Amazon Handmade vs Etsy: Which is the Best Platform for Your Handmade Business?
Table of Contents:
- Introduction
- The Application Process
- Categories and Subcategories
- Traffic: Etsy vs Amazon
- Fees and Commission
- Fulfillment Options
- Marketing Strategies
- Choosing the Right Platform
- Selling on Both Amazon and Etsy
- Conclusion
Introduction
Are you a maker or crafter looking to start selling your handmade products online? The decision between Etsy and Amazon can be a challenging one for many sellers. In this article, we will explore the differences between these two popular marketplaces, discussing their application processes, categories, traffic, fees, fulfillment options, marketing strategies, and helping you determine which platform is the best fit for your handmade business. Additionally, we will provide insights on selling on both Amazon and Etsy simultaneously. Read on to make an informed decision that aligns with your goals.
1. The Application Process
When it comes to becoming a seller, both Amazon and Etsy have an application process in place. However, the requirements and rules differ between the two. On Amazon, you need to sign up for an account and go through a verification process. If you choose to sell on Amazon Handmade, there's further verification to show that your products are genuinely handmade. On the other hand, Etsy has a more relaxed definition of what constitutes a handmade product and also includes vintage goods. The application process is relatively straightforward, allowing you to start selling on Etsy with ease.
Pros: Etsy has a more inclusive definition of handmade, making it easier to apply and sell your products.
Cons: Amazon's verification process can be more rigorous, but it adds credibility to the platform.
2. Categories and Subcategories
Etsy offers a wide range of categories and subcategories to help you showcase your products effectively. With hundreds of options, you can find the perfect fit for your handmade goods. On the contrary, Amazon has fewer categories and doesn't break them down further under the handmade category. While Etsy's extensive categorization can potentially help with ranking, Amazon relies more on keywords for search visibility.
Pros: Etsy's detailed categories allow for more specific product placement and potential visibility.
Cons: Amazon's broader categories might require a more strategic approach to ensure your products are easily discoverable.
3. Traffic: Etsy vs Amazon
The traffic and customer base on each marketplace are significant factors to consider. Amazon has a massive advantage in terms of traffic, with over 2.4 billion visitors in September 2020 alone. This includes Amazon Prime members, who enjoy the convenience of shopping on the platform. However, it's important to note that most Amazon customers are not specifically seeking handmade products, unlike Etsy customers who visit exclusively for handmade items. Understanding your target audience is crucial in making the right decision.
Pros: Amazon's immense traffic offers substantial exposure and potential sales.
Cons: Etsy's curated customer base allows for targeted marketing to handmade enthusiasts.
4. Fees and Commission
Fees and commission structures vary between Etsy and Amazon. Etsy is free to set up, but there's a listing fee of $0.20 per item. Additionally, Etsy charges a 5% commission on each sale, along with extra fees for credit card transactions and currency conversions. On the other hand, Amazon charges a monthly fee of $25 or $39, but this fee is waived for handmade sellers. Amazon's referral fee for handmade products is 12.2%, slightly higher than Etsy's commission.
Pros: Etsy's fees are more straightforward and transparent, while Amazon's fees are offset by its higher traffic.
Cons: Amazon's referral fee is higher, but it offers substantial exposure and potential sales.
5. Fulfillment Options
Fulfillment is a crucial aspect of selling online. Amazon offers two fulfillment options: Amazon FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchants). With FBA, you can outsource warehousing and shipping to Amazon, ensuring efficient delivery and customer service. Etsy sellers are responsible for their own fulfillment, deciding whether to charge for shipping or include it in the product price. However, there is a secret option that allows you to fulfill Etsy orders using Amazon's FBA, an effective way to sell on both platforms without doubling your workload.
Pros: Amazon's FBA provides hassle-free fulfillment and excellent customer service.
Cons: Etsy sellers need to handle their own fulfillment, which adds to their workload.
6. Marketing Strategies
Effective marketing strategies are essential to drive sales on both Etsy and Amazon. Etsy focuses on search ranking and optimization within its platform, making keywords a crucial factor. Amazon's marketing strategy requires a more comprehensive approach, combining keyword optimization, product listing optimization, advertising, and sponsored product campaigns. Understanding the intricacies of each platform's marketing tools is vital to maximize your product visibility and reach the right audience.
Pros: Etsy's focused marketplace allows for targeted keyword optimization and search ranking.
Cons: Amazon's marketing strategy requires a wider range of techniques and campaigns for optimal results.
7. Choosing the Right Platform
Choosing the right platform for your handmade business depends on various factors, including your target audience, product uniqueness, marketing capabilities, and fulfillment preferences. By evaluating the differences between Etsy and Amazon, along with your specific business goals, you can make an informed decision. It's essential to align your chosen platform with your long-term vision and growth plans.
Pros: A well-suited platform can provide a stepping stone or fast-track your handmade business growth.
Cons: A mismatched platform might not yield the desired results and limit your business's potential.
8. Selling on Both Amazon and Etsy
Selling on both Amazon and Etsy simultaneously can be a viable strategy to maximize your reach and sales potential. By leveraging Amazon's FBA to fulfill your Etsy orders, you can efficiently manage inventory and provide a consistent customer experience across platforms. This approach grants you access to both platforms' customer bases and allows you to take advantage of their individual strengths. However, managing listings, inventory, and orders on both platforms requires careful attention to avoid complications.
Pros: Selling on both platforms expands your customer reach and enhances your business's growth potential.
Cons: Managing listings, inventory, and orders on multiple platforms can be challenging and requires meticulous organization.
9. Conclusion
When deciding between Etsy and Amazon for your handmade business, it's crucial to evaluate the unique features, opportunities, and challenges each platform presents. Consider factors such as the application process, categories, traffic, fees, fulfillment options, marketing strategies, and alignment with your business goals. By understanding these differences and leveraging the strengths of each platform, you can make an informed decision that sets you on the path to success in the online marketplace.
Highlights:
- Choosing between Etsy and Amazon for your handmade business is a crucial decision.
- The application process, categories, traffic, fees, fulfillment options, and marketing strategies differ between Etsy and Amazon.
- Etsy offers a more relaxed definition of handmade, while Amazon has a broader customer base and higher traffic.
- Understanding your target audience and business goals is vital in choosing the right platform.
- Selling on both platforms simultaneously can expand your reach, but it requires careful management.
FAQ:
Q: Can I sell my handmade products on both Etsy and Amazon simultaneously?
A: Yes, it is possible to sell on both platforms simultaneously. By leveraging Amazon's FBA, you can fulfill your Etsy orders efficiently and reap the benefits of both platforms.
Q: Are there any additional fees involved in selling on Etsy or Amazon?
A: Yes, both Etsy and Amazon have fees associated with their platforms. Etsy charges a listing fee of $0.20 per item and a 5% commission on each sale, along with additional fees for credit card transactions. Amazon has a monthly fee of $25 or $39, but it is waived for handmade sellers. Amazon also charges a referral fee, which is 12.2% for handmade products.
Q: How do I optimize my product listings and improve visibility on Etsy and Amazon?
A: Optimizing your product listings involves using relevant keywords, high-quality images, detailed descriptions, and appealing titles. Additionally, understanding and utilizing each platform's marketing tools, such as sponsored product campaigns and advertising options, can help improve visibility and reach.
Q: Can I choose different fulfillment options for my Etsy and Amazon orders?
A: Yes, you have the flexibility to choose different fulfillment options for each platform. Amazon offers FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchants). Etsy sellers are responsible for their own fulfillment, but they can also use Amazon's FBA to fulfill their Etsy orders.
Q: Are there any advantages to selling on both Etsy and Amazon?
A: Selling on both platforms can expand your customer reach and potentially increase sales. It allows you to target different audience segments and leverage the strengths of each platform. However, managing inventory, listings, and orders across platforms requires careful organization and attention to detail.
