Etsy vs. Amazon Handmade Which Is Better for Selling Crafts?

Introduction

• In the rapidly expanding handmade market, artists and craftspeople face the crucial decision of selecting the most suitable platform to sell their products. This blog post provides an in-depth comparison between two major players in the online handmade marketplace: Etsy and Amazon Handmade. With the ever-growing potential to make money through selling handmade items, understanding the strengths and weaknesses of each platform is pivotal for success.
• Etsy and Amazon Handmade have emerged as leading choices for artisans looking to capitalize on the thriving demand for unique, handcrafted products. Both platforms offer distinct advantages and cater to different seller needs, making it essential to weigh their offerings before deciding where to showcase your crafts.
• The purpose of this comparison is to assist sellers in choosing the platform best aligned with their business goals. By examining key aspects such as fees, audience reach, seller support, and market exposure, this blog post aims to provide a clear understanding of which platform can best facilitate the journey to make money through selling crafts online.

Platform Overview: Etsy

• Etsy, founded in 2005, is a global marketplace that focuses on handmade, vintage, and craft supplies. The platform was developed to foster unique, creative, and personalized products that stand out from mass-produced items found elsewhere. Etsy's mission is to "Keep Commerce Human," emphasizing the importance of connecting buyers with independent sellers who can offer products crafted from the heart.
• Operating as a peer-to-peer e-commerce site, Etsy allows individuals to create their own virtual stores where they can list and sell handmade or vintage items, as well as craft supplies. Sellers have the autonomy to manage their storefronts, set prices, and handle customer service interactions. This direct control appeals to many artisans who desire a platform that respects their creative autonomy while providing the infrastructure for online sales.
• Etsy boasts a vibrant user base, with over 7.5 million active sellers and approximately 96 million active buyers as of the latest statistics. This large and engaged community helps crafters make money by finding a targeted audience that appreciates and values handmade goods. In 2020, Etsy sellers collectively made sales worth over $10 billion, highlighting the platform’s effectiveness in helping artisans monetize their craft.
• The reputation of Etsy within the crafting community is robust, largely driven by its specialized focus on handmade and unique items. Artisans appreciate the platform’s dedication to supporting small businesses and sustainable production practices. Etsy's strong brand identity and global reach make it a preferred choice for many looking to sell creative and unique items online.

Platform Overview: Amazon Handmade

• Amazon Handmade was launched in 2015 by the e-commerce giant Amazon, aiming to provide a dedicated space for artisans and crafters to make money by selling their handcrafted goods. This platform sets itself apart from the broader Amazon marketplace by focusing exclusively on handmade products, thus ensuring artisans have a niche space to display their crafts. Amazon Handmade's mission is to support small business owners in the crafting community by offering them access to Amazon's vast customer base.
• Amazon Handmade operates on a global scale, granting artisans exposure to millions of potential customers who regularly shop on Amazon. The platform is known for its rigorous screening process, ensuring that all items listed are genuinely handmade, a key distinguishing factor from the regular Amazon marketplace. Sellers benefit from the trustworthiness and brand recognition that Amazon provides, which can translate into increased sales and the ability to make a substantial income.
• The user base of Amazon Handmade includes both buyers who are specifically searching for handmade, unique items and sellers who specialize in handcrafted goods. Data suggests that as of recent years, Amazon has over 300 million active customer accounts globally, providing a vast and varied audience for artisans to tap into. Although Amazon Handmade's exact number of active sellers isn't always specified, it forms a growing segment within the crafting community, with thousands of artisans registering to make money through their unique offerings.
• In terms of sales volume, crafts and handmade goods on Amazon Handmade have shown significant potential. Leveraging Amazon Prime's fast shipping and Amazon's vast logistics network, sellers can offer a seamless shopping experience, which can lead to increased conversion rates and higher sales volumes. This integration within the broader Amazon ecosystem offers a compelling advantage for crafters looking to monetize their skills on a well-reputed platform.

Fee Structure and Costs

• When evaluating the fee structures and costs associated with selling crafts, both Etsy and Amazon Handmade present distinct financial considerations that can significantly impact profitability. Understanding these differences is key for any artisan looking to make money from their craft.
• On Etsy, sellers encounter a straightforward yet multifaceted fee structure. Initially, there is a listing fee of $0.20 per item, which remains valid for four months or until the item sells. Upon a successful sale, Etsy charges a transaction fee of 6.5% on the item's sale price, inclusive of shipping. Additionally, Etsy imposes a payment processing fee, which varies by country but typically hovers around 3% plus a fixed fee of $0.25.
• Conversely, Amazon Handmade operates on a differing financial model. Although it avoids upfront listing fees, sellers are subjected to a referral fee instead. This fee stands at a flat rate of 15% per transaction, covering the item's sale price as well as any associated shipping. Payment processing costs are embedded within this referral fee, simplifying the overall fee structure but potentially leading to higher cumulative costs compared to Etsy.
• Additional expenses on both platforms can further influence the cost-benefit analysis. Etsy offers optional advertising services, including Etsy Ads and Offsite Ads, with fees tied to the ad's performance, thereby influencing the overall cost efficiency. Amazon Handmade provides advertising options as well through Amazon Ads, which allows sellers to promote their products and increase visibility, thus potentially incurring extra costs.
• Considering these factors, the financial advantage of one platform over the other is often dependent on the nature and volume of sales. For low-volume sellers, Etsy's lower upfront and fixed fees might prove more cost-efficient and manageable. However, high-volume sellers may find Amazon Handmade's percentage-based fees more predictable and beneficial given their scale. Therefore, sellers must weigh these fee structures and associated costs to determine the most financially viable platform tailored to their specific business needs and goals.

Ease of Use and Seller Tools

The user experience for both sellers and buyers is a critical factor when evaluating platforms like Etsy and Amazon Handmade. Each platform offers unique features and tools designed to streamline the process of making money by selling crafts online.

Setting Up a Shop

Creating a shop on Etsy is notably straightforward. Sellers are guided through a step-by-step process to set up their storefront, list products, and provide necessary payment and shipping information. The interface is user-friendly, making it accessible even to those new to e-commerce. On the other hand, Amazon Handmade, while thorough, requires sellers to go through an extensive application process to verify the authenticity of their handmade products. This ensures quality but can be time-consuming.

Listing Products

Listing products on Etsy is intuitive. Sellers can add multiple photos, detailed descriptions, tags, and various customizable attributes to optimize their listings. Etsy’s robust search engine optimization tools help improve product visibility organically, which is crucial for those looking to make money. Amazon Handmade also offers detailed product listings, but the process can feel more complex due to Amazon's advanced backend architecture. However, it provides integrated options like Fulfillment by Amazon (FBA), allowing sellers to store their products in Amazon’s warehouses, which can be beneficial for scale.

Managing Orders

Order management on Etsy is simplified through its user-friendly dashboard, which helps sellers keep track of orders, communicate with buyers, and handle any issues. Amazon Handmade’s order management system leverages Amazon’s sophisticated infrastructure, offering automated shipping notifications and detailed analytics. The comprehensive reporting tools available on both platforms assist sellers in analyzing their business performance and strategizing to maximize profit.

Seller Support Tools

Etsy offers various promotional tools, including sales, discounts, and social media integrations, to help sellers market their products. The platform’s analytics provide insights into traffic, conversion rates, and customer behavior. Amazon Handmade provides similar tools but benefits further from Amazon’s expansive customer service network, offering 24/7 support and resources for advertising and promotions via Amazon Advertising.

Both platforms prioritize user experience with an array of tools designed to support sellers in making money by growing their craft businesses. While Etsy’s simplicity is beneficial for beginners, Amazon Handmade’s robust infrastructure can be advantageous for scaling operations.

Traffic and Market Reach

• When contemplating where to sell crafts, understanding the traffic and market reach of Etsy and Amazon Handmade is fundamental. Both platforms offer artisan creators unique advantages, yet they differ significantly in terms of visitors and buyer demographics.
• Etsy, renowned for its focus on handcrafted and vintage items, has carved out a niche market among craft enthusiasts. The platform attracts millions of visitors monthly, with a significant proportion of repeat buyers who value unique, handmade creations. Etsy's audience generally comprises individuals who appreciate artistic and personalized items, ensuring a high level of engagement and loyalty. Sellers on Etsy benefit from a user base that actively searches for niche or boutique products, creating opportunities for artisans to make money through specialized goods.
• Amazon Handmade, while a relative newcomer compared to Etsy, leverages the colossal traffic generated by Amazon. This platform extends Amazon's vast and diverse customer base to artisans, offering exposure to a wide demographic. The vast majority of Amazon's audience aims for convenience and breadth of selection, providing artisans with the potential to tap into a broader market. The presence of Amazon Prime membership additionally secures a segment of dedicated, high-frequency shoppers. Consequently, sellers on Amazon Handmade stand to gain from the extensive reach and significant purchasing power of Amazon users, albeit competing in a more saturated market.
• Although Etsy and Amazon Handmade draw different types of buyers, they both present opportunities for artisans to make money. Etsy's dedicated, craft-focused market may allow for a more targeted approach, fostering customer loyalty and repeat purchases. On the other hand, Amazon Handmade offers unparalleled market reach and convenience, catering to a population that appreciates quick and efficient shopping experiences. Understanding these distinctions is crucial for artisans to align their selling strategies with the platform that best matches their products and business goals.

Marketing and Promotion

• Marketing and promotion play pivotal roles when deciding between Etsy and Amazon Handmade for selling crafts. Both platforms offer a suite of marketing tools and promotional opportunities designed to help sellers reach potential buyers, but there are substantial differences worth noting.
• Etsy provides a range of built-in marketing tools tailored specifically for craft sellers. The Etsy Ads program allows sellers to promote their listings on the platform itself, increasing visibility in search results. Sellers can set a daily budget for their ads, ensuring controlled spending while optimizing reach. Additionally, Etsy offers customizable sales and coupons, and a prominent "Share on Social" feature enables seamless integration with social media platforms like Facebook, Instagram, and Pinterest, which can further amplify organic reach.
• From an SEO perspective, Etsy provides robust tools to help sellers optimize their listings. Properly utilizing tags, titles, and relevant keywords can significantly improve search visibility, driving more traffic to the seller's shop. The platform’s internal search algorithm is designed to favor well-optimized listings, providing a potential competitive edge in a crowded marketplace.
• Amazon Handmade, on the other hand, leverages the massive visibility of the Amazon marketplace. The platform’s advertising options include Amazon Sponsored Products, allowing your craft items to appear prominently in search results and on product pages. Unlike Etsy, which targets a niche market, Amazon Handmade benefits from Amazon’s broad consumer base, giving sellers access to millions of potential customers looking to make money through their handcrafted products.
• Amazon Handmade also integrates with Amazon’s SEO and algorithm strategies, which are crucial in achieving higher visibility. Sellers can utilize keywords and product descriptions effectively to compete within the extensive Amazon ecosystem. Furthermore, Amazon Handmade offers promotional programs like Lightning Deals and Best Deals, which can significantly enhance product exposure during peak shopping times.
• Both Etsy and Amazon Handmade have their unique advantages in terms of marketing and promotion. Etsy offers more craft-specific tools and an artisan-centric community, while Amazon Handmade leverages Amazon’s immense reach and sophisticated advertising options. Depending on your specific needs and target audience, both platforms provide ample opportunities to make money from your crafts.

Seller Community and Support

• When evaluating the seller communities and support systems of Etsy and Amazon Handmade, one must consider the different ways each platform aids sellers in navigating the business of selling crafts and making money. Etsy has long been recognized for fostering a robust and engaged seller community. The platform offers forums where sellers can connect, share advice, and support each other. These forums are segmented into various topics, making it easier for sellers to find relevant discussions and immerse themselves in the community. Peer support is a significant hallmark of the Etsy experience, often leading to valuable networking opportunities and collaborative endeavors.
• Official customer support on Etsy is accessible and designed to assist sellers with both mundane and complex issues. Sellers can communicate via email or live chat with Etsy customer service representatives, ensuring they receive timely and relevant assistance. Additionally, Etsy provides a wealth of educational resources, including blog posts, webinars, and a comprehensive help center. These resources cover a range of topics from enhancing product listings to sophisticated marketing strategies, equipping sellers with the knowledge needed to thrive in the competitive craft market.
• Conversely, Amazon Handmade cultivates a different, yet equally supportive, seller environment. Though Amazon’s forums are not as specialized as Etsy's, they serve as a gathering ground for sellers to exchange insights and cultivate a sense of community. The emphasis on peer assistance remains strong, with sellers frequently sharing experiences and solutions tailored to the nuances of handmade products. Amazon Handmade also encompasses dedicated customer support, with a focus on resolving seller issues promptly through multiple communication channels.
• Furthermore, Amazon Handmade provides robust educational resources. Sellers can access detailed guides, participate in webinars, and benefit from insights shared via the Amazon Seller University. These resources are designed to help sellers optimize their listings, enhance customer service, and ultimately, make money effectively. Both platforms also offer mentorship opportunities, though Etsy’s approach is more community-driven while Amazon Handmade methods tend to be more structured and formal.
• Each platform uniquely fosters a sense of community among sellers, leveraging different mechanisms and philosophies to support the pursuit of financial success in the handmade craft market.

Conclusion: Which Platform is Better?

• In conclusion, when comparing Etsy and Amazon Handmade as platforms for selling crafts, specific factors and individual preferences play significant roles. Each platform offers unique advantages and potential drawbacks that may be more or less suited to different sellers depending on their needs and objectives.
• Etsy is renowned for its user-friendly interface, dedicated craft-focused community, and lower listing fees, making it an excellent choice for those just starting out or with a limited budget. Its strong focus on handmade and vintage items creates a loyal customer base, looking specifically for one-of-a-kind products. If your business goal is to engage with a niche audience passionate about artisan crafts, Etsy could be the ideal marketplace. Products such as handmade jewelry, custom artworks, and vintage items tend to thrive here.
• On the other hand, Amazon Handmade provides access to the broader and more diverse customer base of the Amazon ecosystem. The potential for higher sales volume is significant, but this comes with higher fees and more stringent requirements. This platform is particularly beneficial for established sellers aiming to scale up their business or reach a larger and more varied audience. If budget constraints are not a primary concern and you are looking for robust scalability and extensive product exposure, Amazon Handmade may be the better option. Crafts that cater to mainstream tastes or have mass appeal can perform exceptionally well here.
• Ultimately, deciding between Etsy and Amazon Handmade should involve a careful assessment of your budget, target audience, and overall business goals. Consider starting with Etsy if you are new to selling crafts online, then expand to Amazon Handmade as your business grows and your needs evolve. Weighing the pros and cons of each platform, as discussed in this blog post, will better position you to make an informed choice that aligns with your specific craft and business aspirations.