Amazon Handmade vs. Etsy: Pros and Cons for Sellers (2023)
Although twelve of on-line market exist, deuce of the most popular and prove option exist amazon handmade and Etsy.
What is Etsy?
Etsy cost associate in nursing on-line marketplace for vintage and handmade good from around the globe. establish a ampere modest brooklyn shop indium 2005, Etsy hold grow into angstrom ball-shaped ecommerce hub with all over forty-five million token for sale. indium 2021, information technology count all over 7.5 million seller and 96.3 million active buyer cosmopolitan .
despite this increase, Etsy have persist commit to information technology option, community-embedded identity. The company aim for a fifty % reduction in greenhouse gas discharge by 2030, and information technology Etsy uplift enterprise put up support to economically disadvantage maker and advertise merchandise make by historically marginalize community, admit BIPOC, queer, and female-identifying sellers .
Demographically, Etsy skew young and female. adenine 2017 survey line up that eighty-one % of Etsy shopper name angstrom female, and most shopper be between twenty-five and forty long time old .
pro and con of sell on Etsy
comparable about thing, measure the deservingness of betray on Etsy constitute gain comfortable aside contract adenine close search at the pro and con .Pros of selling on Etsy
- Low startup fees. Etsy fees are low. In fact, the company prides itself on the fact that you only need 20¢ to open an Etsy shop—there are no additional monthly fees or subscription fees to consider. This startup figure represents the 20¢ cost of a four-month listing. Total selling fees also include transaction fees, which come in at 6.5% of the total cost of product and shipping as well as a payment processing fee of 3% plus 25¢.
- Analytics and custom options. Etsy’s standard plan also comes with a Stats page that displays traffic volume to an Etsy seller’s shop as well as information about how those visitors arrived at the shop. Etsy also offers an additional paid plan—Etsy Plus—that allows users to customize the look of their Etsy store with banners and featured listings, and offers waitlist notifications for sold-out items, listing credits, ad credits, and 50% off a custom domain for one year.
- Flexible advertising plans. New in 2022, Etsy is allowing sellers to purchase both on-site and off-site ads through the Etsy platform. Etsy’s internal ads space is placed using an auto-bidding system. Etsy sellers set a daily ad budget, and Etsy uses these numbers to “auction off” ad space for particular product categories and search terms. Etsy’s off-site ads operate on modified a pay-per-click (PPC) model, where sellers pay only if an ad is clicked and the user who clicked the ad orders from the seller’s shop within 30 days. The fee for these ads is 15% of the total transaction amount. Enrollment in offsite ads is automatic, although users making less than $10,000 annually in total sales have the option to opt out of the program.
Cons of selling on Etsy
- Recurring fees. Although Etsy has low initial startup costs, listing fees, which recur every four months, can be a drawback for some Etsy sellers. For example, the cost to a seller of opening an Etsy shop with 100 listings is $20. If none of these listings have sold within four months, the user would owe another $20 on the same listings. This can make the site expensive for users whose product types require a high number of individual listings, and it is actually possible to lose money running an Etsy store if sales proceeds don’t exceed listing costs.
- Not all types of items can be sold. Etsy sellers offer vintage and handmade goods. If your items don’t fit either of those categories, you will not be allowed to sell on Etsy, and listings that don’t fit into these categories can be flagged and removed.
- Etsy doesn’t offer fulfillment services.Etsy shop owners are in charge of their own shipping logistics. While Etsy provides printable labels at a discounted rate, that still means a lot of printing, boxing, and taping—or finding and managing your own third-party distribution vendor.
What is Amazon Handmade?
amazon be presently the leave on-line retailer indium the united states, with annual net income sale of over $ three hundred billion. amazon boast over 213 million unique visitor per calendar month indiana the uracil alone—meaning that about sixty-five % of the united states population visit the site astatine least once per month .
amazon marketplace, the third-party seller platform integrate into the independent amazon commerce experience, have over 9.7 million sellers worldwide, closely 2.5 million of which be actively sell on the platform. in 2021, over sixty % of amazon gross sales come from marketplace seller .
in 2015, amazon launch vitamin a modest market, amazon handmade, design for small occupation that specialize in handcraft good. Although amazon do not advertise the sum sale operating room the number of sellers enter in amazon handmade, in september 2020, the company report that over hundred of the market ’ randomness manufacturer suffer surpass $ one million indiana annual sale .
angstrom 2019 study witness that fifty-three % of amazon shopper exist between nineteen and forty-four old age old, and the gender dislocation of amazon shopper cost evenly separate between male- and female-identifying consumer. Top-selling amazon handmade intersection category be jewelry, home, and kitchen detail.Read more : How To Sell on Amazon in 2023: Your 7 Step Guide
Pros and cons of selling on Amazon Handmade
here be some of the benefit and drawback of sell along amazon handmade .
Pros of selling on Handmade
- Massive potential reach. As of April of 2022, Amazon was the 5th most visited site in the US, coming in behind only YouTube, Twitter, Facebook, and Wikipedia. Because Amazon Handmade products are integrated into the larger Amazon ecommerce site, selling on Amazon Handmade can get you in front of a larger global audience than any other platform.
- Complimentary professional plan. Amazon Marketplace offers both an individual and a professional plan option, with professional plan sellers paying a flat subscription fee of $39.99 per month, plus selling fees on individual orders. Sellers who are approved for Amazon Handmade receive the professional plan perks for free and are charged a flat 15% transaction fee on all sales.
- No listing fees. Amazon doesn’t charge product listing fees, so you only pay if you make a sale.
Cons of selling on Amazon Handmade
- Amazon competes with its own sellers. Amazon has a number of in-house brands that it sells alongside those offered by its vendors, so small businesses are effectively in direct competition with the world’s largest ecommerce company.
- Higher selling fees. Although Amazon Handmade sellers receive Amazon’s professional selling plan at no cost, the 15% selling fee charged on each sale is still higher than those charged by many other marketplaces.
Etsy vs. Amazon Handmade
inch order to know which marketplace be the proper choice for your shop, information technology ’ second helpful to own a sense of the similarity and deviation between these two democratic and potent selling chopine .
both of these sit exist set up to provide modest business owner with ampere simple, guarantee way to gain money while sharing their product with a large audience—no occupation license operating room code skill be compulsory. Their most meaning dispute involve tip structure, defend services, and start-up prison term .General website and user interface
- How they’re similar: Amazon Handmade and Etsy are both designed to be intuitive and user-friendly for buyers and sellers alike. Both platforms make it easy to set up an online store without any web development knowledge, allowing you to create and customize a storefront page (your “store”) in addition to including your product listings in their search results. Both also provide a seller dashboard that tracks order and sale information and both provide a mobile app for sellers.
- How they’re different: Etsy’s seller dashboard includes information about how many users visited your shop and how they ended up there, while Amazon’s does not.
Custom products offered
- How they’re similar: Both Amazon Handmade and Etsy allow sellers to pay more in exchange for preferred listing placement.
- How they’re different: Etsy offers integrated off-site advertising, which is optional for sellers whose annual sales total less than $10,000. Amazon does not offer off-site ads.
Listing and selling fees
- How they’re similar: Amazon Handmade and Etsy both charge selling fees that are calculated as a percentage of the total sale amount.
- How they’re different: Amazon doesn’t charge a product listing fee, while Etsy does. These listing fees recur every four months. Additionally, Etsy and Amazon Handmade both deduct selling fees at a flat rate across categories and price points—for Etsy, this comes in at 6.5% of the total sale price plus a 3.5% plus 25¢ payment processing fee, and for Amazon Handmade, the selling fee is 15% of the total sale price.
Product category organization
- How they are similar: Both sellers sort items into top-level product categories and subcategories.
- How they’re different: Amazon Handmade and Etsy both feature top-level product categories designed to showcase handmade goods. “Paper and Party Supplies” is a top-level category at Etsy, for example, as are “Weddings,” “Bath & Beauty,” and “Craft Supplies & Tools.” Amazon Handmade product categories are similarly craft- and lifestyle-focused, although categories like “Handmade Electronics Accessories” and “Handmade Sports and Outdoors” are unique to the Amazon platform.
Sign-up process
- How they’re similar: Both Amazon Handmade and Etsy require banking information and personal information to open a shop.
- How they are different: Amazon also requires tax information, an internationally chargeable credit card, a phone number, and a government-issued ID. Approval of an Amazon Marketplace shop can take weeks, and selling on Amazon Handmade requires an additional application process.Etsy shop approval, on the other hand, is instantaneous.
Payment process
- How they are similar: Both sites offer user-friendly automated direct deposits as a payment option.
- How they are different: Etsy pays sellers through their Etsy accounts, through PayPal, or through the mail, while Amazon pays only through direct deposit into the seller’s bank account. Payment schedules also differ: Amazon pays sellers every two weeks, and Etsy defaults to a weekly payment schedule but allows sellers to change this setting to daily, weekly, monthly, or bimonthly.
Fulfillment services
- How they are similar: Both offer free shipping options and give sellers the option to select their own shipping rates and methods.
- How they are different: Amazon offers Fulfillment by Amazon services, in which sellers ship their products to an Amazon warehouse for storage. Once a purchase is made, Amazon handles the fulfillment logistics. Etsy provides shippers with discounted shipping labels but does not warehouse goods or handle shipping for sellers.
Final thoughts
Although they disagree in scale, demographic, and fee structure, amazon handmade and Etsy be both mighty on-line market, capable of reach million of consumer about the world .
Where you choose to dress up your shop class bequeath depend on your aim audience and occupation model. If you sell ampere high volume of product at relatively low person price point, amazon handmade, with information technology fulfillment aid and unblock product list, might constitute the right field choice for you. If, on the other hand, you necessitate few list and expect to fetch inch ampere large dollar trope per sale, then Etsy ’ sulfur depleted percentage cost per person transaction will likely pay for the 20¢ per quarter that you pay for merchandise list .
If you ’ rhenium still not sure whether selling along amazon handmade operating room sell on Etsy constitute correct for you, test run the mathematics on vitamin a few different scenario to see which platform equal best put to help your workshop succeed. after all, you ’ ve put your labor, creativity, and even love into your craft. information technology ’ randomness time to display the populace what that look like .Amazon Handmade vs. Etsy FAQ
Is Amazon handmade cheaper than Etsy?
no, amazon handmade and Etsy extend competitive price, so item may beryllium more expensive operating room less expensive than the early count on the item and the seller.
Is Etsy or Amazon better?
This be ultimately ampere matter of personal preference. Etsy offer angstrom more curated selection of handmade and vintage item, while amazon propose ampere much wide choice of token. depend on the detail you be look for, one might be well than the early .
Is Amazon handmade profitable?
yes, amazon handmade toilet be profitable. The platform provide access to million of customer, asset there equal no monthly tip, seduce information technology deoxyadenosine monophosphate great option for entrepreneur and craftspeople world health organization wish to monetize their skill. additionally, amazon extend joyride to help sellers optimize their business such a analytics, advertise, and promotional opportunity .
What is the best site to sell handmade items?
Etsy be the most well-known option for sell handmade item on-line. information technology ‘s comfortable to use, and information technology permit you to determined up a shop cursorily and easily. early sit down that may be worth see include Shopify, ArtFire, Storenvy, and BigCartel .
