What Is Amazon Handmade?
Amazon Handmade is a dedicated section within the Amazon marketplace exclusively for handmade products. Unlike regular Amazon selling, you must apply to join Handmade. Amazon verifies that your products are genuinely handcrafted.
The key facts:
- Application required: You must submit an application and prove your products are handmade. Photos of the production process are required.
- No monthly subscription fee: While regular Professional sellers pay USD 39.99/month (or EUR 39/month in the EU), Handmade sellers are exempt.
- 15% Referral Fee: Amazon takes 15% of the sale price on every transaction.
- Access to the full Amazon ecosystem: Your products are discoverable through regular Amazon search, not just the Handmade section.
- FBA available: You can use Fulfillment by Amazon and offer Prime shipping.
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What Is Etsy?
Etsy is an online marketplace specialising in handmade products, vintage items, and craft supplies. The platform has been operating since 2005 and has established itself as the go-to destination for handcrafted goods.
The key facts:
- Open access: You can open a shop immediately, with no application process.
- Listing fee: USD 0.20 per listing (each listing runs for 4 months, then renews).
- Transaction fee: 6.5% of the sale price including shipping.
- Payment processing fee: 4% + USD 0.50 per transaction (varies by country).
- Optional advertising: Etsy Ads and Offsite Ads (15% fee on Offsite Ad sales for sellers over USD 10,000/year).
- Own shop: You get a dedicated shop URL (yourname.etsy.com) with branding options.
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The Direct Comparison
| Criterion | Amazon Handmade | Etsy |
|---|---|---|
| Access | Application + review | Immediate, no review |
| Monthly Fee | EUR 0 (Handmade sellers exempt) | No base fee (Plus: USD 10/month optional) |
| Sales Fee | 15% Referral Fee | 6.5% Transaction Fee + 4% Payment Fee |
| Listing Fee | None | USD 0.20 per listing every 4 months |
| Effective Total Fee | ~15% | ~10.5-11.5% (excluding Offsite Ads) |
| Reach | 300M+ active Amazon customers globally | ~90M active Etsy buyers |
| Target Audience | Broad audience, convenience shoppers | Handmade-oriented buyers, conscious consumers |
| Branding | Limited (A+ Content, Brand Store possible) | Own shop with logo, banner, about page |
| SEO | Amazon search + Google (Amazon listings rank well) | Etsy internal search + Google |
| Fulfilment | FBA available (Prime badge) | Self-fulfilment (or Etsy partners) |
| International | All Amazon marketplaces (US, EU, JP, etc.) | Global (one platform, worldwide shipping) |
| Customer Loyalty | Difficult (Amazon owns the customer relationship) | Easier (favourites, messages, reviews) |
| Returns | Amazon return policies apply | Custom return policies possible |
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When Amazon Handmade Is the Better Choice
Greater Reach
Amazon has over 300 million active customers worldwide. That is more than three times Etsy's audience. If you want to put your products in front of as many eyes as possible, Amazon offers the larger stage. This is especially true if your products appeal to a broad audience, not just handmade enthusiasts.
Prime Badge
As a Handmade seller, you can use FBA and earn the Prime badge. That means free 1-2 day shipping for Prime members. On Amazon, Prime is an enormous conversion driver. Customers frequently filter for Prime offers. If you have the badge, you have an advantage.
International Buyers
Amazon operates marketplaces in the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Japan, Australia, and more. Through the Pan-EU programme, you can serve customers across Europe with a single inventory pool.
Higher Average Selling Price
Amazon customers are accustomed to paying higher prices, especially when Prime shipping is included. Handmade products on Amazon frequently achieve higher prices than comparable products on Etsy, where the expectation of "affordable handmade goods" is stronger.
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When Etsy Is the Better Choice
Community and Branding
Etsy gives you a dedicated shop with a logo, banner, about page, and a standalone URL. You can build a brand identity that goes beyond a single product listing. On Amazon, you are one seller among many. On Etsy, you are a shop with personality.
Etsy buyers are often brand-loyal. They follow shops, set favourites, and return deliberately. This kind of customer loyalty is not possible on Amazon in the same way.
Lower Total Fees
Effective fees on Etsy are approximately 10.5-11.5% (Transaction Fee + Payment Fee). Amazon takes 15%. On a EUR 50 product, that is EUR 7.50 on Amazon versus roughly EUR 5.50 on Etsy -- a difference of EUR 2 per sale.
Lower Barrier to Entry
On Etsy, you can open a shop today and sell tomorrow. Amazon Handmade requires an application process that can take several days to weeks. For sellers who want to start quickly, Etsy is the easier entry point.
Creative Control
Etsy gives you more freedom in designing your listings: multi-line descriptions with formatting, custom policies, personalised messages to buyers. Amazon has stricter formatting rules and less room for individual communication.
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Using Both Platforms Together
The strongest strategy for most handmade sellers is to use both platforms in parallel. Each covers a different segment of the market:
- Etsy for branding, community building, and repeat customers
- Amazon Handmade for reach, Prime buyers, and international expansion
In practice, this means listing your products on both platforms, adapting titles and descriptions to each platform's SEO requirements, and managing inventory centrally.
When you sell on both platforms, inventory management becomes critical. Nothing damages your seller performance more than cancellations due to missing stock. Make sure you keep inventory synchronised and adjust prices to account for the different fee structures.
For the Amazon channel, an automated repricer helps you hold the Buy Box if other sellers offer identical or similar products. arbytrage.io monitors your competition and adjusts prices automatically -- so you do not lose the Buy Box to other sellers.
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Frequently Asked Questions
Can I sell vintage items on Amazon Handmade?
No. Amazon Handmade is exclusively for handcrafted products. Vintage items and craft supplies can be sold on the regular Amazon marketplace or on Etsy.
Do I have to use FBA with Amazon Handmade?
No, FBA is optional. You can fulfil orders yourself (FBM). However, you lose the Prime badge, which provides a significant conversion advantage.
What are the fees if I sell on both platforms?
You pay fees independently on each platform. Amazon takes 15% per sale, Etsy approximately 10.5-11.5%. There are no additional fees for being active on both platforms simultaneously. Adjust your prices to each fee structure to maintain healthy margins on both.
Which platform is better for the European market?
Both work well in Europe. Amazon has larger reach in major EU countries like Germany, France, and Italy. Etsy has a very active European community, particularly in jewellery, home accessories, and personalised gifts. Test both and compare results after 3 months.
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Conclusion
Amazon Handmade and Etsy are not an either-or decision. Both have clear strengths: Amazon brings reach and Prime, Etsy brings community and branding. The most effective strategy is to use both in parallel and combine their respective advantages.
Related reading: - eBay vs Amazon: Selling Comparison 2026 - Amazon Brand Store: Create Your Storefront 2026
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*Selling on Amazon and want to secure the Buy Box? Try arbytrage.io free for 14 days -- the Amazon repricer for European sellers. EUR 40/month, pan-EU support, no long-term contract.*