Who this is for
Sellers deciding between Amazon and Etsy—or considering selling on both. Whether you're launching your first product or expanding an existing business, choosing the right platform affects your fees, visibility, competition, and growth potential.
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
The goal
Understand the key differences between Amazon and Etsy so you can choose the platform that fits your products, skills, and business goals. By the end of this guide, you'll have a clear framework for deciding where to sell.
Quick comparison: Amazon vs Etsy at a glance
| Factor | Amazon | Etsy |
|---|---|---|
| Total fees | 20-30% (with FBA) | 10-12% (up to 25% with Offsite Ads) |
| Monthly traffic | Higher overall volume | Niche-focused buyers |
| Best for | Commodity products, scale | Handmade, vintage, unique items |
| Fulfillment | FBA available | Self-fulfillment standard |
| Barrier to entry | Higher (category approval, gating) | Lower (setup fee + listings) |
| Competition | Intense, price-driven | Moderate, value-driven |
| Brand building | Limited within platform | Stronger shop identity |
Both platforms have their place. The right choice depends on what you're selling and how you want to run your business.
Fee comparison: Amazon vs Etsy
Understanding fees is critical because they directly impact your profit margin.
Etsy fee structure
Etsy charges fees on every transaction:
| Fee Type | Amount |
|---|---|
| Listing fee | $0.20 per item |
| Transaction fee | 6.5% of total (including shipping) |
| Payment processing | 3% + $0.25 (US) |
| Typical total | 10-12% |
If Offsite Ads trigger (mandatory for shops earning $10K+/year), add 12-15% more—pushing total fees to 22-27%.
For detailed breakdowns, see our Etsy Fees Explained guide.
Amazon fee structure
Amazon's fees vary by fulfillment method and category:
| Fee Type | Amount |
|---|---|
| Referral fee | 8-15% (most categories 15%) |
| FBA fulfillment | $3-7+ per unit |
| Monthly storage | $0.78-2.40/cubic foot |
| Typical total (FBA) | 20-30% |
Merchant-fulfilled (FBM) sellers skip FBA fees but handle shipping themselves.
For detailed breakdowns, see our Amazon FBA Fees Explained guide.
Fee comparison example
A $30 product with $5 shipping:
On Etsy (no Offsite Ads):
- Listing fee: $0.20
- Transaction fee (6.5%): $2.28
- Payment processing: $1.30
- Total fees: $3.78 (10.8%)
On Amazon (FBA, 15% category):
- Referral fee (15%): $5.25
- FBA fulfillment: ~$4.75
- Storage (minimal): ~$0.10
- Total fees: $10.10 (28.9%)
Etsy takes less per sale in most scenarios. However, Amazon's higher fees include fulfillment and access to a larger buyer pool.
Calculate your actual fees
Use our calculators to compare fees for your specific products:
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
Traffic and audience differences
Amazon's buyer base
Amazon attracts shoppers who:
- Know what they want and search for specific products
- Prioritize convenience, fast shipping, and competitive prices
- Trust Amazon's return policies and customer service
- Often compare multiple sellers for the same product
Amazon shoppers tend to be price-conscious and conversion-focused. They're less likely to browse and more likely to buy what they came for.
Etsy's buyer base
Etsy attracts shoppers who:
- Want unique, handmade, or personalized items
- Value the story behind products and makers
- Accept longer shipping times for specialty items
- Are willing to pay more for uniqueness and quality
- Browse and discover rather than search for commodities
Etsy buyers often have higher purchase intent for craft and vintage categories but lower intent for commodity products.
Which has more traffic?
Amazon has significantly higher overall traffic, but raw numbers don't tell the whole story. What matters is relevant traffic for your products.
- A handmade jewelry seller may get more qualified buyers on Etsy
- A phone case seller may reach more buyers on Amazon
- A vintage clothing seller almost certainly performs better on Etsy
Consider where your target customer is already shopping.
Product fit: What sells where
Best products for Etsy
Etsy works best for:
- Handmade items - Jewelry, crafts, art, custom goods
- Vintage items - 20+ years old per Etsy policy
- Craft supplies - Beads, fabric, patterns, tools
- Personalized products - Custom names, dates, engravings
- Digital downloads - Printables, templates, patterns
- Unique designs - Items you can't find elsewhere
Etsy buyers pay premium prices for uniqueness and craftsmanship.
Best products for Amazon
Amazon works best for:
- Commodity products - Items available from multiple sellers
- Private label products - Your brand, manufactured at scale
- Books and media - Still a core Amazon category
- Consumables - Items with repeat purchase potential
- Products with existing demand - Items people already search for
- Items benefiting from Prime shipping - Fast delivery expectations
Amazon buyers expect competitive prices and fast fulfillment.
Products that work on both
Some categories perform well on both platforms:
- Home decor - Unique pieces on Etsy, mass-market on Amazon
- Party supplies - Custom on Etsy, bulk on Amazon
- Art prints - Original art on Etsy, reproductions on Amazon
- Pet accessories - Handmade on Etsy, manufactured on Amazon
Consider listing different product lines on each platform rather than the same items on both.
Competition and discoverability
Competition on Amazon
Amazon competition tends to be:
- Intense - Multiple sellers often compete for the same product
- Price-driven - The Buy Box often goes to the lowest price
- Review-dependent - Products need reviews to rank
- PPC-heavy - Advertising costs are significant
New sellers face established competitors with thousands of reviews and optimized listings. Breaking in requires either unique products or aggressive pricing and advertising.
Competition on Etsy
Etsy competition is generally:
- Moderate - Handmade creates natural differentiation
- Quality-driven - Photos and presentation matter more than price
- Discovery-friendly - Etsy's algorithm surfaces new listings
- Lower ad costs - Etsy Ads are optional and less expensive
Unique products have a clearer path to visibility on Etsy. The challenge shifts from beating competitors on price to standing out through quality and presentation.
Fulfillment options
Amazon fulfillment
Fulfillment by Amazon (FBA):
- Amazon stores, picks, packs, and ships your products
- Products qualify for Prime shipping
- Amazon handles customer service and returns
- Fees apply per unit plus storage costs
Merchant Fulfilled (FBM):
- You handle all shipping and customer service
- No FBA fees, but no Prime badge
- More control, more work
FBA is nearly essential for competitiveness in most categories. The Prime badge significantly increases conversion rates.
Etsy fulfillment
Etsy offers:
- Self-fulfillment - Standard approach for most sellers
- Etsy shipping labels - Discounted USPS, UPS, FedEx rates
- Production partners - Print-on-demand and manufacturing partners allowed
Most Etsy sellers handle their own fulfillment. This gives flexibility but requires time and logistics management.
Fulfillment comparison
| Aspect | Amazon FBA | Etsy Self-Fulfillment |
|---|---|---|
| Your time | Low | High |
| Cost per order | $3-7+ | Shipping cost only |
| Customer trust | Very high (Prime) | Depends on shop reviews |
| Flexibility | Limited (Amazon's process) | Full control |
| Returns | Amazon handles | You handle |
FBA is cost-effective at scale. Self-fulfillment works better for low-volume or custom products.
Brand building and customer relationships
Brand building on Amazon
Amazon limits your brand presence:
- Customers buy "from Amazon," not from you
- Limited storefront customization
- No direct customer contact information
- Brand Registry helps but doesn't eliminate competition
- Product reviews belong to the listing, not your brand
Building a recognizable brand on Amazon requires external marketing driving traffic to your Amazon store.
Brand building on Etsy
Etsy encourages seller identity:
- Your shop has a name, story, and visual brand
- Customers often remember the shop they bought from
- Direct messaging with customers (within Etsy)
- Shop reviews reflect your overall service
- Repeat customers can follow and favorite your shop
Etsy sellers can build genuine brand recognition within the platform.
Seller requirements and barriers
Getting started on Etsy
Requirements:
- Pay $15 setup fee (one-time)
- Provide bank account for deposits
- Create listings ($0.20 each)
Restrictions:
- Items must be handmade, vintage (20+ years), or craft supplies
- Third-party manufacturing requires disclosure as "production partner"
Most sellers can open an Etsy shop within a day.
Getting started on Amazon
Requirements:
- Choose Individual ($0.99/item) or Professional ($39.99/month) plan
- Provide business information and tax details
- Some categories require approval or are gated
Restrictions:
- Brand Registry required for full feature access
- Some categories (grocery, jewelry, automotive) need approval
- Product authenticity verification may be required
Amazon has more hurdles but offers access to a larger market once approved.
When to choose Amazon
Consider Amazon if:
- You sell manufactured products at scale
- Your products fit established search demand
- You can compete on price or offer unique value
- You want hands-off fulfillment (FBA)
- You're building a private label brand
- Fast shipping is important for your category
- You have capital for inventory and advertising
Amazon rewards sellers who can scale, compete, and invest in visibility.
When to choose Etsy
Consider Etsy if:
- You make handmade or custom products
- Your items are unique or personalized
- You want to build a recognizable brand
- Lower startup costs matter
- You prefer handling your own fulfillment
- Your target customer values craftsmanship over convenience
- You sell vintage items or craft supplies
Etsy rewards creativity, quality, and direct customer connection.
Can you sell on both?
Yes, and many sellers do. Consider:
- Different product lines - Handmade on Etsy, mass-market on Amazon
- Test markets - Try products on one platform before expanding
- Risk diversification - Don't depend entirely on one platform
- Inventory management - Ensure stock levels stay accurate across platforms
Selling on both requires more management but reduces platform dependency.
Common mistakes when choosing
Mistake 1: Choosing based on fees alone
Lower fees don't guarantee higher profit. A platform with higher fees but more traffic and better product fit may generate more total profit.
Mistake 2: Ignoring product fit
Listing handmade jewelry on Amazon puts you against mass-produced alternatives. Listing commodity products on Etsy misses the larger Amazon audience.
Mistake 3: Underestimating fulfillment work
Etsy's lower fees come with more fulfillment responsibility. FBA's higher fees include significant time savings.
Mistake 4: Expecting instant success on either
Both platforms require optimization, marketing, and patience. Plan for a ramp-up period on any new marketplace.
Mistake 5: Not testing before committing
List a few products before investing heavily. Test demand, pricing, and operations before scaling.
FAQ
Is Amazon or Etsy better for beginners?
Etsy is often easier to start on due to lower barriers and costs. The $15 setup fee and $0.20 listing fees make testing affordable. Amazon requires more upfront investment but offers greater scale potential once established.
Which platform has lower fees: Amazon or Etsy?
Etsy typically has lower fees at 10-12% versus Amazon's 20-30% with FBA. However, Etsy's Offsite Ads (12-15%) can close this gap for successful shops. Calculate fees for your specific products using our Etsy Fee Calculator and Amazon FBA Calculator.
Can I sell handmade items on Amazon?
Yes, through Amazon Handmade. You need to apply and be approved as an artisan. Amazon Handmade charges 15% referral fees with no monthly subscription for approved sellers. However, Etsy remains the dominant marketplace for handmade products.
Should I use FBA or fulfill orders myself?
FBA makes sense for products where the Prime badge drives sales and you sell enough volume to justify the fees. Self-fulfillment works better for custom/made-to-order items, low-volume products, or when FBA fees would eliminate your margin.
Can I sell the same products on both Amazon and Etsy?
Yes, but consider platform fit. Unique and handmade items typically perform better on Etsy; commodity products perform better on Amazon. Maintain accurate inventory across both platforms to avoid overselling.
Which platform is better for digital products?
Etsy is generally better for digital downloads like printables, patterns, and templates. The platform supports instant delivery and has an established digital product buyer base. Amazon has Kindle for ebooks but less infrastructure for other digital products.
Next steps
- Assess your products - Handmade/unique → lean Etsy. Manufactured/commodity → lean Amazon.
- Calculate your fees - Use our Etsy Fee Calculator and Amazon FBA Calculator with your actual numbers.
- Research your competition - Search both platforms for similar products. Note pricing, reviews, and saturation.
- Start small - Test with a few listings before committing inventory or time.
- Optimize your listings - Use our AI Listing Generator to create platform-optimized titles, descriptions, and keywords.
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
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