If you are an artist you want to grow your business by selling handmade products at different marketplaces, your should be familiar with the differences between selling handmade products on Amazon vs. Etsy.
Therefore, the purpose of this article is to thoroughly discuss Amazon Handmade and Etsy, two of the leading platforms in the handmade market, so that you are able to make maximum profits by using the best platform.
Importance of Choosing a Suitable Marketplace
Choosing the right platform to sell your handmade products can be the make-or-break factor in your business selling handmade products. The ecommerce industry has grown exponentially, especially in the last few years.
As a result, there is a long list of ecommerce platforms that are trying to attract sellers on a daily basis. By the end of this article, you will have all the important information about selling handmade on Amazon vs. Etsy so that you are able to make the best choice as per your requirements.
Overview of Amazon and Etsy
Amazon is certainly the most popular ecommerce platform in the world. There are many people who might not have used Amazon, but they have definitely heard of its name. A major reason behind the massive popularity of Amazon is its global accessibility and wide-ranging product catalog.
Amazon introduced a separate platform to sell handmade products in 2015 called the Amazon Handmade. The working of Amazon Handmade is quite different from the primary Amazon selling platform.
On the other hand, Etsy was established way back in 2005. It is one of the first online platforms that is dedicated to creative individuals and artists. You can sell a lot of unique products on Etsy, such as vintage and handmade items.
Over the years, Amazon and Etsy have established themselves as two of the leading names in the handmade marketplace. As a result, the analysis of the differences between these major competitors is important.
Fees
You have to choose a specific package to start selling handmade products on Amazon Handmade. For instance, if you are selling over 40 products per month, you will have to pay a fee of $39.99 to Amazon on a monthly basis. Other than the flat charges, sellers also have to pay a 15% commission to Amazon Handmade.
There are no subscription charges on Etsy. You can sign up on Etsy for free. If you want to enjoy the additional features and benefits like the seller tools, you can upgrade to Etsy Plus, which costs $10 per month.
Etsy also has a 5% transaction fee for each sale. Despite these charges, the fees of Amazon Handmade are significantly higher than Etsy. This means that Etsy is better than Amazon Handmade in terms of the fees, so if you want to sell products at a lower price, you should be using Etsy.
Order Fulfillment
Order fulfillment plays a critical role in the success of a business. If you are able to complete the orders quickly and efficiently, you will be able to satisfy the customers and turn them into loyal consumers.
One of the most important benefits of Amazon is that it has the renowned Fulfillment by Amazon (FBA) program through which sellers can ensure quick order fulfillment without dealing with inventory management and shipping procedures personally/
In other words, Amazon takes full responsibility for storing the products and shipping them when an order is confirmed. This kind of service is not available on Etsy. If you are selling handmade products on Etsy, you will have to bear the responsibility of fulfilling and shipping the orders.
Competition
According to the latest statistics, Amazon has 6 million sellers while Etsy has 4.4 million. Etsy has a very large number of active handmade sellers when compared to a platform like Amazon. However, the revenue of Amazon is much higher than Etsy’s.
If you are looking for a slightly less competitive platform, then you should consider selling your products on Etsy. Since it has a lesser number of sellers, you will be able to make your product stand out and attract more customers.
Registration Process
Selling handmade products on Amazon vs. Etsy is different because both of these platforms work in different ways. Generally, it is much easier to create your seller profile on Etsy than on Amazon Handmade.
You can easily set up your shop on Etsy by making a few clicks. In comparison, the registration process for Amazon Handmade is a little difficult and lengthy. Once you submit your application to Amazon, you will get approval within a few days or even weeks. Therefore, if you want to quickly start selling handmade products, you should choose Etsy.
Conclusion
The bottom line is that both Amazon and Etsy have their pros and cons. Amazon is certainly the leader in the ecommerce industry, but it still has a lot of room for improvement and growth in the handmade industry. Etsy has managed to carve a niche for itself as a reliable marketplace of handmade products. Therefore, the difference between selling handmade products on Amazon vs. Etsy shows that Etsy is easier to use and has relatively lesser internal competition.
