Amazon Handmade vs Etsy 2026: Where Should Artisans Sell?

Creating an online store on Amazon Handmade vs Etsy can be highly lucrative for artists and entrepreneurs who create art, clothing, home decor, or other items.

Online storefronts such as Amazon Handmade and Etsy have allowed such creators to expand their business and become accessible to a wider range of customers than a brick-and-mortar store or word-of-mouth commissions from a limited audience. 

If you’re looking to take your art business online, you may be wondering which of the two platforms is better for you. We’re here to help you out as we break down the pros and cons of each so you can make an informed decision.

Let’s dive in!

What is Etsy?

Etsy has dominated the “handmade” market since its inception in 2005. Its 5 million artisans account for the sale of around 45.6 million products.

With steady growth in popularity, it has transformed from an online flea market to a Wall Street hero.

The platform generated $1.72 billion in revenue in 2020, $717 million by the end of 2021, and by 2025, Etsy’s revenue reached $2.85 billion. These statistics are awe-inspiring and clearly illustrate the popularity of the platform and the potential for success for artists.

With 90 million active shoppers, Etsy blends eCommerce with the uniqueness of artisan flea markets and fairs. It is an incredibly beneficial platform for customers and sellers alike, whether they are solo entrepreneurs or small business owners.

What is Amazon Handmade?

Despite the central platform being a mammoth in the eCommerce industry, Amazon Handmade has yet to match up to Etsy. Ten years its junior, it only sells around 198,000 products each year.

Since its launch in 2015, Amazon’s worldwide selection has increased by 200%, and its active makers have increased by 750%. In addition to these statistics, over one hundred makers have already crossed the $1 million mark in annual sales through the platform.

The platform connects customers with micro-businesses and provides them with the tools necessary to scale their growth.

Amazon Handmade vs Etsy: Full Comparison

For handmade sellers, choosing the right marketplace can directly impact visibility, costs, and long-term growth. Amazon Handmade vs Etsy is one of the most common comparisons among artisans looking to scale their business beyond local sales.

In the following section, we’ll compare both platforms across key selling factors to help you understand how they differ in practice.

Signup process

Etsy offers a fast and beginner-friendly onboarding experience. Sellers can create a shop, list products, and start selling within a short time, often on the same day. There is no application or approval process, making Etsy an attractive option for beginners or sellers who want to test a new product idea quickly.

In contrast, Amazon Handmade requires sellers to go through an application and approval process. Applicants must provide detailed information about their handmade production process to prove that their products meet Amazon’s handmade criteria. While this extra step can delay store setup, it also helps maintain a more curated marketplace with fewer mass-produced items.

Cost Structure

Etsy has a relatively diversified fee structure:

• One-time setup fee: $15–$29
• Listing fee: $0.20 per listing
• Transaction fee: 6.5% per sale
• Payment processing fee: Varies by country (e.g., 3% + $0.25 in the US)
• No subscription fee

Amazon Handmade has a straightforward fee structure:

• Subscription fee: $39.99/month for a Professional seller account (required to sell on Amazon Handmade)
• Referral fee: 15% of each sale
• No listing fees
• Fulfillment fees (optional): If using Fulfillment by Amazon (FBA), additional fees apply based on size, weight, and storage of items

Fulfillment

Etsy relies primarily on sellers to handle fulfillment themselves. This means that sellers are responsible for packaging, shipping, and tracking each order, giving them full control over how products are delivered. While this approach allows for personalization and direct communication with buyers, it can be time-consuming, especially for high-volume sellers.

In contrast, Amazon Handmade offers the option to use Fulfillment by Amazon (FBA). With FBA, Amazon stores, packs, and ships products on behalf of the seller, and handles returns as well. This can save time and simplify logistics, especially for sellers scaling their business, but it comes with additional fulfillment fees and reduces some control over packaging and customer experience.

Advertising

Etsy provides built-in advertising options called Etsy Ads, which allow sellers to promote listings within Etsy’s search results. Sellers can set a daily budget and pay per click (CPC), giving them full control over spend. In addition, Etsy also offers offsite ads, where Etsy promotes listings on external platforms such as Google, Facebook, and Instagram. Sellers pay a commission (12–15% depending on annual sales) only when these ads result in a sale, which can help expand reach beyond Etsy’s marketplace.

Amazon Handmade, on the other hand, integrates with Amazon’s advertising ecosystem, including Sponsored Products, Sponsored Brands, and Display Ads. Sellers pay on a cost-per-click (CPC) basis, and campaigns can reach Amazon’s vast customer base both on and off the platform. Advertising on Amazon Handmade tends to be more data-driven and scalable, but can be more expensive than Etsy, especially for competitive categories.

Pros and Cons of Selling on Etsy

Pros

Large and Established Customer Base

Etsy has been the go-to marketplace for those who want exclusive, niche products for well over a decade. This means that it already has an established audience and customer base actively interested in the type of products sold here.

This could save entrepreneurs and creatives a lot of time and effort as far as developing an audience goes, as they can tap into an existing market with unique products.

Built-In Analytics

Analytics are extremely helpful in enabling you to track your progress and understand what works and what doesn’t. You can use these metrics to grow your business and increase sales by driving traffic to your Etsy store.

Collaborative Seller Community

While most eCommerce platforms have cut-throat competition, Etsy is more of a community of artists and small businesses. This means users are generally more helpful, and there is an opportunity for individual artists to collaborate. 

Monetize Pastimes and Hobbies

An Etsy store is relatively easy to set up and use and has a simple design. You can monetize your pastimes without investing too much time creating your store and maintaining it. 

It is a platform to sell products you may create as a hobby, which you otherwise would be unable to find buyers. For example, if you make resin jewelry as a hobby, you might find more buyers on Etsy than on other platforms.

Easy Availability Of Resources

Many successful Etsy sellers share their experiences online and helpful tips and tricks of the trade. Searching for “Selling tips on Etsy” will yield thousands of results.

You can refer to these resources to grow a successful business even as a beginner.

Convenience and Accessibility

Your Etsy account can be synced across multiple devices, and you can easily create listings from anywhere. It’s also a great way to conduct business at your convenience. You are your boss, and you are free to decide what works for you.

Helpful Algorithm

Unlike many websites and eCommerce platforms that only reward larger accounts and make the popular shops even more popular, Etsy’s algorithm allows newer accounts to get their fair share of visibility and traffic. This means that you don't have to struggle to draw leads to your new store.

Cons

Saturated Market

Etsy has millions of active sellers, some of whom have already established a name with loyal clientele. Your chosen niche may already be quite saturated, making it highly competitive.

Don't worry! You can always check the degree of competition in your preferred market.

Copycats

When you sell products on Etsy and gain a following, you run the risk of people copying your products, product descriptions and listing content, and even your product photos.

Before you start working on Etsy, consider using Etsy Seller Rank to find your potential competitors.

Standardization

Etsy’s simple design is a double-edged sword as the standardization leaves little room for branding and personalization.

Aside from the images and written content, most listings are styled the same, so they look incredibly similar.

So, it is necessary for you to check your competitors' product listings.

Pros and Cons of Selling on Amazon Handmade

Pros

High Sales and Built-In Traffic

As the largest eCommerce platform, Amazon has a massive audience that you can tap into when you open your store.

Convenience of FBA

Fulfilled by Amazon, or FBA, provides convenience to sellers for shipping, tracking, and other logistics. This eases a significant part of the burden of running an eCommerce store.

Juried Categories and High ROI on Ads

Amazon is very vigilant about which users can qualify as a handmade store, and the categories under these are strictly monitored. 

Additionally, the return on investment is exceptionally high for Amazon ads, which means you have a reasonably fair chance of growing your business despite the competition.

Cons

High Commission Fees

Amazon has an extremely high commission at 15%, eating into your profit margins. You may have to raise your prices to make up for it.

Lenient Return Policies

Amazon’s lenient return policies and affinity for siding with the customers in most cases can be a massive disadvantage if you have to face unnecessary returns without valid reasons. This could reduce your profits and affect your stock.

Algorithms

The Amazon algorithm is highly competitive and can be challenging to crack. This means that no matter how unique or attractive your products are, if you cannot work around the algorithm, your sales may not reflect.

Amazon Handmade vs. Etsy: How Similar or Different Are They?

Like all online marketplaces and eCommerce platforms, Amazon and Etsy share some similarities. However, they are vastly different despite these similarities. 

We’ve covered some aspects you should keep in mind below when selecting which of the two platforms to focus on.

Similarities

• User-friendly designs - Amazon and Etsy have relatively simple designs, so your listings will not get lost in a confusing interface. The purchase process is simple and easy to use for all customers.
• Listing content - Listings on both platforms have a similar format and contain the same elements: product images, a detailed description, and prices.
• Easy to set up and maintain stores - Amazon and Etsy are relatively simple platforms to browse and use. Sellers with no familiarity with web development can easily create accounts and list their products.

Differences

• Experience - Etsy is older than Amazon by a decade and has specialized expertise in working with artists and independent businesses, giving it an edge in many aspects.
• Top-selling products - The most popular categories or products on both platforms vary. Amazon’s top products include party supplies, jewelry, prints, stationery, decorations, etc. Etsy’s top categories include bath and beauty, home and living, jewelry, art, party, home decor supplies, clothes, etc.
• Different definitions of what qualifies as “handmade” - Amazon is particular about what qualifies as handmade, while Etsy is a lot more inclusive in comparison. For example, Etsy allows the sale of handcrafted items made and/or designed by sellers. Meanwhile, Amazon Handmade is strict about its policy that the product should be made entirely by hand, hand-altered, or hand-assembled by the seller. If the Amazon Handmade seller has fewer than 20 employees in their company, the product can also be made by an employee. Essentially, Etsy allows sellers to have their designs or products mass-produced by third-party manufacturers, thus making it more lenient than Amazon, which requires sellers to actively be involved in the making process.
• Costs and fees for transactions, listings, and shipping - The platforms ask for different fees that may depend on the product being sold.
• Customer base - Etsy’s customer base is more niche, while Amazon has a large audience of all kinds of customers as it is an eCommerce mogul.

How to choose the right platform for selling handmade items

Both Amazon Handmade vs Etsy offer unique advantages for handmade sellers, but they cater to slightly different types of businesses. When deciding between Amazon Handmade vs Etsy, handmade sellers should consider the following factors:

• Signup: Etsy is fast and beginner-friendly; Amazon Handmade requires approval.
• Fees: Etsy has listing, transaction, and payment processing fees; Amazon Handmade charges a subscription and referral fees, plus optional FBA costs.
• Fulfillment: Etsy sellers handle shipping themselves; Amazon Handmade offers optional FBA.
• Advertising: Etsy offers onsite and offsite ads; Amazon Handmade provides advanced, scalable ad campaigns.
• Control & Branding: Etsy gives more control over packaging, SEO, and promotions; Amazon Handmade has stricter rules but access to a larger audience.
• Audience & Reach: Etsy attracts niche buyers looking for unique handmade items; Amazon Handmade taps into Amazon’s massive global customer base.

Considering these points will help sellers choose the platform that best fits their product, business goals, and selling style.

FAQs

Which is better amazon handmade vs etsy?

It depends on your goals. Etsy is ideal for small sellers who want creative freedom, easy setup, niche audience, and full control over branding and fulfillment. Amazon Handmade suits sellers seeking scalability and worry-free logistics through FBA, plus access to Amazon’s massive customer base.

What's the best website to sell handmade items?

The best websites for handmade items are Etsy and Amazon Handmade. Etsy works well for small or niche sellers offering unique, artisanal, or customizable products. Amazon Handmade is better suited for sellers with larger inventories or more standardized handmade items who want to reach a broader audience.

Who is Etsy's biggest competitor?

Etsy’s biggest competitor is Amazon Handmade. It gives handmade sellers access to millions of Amazon’s active users, offering exposure to a much larger audience. The platform is smaller than Etsy in terms of seller numbers but continues to grow steadily.

Is Amazon handmade free to sell?

No. Selling on Amazon Handmade requires a Professional seller account ($39.99/month) and a 15% referral fee per sale. There are no listing fees, but additional costs apply if you use Fulfillment by Amazon or run advertising campaigns.

What is the best alternative to Etsy in 2026?

A top alternative to Etsy is Amazon Handmade, which offers access to Amazon’s large customer base, and a growing marketplace for handmade products.

Is it hard to get approved for Amazon Handmade?

Getting approved can take some effort, as Amazon Handmade requires sellers to verify their handmade process and product authenticity. To get approved, sellers need to provide proof that their products are genuinely handmade, which may include:

• Photos of the production process or workspace
• Descriptions of materials and techniques used
• Business information ( tax ID or business license)
• In some cases, Amazon may request additional verification to ensure authenticity

Is selling handmade items on Amazon worth it?

Yes, it can be worth it for sellers who want access to a large customer base and scalable, worry-free fulfillment. However, higher fees and stricter requirements mean it’s best suited for sellers ready to grow beyond small-scale operations.

Conclusion

You have the freedom to choose between Amazon Handmade vs Etsy for selling your products, as both are leading platforms in the eCommerce space. You can use both platforms to maximize your reach, or focus on a single store to save on listing fees and streamline management.

For handmade sellers looking to make smarter, data-driven decisions, tools like EHunt’s Amazon Handmade Analysis can help you identify top-selling handmade products, track handmade market trends, and optimize your listings for better visibility and sales.

Whether you’re scaling your Etsy shop or expanding into Amazon Handmade, understanding your options and leveraging the right tools can help you grow your handmade business with confidence.