Amazon Handmade vs Etsy: Where to Sell Crafts

Amazon Handmade Overview

Amazon Handmade is a dedicated section within Amazon's marketplace exclusively for artisans who create products by hand. To sell on Handmade, you must apply and be approved as an artisan. Amazon reviews your application to verify that your products are genuinely handmade, hand-altered, or hand-assembled. Mass-produced products are not permitted. Once approved, you receive a Professional seller account at no monthly fee (the $39.99 monthly subscription is waived for Handmade sellers), and Amazon charges a 15% referral fee per sale with no listing fees.

Handmade products can use FBA if you produce inventory in advance. This gives your products Prime eligibility and Amazon's fulfillment handling. For made-to-order products, you fulfill orders yourself (FBM) and set custom production and shipping times. Amazon Handmade supports customization options, letting customers select colors, sizes, personalization text, and other options directly in the listing. The Handmade storefront gives your brand a dedicated page within Amazon showcasing your product line and artisan story.

Etsy Overview

Etsy is the dominant marketplace for handmade, vintage, and craft supply products, with over 90 million active buyers who come to the platform specifically looking for unique, artisanal goods. Etsy charges a $0.20 listing fee per item (listings expire after 4 months and must be renewed), a 6.5% transaction fee on the sale price including shipping, and payment processing fees of approximately 3% + $0.25. Etsy's total fee structure typically works out to roughly 10% to 12% of your total order value, compared to Amazon Handmade's flat 15%.

Etsy's strength is its community and buyer intent. Shoppers on Etsy are actively looking for handmade, unique, and personalized products. They expect and appreciate artisan craftsmanship, custom options, and the personal touch that handmade sellers provide. Etsy's search algorithm favors shops with strong reviews, complete listings, and consistent activity, creating a more level playing field where small artisans can compete effectively without massive advertising budgets.

Fee Comparison

For a handmade candle selling at $28 with $5 shipping: On Amazon Handmade, the referral fee is 15% of $33 (sale price plus shipping) = $4.95. Total Amazon fees: $4.95. On Etsy, the listing fee is $0.20, the transaction fee is 6.5% of $33 = $2.15, and payment processing is approximately 3% + $0.25 = $1.24. Total Etsy fees: $3.59. Etsy is cheaper by $1.36 per sale in this example.

However, the fee comparison shifts if you factor in Etsy's optional advertising. Etsy Ads (onsite advertising) costs vary but typically run 5% to 15% of attributed revenue. Etsy's offsite advertising program charges 12% to 15% of the sale price when a customer clicks an Etsy ad on Google or social media and makes a purchase. Offsite ads are mandatory for shops earning over $10,000 per year. When advertising costs are included, Etsy's total cost per sale can approach or exceed Amazon Handmade's 15% referral fee. Amazon Handmade sellers pay for PPC advertising separately, with costs varying by category and competition level.

Audience and Discovery

Amazon's audience is vastly larger but less targeted for handmade products. A customer searching "handmade candle" on Amazon sees your Handmade product alongside mass-produced candles from private label sellers. Your handmade differentiator may not register with a customer who is primarily comparing prices and reviews. Amazon's search algorithm prioritizes sales velocity, so a mass-produced competitor selling 500 units per day will outrank your handmade product selling 10 units per day, even if your product is objectively better crafted.

Etsy's audience is smaller but highly targeted. Shoppers come to Etsy because they want handmade, vintage, or unique products. They are willing to pay premium prices for craftsmanship, customization, and the personal connection to an artisan maker. Etsy's search algorithm considers listing quality, relevance, shop activity, and reviews, giving smaller sellers a fair chance at visibility. The average Etsy buyer spends more per order on handmade items than the average Amazon buyer because they value artisanal quality over mass-market pricing.

Best Strategy: Start on Etsy, Expand to Amazon

For most artisans, the best approach is establishing your brand and refining your products on Etsy first, then expanding to Amazon Handmade once you have proven demand and production capacity. Etsy's buyer community provides valuable feedback, helps you develop your product line, and generates the reviews and social proof that translate well to Amazon's marketplace.

Once you have 50 to 100 Etsy sales and a 4.5+ star rating, list your best-selling products on Amazon Handmade. Use FBA for products you can produce in batches (candles, soaps, jewelry, printed items) and FBM for custom or made-to-order items. The combination captures both audiences: Etsy's handmade enthusiasts and Amazon's massive general marketplace.

Price consistently across both platforms. Set your retail price at a level that supports profitability on both Etsy and Amazon Handmade, accounting for each platform's fee structure. If a product needs to be $28 on Etsy to be profitable, it should be $28 on Amazon Handmade as well. Amazon's terms require that your price on Amazon is not higher than your price on other channels, so your Etsy and Amazon prices should match unless you offer Etsy-exclusive products or bundles.