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Amazon Handmade vs Etsy: An Ultimate Guide for Sellers
Amazon Handmade vs Etsy: An Ultimate Guide for Sellers
6min read·Krista Plociennik·Nov 28, 2025
The world of e-commerce for handmade products continues to see exceptional growth. With more customers looking for unique handmade goods, many sellers are now trying to decide between two leading platforms: Amazon Handmade vs Etsy. Both platforms attract millions of active users annually, support small businesses, and provide big exposure. However, each one also comes with its own distinct advantages, approval systems, fees, and growth potential.
This guide will look at everything handmade sellers need to know – from the application process to fee comparisons, audience behavior, profitability, and long-term scalability. This will help you make a more informed decision for your business in 2026.
Table of contents
- Amazon Handmade vs Etsy: Understanding each platform
- Amazon Handmade fees vs Etsy fees
- Getting started on Amazon Handmade and Etsy
- Amazon Handmade vs Etsy: Which one’s better for your business?
- Final thoughts:Creating a successful online business
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Amazon Handmade vs Etsy: An Ultimate Guide for Sellers
Amazon Handmade vs Etsy: Understanding each platform
Amazon handmade overview
Amazon Handmade is a unique online marketplace within the larger Amazon marketplace. It’s designed for artisans to sell their handmade items, but unlike Etsy it requires an application process. This helps Amazon to verify that the products are genuinely handmade. Some key characteristics include:
- Integration with Amazon FBA, Prime shipping, and advanced fulfillment options.
- Access to a broader audience of over 300 million Amazon users.
- Strong trust signals, backed by Amazon’s customer service and delivery systems.
Handmade attracts customers looking to purchase premium handmade goods with fast shipping options. This brings in an audience that’s typically different from Etsy shoppers.
Etsy marketplace fundamentals
Etsy started out in 2005 as a community-centric platform supporting independent sellers, vintage sellers, and artisans. Today, with over 5 million active sellers and over 88 million active buyers, Etsy remains as popular as ever. Its core traits include:
- Community feel with built-in direct communication between customers and sellers.
- Big focus on vintage items, handmade crafts, and unique product categories.
- More flexible for handmade stores and digital products than Amazon.
Etsy is known for having stricter policies than Amazon Handmade though. Higher fees and increased ads have prompted some Etsy sellers to explore Etsy alternatives. However, the platform’s niche audience, personal touch, and customization options are among its many advantages.
Main differentiators for sellers
- Etsy allows more storytelling, shop branding, and customization. Amazon Handmade enforces consistent branding across its marketplace, which limits individuality but helps to build trust.
- Etsy’s community-driven model encourages repeat buyers. Amazon offers less boutique-like charm but focuses on efficient ordering.
- Amazon wins on fulfillment trust and reliability, but Etsy wins in terms of emotional connection and creativity.
Amazon Handmade fees vs Etsy fees
Amazon Handmade fee structure
Sellers using Amazon Handmade will face a flat 15% referral fee based on the full amount a buyer has paid per order. This is applicable on any orders over $1.00. Unlike regular Amazon sellers, Handmade sellers pay no listing fees and no payment processing fees. This is a major advantage for a lot of business owners.
The $39.99 monthly Standard Professional Selling fee will be waived once a seller has been approved. This will remain in place as long as the seller stays approved for the program.
On a $100 sale, sellers need to take into account the 15% referral fee that will be taken from the total. In this instance, the seller would pay $15 (plus shipping if self-fulfilled).
Etsy fees
Etsy fees are more layered than Amazon Handmade. This structure includes:
- 6.5% transaction fee
- 3% + $0.25 payment processing fee
- $0.20 listing fee
- Optional ads will add additional fees per click
Over time, these fees can cut into seller’s margins, especially if they’re using ads or selling low-priced handmade goods. From a $100 sale, for example, Etsy takes:
- Transaction fee: $6.50
- Processing fee: $3.25
- Listing fee: $0.20
- Total: $9.95 (higher if ads are being used)
Getting started on Amazon Handmade and Etsy
Amazon Handmade application process
While Etsy signup is instant, there’s a strict application process for using Amazon Handmade. This process verifies:
- Your workshop/team size
- Your handmade items are created by hand
- Your creation method
- You meet the requirements of the Handmade category
It can take up to 2 weeks to be approved. Common rejection reasons are:
- Not enough detail provided in the application process
- Outsourcing production
- Selling prohibited items
You do not need an LLC to start, but for liability protection, serious businesses will form one.
Etsy’s simple setup process
Starting an Etsy shop is very straightforward:
- Create an account
- Add listings
- Pay the $0.20 listing fee per product
Startup costs on Etsy are low, with many sellers launching with a small budget. While an LLC isn’t required, small business owners could benefit from one depending on their tax strategy.
Amazon Handmade vs Etsy: Which one’s better for your business?
Better platform by product type
- Print-on-demand: Etsy with a strong POD culture using Printify/Printful.
- Vintage items: Etsy as it’s more difficult to sell vintage on Amazon.
- Home decor: Amazon Handmade with better margins at higher prices.
- Jewelry: Etsy has a better visual marketplace and strong niche search.
Business model alignment
Choose Amazon handmade if you’re looking for:
- A broader audience
- Consistent rules (even if they’re stricter)
- High-quality, scalable handmade products
Choose Etsy if you want:
- To sell jewelry, handmade crafts, art, or customizable products
- A great platform for storytelling
- Direct contact and personal touch with customers
Future-proofing your choice
Once you have a firm grasp on the differences between the two platforms, the next step is to understand upcoming trends. Going into 2026, Amazon is expanding its Handmade categories globally, meaning there will be more opportunities to sell products that don’t currently fit in on the platform. Etsy is set to increase its reliance on ads, so these additional costs may cut into your margins. Sellers should also take a look at alternatives like TikTok Shop and Shopify, which are attractive for small business creators.
Your decision should balance production capacity, audience, margin, and long-term brand strategy.
Final thoughts: Creating a successful online business
When comparing Amazon Handmade vs Etsy, there’s no universal “better platform”. However, one may be a better fit for your business model and products than the other. Choose Amazon Handmade if you want trust, scale, and large revenue potential, and Etsy if you value branding freedom, creativity, and a loyal audience looking for unique handmade goods. It’s very common for businesses to use both platforms, leveraging each one’s strengths to ensure long-term stability.
Sellers who want to identify the most profitable platform can use AI-driven tools such as Accio.com to help make their decision-making process a little easier. Accio is a smart sourcing tool that can assist small business owners looking to optimize their online selling strategy. It has the ability to consolidate fee comparisons, market data, and demand trends across different marketplaces. This means you can save time that can be used elsewhere.