Selling On Amazon vs Etsy in 2025: Which Is Better For You?

Amazon and Etsy are popular online platforms for sellers and buyers worldwide. However, Etsy focuses more on handcraft items while Amazon sells almost anything. Therefore, it is crucial to understand the differences between selling on Amazon vs. Etsy. 

With over a decade of experience in product sourcing, we’ve solved thousands of cases regarding online business. You’ll get information on choosing whether to sell on Amazon or Etsy. As a result, you can transform your business idea into an online store with a suitable platform.

This post will list the differences between selling on Amazon vs. Etsy. Let’s get started.  

A brief overview of Amazon and Etsy

Amazon

Since 1994, Amazon has developed into one of the largest online platforms globally. Buyers can reach over a 1.9million marketplace sellers on Amazon.

The Amazon marketplace has about 300 million active users. It offers a wide range of products for customers. You can find products like electronic products, books, clothing, skin care products, kitchenware, and gifts. 

Suggested reading: Best 12 Sites Like Amazon For All Your Online Selling Needs

Etsy

Founded in 2005, Etsy is an online marketplace that sells unique goods to customers worldwide. It has 2.7million professional sellers, mainly artists, handcrafters, and designers. 

Etsy has a big market of over 80 million consumers actively searching for handcraft goods. You can find one-of-a-kind creative goods sold at affordable prices on Etsy. The products include jewelry, art, homeware, vintage, and handicraft items.

Suggested reading: Is Etsy Safe for Online Shopping or Selling?

Differences in selling on Amazon and Etsy

1. Amazon vs. Etsy: Selling fees

Amazon

· Transaction Fees

Individual sellers need to pay $0.99 for each item sold. Sellers under professional plans only pay a monthly fee of $39.99, regardless of the units sold. 

· Referral Fee

Amazon charges 8% – 15% referral fees per product sold. It varies depending on the number and type of products you sell. 

· FBA Fulfillment Fees

If you use Amazon FBA services, you’ll need to pay the fulfillment charges. It ranges from $2.30 to $150 per unit based on the package’s sizes.

· Other Amazon Fees

• High-Volume Listing Fee: $0.005 per listing for items not sold in 12 months
• Refund Administration Fees: Within $5.00 or 20% of the referral fee
• Advertising Costs: depending on the program you choose.

Etsy

· Listing Fees

You’ll need to pay 20cents listing fees for each listing you post. 

· Transaction Fees

Sellers on Etsy must pay 6.5% selling fees based on the total selling price. The price includes your product price, shipping fee, and packaging costs. 

· Shipping Charges

There is a 5% charge on total shipping fees if you charge separate shipping fees. 

· Payment Processing Fees

Depending on your country, you’ll need to pay about 3% + $0.25 fees per payment received. 

· Other Fees

• Advertising Costs: 12% – 15% of total revenue
• Currency Conversion Rates: 2.5% for Etsy Payments
• Pattern by Etsy fees: $15 per month 
• Subscription Fees: $10 per month for the Etsy Plus plan

Winner

Both Etsy and Amazon charge selling fees for the product sold. But compared to Amazon, Etsy has a much lower transaction fee and no referral fee for items sold. 

2. Amazon vs. Etsy: Platform usage

Amazon

The Amazon platform on desktop and mobile apps is user-friendly for all its users. Sellers can easily set up their own online store, list products, or set discounts. You don’t need much website development knowledge. 

You can use the Amazon seller dashboard to study your store’s analytics. This information includes order and customer information. You can easily add products or use the import or export function to add new listings.

Etsy

The Etsy dashboard is similar to the Amazon platform. It has an easy-to-use backend system to handle listings and inventory management. The filter system lets you view listings according to their status, channel, or expiry date. 

You can also find several information on the seller dashboard. For example, it includes the total visits to your shop and how they reach your store. Also, sellers can use the quick edit function to change some information quickly. For instance, the price, quantity, SKU, shipping, etc. 

Winner

The Amazon inventory management system is more complete than Etsy. Sellers can import, export, list, and create products using this system. Meanwhile, sellers on Etsy find that this platform is easier to use.  

3. Amazon vs. Etsy: Listing and payment process

Amazon

To list items on Amazon, an Amazon seller needs to complete an application process. The approval could be time-consuming, taking weeks or months. The steps are as below:

   Step 1: Submit your application 

   Step 2: Register an Amazon seller account

   Step 3: Wait for Amazon’s approval

   Step 4: Create your listings after approval 

   Step 5: Advertise your Amazon online store 

When customers make payments, Amazon pays their sellers’ bank accounts using direct deposit. Amazon typically makes payments to sellers biweekly.

The payment process takes more time on Amazon, up to 24 days per transaction. Furthermore, Amazon only releases the payment to sellers after product shipment.

Etsy

It is easier to list products on an Etsy store. Sellers only need to go through the registration process. Sellers and buyers can also register on Etsy using their Facebook accounts. The listing process is as below:

   Step 1: Register an Etsy seller account

   Step 2: Choose your currency, language, and country preferences

   Step 3: Input the name of your Etsy store

   Step 4: Upload and publish the product listings

   Step 5: Choose the payment methods

   Step 6: Fill in your billing information

   Step 7: Advertise your Etsy online store

Etsy makes payments to your payment account in several ways. For instance, payment via their Etsy accounts, the mail, and Paypal. The payment schedule is a weekly payment. Still, these Etsy sellers can change the settings to payment per day, week, month, or bimonthly.

The funds are available to sellers as soon as the customer has completed the transaction.  

Winner

Etsy is more user-friendly for you to create your own online store. The listing process and payment process are faster and easier.

4. Amazon vs. Etsy: Product category features

Amazon

Amazon allows its sellers to categorize their goods into top-level and subcategories. Various categories are available, with useful sorting tools for sellers. The types include electronics, arts and crafts, automotive, fashion, and pet supplies. As a result, it is easy for sellers to sell and buyers to buy. 

Selling on Amazon Handmade is another choice for handcraft sellers. The top-level categories are more focused on craft and lifestyle goods. For example, jewelry, home decor, handmade totes, and kitchen and dining categories. 

However, Amazon Handmade only has 14 defined categories. Therefore, sellers may not to able to list products that are out of these categories. 

Etsy

Etsy has a more niche product category as compared to Amazon. Thus, people looking for handcraft and vintage items are more likely to visit Etsy. 

Like Amazon, sellers on Etsy can organize their products into main and subcategories. For example, its top-level category includes paper and party supplies, weddings, craft supplies, and tools. You can even find unique categories on Etsy. For example, they include handmade sports and outdoor and handmade electronics.

Etsy is famous for selling vintage and handcraft goods. Over the years, it has developed and defined 160 product categories. It makes it easier for buyers to hunt for the goods they want.

Winner

Amazon is suitable for buyers who want to buy products from any category. On the other hand, Etsy is the ideal choice for looking for a craft item

5. Amazon vs. Etsy: Fulfillment services

Amazon

Amazon offers Fulfillment by Amazon (FBA) services to all Amazon sellers. So, you can get order fulfillment services and customer service to increase customer loyalty. These services include inventory management, warehousing, picking and packing, shipping, and customer care. 

As a result, Amazon is entirely in contact with your customers. So, they might be more professional in handling the customers. But the drawback is that you have less control over your customers.

Etsy

Etsy does not offer fulfillment services for its sellers. Hence, sellers must handle the fulfillment and shipping when a customer orders. 

Still, Etsy provides shipment support to its sellers in other ways. For example, they work with delivery companies to assist the delivery process and cut costs. Their partners include FedEx, Canada Post, and the United States Postal Service. 

Etsy sellers can also design their Etsy Shipping Labels on the website. It is an excellent way to save 30% on shipping your goods. Or, you can also choose a different fulfillment service based on your need.

Winner

Amazon surpasses Etsy in terms of order fulfillment services and inventory management. It is easier to sell products online on Amazon and let the FBA does the fulfillment process. 

6. Amazon vs. Etsy: Customer base

Amazon

Amazon does not limit the product categories sold and thus has over 300 million active users. You can find almost anything legal on Amazon. It makes Amazon one of the largest e-commerce marketplaces for the worldwide population. 

About 65% of the US population visited Amazon monthly in 2020. Most of these visitors have converted into buyers on Amazon. 

The customer base on Amazon consists of customers from the US and the UK. Among them, 200 million subscribed to Prime members for unique benefits and fast delivery. It is also interesting that about 26% of Gen-Z are Amazon buyers.

Etsy

This website focuses on a smaller niche, which is artisan products. As a result, it has much fewer visitors compared to Amazon. Still, it managed to have 200 million monthly visitors, making it one of the top 4 US online marketplaces.

In 2020, Etsy reported 81.9million active customers on their site. It has increased enormously compared to 2019, with an additional 35.55 million users. 

The sales on Etsy usually shoot up from October yearly during the holiday season. Most of these customers on Etsy buy for themselves. Another fact is that most customers are from the US and the UK. 

Winner

Undoubtedly, Amazon has a larger online community compared to Etsy. But if you aim to buy or sell handmade goods, Etsy is a better choice. 

 Pros and Cons of Selling on Amazon 

Pros

· Established Marketplace

Amazon is the top Internet company worldwide, with over 80millions visitors monthly. So, your business can be potentially visited by a large group audience. There are also no geography limitations, meaning you can sell to customers worldwide. 

· No Limitations on Listings

While Etsy only allows you to sell certain items, Amazon gives you the freedom to sell any goods. You can sell a wide range of products to attract more customers to your site. It increases your competitive advantage as you ease the customers’ shopping experience. 

· Fulfillment Services Available

Unlike Etsy, Amazon has Fulfillment by Amazon (FBA) services for all its sellers. You can use their shipping services and pass the customer service jobs to them. It allows you to focus better on product development and marketing. 

· Easy to Use

Amazon is already in the market for over 20 years. Its team has continuously improved the website to enhance its functions and usability. Today, the Amazon website and app are mature and easy to use for everyone, everywhere. Amazon Handmade sellers can start selling on their own seller account within a few clicks.

Cons

· High Commissions

There are various commission rates depending on the products you sell on Amazon. It includes a minimum fee and a percentage, besides a £0.75 per-item fee for individual sellers. As a result, you will earn a lesser profit after deducting these charges. 

· Not Customizable

Amazon does not allow you to customize your store by altering the font or banners. Building your own branding through website or banner designs is not possible. In addition, customers might not be able to recognize you better. 

· Strong Competition

Though Amazon has a large number of visitors, it also has many sellers. These sellers are your competitors in attracting your target customers. Moreover, if your products sell well, Amazon could be your competitor.

 Pros and Cons of Selling on Etsy

Pros

· Large Community for Unique Goods

Etsy has already established a mature community for the vintage and handmade products market. It is helpful for businesses that want to reach these niche audiences. Note that you still need to put effort as Etsy active users don’t mean your shop’s traffic.

· Low Start-Up Cost

When you set up your own Etsy shop, there are no monthly subscription fees. Moreover, there are only 6.5% seller fees and about 3% payment processing fees per product sold. Etsy only charges these fees when you’ve successfully sold your goods. Therefore, it is suitable for small businesses to sell on Etsy.

· Customizable Plans

Etsy sellers can review analytics on the stats page to understand consumer behaviors. Besides, you can opt for the Etsy Plus plan to customize your stores with more features. These features include featured listings, notifications for out-of-stock goods, and domain discounts.  

· Discount and Shipping Functions

You’ll be able to attract and retain more customers with the Etsy shop’s functions. The discounts, coupons, and shipping settings are helpful marketing tools for your business. 

Cons

· Limitations of Listings

Etsy focuses on selling vintage and handmade items. It ensures that customers can easily search for these craft items on their site. Thus, it does not allow sellers to sell goods out of the handmade category. Otherwise, the Etsy team will flag or delete such listings. 

· Fulfillment Services Not Available

Sellers need to arrange their own fulfillment service as it is unavailable on Etsy. You’ll need to handle packaging, labeling, and shipping once consumers buy your goods. 

· Less Independence

Building your store on Etsy means that you are under the control of Etsy. You’ll need to follow their terms and conditions, or It has the right to close down your store. Not only that, but you must adhere to their fees even if they’ve raised them one day.

FAQs about Selling On Amazon vs Etsy

What’s Next

In short, both Amazon and Etsy have their pros and cons. Amazon has a wide range of categories that targets all users. In addition, its platform functions and fulfillment services are helpful for its sellers.

Etsy has a smaller yet more focused audience that loves handcraft goods. Besides a low listing fee, you’ll find a more straightforward listing and payment processes. It also has over 160 categories for your needs. 

Are you sourcing popular goods to sell in your own store? Leeline Sourcing is a name you can trust. Our team has over ten years of experience in product sourcing. Contact us today to enhance your business.