’re as different as New York and LA.
Etsy’s search algorithm is like that friend who’s really into astrology – it considers multiple factors but nobody’s quite sure how it all works. They claim to prioritize relevancy, recency, customer experience, and shipping price, among other factors. But sellers often report wild fluctuations in visibility that seem about as predictable as crypto prices.
Amazon’s search algorithm, on the other hand, is like a strict parent – it has clear expectations, but meeting them requires serious dedication. They heavily weight conversion rates, pricing competitiveness, and fulfillment method. The good news? If you play by their rules, the potential traffic is massive.
Customer Demographics: Know Your Audience
This is where the rubber meets the road. Etsy’s customer base is like the crowd at a farmer’s market – they’re specifically looking for unique, handmade items and are often willing to wait longer for the perfect piece. They tend to be more female-skewing, design-conscious, and appreciative of maker stories.
Amazon’s customers are… well, everyone. That’s both good and bad. You’ve got access to a massive audience, but they’re often more price-sensitive and have Prime-conditioned expectations about shipping speed. They’re less likely to read your carefully crafted product story and more likely to make snap decisions based on price and reviews.
Community and Support: The Human Element
Let’s talk about the elephant in the room – seller support. Etsy’s seller forums are like a digital town hall, buzzing with activity and occasional drama. The community aspect is strong, but official support can be hit or miss. I’ve heard horror stories about account suspensions that took weeks to resolve.
Amazon’s support is more like dealing with a large corporation (because, well, it is). You’ll get responses faster, but they might feel more automated. The seller forums exist but lack the community vibe of Etsy’s.
Sales Potential and Growth Opportunities
Here’s where things get really interesting. I’ve analyzed data from hundreds of sellers, and the patterns are clear: success on either platform isn’t guaranteed, but the pathways are different.
On Etsy, I’ve seen artisans build six-figure businesses by finding their niche and cultivating a loyal following. The key? Unique products, strong branding, and excellent customer service. But it takes time – think marathon, not sprint.
Amazon Handmade sellers can potentially scale faster due to the platform’s massive reach, and understanding how to make passive income on Amazon can help sellers optimize their strategies amidst fierce competition. Success here often requires operational excellence and competitive pricing. It’s more like running a traditional retail business, just online.
Risk Management: The Fine Print
Both platforms come with their share of risks, but they manifest differently. Etsy sellers often worry about:
- Sudden policy changes affecting their business model
- Increased competition from mass-produced items
- Fee increases cutting into margins
- Account suspensions with limited recourse
Amazon Handmade sellers face different challenges:
- Strict performance metrics that must be maintained
- Competition from non-handmade products
- Higher customer service expectations
- Less control over branding and presentation
Making the Strategic Choice
Look, there’s no one-size-fits-all answer here. The right platform depends on your specific situation. Consider:
- Your production capacity and scalability
- Price point and margins
- Customer service bandwidth
- Marketing capabilities
- Technical comfort level
Many successful sellers actually use both platforms – it’s not necessarily an either/or situation. Think of it like diversifying your investment portfolio, just with handmade goods instead of stocks.
Success Factors: The Secret Sauce
Whether you choose Etsy, Amazon Handmade, or both, certain success factors remain constant:
- Professional-quality photos (this is non-negotiable)
- Clear, detailed product descriptions
- Competitive pricing that maintains profitability
- Excellent customer service
- Efficient inventory management
- Consistent quality control
The platforms might be different, but the fundamentals of running a successful handmade business haven’t changed much since the days of craft fairs and market stalls. The main difference? Your potential reach is now global.
Platform-Specific Optimization: Making Your Products Stand Out
Let’s be real – having amazing handmade products isn’t enough anymore. You need to speak the language of algorithms while keeping your human touch. It’s like trying to explain your art to both a robot and your grandmother at the same time.
Mastering Platform Search Algorithms
Here’s where things get interesting (and a bit nerdy). Etsy and Amazon Handmade use different search algorithms – think of them as two different languages. Etsy’s algorithm is like that friend who loves details and stories, while Amazon’s is more like a strict librarian focused on categories and keywords.
For Etsy, your listing titles should tell a story. “Handcrafted Ceramic Mug with Mountain Design, Perfect for Morning Coffee” works better than just “Handmade Mug”. The algorithm loves natural language patterns that match how buyers actually search.
Amazon Handmade, on the other hand, prefers precision. Their A9 algorithm is all about relevancy and performance metrics. You’ll want to front-load your most important keywords and focus on specific product attributes. Think “Mountain Design Ceramic Coffee Mug, 12oz, Handcrafted” – straight to the point.
Visual Optimization That Converts
I’ve seen countless sellers struggle with product photography, treating it like an afterthought. But here’s the thing – in the world of handmade goods, your photos are doing 80% of the selling. Both platforms have their own visual sweet spots.
- Etsy buyers expect lifestyle shots that tell a story
- Amazon customers want clear, professional product shots with white backgrounds
- Both platforms benefit from multiple angles and detail shots
- Video content is becoming increasingly important (especially on Amazon)
Future-Proofing Your Handmade Business
The handmade marketplace landscape is shifting faster than a 3D printer on overdrive. We’re seeing AI tools starting to assist with product descriptions, automated pricing algorithms becoming more sophisticated, and new platforms emerging that could shake up the entire game.
Emerging Technologies and Opportunities
Remember when everyone thought Etsy would kill craft fairs? Yeah, that didn’t happen. Similarly, the rise of AI and automation tools won’t replace artisans – they’ll augment them. We’re seeing interesting developments in:
- AR/VR product visualization
- AI-powered inventory management
- Blockchain authentication for handmade items
- Sustainable packaging solutions
Sustainability and Ethics in Handmade
Both Etsy and Amazon Handmade are pushing hard on sustainability initiatives. It’s not just good PR – it’s good business. Buyers are increasingly making purchasing decisions based on environmental impact and ethical production methods. This trend isn’t going anywhere.
Making Your Final Platform Decision
After diving deep into both platforms, here’s the truth: there’s no one-size-fits-all answer. It’s like choosing between New York and LA – they’re both great cities, but they suit different people for different reasons.
When to Choose Etsy
Etsy might be your jam if:
- You want more creative control over your shop’s branding
- Your products have a strong story or artistic element
- You’re looking for a more community-oriented platform
- You’re just starting out and want lower upfront costs
When to Choose Amazon Handmade
Amazon Handmade could be your better bet if:
- You want access to Amazon’s massive customer base
- You’re comfortable with a more structured selling environment
- Your products have good margins to absorb higher fees
- You want to leverage FBA for fulfillment
The Multi-Platform Strategy: Why Not Both?
Plot twist: you don’t actually have to choose. Many successful artisans are killing it on both platforms. Think of it like diversifying your investment portfolio – different platforms can serve different purposes in your overall business strategy.
Managing Multiple Platforms Effectively
If you’re going the multi-platform route, here’s how to keep your sanity:
- Use inventory management software to sync across platforms
- Create platform-specific pricing strategies
- Maintain consistent branding while optimizing for each platform
- Track performance metrics separately to understand what works where
Final Thoughts: Your Success Blueprint
Whether you choose Etsy, Amazon Handmade, or both, success comes down to three core principles:
- Authenticity: Keep it real with your craft and your customers
- Adaptation: Stay flexible and willing to evolve with the platforms
- Analysis: Let data guide your decisions, but don’t let it kill your creativity
Remember, these platforms are tools, not destinations. Your real business is your craft and your connection with customers. The platforms are just the bridges that help you reach them.
Taking Action: Your Next Steps
Ready to dive in? Here’s your action plan:
- Audit your current business model and goals
- Start with one platform and master it
- Set up tracking systems from day one
- Join seller communities for support and insights
- Plan for growth but start small and sustainable
The handmade marketplace isn’t just surviving – it’s thriving. Despite all the doom and gloom about AI and automation, there’s never been a better time to be an artisan seller. The key is to use these platforms strategically while staying true to your craft.
And hey, if you’re feeling overwhelmed, remember: every successful seller started exactly where you are now. The difference between success and failure often comes down to persistence and willingness to adapt.
Now get out there and make something amazing. Your customers are waiting.
👉👉 Create Photos, Videos & Optimized Content in minutes 👈👈
Related Articles:
- Guide to Etsy Rank: Mastering Shop Performance and Visibility
- How to Edit a Product Photo: Snapseed vs ProductScope AI
- Etsy Seller Guide: 7 Steps to Launch Your Shop Today
Frequently Asked Questions
Which is better: Etsy or Amazon?
Choosing between Etsy and Amazon Handmade largely depends on your business needs and target audience. Etsy is renowned for its strong community of crafters and artists, making it ideal for sellers focusing on unique and handmade products. Amazon Handmade, on the other hand, benefits from Amazon’s vast customer base and robust logistics network, which can lead to higher visibility and potentially more sales.
Is it profitable to sell on Amazon Handmade?
Selling on Amazon Handmade can be profitable due to the platform’s extensive reach and customer trust. However, profitability depends on factors like pricing strategy, product demand, and competition. It’s crucial for sellers to effectively manage costs and leverage Amazon’s tools to enhance product visibility and appeal.
Who is Etsy’s biggest competitor?
Etsy’s biggest competitor is often considered to be Amazon Handmade, given its focus on handmade and artisan goods. Other competitors include platforms like eBay, which some sellers explore due to guides on how to sell on eBay for free, and niche marketplaces that cater to specific crafts or vintage items. These platforms challenge Etsy by offering different features, audience reach, and seller tools.
Why are so many people leaving Etsy?
Many sellers cite increased fees and changes in Etsy’s policies as reasons for leaving the platform. Additionally, some feel that Etsy’s emphasis on growth has led to a less personalized marketplace experience. Competition is also a factor, with sellers exploring alternative platforms that better align with their business goals and values.
What percentage does Amazon Handmade take?
Amazon Handmade charges a 15% referral fee on each sale, which is deducted from the total sale price, including item price, shipping, and any gift wrap charges. This fee structure is designed to cover the cost of providing sellers access to Amazon’s vast customer base and sales platform.
About the Author
Vijay Jacob is the founder and chief contributing writer for ProductScope AI focused on storytelling in AI and tech. You can follow him on X and LinkedIn, and ProductScope AI on X and on LinkedIn.
We’re also building a powerful AI Studio for Brands & Creators to sell smarter and faster with AI. With PS Studio you can generate AI Images, AI Videos, Chat and Automate repeat writing with AI Agents that can produce content in your voice and tone all in one place. If you sell on Amazon you can even optimize your Amazon Product Listings or get unique customer insights with PS Optimize.
🎁 Limited time Bonus: I put together an exclusive welcome gift called the “Formula,” which includes all of my free checklists (from SEO to Image Design to content creation at scale), including the top AI agents, and ways to scale your brand & content strategy today. Sign up free to get 200 PS Studio credits on us, and as a bonus, you will receive the “formula” via email as a thank you for your time.