Amazon Handmade vs Etsy
“As handmade sellers, we often wonder: Etsy or Amazon Handmade? Both have value—but only one has the scale, systems, and trust that can truly grow your business.” - Amy Lineberry
Amazon Handmade vs Etsy: Which is Best for Your Business?
“Trying to decide between Amazon Handmade vs Etsy for your creative business? You’re not alone. These are two powerful, yet very different, platforms for handmade sellers. Let’s break it down so you can make the best decision for your shop.”
Why This Comparison Matters
As a handmade seller, you’ve probably wondered: Should I stick with Etsy, or expand to Amazon Handmade? Both platforms give you access to a huge audience, but how they operate—and the results you can expect—are very different.
In this post, I’ll walk you through the key differences between Amazon Handmade vs Etsy:
Customer base and reach
Fees and profit margins
Advertising options
Storefront customization
Approval process and seller support
Returns and fulfillment
By the end, you’ll have a clear sense of which platform aligns with your business goals.
Want step-by-step help getting started on Amazon Handmade? Grab my free Getting Started Checklist today!
Amazon Handmade: The Big Picture
Amazon Handmade is Amazon’s curated marketplace for artisans and makers. With over 300 million buyer accounts —and more than 200 million Prime members —your products sit alongside some of the most trusted brands in the world.
While Amazon has 9–10 million seller accounts, only about 2 million are active—and handmade sellers are a small fraction of that. That means the potential for your products to stand out is massive. More than 60% of sales in the Amazon store are from independent sellers!
Amazon Handmade also integrates seamlessly with FBA (Fulfilled by Amazon), which gives your products the coveted Prime badge and faster shipping options. For many sellers, this is the biggest game-changer.
Etsy: The Niche Marketplace
Etsy, on the other hand, has about 90 million active buyers and roughly 6 million sellers. While the customer base is smaller than Amazon’s, Etsy has positioned itself as the destination for unique, one-of-a-kind items.
Buyers on Etsy are often seeking personalization, handmade detail, or vintage items. If your brand thrives on custom work and storytelling, Etsy may feel more at home.
But Etsy also has a lot more competition per customer compared to Amazon. You’ll need to stand out in a crowded field—and often rely heavily on ads—to gain visibility.
Fees: Clarity vs Complexity
One of the most important things to consider when comparing Amazon Handmade vs Etsy is how much you'll actually take home after fees.
Here’s a clear breakdown:
📌Quick Example:
Amazon Handmade: Sell a $20 item → pay $3.00 in referral fees.
Etsy: Sell a $20 item → 6.5% transaction ($1.30) + 3% processing ($0.60) + $0.25 flat fee + listing fees → roughly $2.35+. But if the buyer pays $5 shipping, that extra $5 is also hit with the 6.5% fee, making Etsy’s cut higher.
👉 Amazon Handmade fees are more straightforward, while Etsy’s layers can sneak up on you—especially with multiple small transactions.
Advertising: Control vs Simplicity
Amazon Handmade (PPC Advertising):
Full control over your daily budgets and cost-per-click.
Ability to test multiple keywords.
Sponsored Products, Sponsored Brands, and more.
Great for scaling visibility once you have a product that converts well.
Etsy Ads:
👉 If you like granular control and optimization, Amazon wins. If you want set-it-and-forget-it simplicity, Etsy might work better.
Storefronts & Branding
Etsy shops look almost identical—same banner, same layout. You can upload a profile picture and adjust sections, but customization is limited.
Amazon Handmade, however, gives you access to:
A customizable storefront page (structured more like a personal website).
A Maker Profile, where you can showcase your story, process, and photos.
Opportunities for A+ Content (enhanced product descriptions with graphics, FAQs, and brand storytelling)—if you later pursue trademark and Brand Registry.
👉 Etsy may give you more cozy branding appeal, but Amazon Handmade lets you build a professional storefront that scales like a real brand.
Product Variations
Etsy limits each listing to 70 total variations, which can be frustrating if your product line has many options. Inputting them is also manual and time-consuming.
Amazon Handmade allows:
Two main variation categories (e.g., color and size).
Unlimited options within those categories.
👉 This means Amazon is a much better fit if you sell products with multiple SKUs or variations.
Approval Process & Seller Support
Etsy: Anyone can open a shop with minimal verification. While this makes it easy to start, it also floods the marketplace with resellers and questionable listings. Etsy uses AI to police, but legitimate sellers often get caught in the mix.
Amazon Handmade: Requires an application that asks about your process, photos, and product details. It’s a curated marketplace, so not everyone gets in. But once approved, you gain access to the Handmade category and the support of Amazon’s seller teams—including a dedicated handmade team.
👉 Etsy is faster to start, but Amazon Handmade’s vetting adds credibility and filters out mass-produced competition.
Etsy: Choose daily, weekly, biweekly, or monthly payouts. But frequent small deposits can be frustrating to track.
Amazon Handmade: Payouts every two weeks by default, with the option to request faster transfers. Amazon also offers Amazon Lending (and various lending partners) —a financing option that allows sellers to borrow capital based on shop performance.
👉 If you prefer predictable income and reinvestment options, Amazon has the edge.
Etsy: Each shop sets its own return policies, which can vary widely. Buyers must dig into your shop details to find them.
Amazon Handmade: Standardized return policies. Amazon often auto-approves returns and handles customer service for Prime orders. While this can feel strict, it also builds trust with customers and leads to more conversions.
Prime Advantage
This is the biggest differentiator between Etsy and Amazon Handmade.
With Amazon Handmade, you can use FBA (Fulfilled by Amazon) to:
Send inventory to Amazon’s warehouses.
Get your products listed with the Prime badge.
Tap into Amazon’s fast, reliable shipping network.
Etsy simply can’t compete with this. Buyers often filter for Prime items specifically, which means your visibility—and sales—can skyrocket.
👉 My own shop grew from $2K/month on Etsy to over $60K/year on Amazon Handmade thanks to FBA.
Both platforms have strengths:
Etsy is easier to get started, better for custom/personalized items, and appeals to niche buyers.
Amazon Handmade has massive reach, simpler fees, and the power of Prime to drive consistent growth.
But if your goal is to scale your handmade business beyond side hustle income, Amazon Handmade is the stronger long-term choice.
Final Thoughts
Choosing between Amazon Handmade vs Etsy depends on your goals. Etsy might work if you’re testing the waters or focusing on one-off custom items. But if you want to scale, reach new audiences, and take advantage of Amazon’s logistics and trust—Amazon Handmade is hard to beat.
👉 Ready to dive in? Grab my free Getting Started Checklist for Amazon Handmade and start setting up your shop today!
