Amazon Handmade: Pros and Cons for Handmade Sellers
Table of Contents
- Introduction
- Pros of Amazon Handmade
- Massive Traffic Volume
- Targeted Advertising
- Competitor Targeting
- No Limit on Advertising Budget
- Account Health Monitoring
- Better Shipping Prices with UPS
- Customization Options
- Cons of Amazon Handmade
- High Transaction Fees
- Learning Curve
- Easy to Overspend on Advertising
- Strict Account Health Requirements
- Less Considerate Customers
- Conclusion
- FAQ
Pros and Cons of Selling on Amazon Handmade
Are you a handmade seller looking to expand your reach beyond Etsy? Amazon Handmade may be the platform for you. In this article, we'll explore the pros and cons of selling on Amazon Handmade, based on the experience of a top one percent store owner who has successfully made the transition.
Pros of Amazon Handmade
Massive Traffic Volume
One of the biggest advantages of selling on Amazon Handmade is the massive traffic volume. Amazon dwarfs Etsy in terms of website visitors, with 2.4 billion in September 2020 alone, compared to Etsy's 1.7 billion in a full year. This means that if you start selling on Amazon Handmade, your listings could potentially get onto the traffic of the main Amazon stream, which can lead to significant growth in sales.
Targeted Advertising
Amazon Handmade allows you to laser-target the advertising of your products to your customers. You can run a basic general advertisement for a week or a month, then export an XML file and organize it by the highest converting keywords. You can then create another advertisement only targeting the keywords and products that are the highest converting. This allows you to spend the least amount of money and rank only on the things that you convert best. Etsy does not allow this level of targeting.
Competitor Targeting
You can put your advertisement listing on your competitors' listing page on Amazon Handmade. This gives you tremendous power because if they have a product with a higher price and you're offering a better product with better reviews at a cheaper price, you're going to have a much better conversion rate. This is because the customers that they're acquiring with their advertisement are just draining them because they're going to buy from you more than they're going to buy from them. This gives you a better return on your investment for your advertisement.
No Limit on Advertising Budget
There is no limit on how much money you want to spend on advertising on Amazon Handmade. If you have the willingness to work for a very small margin and you want to move your product faster, you can do that on Amazon Handmade.
Account Health Monitoring
Amazon Handmade will actually send you a message if you are behind on your orders or your account health is dropping lower. They will let you know if you're in the risk zone and need to fix these things before they penalize you, shut your store down, or put your store on vacation mode. This is a big advantage over Etsy, which can put your shop on vacation mode without warning.
Better Shipping Prices with UPS
Amazon Handmade offers better prices on shipping with UPS than they do with USPS. Sometimes they'll actually offer a better price on UPS than they do with USPS, and when you're shipping, they'll actually give you the better price.
Customization Options
Amazon Handmade allows for more customization options than Etsy. You can add up to five drop-down menus on the variations, including fabric design, font color, size color, buckle color, personalization box, and matching leash. This gives customers more options to customize their products.
Cons of Amazon Handmade
High Transaction Fees
Amazon charges a 15% transaction fee, compared to Etsy's 6.5% with a 1.5% increase from 5%. This is a big percentage that they take from you, and it's why some sellers increase their prices on Amazon.
Learning Curve
Amazon is not seller-friendly, and there's a bigger learning curve than there is on Etsy. This is especially true with advertising, which has a big learning curve. However, with time and effort, you can learn how to advertise effectively on Amazon.
Easy to Overspend on Advertising
You can spend a lot of money very quickly on Amazon Handmade if you don't do your advertising correctly or you did not intend to advertise to a more broad keyword selection. You want to make sure you pay attention to your advertisement, how much you're spending, and if that keyword is working for you.
Strict Account Health Requirements
Amazon is very picky about your account health. You need to be healthy on your shipping, on time, and making sure that you get good reviews. They'll give you a nasty message on top and call you to make sure that you figure out any problems before they penalize you.
Less Considerate Customers
Customers on Amazon Handmade are less considerate than they are on Etsy. They're still acting like they're shopping on Amazon Prime, and they're less likely to be understanding of imperfections or delays. They may ask for a full refund or return if they're not satisfied, without realizing the time and effort that went into making the product.
Conclusion
Amazon Handmade has its pros and cons, but it can be a great platform for handmade sellers looking to expand their reach. With massive traffic volume, targeted advertising, and customization options, it's worth considering. However, the high transaction fees, learning curve, and less considerate customers are important factors to keep in mind.
FAQ
Q: Is it worth selling on Amazon Handmade?
A: It depends on your goals and priorities as a handmade seller. Amazon Handmade has its pros and cons, and it's important to weigh them carefully before making a decision.
Q: How do I advertise effectively on Amazon Handmade?
A: Advertising on Amazon Handmade has a big learning curve, but it's possible to learn how to do it effectively with time and effort. Consider laser-targeting your advertising, monitoring your spending, and paying attention to your account health.
Q: Are customers on Amazon Handmade less considerate than on Etsy?
A: Yes, customers on Amazon Handmade are less considerate than on Etsy. They may be less understanding of imperfections or delays and may ask for a full refund or return without realizing the time and effort that went into making the product.
