Why I Left Etsy: The Top Reasons

“Etsy used to be the place for handmade sellers, but now between fees, account restrictions, and competing with drop shippers, it’s more of a headache than a help. That’s why I put my shop on vacation mode—and I haven’t looked back.”- Amy Lineberry

Etsy used to be the go-to marketplace for handmade sellers, but in recent years, it has become a source of frustration for many creators. From increasing fees to account restrictions and unpredictable policies, Etsy has changed—and not for the better. That’s why in 2023, I made the decision to put my Etsy shop on vacation mode, and I haven’t looked back since.

Why I Left Etsy: The Top Reasons

Rising Costs & Increasing Fees

One of the biggest reasons I put my Etsy shop on vacation mode was the cost. While Amazon Handmade has a straightforward 15% referral fee, Etsy piles on multiple fees that quickly eat into your profits, including:

✅ Listing Fees: $0.20 per item, whether it sells or not.

✅ Transaction fees: 6.5% on the sale price and shipping costs.

✅ Payment Processing Fees: Around 3% + $0.25 per transaction.

✅ Mandatory Offsite Fees: If you make over $10,000, you must pay for offsite ads—and you can’t opt out.

When you add all these fees together, Etsy’s costs can easily exceed 20% of a sale—sometimes more, depending on advertising costs.

On Amazon Handmade, I only pay a 15% referral fee, and there are no listing fees or mandatory ad costs. That makes it easier to price my products competitively while keeping more of my profits.

Etsy’s Account Restrictions & Unpredictability

Another major issue I (and many other sellers) have faced is account restrictions and suspensions on Etsy. Even established shops with thousands of sales have been suspended without warning —often without a clear explanation from Etsy.

 🔹 I personally faced a restriction due to an expired credit card, and while I was able to fix it, many sellers have had their accounts permanently suspended with no way to appeal.

🔹 Etsy also doesn't provide detailed feedback when an account gets flagged, leaving sellers in the dark about what they did wrong.

 On Amazon Handmade, sellers have more transparency and direct access to support if an issue arises. If a listing is flagged for policy violations, Amazon provides a clear reason and allows sellers to correct the issue.

Etsy’s Advertising System Lacks Transparency

Advertising is essential for growing a business, but Etsy's ad system is a mystery —even for experienced sellers.

On Etsy:

🚨 You’re required to pay for offsite ads if you make over $10,000.

🚨 Etsy doesn’t provide clear data on where your ad dollars go or what products are being promoted.

🚨 The cost of advertising is unpredictable—you could spend $5 a day and have no idea what product it helped sell.

On Amazon Handmade:

✔️ You only pay for ads if you choose to —and you control the cost per click.

✔️ You can see exactly which ads are working and adjust them as needed.

✔️ You don’t have to worry about hidden advertising costs eating away at your profits.

I ran the numbers on my own Etsy vs. Amazon Handmade sales, and even though Etsy’s fees seemed lower at first, once I factored in advertising costs, I was making significantly less profit per sale on Etsy.

Why Amazon Handmade Became My Solution

Once I shifted my focus to Amazon Handmade, my sales and revenue started to grow— without the stress of Etsy's changing policies.

✅ More control over pricing – I don’t have to increase my prices just to cover fees.

✅ No listing fees – I can add as many products as I want, without worrying about costs.

✅ Better advertising control – I know exactly where my marketing dollars are going.

✅ More customers – Amazon’s marketplace is massive, with millions of active shoppers.

In 2023, my total Etsy sales were just over $2,000.

In 2024, my Amazon Handmade sales were over $62,000.

That’s a HUGE difference, and it’s why I’m sticking with Amazon Handmade.

Is Etsy Worth It? My Final Thoughts

For some sellers, Etsy may still be a good option—but for me, the platform isn't making sense. The increasing fees, unpredictable policies, and lack of control over my business pushed me to focus on Amazon Handmade, and it has made all the difference.

If you’re ready to explore Amazon Handmade for yourself, I'm here to help!

📌 Join the waitlist for my course, Primed for Success, where I teach handmade sellers how to thrive on Amazon.

📌 Check out my YouTube Channel for more tips on running a successful Amazon Handmade shop.