Amazon Handmade vs. Etsy: Which Platform Is Best for You?

If you’re a maker, artist, or small business owner creating handcrafted goods, chances are you’ve looked into selling online. Two of the most popular platforms out there for handmade products are Amazon Handmade and Etsy. But which one is better for your business?

In this guide, we’ll walk you through the pros and cons of each, who each platform is best suited for, and what to consider before you commit. Whether you’re already an Amazon seller or just getting started, this side-by-side breakdown will help you make the right call.

What Are Amazon Handmade and Etsy?

Before we jump into comparing the two, let’s define what each platform is. Amazon Handmade is a special marketplace within Amazon dedicated to artisan and handcrafted items. It’s not open to just anyone, though; you have to apply and get approved, ensuring that only truly handmade items make it onto the platform. This adds credibility, but also adds a few extra steps.

Meanwhile, Etsy has been the go-to platform for handmade goods, vintage items, and craft supplies since 2005. It’s known for its creative community and ease of use. Unlike Amazon Handmade, just about anyone can open a shop on Etsy and start selling the same day.

Etsy vs Amazon Handmade: Key Differences

Let’s break down how the two platforms compare across key areas that matter to sellers.

Seller Requirements

• Amazon Handmade: You need to apply and be approved. Amazon manually reviews your products and verifies that they’re genuinely handmade. This process can take a few days to a few weeks. Approval includes submitting photos of your workspace and descriptions of your handmade process. It can be a hurdle, but it keeps the marketplace exclusive and trustworthy for high-quality artisans.
• Etsy: Sign up, list your items, and you’re good to go. It’s simple and fast, but the open-door policy means more competition, and sometimes, less handmade authenticity. Because anyone can join, you may find yourself competing with mass-produced or semi-handmade items. Staying competitive may require more marketing effort and SEO optimization.

If you want to get started quickly, Etsy is faster. If you value exclusivity and a curated platform, Amazon Handmade might be more your style.

Fees and Costs

• Amazon Handmade: No listing fees. However, you do pay a 15% referral fee on each sale. If you’re already a professional Amazon seller, the $39.99/month subscription fee is waived for Handmade sellers. While the 15% may seem high, there are no hidden costs like renewal fees or payment processing charges. Amazon’s simplified fee structure is great for sellers who prefer fewer moving parts.
• Etsy: Charges a $0.20 listing fee per item (renewed every 4 months), a 6.5% transaction fee, and a 3% + $0.25 payment processing fee in the U.S. If you list many products or offer customizations, these small fees can add up quickly. However, Etsy does provide detailed fee breakdowns and sales reports that help you track profitability.

Etsy’s fees add up with every sale, while Amazon takes a bigger chunk upfront but has no listing fees. Your cost will depend on your pricing model, order volume, and how often you refresh listings.

Traffic and Reach

• Amazon Handmade: You benefit from Amazon’s massive customer base and global brand trust. Shoppers are usually in a “buy now” mindset and already have credit cards saved. Amazon’s traffic is unmatched, but it’s not always easy to stand out. Optimizing your titles, bullet points, and images for Amazon’s algorithm (A9) is critical to visibility and high product rankings.
• Etsy: While Etsy has millions of users, its audience is more niche, consisting of people actively searching for handmade, vintage, or custom items. Etsy shoppers are often more willing to pay a premium for unique craftsmanship, and the platform encourages storytelling and branding through your shop page.

While Amazon gives you broader exposure (especially to impulse buyers), Etsy’s audience may be better aligned with high-quality, creative brands.

Store Customization

• Amazon Handmade: Offers limited customization. You get a basic storefront, but everything must conform to Amazon’s structure. Your product pages follow a standard template with limited ability to inject brand personality. Amazon does offer A+ Content (formerly Enhanced Brand Content) if you’re brand registered, but most Handmade sellers won’t qualify.
• Etsy: Lets you personalize your shop with a banner, logo, featured listings, shop story, and more. You can also add shop announcements, FAQs, and policies that match your tone and voice. Strong branding can lead to loyal repeat customers. Many shoppers return to specific Etsy shops if they enjoy the experience and aesthetic.

If branding is important to you, or if your target customer is drawn to storytelling, Etsy gives you far more creative freedom.

Customer Expectations

One of the biggest differences between Amazon and Etsy isn’t just how they operate; it’s who shops there and what those shoppers expect. Understanding the mindset of your customer can make or break your success on either platform.

From shipping speed to product presentation, here’s how buyer expectations differ on Amazon versus Etsy and what that means for you as a seller:

• Amazon Handmade: Customers expect fast shipping, high availability, and professional-grade product listings. Many compare your handcrafted products with mass-produced alternatives, which can be tricky if your pricing reflects handmade labor. If you’re set on selling on Amazon Handmade, clear product descriptions and shipping timelines can help manage Amazon customer expectations. Use bullet points to highlight what makes your item different and worth the price.
• Etsy: Customers are often more patient and open to longer processing times, especially for custom or made-to-order items. They’re generally more appreciative of the time, effort, and uniqueness behind handmade products. Make use of your shop’s “About” section and listing descriptions to share your process and values, as it helps justify your pricing and build buyer trust.

Fulfillment and Logistics

Once the orders start rolling in, how you handle packing, shipping, and delivery becomes just as important as the sale itself. While both Amazon Handmade and Etsy expect sellers to manage fulfillment, there are key differences in tools, options, and expectations.

Here’s how logistics work on each platform and what you need to know to keep customers happy and operations running smoothly:

• Amazon Handmade: If you’re already using Fulfillment by Amazon (FBA) for other products, you might be surprised to learn that FBA isn’t typically available for Handmade items (with rare exceptions). Most orders are fulfilled by the seller directly. You’ll need to handle packaging and shipping yourself, but you can still use Amazon’s discounted shipping rates and tracking features through Seller Central. Amazon also expects fast delivery times, so planning ahead is crucial.
• Etsy: Etsy sellers handle their own fulfillment or use third-party logistics providers (3PLs). Etsy provides discounted shipping labels via USPS, FedEx, and UPS directly through the dashboard, and allows you to set custom processing times. Etsy’s shipping system is intuitive and integrates easily with services like ShipStation or Pirate Ship. You can also offer international shipping with flexible options.

Both platforms expect manual fulfillment. If you’re already shipping orders yourself, the experience is similar. If you’re new to it, Etsy might offer a gentler learning curve.

Is It Better to Sell on Etsy or Amazon?

There’s no universal answer to this question as it all depends on your product type, goals, and preferred selling environment. But here are some key considerations to make the decision easier:

Choose Etsy if:

• You want an easy setup and fast launch, qualities that are ideal for testing products.
• You have a strong visual brand or aesthetic that shines in a customized shop.
• You’re targeting buyers who value uniqueness, customization, and artisan craftsmanship.
• You prefer greater creative control over your store layout and messaging.
  

Choose Amazon Handmade if:

• You want access to Amazon’s massive customer base and built-in trust.
• You’re already selling other products on Amazon and want to expand into handmade goods under the same account.
• You’re willing to go through the application process for a more exclusive marketplace.
• You’re looking to reach buyers who shop for convenience and credibility over brand storytelling.

Conclusion

When it comes to Amazon Handmade vs Etsy, both platforms offer valuable opportunities for makers and creators. You don’t necessarily have to choose just one, as many sellers operate on both to maximize reach and diversify income.

That said, if you’re already selling on Amazon, expanding into Handmade may be a natural next step. If you’re new to e-commerce or want a more flexible, creative experience, Etsy might feel more like home.

Whichever path you choose, focus on strong product photos, clear descriptions, and top-tier customer service. Those things never go out of style, no matter the platform!