The short answer
Etsy is better for most handmade sellers starting out — lower fees (10-11% vs. 15%), easier setup, and a buyer base that specifically seeks handmade and unique products. Amazon Handmade is better if you have a proven product ready for high volume, want access to Prime's 300M+ members, and can handle Amazon's stricter requirements. Many successful sellers use both.
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
Fee comparison
| Fee | Etsy | Amazon Handmade |
|---|---|---|
| Listing fee | $0.20 per listing | Free |
| Transaction/referral fee | 6.5% | 15% |
| Payment processing | 3% + $0.25 | Included in referral fee |
| Offsite Ads | 12-15% (conditional) | N/A |
| Monthly subscription | None | $39.99/mo (waived for Handmade) |
| Setup fee | $15 one-time | Free |
| Typical total per sale | 10-11% | 15% |
What this means in dollars
On a $50 item with $8 shipping:
Etsy:
Listing fee: -$0.20
Transaction fee (6.5% of $58): -$3.77
Payment processing (3% + $0.25):-$1.99
Total fees: -$5.96 (10.3%)
Your take-home: $52.04
Amazon Handmade:
Referral fee (15% of $50): -$7.50
Shipping: kept by you or FBA varies
Total fees: -$7.50 (15%)
Your take-home: $50.50
Etsy is cheaper by ~$1.50 on a $50 sale. The gap widens on higher-priced items. But Amazon includes payment processing in the 15% — Etsy stacks three separate fees.
Etsy's hidden cost: If you cross $10,000 in annual sales, Offsite Ads become mandatory (12-15% on attributed sales). This can push Etsy's effective rate above Amazon's for certain orders.
Use our Etsy Fee Calculator or Amazon FBA Calculator to run your exact numbers.
Audience comparison
| Factor | Etsy | Amazon Handmade |
|---|---|---|
| Active buyers | 96 million | 300+ million (Amazon total) |
| Buyer intent | "I want something unique/handmade" | "I need a product" (may discover handmade) |
| Price sensitivity | Willing to pay premium for handmade | Expects competitive pricing |
| Gift shopping | Strong (major driver) | Very strong (especially with Prime shipping) |
| Repeat buyers | High — buyers follow favorite shops | Lower — buyers are platform-loyal, not shop-loyal |
| Discovery | Search + browse + recommendations | Search-driven, algorithm-heavy |
Etsy's audience advantage
Etsy buyers come specifically looking for handmade, vintage, and unique products. They expect to pay more than mass-produced alternatives. They read About pages, follow shops, and leave thoughtful reviews. The relationship between seller and buyer is part of the appeal.
Amazon's audience advantage
300 million active customers, 200+ million Prime members. Massive volume. Amazon buyers trust the platform implicitly — they buy without hesitation because of Amazon's return policy and Prime shipping. A handmade product that ranks on Amazon gets exposed to exponentially more eyeballs.
The tradeoff: Amazon buyers don't care about your shop story. They care about price, reviews, and fast shipping.
Seller experience
Getting started
| Factor | Etsy | Amazon Handmade |
|---|---|---|
| Application process | None — open immediately | Application required (1-2 weeks approval) |
| Approval criteria | None | Must prove items are handmade |
| First listing time | 30 minutes | 1-2 hours (more required fields) |
| Learning curve | Low | Medium-High |
Amazon Handmade requires an application where you prove your products are genuinely handmade. They review photos and descriptions. This keeps out mass-produced sellers but adds a barrier to entry.
Etsy lets anyone open a shop in minutes. Lower barrier, but also more competition from low-effort sellers.
Listing and SEO
Etsy: Titles (140 chars), 13 tags, categories, attributes. SEO is critical — your listing lives or dies by keyword optimization. Sellers have significant control over how they appear in search. See our Etsy SEO guide.
Amazon Handmade: Standard Amazon product listings with title, bullet points, description, backend keywords. Amazon's A9 algorithm is more opaque but heavily weights conversion rate, price competitiveness, and reviews. Less seller control, more algorithm dependency.
Fulfillment
Etsy: You handle shipping (or use Etsy's discounted labels). You pack, label, and ship each order yourself.
Amazon Handmade: You can ship yourself (Merchant Fulfilled) or use FBA (Fulfillment by Amazon). FBA means you send inventory to Amazon warehouses and they handle picking, packing, shipping, and returns. FBA products get the Prime badge, which dramatically increases conversion.
FBA costs: Storage fees + pick-and-pack fees. For a typical small handmade item, expect $3-$6 per unit. This eats into margins but Prime eligibility often increases sales enough to justify it.
Customer service
Etsy: You handle all customer communication. Etsy expects 24-hour response times. You manage returns per your own policies.
Amazon Handmade: Amazon handles most customer service for FBA orders. For merchant-fulfilled orders, you handle communication but Amazon's A-to-Z Guarantee can override your policies. Amazon is more buyer-friendly — expect easier returns.
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
Pros and cons
Etsy
Pros:
- Lower fees (10-11% vs 15%)
- Buyers seek handmade products specifically
- Full control over branding and shop identity
- No monthly subscription
- Direct customer relationships
- Easier to start
Cons:
- Smaller buyer pool (96M vs 300M+)
- Mandatory Offsite Ads above $10K
- No fulfillment service (you ship everything)
- Increasing competition from mass-produced sellers
- Algorithm changes can tank visibility overnight
Amazon Handmade
Pros:
- Massive buyer audience (300M+)
- Prime badge through FBA (huge conversion boost)
- No listing fees
- Amazon handles customer service (FBA)
- Buyer trust in Amazon brand
- Higher average order values
Cons:
- Higher referral fee (15%)
- Application required
- Less control over branding
- Amazon can suspend accounts with little warning
- Buyers don't build relationships with your shop
- Competing with Amazon's own products
Which should you choose?
Choose Etsy if:
- You're just starting and want low-risk entry
- Your products are unique, vintage, or heavily personalized
- You want to build a recognizable brand
- You value direct customer relationships
- Your price points are under $50 (lower fees matter more)
- You sell digital downloads (Amazon doesn't support these in Handmade)
Choose Amazon Handmade if:
- You have a proven product with strong demand
- Your products are gift-friendly and ship easily
- You can handle FBA logistics (or want Amazon to handle fulfillment)
- You're comfortable with 15% fees for access to Prime buyers
- Your price points are $30+ (higher margins absorb the fee difference)
- You want to scale volume beyond what Etsy's audience provides
Best strategy: Use both
Many successful sellers list on both platforms:
- Start on Etsy — Lower cost to test products and build reviews
- Validate demand — Identify your bestsellers (10+ sales with strong reviews)
- Expand to Amazon Handmade — List proven winners where the massive audience can find them
- Optimize per platform — Different titles, photos, and pricing for each (Etsy buyers and Amazon buyers respond to different things)
Use our AI Listing Generator to create optimized listings for both platforms — it supports Etsy, Amazon, and four other marketplaces.
FAQ
Is Amazon Handmade better than Etsy?
Neither is universally better. Etsy has lower fees and buyers who specifically want handmade products. Amazon Handmade has a larger audience and Prime shipping. Your product type, price point, and business goals determine which is the better fit. Many sellers succeed on both.
Does Amazon Handmade charge a monthly fee?
Amazon Handmade sellers are enrolled in Amazon's Professional Selling plan ($39.99/month), but Amazon waives this fee for approved Handmade sellers. You only pay the 15% referral fee per sale. If you also sell non-handmade products on Amazon, the Professional plan fee applies.
Can you sell digital downloads on Amazon Handmade?
No. Amazon Handmade is for physical handmade products only. If you sell digital downloads (printables, templates, SVG files), Etsy is your platform. Amazon does have a separate digital marketplace (Kindle, Merch on Demand) but it's not part of the Handmade program.
How long does Amazon Handmade approval take?
Typically 1-2 weeks. You'll need to submit photos of your products and workspace, describe your production process, and prove items are genuinely handmade. Some applicants are approved in days; others wait 2-3 weeks or are asked for additional documentation.
Can you sell on Etsy and Amazon Handmade at the same time?
Yes. There's no exclusivity requirement on either platform. Many sellers list their bestsellers on both. Keep in mind you'll need separate inventory management, different listing optimization strategies, and potentially different pricing to account for the fee difference.
Which platform has better SEO for sellers?
Etsy gives sellers more SEO control with 13 tags, 140-character titles, and transparent ranking factors. Amazon's algorithm is more opaque but rewards conversion rate and reviews heavily. Etsy SEO is more "figure it out and optimize" while Amazon is more "get sales and reviews, rank higher."
Next steps
- Calculate fees for both — Etsy Fee Calculator | Amazon FBA Calculator
- Optimize your listings — Use our AI Listing Generator for both platforms
- Learn Etsy SEO — Complete Etsy SEO guide
- Understand Etsy fees — How much does Etsy take?
- Set up your shop — How to start an Etsy shop
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
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