Etsy has long been home to creative businesses that want a simple, customizable online shop where customers search for unique products. Amazon Handmade is usually better for established sellers who want to scale with a massive customer base and built-in fulfillment tools.
Deciding whether selling on Etsy vs Amazon Handmade is better for your handmade business takes research, so we compared the costs, opportunities, and responsibilities of each to help you choose.
Quick Comparison: Etsy vs Amazon Handmade
The best platform goes beyond the listing fees to include setup, seller rules, and requirements, such as handmade business insurance. Here’s a quick summary of how selling on Etsy vs Amazon Handmade compares:
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| What to Compare | Etsy | Amazon Handmade |
|---|---|---|
|
Best For |
Makers who want an easy setup, creative freedom, and a handmade-focused audience |
Established makers looking to scale, reach more customers, and get logistics help |
|
Fees |
One-time shop setup fee +
$0.20 listing fee + 6.5% transaction fee + payment processing fees
|
$39.99 plan fee (waived after the first month) + 15% referral fee (or $0.30 minimum) per sale |
|
Ease of Use |
Same-day shop creation with customization |
Application and approval required, with limited shop customization |
|
Customer Base |
More than 86 million active buyers |
Over 300 million shoppers Amazon-wide |
|
Products Allowed |
Handmade, seller-designed, vintage, print-on-demand, and craft supplies |
Products that meet handmade eligibility and category rules; third-party production is restricted
|
|
Shipping |
Seller-managed with optional shipping label tools |
Fulfillment by Amazon (FBA), or seller-managed for custom pieces and labeling |
|
Seller Protections |
Purchase protection for eligible orders |
Order disputes and FBA-only shipping protections |
|
Insurance Requirement |
Recommended, but not required |
Required for qualifying sellers |
Is It Easier to Set Up an Etsy Shop or an Amazon Store?
Etsy is generally easier to set up than Amazon Handmade, offering a faster, more accessible way to start selling your art online. Each marketplace has different levels of customization and control over how you present your handmade business.
Etsy: Same-Day Shop Setup + Customization
Create a seller account and list your products in one day with Etsy’s quick setup, which includes adding your payment information, shipping preferences, and return policy. Once your shop is open, personalize it with branding elements and photos, plus an “About” section where you can tell customers your story.
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| Pros | Cons |
|---|---|
|
✔️ No lengthy application process ✔️ Customizable branding and shop details ✔️ Flexibility to set your own shop policies |
❌ One-time shop setup fee ❌ Limited control over your shop’s layout ❌ Responsibility for your own listings and policies |
Amazon Handmade: Application Process + Limited Branding
Amazon Handmade requires an application and approval process designed to root out ineligible creators. Expect to provide details and photos of your production process, materials, and products. Once approved, you can create your product listings and maker profile, but customization is limited.
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| Pros | Cons |
|---|---|
|
✔️ Exclusive to handmade sellers ✔️ Access to Amazon’s established listing management tools |
❌ Application approval delays your launch ❌ Less control over your storefront appearance ❌ More involved account setup and verification |
How Do Etsy & Amazon Handmade Seller Fees Compare?
While both platforms charge an upfront fee to get started, Etsy charges several small selling fees, and Amazon has a 15% referral fee per sale. What’s most cost-effective for you depends on your pricing strategy, sales, and whether you use additional platform services.
Etsy: Small Fees Can Add Up
Etsy’s Fees & Payment Policy includes a one-time shop setup fee in addition to:
- $0.20 listing fee per item (renews every four months)
- 6.5% transaction fee
- Variable payment processing fee (usually 3% plus $0.25)
Makers can pay additional monthly fees for services like advertising, shipping labels, and subscription-based features. Visit our Etsy Seller Guide to learn more.
🎪 Selling in person at craft fairs? Etsy integrates with Square, so you can sync your listings and accept payments at events for fewer fees. Makers who rely on in-person sales might prefer Etsy for this added benefit.
Amazon: High Upfront Cost with Predictable Fees
Amazon Handmade fees for sellers include:
- One-time $39.99 Professional selling plan fee (a monthly fee that’s waived after the first month for handmade sellers only)
- 15% referral fee per item sold (or $0.30, whichever is greater)
List as many items as you want, and pay only when something sells. Amazon’s additional services also cost extra, including shipping options.
Etsy vs. Amazon Handmade Fees: How Much Do You Actually Keep?
Let’s see what these numbers mean for your art by comparing the cost of a $25 necklace on Etsy vs Amazon Handmade:
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| Etsy | Amazon Handmade | |
|---|---|---|
|
Sale Price (taxes + shipping included) |
$25 |
$25 |
|
Listing Fee |
$0.20 |
$0.00 |
|
Transaction or Referral Fee |
6.5% (or $1.63) |
15% (or $3.75) |
|
Payment Processing Fee |
3% + $0.25 (or $1.00) |
Included |
|
Total Fees |
$2.83 |
$3.75 |
|
You Keep |
$22.17 |
$21.25 |
Etsy leaves the seller with more money despite smaller, more frequent fees, but total costs can vary with advertising, shipping, and fulfillment.
What Does the Customer Base Look Like on Etsy vs. Amazon?
Amazon has a much larger general shopping audience, while Etsy attracts shoppers specifically looking for creative, handmade products. This difference impacts your customer relationships and competition.
Etsy: Where Customers Become Fans
As a dedicated marketplace for unique, creative goods, Etsy draws high-intent shoppers. They’re on the hunt for personalized, handmade pieces and eager to support artists like you. That means:
- You’re competing with other makers in your niche
- Standing out requires high-quality product photos and reviews
- Shoppers often value craftsmanship over speed and free shipping
Etsy is a community of creative sellers serving an art-hungry audience, giving you more control over the buyer experience and customer relationships.
Amazon Handmade: Where Convenience Is Prime
The Amazon Handmade market lives on Amazon’s main site as a category. While this gives makers access to a massive global customer base, it also means visibility is low because:
- You’re competing with non-handmade sellers, too
- Shoppers browse the wider marketplace instead of searching for handmade goods
- Prime-style benefits like fast, free shipping take priority
Amazon has more than triple Etsy’s audience, but that doesn’t necessarily mean a higher chance of sales. Many Amazon shoppers prioritize speed and convenience over a personal connection.
What Are the Rules for Selling on Etsy vs Amazon Handmade?
Etsy is more flexible about what you sell and how you run your shop, while Amazon Handmade has strict rules for product eligibility, production methods, and returns.
Here’s how each platform’s handmade policies compare:
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| Seller Rules | Etsy | Amazon Handmade |
|---|---|---|
|
Approved Products |
Handmade goods, original designs, vintage items, and eligible craft supplies |
Approved categories of handcrafted, hand-designed, hand-altered, repurposed, or upcycled goods |
|
Customization |
Allows personalized and made-to-order products |
Allowed if you register for Amazon Custom; must fulfill custom orders yourself |
|
Print-On-Demand |
Allowed for original designs with disclosed production partners |
Print-on-demand and other third-party production arrangements are mostly restricted |
|
Artificial Intelligence (AI) Policy |
Allows disclosed, seller-prompted AI creations but prohibits fully automated listings |
No clear blanket rule on AI-generated art; products must meet handmade standards |
|
Return Policy |
Sellers set and manage their own return rules, subject to applicable laws and Etsy policies |
Must follow Amazon’s return policy with exceptions for customized products |
Etsy: Sellers Have More Freedom
Etsy’s Creativity Standards take special care to “keep commerce human” while reflecting the evolving creative world we live in. Approved products range from handmade to handsourced, customization is standard, and return policies are up to the seller’s discretion.
The platform’s seller policy supports makers who expand through services like print-on-demand. Drop shipping is limited to craft supplies only, and some seller-prompted AI creations are allowed with a disclosure.
Amazon Handmade: Stricter Standards for Sellers
While Amazon Handmade’s terms and conditions are strict about the handmade production process, their standardized policies also limit some creative freedom.
After they’ve been vetted through the application, makers must sell within approved categories. Amazon owns the return policy and customization options while limiting third-party apps that makers might use to ease their workload.
How Does Shipping Work on Etsy vs Amazon Handmade?
Etsy sellers have the freedom to manage their own order fulfillment and packaging, while Amazon Handmade encourages sellers to use Fulfillment by Amazon (FBA) to save time and support sales.
Etsy: Sellers Handle the Shipping
Selling and shipping handmade products on Etsy involves:
- Managing, packaging, and shipping orders yourself
- Adding branding elements to your packaging
- Adhering to your own stated shipping policy
- Communicating with customers about late, lost, or damaged orders
Sellers who opt in to Etsy Shipping Labels save time and money with an automated label and tracking system, plus carrier discounts, but the cost of Etsy labels varies.
Amazon Handmade: Let FBA Handle the Shipping
Amazon offers sellers two ways to fulfill their orders. Like Etsy’s service, Amazon Buy Shipping is a self-fulfillment and label creation tool. The FBA program is separate, designed to:
- Give makers more time to focus on creating instead of managing orders
- Handle storage, packing, and shipping services (excluding custom orders)
- Share customer service responsibilities, like taking over returns
If order fulfillment and tracking hinder your creativity, you might pay FBA fulfillment fees to save time and provide customers with Prime-like benefits that can boost sales.
What Protections Do Etsy & Amazon Handmade Offer Sellers?
Etsy and Amazon Handmade help sellers manage some common risks of selling crafts online, but they don’t protect you from product liability claims or replace your need for business insurance.
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| Risks | Etsy Sellers | Amazon Handmade Sellers |
|---|---|---|
|
Late or missing item |
Covered up to $250, if eligible |
Covers eligible fraudulent “not received” claims only |
|
Damaged item |
May cover the first damaged item per calendar year |
Covers damages while in Amazon’s care (FBA sellers only) |
|
Claims against your business or handmade products |
Not covered |
Not covered |
Etsy: Purchase Protection Program for Sellers
Etsy’s Purchase Protection Program can protect sellers from claims that an item never arrived, arrived late, or “doesn’t look like the listing.” If the seller is in good standing and the item is eligible, Etsy may refund the buyer up to $250.
Etsy might also cover your first damaged-item claim per year, but additional claims are on your dime.
Amazon Handmade: Limited Seller Protections
Amazon helps sellers manage order disputes, but their A-to-Z Guarantee favors the buyer when something goes wrong. Sellers have limited protections for damaged items or fraudulent “not received” claims, and only if they use an Amazon shipping service, like Buy Shipping or FBA.
💻 Does Etsy or Amazon Protect Me If My Seller Account Gets Hacked?
While both platforms offer account security tools, you’re responsible for risks like exposed customer information if your account gets hacked. Adding cyber liability coverage to your insurance policy may help you recover from data breaches.
Do I Need Insurance to Sell on Etsy or Amazon Handmade?
Insurance is optional on Etsy, but Amazon Handmade requires sellers to have a policy that includes product liability insurance based on sales volume and product types.
Neither platform protects you from product-related accidents, so knowing what handmade insurance covers helps you choose the right protection.
Etsy: Insurance Is Recommended, Not Required
Without coverage, Etsy sellers are vulnerable to claims against their business and handmade products. If a customer buys your hand-poured candle and claims it caused a fire, you could be responsible for paying the damages.
Purchasing coverage like ACT’s Etsy seller insurance can help protect your handmade business from costly liability claims like these.
Amazon Handmade: Insurance Requirements Vary
Amazon Handmade’s coverage requirements ask sellers to carry at least $1 million in commercial general liability insurance when:
- Gross monthly sales exceed $10,000, or
- Products fall under enhanced safety requirements*
Coverage like ACT’s Amazon seller insurance can help eligible makers meet Amazon’s requirements, including product liability coverage and naming Amazon and its affiliates as additional insureds.
*Before purchasing coverage, check that your products are eligible, as certain enhanced-safety items may fall outside standard handmade insurance coverage.
Not sure what coverage you need? Contact us to speak with a licensed, non-commissioned agent who can help review your requirements and options.
Should I Sell on Etsy, Amazon Handmade, or Both?
The right online platform for selling your handmade creations depends on the products you sell, your goals, and how much creative freedom you want.
| Choose Etsy if… | Choose Amazon Handmade if… |
|---|---|
|
✔️ You want an easy setup with more creative control over your brand ✔️ You sell unique, custom, and made-to-order products ✔️ You prefer managing your own shipping and customer experience |
✔️ You’re ready to scale your operations to a wider audience ✔️ Time spent managing orders blocks your creativity ✔️ You’re prepared for the approval process and seller rules |
Is It Worth It to Sell on Both?
Selling on both Etsy and Amazon Handmade can be more beneficial because you can:
- Reach different customers
- Avoid relying on a single marketplace for sales
- Test new products on Etsy before selling them on Amazon
Managing multiple stores means tracking separate fees, inventory, orders, and seller requirements. If you’re not ready for this commitment, start with Etsy until you feel comfortable taking on another platform.
FAQs About Selling on Etsy vs Amazon Handmade
Is It Better to Sell on Etsy or Amazon Handmade?
Etsy is better for new makers who want an easy setup and creative freedom, while Amazon Handmade helps established sellers reach more customers and scale their business. The best platform depends on your products, business goals, and experience selling online.
What Kind of Insurance Do I Need to Sell on Etsy or Amazon?
Etsy and Amazon sellers need a commercial general liability insurance policy that includes product liability coverage. Insurance is optional for Etsy sellers, but Amazon requires qualifying sellers to carry at least $1 million in coverage if their monthly gross sales exceed $10,000 or they sell products with enhanced safety requirements.
Is It Hard to Get Approved for Amazon Handmade?
Getting approved for Amazon Handmade involves a careful application process. Once you apply, Amazon reviews your products and production process to verify that you meet their handmade seller criteria.
Do I Need a Business License to Sell on Amazon Handmade?
Amazon Handmade does not require a business license to sell on their platform, but you may need one depending on your local and state laws. You can apply as an individual or sole proprietor, but registering with Amazon doesn’t replace any licenses or permits your business may need.
