Amazon vs. Etsy: What’s the Best Option for You?
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Amazon and Etsy are two of the popular online marketplaces, but they offer very different experiences for both buyers and sellers.
Amazon is a good option if you sell a wide range of products and want to reach a large customer base. However, if you're selling handmade, vintage, or creative goods, Etsy may be a better fit.
In this post, we'll compare Etsy vs. Amazon to help you decide which platform is right for you.
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What Is Amazon?
Amazon is a global e-commerce company that sells a wide range of products and services online, including retail, cloud computing, consumer electronics, digital content, and groceries. Amazon is one of the world’s biggest companies. It occupies the first place in the U.S. e-commerce market with 37.8% and generated net sales revenue of nearly $514 billion in 2022.
Amazon is a big company that affects the world's economy. It is successful because it has a new way of doing business that puts the customer first. It is known for its low prices and convenient Prime shipping program.
As an Amazon seller, you'll have access to a massive customer base and a wide range of tools and services to help you grow your business. However, you'll also have to compete with other sellers and deal with Amazon's strict policies and procedures.
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What Is Etsy?
Etsy is a niche online marketplace where people come together to make, sell, buy, and collect unique items. It is a sales platform for creative goods, from handmade and vintage items to craft supplies.
Etsy sellers range from independent artisans to small businesses, offering various creative products. It is a popular shopping destination for people looking for one-of-a-kind items, party supplies, and gifts. In 2022, Etsy was one of the most visited online retail websites globally, after Amazon, eBay, Walmart, and Aliexpress.
Etsy is an excellent option for sellers who want to showcase their unique products to a targeted audience. However, Etsy is smaller than Amazon, so you may not reach as many customers. Etsy’s revenue was $2,56 billion in 2022.
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Pros and Cons of Selling on Amazon
Amazon is a popular place to sell your products and earn money. However, it has its advantages and disadvantages.
Amazon pros
Larger customer base
Amazon has over 300 million active customer accounts worldwide, giving sellers access to a vast potential market. That can make it easier for sellers to reach new customers and grow their businesses.
Wide range of product categories
Amazon sells a wide range of products, from electronics and clothing to groceries and home goods. You can sell in over 50 different categories. That allows sellers to reach a wider audience and sell a variety of products.
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Fulfillment by Amazon
FBA is a service offered by Amazon that allows sellers to store their products in Amazon's fulfillment centers and have them shipped directly to customers. That can save sellers time and money on shipping and fulfillment.
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Amazon cons
High competition
Amazon is a very competitive marketplace, with millions of sellers trying to attract customers. That can make it difficult for new sellers to stand out and gain market share.
High selling fees
Amazon charges sellers a variety of fees. You must pay either a subscription fee or a fee per sale and a referral fee. You will also pay fulfillment and storage fees if you will use FBA. The accumulation of these fees can be significant, particularly for sellers with a high volume of sales.
Strict rules
Amazon has a number of strict policies and procedures that sellers must follow. These rules are in place to protect consumers and ensure a fair marketplace. However, they can be complex and time-consuming for sellers to comply with.
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Pros and Cons of Selling on Etsy
Etsy is an excellent place to sell crafted goods and collectibles. However, it has its own upsides and downsides you need to consider.
Etsy pros
Niche focus
Sellers can leverage Etsy's niche focus to their advantage. They can target the loyal platform’s audience, specifically looking for creative, handmade, or vintage items. That includes jewelry and accessories, clothing and shoes, home and living, weddings and parties, art, and collectibles. Etsy sellers can offer their products to interested customers, which helps grow sales.
Lower selling fees
Etsy charges a $0.20 per-item listing fee, which is lower than other platforms. Also, there is no monthly subscription fee. You must pay transaction and payment processing fees, which are not very high.
Lower entry barriers
Etsy's low entry barrier makes it a great platform for new sellers to get started with e-commerce. Sellers can easily start selling on Etsy and build their custom store fast. They can also begin with a small investment and grow their business over time.
Etsy cons
Smaller audience
Etsy has a smaller customer base than Amazon. There is also a high level of competition on the platform. That means sellers may have problems reaching as many customers as they want and must work harder to hit their financial targets.
Narrower category selection
Etsy specializes in handmade, vintage, and creative goods, so sellers who sell other types of products may not be a good fit for the platform. You can sell in 14 product categories on Etsy.
High fulfillment fees
Unlike Amazon, Etsy doesn’t offer its own fulfillment services. It provides shipping options from its partners — USPS, FedEx, and Canada Post. Their fees can be high, especially if you want to target international customers.
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Amazon vs. Etsy Compared
Both Amazon and Etsy are online retail marketplaces for selling products. However, they target different types of customers and are used by different kinds of sellers. The best platform for you will be the one that allows you to reach your target audience and achieve your business goals.
Amazon may be a better choice if you want to sell in many product categories and reach a large customer base. In turn, if you select to sell artisan, handmade, collectible, or creative goods, Etsy may be a good option.
Below, you can find the comparison between the two marketplaces.
Customer base
Amazon
Amazon customers are used to a wide selection of products, convenience, and quick shipping. They may be looking for common, mass-produced items with a focus on competitive pricing.
Many Amazon customers are Prime members, expecting benefits like fast and free shipping and exclusive deals.
Amazon has a vast and diverse customer base, which allows you to reach 310 million shoppers in more than 100 countries. That gives you an excellent opportunity to increase your sales and profits.
Etsy
Etsy has a community of buyers who appreciate unique, personalized, and handmade products. The audience is often more niche and focused on artisan goods.
Etsy customers value the craftsmanship, artisanship, and creativity of the products they purchase. Some Etsy customers specifically seek out vintage items with history and character, making Etsy a go-to platform for vintage enthusiasts. Shoppers on Etsy place less importance on convenience and fast shipping.
If you compare Amazon Handmade vs. Etsy, Etsy has a significantly smaller customer base than Amazon, limiting your reach. As of 2023, Etsy has 96.2 million buyers.
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Product categories
Amazon
Amazon offers its buyers billions of products across various categories. That includes more than 50 product categories and over 25,000 subcategories for you to sell your products. Amazon sellers can sell a wide range of product categories, starting from Electronics and Automotive to Groceries and Gourmet and Home and Kitchen.
Amazon shoppers are usually buying mass-produced items and seek discounted prices. They care less about branding and product brand names than their price.
Etsy
Etsy specializes in handmade, vintage, and unique items with a focus on creative and artisanal products. Its product selection is narrower than Amazon’s and is limited to 14 categories.
Etsy is a perfect place to sell handmade, one-of-a-kind, or creative goods with a personalized touch. Also, this marketplace is popular among buyers of collectible and vintage items. You can sell gifts, wedding, holiday and party products, and other creative supplies.
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Business startup
Amazon
Staring on Amazon may involve more complex requirements than Etsy. The verification process on Amazon can be more thorough. Also, you must get some knowledge about Amazon sales, especially if you want to use FBA or become a professional seller.
To begin your sales on Amazon, you need to create a seller account. That involves providing personal and business information, verifying your identity, and submitting a number of documents.
Once done, you must create product listings for the inventory you want to sell. That involves providing detailed product descriptions, pricing, and other relevant information. You can choose to fulfill orders yourself or use Amazon's FBA service, which handles storage, packaging, and shipping for you.
Also, Amazon has many rules and policies, and you must make sure to study them because Amazon is stringent when it comes to compliance requirements.
Etsy
Starting on Etsy can be simpler for individuals, artisans, and small businesses, especially if you create handmade or unique items. Etsy's setup is more straightforward and doesn't require identity verification in the same way as Amazon.
To get started on Etsy, you need to create a shop. That involves selecting a shop name, uploading a profile picture and banner, and providing shop policies.
After that, you can list your products, including descriptions, prices, and photographs. Etsy offers various options for personalizing your listings to make them stand out. Also, you must connect your payment method to your Etsy shop to receive customer payments.
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Selling fees
Amazon
Amazon charges a variety of fees to sellers, including account fees, sales fees, fulfillment fees, and storage fees.
- Account fees
These fees include two plans: Individual and Professional. The Individual plan costs $0.99 per item sold, while the Professional plan costs $39.99 per month.
- Sales fees
These fees include a per-item fee, a referral fee (6%-45% of the selling price), a closing fee, and a high-volume fee.
- Fulfillment fees
These fees are optional. You will pay them if you use Fulfillment by Amazon to store and deliver products. FBA fees vary based on the size, dimensions, and weight of the product. They start at $3.22. You will also have to pay storage fees if you store goods in Amazon’s fulfillment centers. They start at $0.87/cubic foot during the first three quarters of the year and $2.40/cubic foot during the fourth quarter.
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Etsy
Etsy does not have a monthly subscription fee, but there is a paid option called Etsy Plus, which costs $10 per month. Etsy Plus gives sellers access to additional features, such as more listings, discounted shipping rates, and access to customer support.
- Listing fee
This is the fee sellers pay to list their items on Etsy. It is $0.20 per item. The fee is paid once in for 4 months.
- Transaction fee
This fee is a percentage of the sale price sellers pay Etsy when one of their items sells. The fee is 6.5% of the sale price.
- Payment processing fee
That is a fee that sellers pay Etsy for processing customer payments. The fee is 3% + $0.25.
Fulfillment
Amazon
Amazon has an extensive network of warehouses around the world. That allows sellers to store their inventory in Amazon's warehouses and use Amazon's shipping and customer service.
Amazon’s fulfillment options
- Fulfillment by Amazon lets sellers store their inventory in Amazon's warehouses, and Amazon handles packing, shipping, and customer service.
- Fulfillment by Merchant sellers store their inventory in their own warehouses and handle packing, shipping, and customer service.
Amazon also offers a program called Seller-Fulfilled Prime, which allows non-FBA sellers to offer Prime shipping. However, to qualify for Seller-Fulfilled Prime, sellers must have a strong track record of on-time deliveries and customer satisfaction.
Etsy
Etsy does not provide fulfillment services. Unlike Amazon, it doesn’t offer inventory storage, order picking, packing, and shipping.
Etsy sellers are responsible for order fulfillment themselves. You can fulfill orders with one of Etsy’s shipping partners and get discounted shipping labels purchased on the platform. These partners are USPS, FedEx, and Canada Post.
Other options include using a third-party company or fulfilling orders by yourself.
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Etsy Amazon Integration
If you are looking to grow your sales, selling on both Amazon and Etsy can be a good idea. Amazon Handmade program lets you offer crafted items you created to a multimillion Amazon audience.
To sell your Etsy products on Amazon, you must connect the Etsy store to the Amazon seller account. That allows you to list and manage your products on both platforms from one place.
You may use third-party tools that offer multi-channel e-commerce solutions to integrate Etsy with Amazon. These tools are designed to facilitate the connection between different e-commerce platforms like Etsy, Amazon, eBay, Shopify, and more. Some popular e-commerce integration platforms include Sellbrite, ChannelAdvisor, and M2E Pro, among others.
FAQ
Does it cost more to sell on Etsy or Amazon?
It is more expensive to sell on Amazon than on Etsy. Etsy has lower selling fees and no monthly subscription fee, while Amazon has higher selling fees and a monthly subscription fee.
What is the difference between Etsy and Amazon?
Etsy is a marketplace for handmade, vintage, and creative goods, while Amazon is a general marketplace that sells a wide range of products. Etsy has lower selling fees and a more targeted audience, while Amazon has a larger customer base and a wider range of products.
Which website is better than Etsy?
The website you sell on must depend on your product type and goals. Etsy is a good option for sellers who want to reach a targeted audience of shoppers who are looking for unique and one-of-a-kind items. Amazon is a good option for sellers who wish to reach a large customer base and sell a wide range of products.
What is Amazon's version of Etsy?
Amazon Handmade is Amazon's version of Etsy. It is a marketplace for handmade and crafted goods created by artisans.
Who is Etsy biggest competitors?
Etsy's biggest competitors are Amazon Handmade, eBay, and Bonanza. These platforms offer similar marketplaces for handmade, vintage, and creative goods. However, Etsy has a more targeted audience and a more curated selection of products.
Final Thoughts
In conclusion, if you're a seller trying to decide between Amazon and Etsy, the best option for you will vary depending on your custom products and objectives.
Etsy is a good choice for sellers selling handmade, vintage, or craft goods. Amazon is a good option for sellers selling a wide range of products, including mass-produced and handmade items.
No matter which platform you choose, ensuring you're offering products that are in demand and bring you profit is essential. You can do that with Seller Assistant App. That is a product research extension helping Amazon sellers find high-profit products. It lets you estimate if a product is suitable for selling in one click. Its FBM&FBA profit calculator, Quick View, Stock Checker, Restrictions Checker, and other features provide you with all the necessary data to make informed decisions about the product you purchase.
