Selling on Amazon Handmade vs Etsy in 2023
Table of Contents
- Introduction
- Amazon Handmade vs Etsy: A Comparison
- Reach and Customer Base
- Fees and Pricing Structure
- Analytics and Reporting
- Listing Fees and Advertising Options
- Competition with Marketplace Sellers
- Additional Application and Approval Process
- Fulfillment Options
- Seller Restrictions and Categories
Amazon Handmade vs Etsy: A Detailed Comparison
Are you an aspiring artisan or craftsperson looking to showcase your handmade products to a wider audience? As an e-commerce entrepreneur, the decision of whether to choose Amazon Handmade or Etsy as your platform of choice can play a crucial role in determining the success of your business. In this comprehensive guide, we will compare and contrast the key aspects of both platforms to help you make an informed decision.
1. Reach and Customer Base
One of the primary factors that you need to consider when choosing an e-commerce platform is the reach it offers and the size of its customer base. In terms of reach, Amazon Handmade has a clear advantage. With its massive customer base, Amazon provides a larger pool of potential customers for your handmade products. Many customers go directly to Amazon when searching for or browsing through products. This means that by selling on Amazon Handmade, you can benefit from a wider audience and exposure to more potential customers.
On the other hand, Etsy, although smaller than Amazon, still boasts a significant customer base. While the customer reach may not be as extensive as Amazon, Etsy has established itself as a popular platform specifically catering to handmade and unique products. If your target audience aligns more with the creative and artisan community, Etsy could be the ideal platform for your business.
2. Fees and Pricing Structure
When running an e-commerce business, it's essential to consider the fees and pricing structure imposed by the platform you choose. This can significantly impact your profitability and overall success. Amazon Handmade and Etsy have different fee structures, and understanding these differences is crucial.
Amazon Handmade has higher selling fees compared to Etsy. In addition to referral fees, Amazon charges various other fees, especially if you opt for Fulfilled by Amazon (FBA) services. These fees can decrease your profit margin and impact your bottom line. However, Amazon Handmade offers a free professional plan for sellers, eliminating the listing fees typically associated with selling handmade products on the platform.
On the other hand, Etsy has lower fees, but the platform does charge listing fees. While these fees are not exorbitant, they still exist and should be factored into your pricing strategy. It's essential to consider the overall cost structure of each platform and evaluate how it aligns with your business model and profit objectives.
3. Analytics and Reporting
Having access to accurate and detailed analytics is crucial for understanding your business's performance and making informed decisions. Both Amazon Handmade and Etsy provide analytics and reporting tools, but there are notable differences between the two.
Etsy offers a more comprehensive set of analytics compared to Amazon Handmade. Through the Etsy seller dashboard, you can track metrics such as the number of visitors to your store, where they came from, and other valuable insights. These analytics can help you understand customer behavior, preferences, and optimize your marketing strategies accordingly.
On the other hand, Amazon Handmade provides limited analytics, primarily focusing on sales data. While you can track your sales performance and metrics like conversion rates, Amazon does not provide the same level of granular insights as Etsy. If detailed analytics are crucial for your business, Etsy might be the better choice.
4. Listing Fees and Advertising Options
The listing fees and advertising options offered by each platform are essential aspects to consider. Amazon Handmade does not charge listing fees, providing a cost-effective option for sellers. However, it's important to note that Amazon does have various other fees, such as referral fees and FBA fees. If you're planning to sell on Amazon Handmade, ensure that you carefully evaluate these additional fees to accurately calculate your profit margins.
Etsy, on the other hand, charges nominal listing fees for each product. While these fees may seem small on an individual basis, they can accumulate over time, impacting your overall profitability. However, Etsy offers more flexibility in terms of advertising options. Both platforms provide advertising campaigns, but Etsy allows you to target customers within their ecosystem more precisely. This can be beneficial if you have a niche product or a specific target audience.
5. Competition with Marketplace Sellers
One unique aspect of Amazon Handmade is that it competes with its own sellers. If Amazon deems a particular product successful, they may create their own version and market it alongside your handmade items. While this may lead to increased competition from Amazon, it also highlights the potential opportunity for your products to gain visibility and reach a broader audience.
Etsy, on the other hand, does not engage in direct competition with its sellers. The platform focuses solely on supporting and promoting unique, handmade, and vintage products. This could provide a more level playing field, allowing your handmade items to stand out without the added competition from the platform itself.
6. Additional Application and Approval Process
When considering Amazon Handmade and Etsy, it's important to note that Amazon Handmade requires an additional application and approval process. After creating a selling account on Amazon, you will need to apply separately for Amazon Handmade. This approval process aims to ensure that all products sold on Amazon Handmade meet the platform's handmade criteria and quality standards. Once approved, you can enjoy the benefits of a free professional plan provided by Amazon.
Etsy, on the other hand, does not have a separate approval process for handmade products. As long as your products meet the platform's guidelines and policies, you can list and sell them without any additional steps. This streamlined process can be advantageous for independent artisans and crafters looking for a quick and straightforward way to start selling their products.
7. Fulfillment Options
Another crucial factor to consider when choosing between Amazon Handmade and Etsy is the fulfillment options. Amazon Handmade offers the advantage of utilizing Amazon's extensive fulfillment network through Fulfilled by Amazon (FBA) services. This means that you can store your handmade products in Amazon's warehouses, and they will handle the packaging, shipping, and customer service logistics. FBA can save you valuable time and streamline your operations, especially if you expect a high volume of orders.
Etsy, on the other hand, does not have an in-house fulfillment service like FBA. As an Etsy seller, you are responsible for the fulfillment process, including packaging and shipping your products to customers. While this may require more hands-on effort and time management, it also gives you greater control over the fulfillment process and the opportunity to provide a unique, personalized experience for your customers.
8. Seller Restrictions and Categories
Finally, it's essential to consider the types of items you can sell on each platform. Amazon Handmade offers a broader range of product categories compared to Etsy. With Amazon, you have access to categories like clothing, jewelry, home decor, and more. However, keep in mind that Amazon has stricter guidelines and quality standards for handmade products, as they aim to maintain the platform's reputation for quality and authenticity.
Etsy, on the other hand, specializes in handmade, vintage, and unique products. While the product categories may be slightly narrower compared to Amazon, the platform provides a supportive community and a targeted audience specifically looking for handcrafted items. If your products fall within Etsy's categories, you can benefit from the platform's niche focus and passionate user base.
In conclusion, choosing between Amazon Handmade and Etsy requires careful consideration of various factors. Amazon Handmade offers a larger customer reach and provides a free professional plan, but it comes with higher selling fees and potential competition from Amazon itself. Etsy, on the other hand, caters specifically to handmade and unique products, provides more detailed analytics, and greater control over the fulfillment process.
Ultimately, the decision boils down to your business goals, target audience, and product offerings. Both platforms have their own pros and cons, so take the time to evaluate each platform's features and choose the one that aligns best with your e-commerce journey.
Highlights:
- Amazon Handmade and Etsy are popular e-commerce platforms for selling handmade products.
- Amazon Handmade offers a larger reach and customer base, while Etsy has lower fees.
- Etsy provides more detailed analytics, while Amazon Handmade has limited reporting.
- Amazon Handmade competes with its own sellers, while Etsy focuses solely on handmade and unique products.
- Amazon Handmade requires an additional application process, while Etsy has a streamlined approval process.
- Amazon Handmade offers fulfillment services through FBA, while Etsy sellers handle fulfillment themselves.
- Amazon Handmade has a broader range of product categories, while Etsy specializes in handmade and vintage items.
FAQ
Q: Can I sell both handmade and commercial products on Amazon Handmade and Etsy?
A: No, Amazon Handmade and Etsy are dedicated platforms for selling handmade and unique products only.
Q: Which platform has a larger customer base?
A: Amazon Handmade has a significantly larger customer base compared to Etsy due to its massive reach as an e-commerce giant.
Q: Do I have to pay listing fees on Amazon Handmade and Etsy?
A: Amazon Handmade does not charge listing fees, while Etsy charges nominal listing fees for each product.
Q: Can I use Amazon's FBA services on Etsy?
A: No, Etsy does not offer fulfillment services like Fulfilled by Amazon (FBA). Etsy sellers handle their own fulfillment processes.
Q: Is it possible to advertise my products on Amazon Handmade and Etsy?
A: Both platforms offer advertising options, but Etsy provides more flexibility in targeting specific customers within its ecosystem.
