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amazon handmade vs etsy

Amazon Handmade vs Etsy: Which Platform is Best for Artisans?

Amazon Handmade vs Etsy: Amazon is the US’ top online retailer with over $574 billion in sales in 2023. It had an average of over 2.5 billion visitors each month. In 2015, Amazon Handmade was started, focusing on small businesses that make handcrafted items. Etsy, on the other hand, started in 2005 in Brooklyn. It now boasts over 100 million unique items, 9 million sellers, and 96 million active buyers globally. Both Amazon Handmade and Etsy are popular for artisans and creators. They are places to sell their handmade products. But, they differ in fees, seller rules, and audience size. This piece will weigh the good and bad of each platform. It aims to help artisans pick the best one for their needs.

What is Etsy?

Etsy is a big store online. It sells old and new things made by people all over the world. It started in 2005 in Brooklyn, New York, and now it has millions of items to buy. By 2024, there were more than 9 million people selling things and over 96 million people buying them on Etsy.

Etsy’s Community-Embedded Identity

Etsy is loved for its special closeness to its sellers and buyers. The Etsy marketplace brings together craftspeople, artists, and those who love to buy unique things. They all share a love for handmade, special products.

Etsy’s Environmental and Social Initiatives

Etsy cares a lot about the world and people who make things. It wants to cut down greenhouse gases by half. Their Etsy Uplift Fund helps people who need it most, and it highlights goods made by groups who haven’t had as many chances.

Pros and Cons of Selling on Etsy

Selling on Etsy has good and less good sides. For Etsy sellers, there are low startup fees of $15. You get to use special tools for tracking and making your shop unique. Etsy advertising gives you many options to spread the word.

But, there are costs and rules too. Every four months, there are etsy listing fees to pay. You can only sell vintage and handmade items, nothing else. You also need to handle shipping on your own.

Etsy takes some fees from your sales, like a 6.5% Etsy transaction fee and a $0.20 fee per item. They also charge a 3% + $0.25 payment fee. Even though these fees are lower compared to other places, they cut into your profits if you sell a lot.

Pros of Selling on Etsy

  • Low startup fees ($15 to set up an Etsy shop)
  • Access to analytical tools and customization options
  • Flexible Etsy advertising plans to boost visibility

Cons of Selling on Etsy

  1. Recurring Etsy listing fees every four months
  2. Restrictions on the types of products that can be sold (only vintage and handmade goods)
  3. Lack of fulfillment services, requiring sellers to handle Etsy shipping themselves
  4. Etsy’s transaction fees (6.5%) and payment processing fees (3% + $0.25) can impact profit margins

What is Amazon Handmade?

Amazon Handmade is part of Amazon and focuses on small businesses that create handcrafted items. It was launched in 2015. Even though Amazon doesn’t share how many sellers or the total sales, over 100 sellers in Amazon Handmade hit over $1 million in sales in 2020. This platform lets artists and crafters sell their unique items to Amazon’s huge audience, which sees over 2.5 billion people every month.

Amazon Handmade’s Seller Growth

In recent years, the Amazon Handmade market has grown a lot. By September 2020, more than 100 sellers had more than $1 million in yearly sales. This shows that selling on Amazon Handmade can help businesses reach many customers and grow. With over 2.5 billion visitors each month, Amazon Handmade is a great place for artisans and craftspeople to sell their handmade goods.

Pros and Cons of Selling on Amazon Handmade

Access to Amazon’s massive global audience, a free professional selling plan, and no added listing fees are big pluses for sellers. However, you might face higher selling fees (15% per transaction) and competition from Amazon’s own brands. Also, your items must meet strict handmade criteria.

Pros of Selling on Amazon Handmade

Amazon Handmade charges a 15% referral fee per sale. But, you escape a monthly or listing fee, which is a win. With Amazon’s over 3.1 billion monthly visitors, you have a huge chance to sell globally. For many, this beats dealing with Etsy’s fees.

Cons of Selling on Amazon Handmade

One challenge is standing out against Amazon’s private-label brands. And, Amazon’s strict rules for handmade products might limit your listings. This can make things tough for some artisans.

Amazon Handmade vs Etsy

Both Amazon Handmade and Etsy let small businesses and artisans sell their unique products to many people. They both make it easy to set up shop and create a unique look online. But they differ in fees, who can sell there, how many people visit, and what kind of help is offered. It’s important for artisans to know the good and bad of each platform to pick the best one for them.

Amazon Handmade started in 2015 and is part of Amazon. It’s for small businesses that make handcrafted items. Amazon Handmade gets more than 3.1 billion visits each month. On the other hand, Etsy began in 2005. It’s where you can find vintage and handmade items from all over the world. Etsy has over 9 million sellers and more than 96 million people buying items.

In the comparison of Amazon Handmade and Etsy, the big difference is in how they charge fees. Amazon Handmade takes a 15% cut from each sale, but there’s no charge to list your items. Etsy, however, asks for a 6.5% transaction fee and a 3% + $0.25 payment fee. On top of that, it has a $0.20 fee for listing each item and recurring listing fees every four months.

Deciding which platform is better for artisans means looking at what each offers. Amazon Handmade gives access to lots of buyers worldwide for free. But, you might be competing with Amazon’s brand. Etsy hooks you up with buyers who love unique, handmade things. It’s cheaper to sell on Etsy and doesn’t have big competition from the platform’s own brands. Yet, you need to pay to list your items after a certain time.

In the end, choosing where to sell depends on what the artisan wants to achieve, what they make, and who they want to sell to. It’s vital to think about the good and bad of each amazon handmade vs etsy platform. This helps artisans find the right fit for their business and their products.

General Website and User Interface

The Amazon handmade website and the Etsy website are easy to use. They let small business owners sell online without tech skills. You can easily create your own store and list items.

How Amazon Handmade and Etsy are Similar

The Amazon handmade user interface and the easy user interface share many things. They both help sellers manage stores, follow orders, and check sales. You can add new products, update stock, and change your store’s appearance on both sites.

How Amazon Handmade and Etsy are Different

Even though they work alike, there are key differences. For example, Amazon Handmade lets you list products for free, but Etsy charges. This charge on Etsy happens every four months. Also, Etsy takes 6.5% of your sale and a payment fee, while Amazon Handmade takes 15%.

Custom Products Offered

Both Amazon Handmade and Etsy let sellers pay extra for better listing spots. This can help artsy sellers get more eyes on their unique items. But, these platforms vary in off-site ad options.

How Amazon Handmade and Etsy are Similar

On Amazon Handmade and Etsy, adding extra cash can put your items at the top of search results. It might even get them featured across the sites. This leads to more people visiting your shop and finding your special creations.

How Amazon Handmade and Etsy are Different

Etsy stands out with off-site ads. If a seller made less than $10,000 a year, they can use this tool. It means your stuff could get seen by more folks, even off Etsy. Amazon Handmade, though, doesn’t provide this kind of ad support. For those wanting to boost their custom goods’ visibility, this choice is crucial.

Listing and Selling Fees

Thinking about selling on Amazon Handmade and Etsy, you’ll notice how their fees are both alike and different. They both use a percentage of the sale for their selling fee. Yet, their exact rates are not the same.

How Amazon Handmade and Etsy are Similar

Selling fees are taken as a flat rate on each sale on both platforms. Etsy charges a 6.5% fee on the sale price. It also takes a 3.5% plus 25¢ processing fee. Amazon Handmade, however, charges a flat 15% on the sale price.

How Amazon Handmade and Etsy are Different

The big difference is the product listing fees. Amazon Handmade does not charge a product listing fee, while Etsy does charge a $0.20 per-item listing fee. These fees on Etsy repeat every four months. For sellers with many items listed, these fees can add up fast.

Amazon Handmade and Etsy also differ in their payment processing fees. Etsy takes a 3.5% plus 25¢ fee for processing each sale. Amazon Handmade, on the other hand, includes the processing fee in its 15% fee on the sale price.

Product Category Organization

Both Amazon Handmade and Etsy have a design for showing handmade items. Etsy shows items like “Paper and Party Supplies” and “Weddings.” Amazon Handmade’s groups are also for crafts and daily life. They even have “Handmade Electronics Accessories.” Both websites let sellers put items in groups to find easier.

How Amazon Handmade and Etsy are Similar

Both Amazon Handmade and Etsy have many groups for handmade and custom items. Sellers can put their things in the right groups to be seen more. This helps customers find what they want.

How Amazon Handmade and Etsy are Different

Etsy has over 140 groups, letting sellers show many different items. This attracts many types of customers. But Amazon Handmade has only 5 big groups. This might make it harder for some sellers to stand out.

Sign-up Process

Both Amazon Handmade and Etsy need your banking and personal info to start a shop. But, they have different steps to join. Amazon Handmade needs tax info, an international credit card, your phone number, and an ID. Getting an Amazon shop approved may take weeks. Selling on Amazon Handmade also needs another application. On the other hand, you can start selling on Etsy right after signing up.

How Amazon Handmade and Etsy are Similar

Both Amazon Handmade and Etsy ask for banking and personal info. They do this to keep transactions safe and follow the rules.

How Amazon Handmade and Etsy are Different

Even though signing up is similar, Amazon Handmade and Etsy have some big differences. Amazon Handmade wants tax info, an international credit card, your phone number, and an ID. It might take weeks to get your Amazon shop approved. Plus, you need to do another step to sell on Amazon Handmade. But, signing up for Etsy is quick and you can start right away.

Payment Process

Both Amazon Handmade and Etsy make payments easy for sellers. They offer direct deposits. This means artisans and small business owners can quickly get their money in their bank accounts.

How Amazon Handmade and Etsy are Similar

Both sites have easy direct deposit methods. Sellers on Amazon Handmade and Etsy can easily get their payments. This saves them time because they don’t have to track payments manually.

How Amazon Handmade and Etsy are Different

There are differences in how Etsy and Amazon Handmade handle payments. On Etsy, sellers are paid through their Etsy accounts. But on Amazon Handmade, the money goes straight to the seller’s bank. Payment times also vary. Amazon Handmade pays every two weeks. Etsy pays weekly by default, but sellers can choose daily, weekly, or monthly payments.

Conclusion

Amazon Handmade and Etsy both have their perks and downfalls for people wanting to sell handmade items. Amazon Handmade lets sellers reach a huge global market for free. But, it has more selling fees and tough competition. Etsy has a smaller, but devoted, audience for handcrafted items, with less fees. Yet, it faces more competition and charges for listings.

To pick the right platform, sellers should think about their goals and the kind of items they sell. They need to weigh the good and not-so-good points of each. It’s important to think about who they want to sell to, the costs, types of products, and help for sellers on both Amazon Handmade and Etsy.

Moreover, sellers might find a great ally in ParcelPath’s cheap shipping options. With the right look at all factors, including shipping, they can choose the best fit for their business. This decision could really help their business and its future.

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