Introduction

In the world of eCommerce, artisans and craftsmen have unique opportunities to turn their passion into profitable side-hustles or full-time businesses. Two platforms stand out as market leaders for selling handmade products: Amazon Handmade and Etsy. As a Digital Logistics Platform, we at FreightAmigo understand the importance of choosing the right marketplace for your handmade goods. In this comprehensive guide, we’ll explore the similarities and differences between these two platforms, helping you make an informed decision about which one best suits your needs.

Overview of Amazon Handmade and Etsy

Before diving into the specifics, let’s take a brief look at each platform:

Etsy

Founded in 2005, Etsy has established itself as a specialized marketplace for handmade and vintage products. With over 2 million active sellers and 35 million buyers, it’s become the go-to platform for unique craft products. Etsy’s reputation attracts craftsmen, artisans, vintage dealers, and small business owners looking to showcase their creations.

Amazon Handmade

Launched in 2015, Amazon Handmade is a microsite within the larger Amazon ecosystem. While Amazon as a whole boasts over 300 million customers and approximately 2 million active sellers, the Handmade section specifically caters to artisans selling handcrafted items. It leverages Amazon’s vast customer base to provide exposure for handmade products.

Similarities Between Amazon Handmade and Etsy

Before we delve into the differences, let’s look at what these platforms have in common:

1. Focus on Custom Products

Both Amazon Handmade and Etsy provide a platform for artisans to offer unique, handcrafted, and personalized products to millions of customers. This focus on custom, handmade items sets them apart from traditional eCommerce platforms.

2. Product Listing Process

The process of creating product listings is similar on both platforms. Sellers use numbered fields, text descriptions, drop-down menus, and custom pricing options to showcase their products effectively.

Key Differences Between Amazon Handmade and Etsy

Now, let’s explore the crucial differences that could influence your decision:

1. Sign-up Process

Etsy offers a straightforward sign-up process, allowing artists to get started quickly. In contrast, Amazon Handmade requires a more rigorous artisan application process, which can take weeks or even months to get approved.

2. Product Manufacturing Requirements

Etsy is more flexible, allowing you to hire staff and partner with other manufacturers to produce your goods. Amazon Handmade has stricter requirements: products must be made either by you or by staff in a company with 20 or fewer employees. Alternatively, a member of your collective can make products if it has less than 100 people.

3. Listing Fees

Amazon Handmade charges no listing fees, and listings have no expiry date. Etsy, on the other hand, charges $0.20 per listing, with listings expiring after four months.

4. Payment Processing

Etsy releases funds to sellers as soon as the transaction is complete. Amazon Handmade has a longer payment process, which can take up to 24 days for a single transaction. Payment is only released after the products are shipped.

5. Product Categories

Etsy offers 160 defined product categories, providing more flexibility for diverse handmade items. Amazon Handmade has only 14 narrowly defined categories and doesn’t allow products that don’t fit into these categories.

6. Traffic and Exposure

While Amazon Handmade benefits from Amazon’s overall traffic of over 300 million customers, Etsy’s 35 million buyers are specifically looking for handmade and vintage items.

Cost Comparison: Amazon Handmade vs Etsy

When it comes to costs, there are significant differences between the two platforms:

Etsy Costs

• $0.20 listing fee per item
• 5% fee deducted from each sale
• Transaction fees applied to shipping charges
• No monthly charges

Amazon Handmade Costs

• 15% commission on each product sale
• Minimum $1 referral fee
• Transaction fees applied to shipping charges
• $39.99 monthly charge if selling more than 40 non-handmade items on one account
• Free listings with no expiry

While Amazon Handmade offers free item listings, its commission fee per sale is three times that of Etsy’s. The potential monthly fees and referral fees make Amazon Handmade generally more expensive for most artisans.

Product Range and Categories

Both platforms allow you to sell handmade items, craft supplies, and vintage goods. However, the range of categories differs significantly:

Etsy offers up to 160 different categories, while Amazon Handmade limits sellers to 14 narrowly defined categories. This difference can be crucial depending on the type of products you create.

Some popular categories on both platforms include:

• Jewelry and watches
• Gifts
• Beauty and personal care
• Toys and games
• Pet supplies
• Sporting goods
• Artwork
• Clothing
• Kitchen and dining
• Stationery and party supplies
• Shoes and handbags

Getting Started: How to Sell on Each Platform

Selling on Etsy

1. Register for an Etsy account
2. Set preferences for your shop (currency, language, home country)
3. Choose a name for your Etsy shop
4. Add items, complete their listings, and publish them
5. Choose your payment methods and set billing information
6. Open, customize, and market your shop

Selling on Amazon Handmade

1. Complete an application process to become an artisan
2. Sign up for a Seller Central account to complete registration
3. Wait for approval
4. Once approved, create your item listings for free
5. Manage and grow your business by leveraging platform programs

Shipping Considerations

Shipping is a crucial aspect of eCommerce, and both platforms handle it similarly. On both Etsy and Amazon Handmade, the customer pays the shipping fee. However, as a seller, you have two options:

1. Charge shipping fees separately from the item price
2. Offer “free” shipping by bundling the shipping cost into the item list price

The second option can be advantageous as it helps you avoid transaction charges on shipping fees (5% on Etsy and 15% on Amazon Handmade) and can make your offer more attractive to customers.

At FreightAmigo, we understand the importance of efficient shipping in eCommerce. Our Digital Logistics Platform can help you optimize your shipping process, regardless of which marketplace you choose. We offer solutions to compare freight quotes, track shipments, arrange customs clearance, and automate shipping documents, ensuring a smooth logistics experience for your handmade business.

Conclusion: Making Your Choice

Choosing between Amazon Handmade and Etsy depends on your specific needs and circumstances. Here’s a quick summary to help you decide:

Consider Amazon Handmade if:

• You want access to Amazon’s vast customer base
• You don’t mind a longer application process
• Your products fit into their 14 categories
• You can absorb higher fees in exchange for potentially higher visibility

Consider Etsy if:

• You want a platform specifically known for handmade and vintage items
• You prefer lower fees and a simpler sign-up process
• You need more flexibility in product categories
• You want faster access to your funds after a sale

Whichever platform you choose, remember that success in eCommerce relies not just on where you sell, but also on how effectively you manage your logistics. That’s where FreightAmigo comes in. Our Digital Logistics Solution can help you streamline your shipping process, reduce costs, and ensure timely deliveries, allowing you to focus on what you do best – creating beautiful handmade products.

As you embark on your journey in the world of handmade eCommerce, remember that FreightAmigo is here to support your logistics needs every step of the way. From comparing freight quotes to tracking shipments and managing customs clearance, we’re committed to making your shipping experience as seamless as possible. Let us handle the complexities of logistics while you focus on growing your handmade business on your chosen platform.