Key Highlights
- Compare Etsy and Amazon Handmade to find the ideal platform for selling handmade goods online, especially for new sellers in India.
- Analyse transaction fees, listing charges, and recurring costs to understand the financial commitments associated with both marketplaces.
- Recognize the differences in customer base size, niche targeting, and global reach to align with your business goals.
- Explore distinct features such as branding tools, seller dashboards, and customization options available on each platform.
- Understand the variety of product categories, shipping solutions, and order fulfillment systems to maximise efficiency.
- Determine the best marketplace for small businesses aiming to sell handcrafted and unique items successfully.
Introduction
Are you new to selling and want to start an online store for your handmade goods? Picking the right site is important and can have a big effect on how your business grows. Etsy and Amazon Handmade are two top choices for small businesses and artisans. Both give you strong tools to reach more people and build a global customer base. Each has its own benefits, but they are different when it comes to costs, how they work, and how many customers you can get. In this guide, we will go over Etsy and Amazon Handmade in detail. You will find out which one fits your business goals best.
Understanding Online Marketplaces for Handmade Goods
Online marketplaces for handmade goods have changed how people sell and buy special products. Websites like Etsy and Amazon Handmade help small businesses and sellers reach more customers around the world. They make it easy for you to show your unique items and sell them online. If you are new to this, it is important to know about the way these online marketplaces work and what they charge.
Etsy is good for small businesses because it is easy to set up a store and it does not cost a lot. Amazon Handmade gives you a chance to reach a massive customer base, but you have to go through a tougher application process. When you want to choose where to sell, you should think about how many people you want to reach, the fees, and what each platform can give you as a seller.
The Rise of Handmade E-Commerce in India
The rise of handmade e-commerce in India shows a new and exciting time for small businesses. More artisans are using online marketplaces now to reach people in all parts of India and the world. Etsy and Amazon Handmade are both popular because they help craft-makers sell handmade goods and meet many buyers from many places.
These websites help Indian artisans share their skills and products like jewelry, clothing, and home decor. This makes it easy for buyers everywhere to find real and unique items that come from India. There is now a big market for handmade products, and people want to buy these goods from Indian sellers.
But there is plenty of competition, and this can be hard for some. Sellers have to make their product listings better, use the right keywords, and talk with customers to give great service. This is important if you want to do well. If you have special handmade goods or sell in big markets, both Etsy and Amazon Handmade give artisans new ways to show their work and sell to buyers all over the world through these online marketplaces.
Why New Sellers Are Choosing Online Platforms
New sellers often go to online marketplaces like Etsy and Amazon Handmade. The main reason is these sites are easy to use and help small businesses grow. It takes less time, money, and effort to open an online store here than setting up a physical one. This makes it a good choice if you are an artisan starting out.
These online marketplaces help sellers get a global customer base, which is important for small businesses that want to grow fast. The sites let sellers reach many people all over the world, and you do not have to spend a lot on ads. Built-in search features and simple promotional tools help sellers go up in search results and get noticed by active buyers.
Etsy and Amazon Handmade give sellers a lot of flexibility, so you can spend more time making good products. With seller dashboards, choices for order fulfillment, and easy branding tools, these platforms make it simpler to manage your online store and sales. You can show niche products, connect with their active buyers, and this helps new sellers find their way and get customers. This is a big help for anyone who wants to join the world of online selling.
Overview of Etsy
Etsy has changed the way online marketplaces work for artisans since it started in 2005. It is made for etsy sellers who want to sell handmade and vintage items. Etsy is a main place for creative people from all over the world to sell their things. The website is easy to use, so people can make a store and list products without any trouble. The platform is best for those who want a niche audience, which means there are active buyers who come looking for unique goods.
The seller dashboard is simple to use, which helps new sellers get started. Etsy fees are not too high, so it does not cost a lot to sell your items. With over 90 million people shopping, Etsy helps independent sellers build a strong connection with their customers.
Key Features of Selling on Etsy
Selling on Etsy gives new businesses the tools they need to grow. Here are some of the most important things that help it stand out:
- Seller Dashboard: You can use the seller dashboard to look after your listings, check how your shop is doing, and see important details about your shop’s work. The site is easy to use and makes it simple to manage everything in one place.
- Customization Options: You have many ways to make your etsy store your own. Add banners, logos, and set up your shop rules to help show off your brand identity.
- Promotion Tools: Use etsy ads to reach people on social media, or offsite ads to have even more people find out about your shop and products.
- Community Forums: Etsy sellers get access to special forums. This is where you can meet others, share stories, and get advice whenever you need help.
On Etsy, you are able to sell both digital products and handmade items. This gives a lot of freedom to small businesses. Etsy focuses on talking to your customers and it keeps fees low. This makes it a good place for people starting in e-commerce to grow and connect with others.
Popular Product Categories on Etsy
Etsy has a lot of options in product categories and this helps bring in people searching for unique things. Many people want to buy from some of the most popular categories, and these are:
- Vintage Items: To count as vintage items, a product needs to be at least 20 years old. These products are loved by collectors and others with a special interest.
- Unique Items: Handcrafted goods like jewelry, art prints, and gifts made for each person lead the sales on Etsy.
- Craft Supplies: This includes the tools, decorations, and different materials used for do-it-yourself projects. These craft supplies bring out creativity in the people who come to Etsy.
- Party Supplies: Items like banners, cake toppers, and kits made for a special theme cover this flexible section of the marketplace.
There are more than 160 categories on Etsy for anyone looking to find just what they like. It gives all sellers a good way to reach a niche audience and people who want products picked out with care. The steady need for things like vintage items, unique items, craft supplies, and party supplies shows that Etsy is the place where creators, artists, and all sorts of crafty people can do well.
Cost Structure and Fees on Etsy
Etsy fees are made to work well for people who have small businesses. Still, you need to know that there are regular costs you have to keep paying.
- Listing Fee: You pay $0.20 to put each product on sale. This listing will be there for four months. After four months, it will end unless you pay to list it again.
- Transaction Fee: When an item sells, Etsy takes 6.5% of the total sale price. This will affect your profit margins.
- Payment Processing Fee: If you are in the U.S., Etsy charges 3% of the sale plus $0.25 for each order as the payment processing fee.
There are other fees, too. For example, if you use Offsite Ads, Etsy will take 15% from sales that come through these ads. If you make over $10,000 in a year, this fee drops to 12%. Etsy Plus costs $10 each month. It includes tools to help with your shop’s branding. While etsy fees look affordable at first, all these added costs can make it hard to make a profit. So, it’s important to keep track of your money and manage your shop well.
Overview of Amazon Handmade
Amazon Handmade started in 2015. It is a part of Amazon made for people who make things by hand. Amazon Handmade gives amazon sellers a way to have global reach and find many people who want to buy their special goods. If you want to sell here, you can get a professional seller account, but you need to go through a strong application and approval process. This helps to build trust with buyers.
Amazon Handmade is different from sites like Etsy. It only lets sellers offer physical goods that are made by hand. You will find things like jewelry and home essentials in this section. When you use Fulfillment by Amazon, order management and shipping become easy and fast. This is good for people who want to save time and be more efficient as amazon sellers.
Unique Features of Amazon Handmade
Amazon Handmade stands out because it is made to help people sell craft and handmade items easily.
- Global Audience Access: You can reach millions of people who visit the amazon marketplace often.
- Seller Support: You get strong seller support to fix customer problems and get your business to grow faster.
- Professional Seller Account: Handmade sellers who are approved can have a professional seller account and get subscription fees waived.
- Fulfillment Services: Pick if you want Fulfillment by Amazon (FBA) to handle your orders or do it yourself with the merchant fulfillment services.
Amazon Handmade has strong trust because it has strict rules for sellers to keep handmade items real and meet high standards. Their tools help handmade sellers bring in lots of products at once and change listings fast, making it easy for people to build their presence on the amazon marketplace.
Product Eligibility and Approval Process
Amazon Handmade has a few rules made to make sure all goods are real and made by hand.
- Application Process: To sell here, you have to show Amazon that your stuff is really handmade or has been altered by hand. You will need to give pictures and thorough notes about your work. This is important to get accepted as a handmade seller.
- Listing Requirements: You can only put up stuff that is physical and made by hand. Digital things or things made in huge numbers are not okay to list for sale.
- Seller Guidelines: Your team can have up to twenty people. This way, Amazon Handmade helps smaller makers when they try to grow.
All these steps may look hard at first. But, it helps shoppers feel sure that they are getting real handmade items from true artisans. For people who want to join, Amazon Handmade gives you tools and support. These tools help you handle your work and sell to people around the world.
If you want to become one of the handmade sellers on amazon handmade, you need to know that the process is strict because it protects both you and your customers.
- Application Process: Fill out every part of your seller application. Make it easy for Amazon to see how you make or change each product. If possible, give step-by-step photos or even a short video.
- Listing Requirements: Check your goods before listing. Each item must follow the amazon handmade guidelines so there are no problems later.
Fee Structure and Commissions on Amazon Handmade
Selling on Amazon Handmade means you have to follow a set fee system that can affect your profit margins. If you use a professional selling plan, you will pay a subscription fee each month. This gives you access to a massive customer base. On top of this, there are transaction fees for every sale, which are usually about 15% of the item price. Also, you need to add payment processing fees. This fee setup is there to help pay for marketing and fulfillment services. It is important to know about these costs when you try to work out how much money you could make as an independent seller on Amazon Handmade.
Etsy vs. Amazon Handmade: Side-by-Side Comparison
A close look at both platforms shows they are different in many ways. You can see changes in transaction fees, customer base, and how seller support works. Etsy is known for lower fees. This is good for new sellers who sell handmade goods or vintage items. It helps these people start because they spend less money to list their items.
Amazon Handmade stands out because it has a massive customer base. This means independent sellers can get their products to a much broader audience. If you want more people to see and buy your things, this is a good place to go.
Etsy is better for branding and gives more choices for customization options. This helps people shape their own store in the way they want. On the other hand, Amazon’s fulfillment services make shipping and order work smoother, so sellers can focus on making products, not just sending them.
Both platforms be made for different kinds of sellers. They offer their own good features to help artisans who want to grow and reach more people online.
Seller Requirements and Onboarding
For amazon handmade, you need to make a professional seller account through seller central. You have to give a bank account for payments and talk about how you make your handmade items. It is very important to understand the platform’s rules so you can do well there.
On Etsy, sellers open their shop with small fees and also share details about their handmade items. Both Amazon Handmade and Etsy focus on brand identity. So, sellers must show what makes their products different in order to attract buyers.
Customer Reach and Marketplace Visibility
Marketplace visibility plays a big role in the success of handmade items. Amazon Handmade gives independent sellers access to a massive customer base. This means sellers get to reach a broader audience through Amazon Handmade. Etsy, on the other hand, has a community full of people who love crafts and are looking for unique items. Both places offer strong ways to promote your products. These ways include Etsy Ads and also Amazon’s offsite ads, which help make your products easier to see.
New sellers need to understand how these customer base and reach work on each platform. This will help you match your brand identity with what your target audience likes. When you do this, you have a good chance of boosting sales.
Branding and Customization Options
Building a strong brand identity is very important for any seller. On Etsy, you can make your shop stand out to your niche audience by adding unique banners and logos. This gives your store a personal look that other people may not have. Amazon Handmade does not offer as much freedom for shop design. However, you are able to show off your brand in product listings and in how you describe your handmade goods. Using these parts of Etsy and Amazon Handmade helps you show up better in front of the massive customer base that is on each site. When you use these options well, it lets you be different from other sellers. This helps you connect with people and buyers who want what you make.
Payment Methods and Payout Timelines
There are different ways to pay on Amazon Handmade. People can use credit cards, debit cards, or Amazon Pay. Amazon Pay gives buyers an easy way to complete their purchases. After you ship an order, you usually get your payout in about 14 days. This gives time for the order to be handled.
New sellers need to know about this payout timing. It can change how money moves in and out, so it is important for you to have a good budget. If you make sure order fulfillment is accurate and track your sales, you can manage your money well on the Amazon marketplace.
Pros and Cons for New Sellers
When you step into the world of online marketplaces, you will find both good things and some hard parts, especially if you are new. Etsy is good because it has a strong and friendly group of users. It also has lower fees, so it is easier for independent sellers to get started. On the other hand, Amazon Handmade has a massive customer base. Because of this, items get in front of more people, but these websites often have higher fees for every sale.
It is very important for new sellers to know the pros and cons of each online marketplace. This helps when you want to reach your business goals, like building your brand identity or selling to a broader audience. In the end, your choice depends on what you and your business need and the way you want to go forward.
Advantages of Starting with Etsy
Etsy is a great place for independent sellers who love to make and sell handmade items. It brings together people who want something special and lets you reach a niche audience who values unique things. The seller dashboard on Etsy is easy to use. It also makes setting up and handling your product listings simple.
Etsy charges lower fees compared to some other places online, so new sellers can keep more of their profit margins. If you want more people to see your shop, you can use Etsy ads. There is also a helpful community to support you as you work towards your business goals.
With Etsy, it gets easier to build your brand identity. You can reach not just local buyers but people from all over, letting you tap into a global customer base. This makes it a good way to grow your business and connect with customers worldwide.
Advantages of Starting with Amazon Handmade
One of the big benefits of starting to sell on Amazon Handmade is the access to a global customer base. This means you can reach people from all over the world, not just in your area. You get a much broader audience, so more people can see your products. There are also good fulfillment services on the site. These services help with handling orders, which cuts down the time you spend on packing and shipping. Amazon also gives you tools to promote your products, like offsite ads, to help get more people to your listings. For new sellers, these features help you save time and can give you better profit margins. This makes Amazon Handmade a good choice for anyone who wants to grow their handmade business.
Potential Challenges on Each Platform
Navigating both platforms can be tough for new sellers. On Etsy, it can be hard to get seen in a busy marketplace. Many people use Etsy ads to stand out, but you have to compete with sellers who are already doing well. On the other hand, Amazon Handmade brings a massive customer base. Even so, the higher fees and extra charges there can lower profit margins, which is hard on independent sellers. The application process and strict rules can also be a challenge, as these may change your brand identity and affect your chances of doing well as a new seller.
Beginner’s Guide: How to Start Selling Handmade Products Online
To start a handmade business online, you first need to know the basics. Find your niche audience by offering unique items that connect with people who will buy from you. To be on Amazon Handmade or Etsy, you have to fill out an application process and set up a professional seller account if that is needed. Make sure to use clear and interesting images and give good descriptions, so you can get active buyers. Also, think about your branding and how you get your products to customers with fulfillment services. These steps will help you reach your business goals.
What You’ll Need to Get Started (Essentials & Resources)
To start a handmade business online, you need a few important things. A good computer or tablet will help you to set up your seller account and make your product listings. Be sure to take clear and nice photos of what you make, as the photos get people to look at your products. It is helpful to know how online marketplaces such as amazon handmade or Etsy work. This way, you can get the most out of their tools and find your way around. You will also need a bank account to make handling money easy. A seller dashboard is good to have too, as it lets you keep track of your sales and products. To learn more and get tips, you should use community forums and online tutorials. These can really help you do well with your handmade business.
Choosing Between Etsy and Amazon Handmade as a Beginner
Deciding between Etsy and Amazon Handmade can be hard for new sellers. Etsy is popular for selling unique handmade items and has a lively community. It also lets you change your shop to match your brand identity. Amazon Handmade, on the other hand, gives you access to a massive customer base and well-known fulfillment services. This can help you get your items in front of more people. You have to look at things like transaction fees and how simple it is to use the seller dashboard on each site. Think about your niche audience and your business goals before making a choice. Both platforms offer their own good points, so it is important to pick the one that fits with what you want for your brand and future growth.
Step-by-Step Guide to Launching Your Handmade Shop
Launching a handmade shop means you need the right plan if you want to get more people to see your shop in online marketplaces. First, find out who your niche audience is. Learn what these people like and want. This will help you make your product listings for them.
After that, set up your seller account. This could be on Etsy or on Amazon Handmade. You will need to follow the steps each site asks you to do. Make sure you do not miss any rules or steps.
Once your account is ready, put effort into your product listings. Make your descriptions interesting and clear. Use good, high-quality pictures. This will help your products speak to your target audience. When you do this, your shop can get seen by more active buyers who look for items in these online marketplaces.
Step 1: Research Your Niche and Target Audience
Finding a niche and knowing your target audience are important steps when you start a handmade business. To do this, you can look at market trends and see where your unique items can stand out. Talking to people on social media and in community forums helps you learn what they like and how they shop.
Also, thinking about a broader audience with a global reach can help match your products with what people want. This can support your business goals and help you get better profit margins.
Step 2: Set Up Your Seller Account (Etsy or Amazon Handmade)
Creating a seller account is different on each platform. On Etsy, new sellers need to go to the Etsy seller dashboard. There, you can sign up free, but you will have to pay some listing and transaction fees. For Amazon Handmade, new sellers must use Seller Central to open an account. You will need a professional selling plan, which comes with a subscription fee that you pay every month.
Both Etsy and Amazon Handmade give you tools to get started. They have community forums and a help center. These help new sellers understand all that they need to know. With these, you can set up your account easily and start selling in the marketplace.
Step 3: List Your First Products and Optimize Listings
Making great product listings is important when you want to get the attention of your niche audience. Use good, clear images to show off your handmade items. Show what makes each item special. Make sure to add keywords in the titles and the descriptions so people can find you easier when they search on both platforms. Tell them about the materials, product specifications, and all the customization options you have. This way, you can reach people who want something more personal. Set prices that stand out, but still give you good profit margins and cover the fees. Keep checking and updating your listings based on what people say and what is trending now. This helps you reach a broader audience, grow your online presence, and keep people coming back.
Step 4: Promote Your Shop and Manage Orders
Getting your online store noticed is important. Etsy ads and social media can help you reach your target audience. These tools also help show off your unique items. If you connect with your niche audience through special offers and promotions, you can grow your customer base by a lot. When orders start to come in, you need good order fulfillment. This includes using shipping labels and updating tracking, which helps things run smoothly. Using the seller dashboard also makes it easier to handle your inventory and helps give a good customer experience. It’s important to balance promotion and order management if you want your business to grow for a long time.
Conclusion
Choosing between these two marketplaces comes down to your own business goals and what makes your handmade items different. Etsy is great for independent sellers who want a friendly space with a strong community and options for customization. Amazon Handmade, on the other hand, gives you access to a massive customer base. This helps new sellers reach a broader audience and sell more handmade items.
Think about things like fees, reach, and support before you decide. It’s good to weigh these points, as they can help you make the best choice. Match your choice with your brand identity. When you keep your business goals in mind and make choices that fit your needs, you will get the best results. Enjoy the process as you build your business.
Frequently Asked Questions
Which platform is more profitable for Indian handmade sellers?
Figuring out if selling on Etsy or amazon handmade is good for Indian handmade sellers depends on a few things. You have to look at the fees, how many people you can reach, and how much competition there is. Etsy can help your handmade items get noticed if your products are very unique. amazon handmade can put your items in front of a bigger group of people. You need to know about all this to make the most money and do well as handmade sellers.
Do I need GST registration to sell on Etsy or Amazon Handmade from India?
Yes, if you are selling on Etsy or on amazon handmade from India, you will usually need GST registration. This helps you follow local tax rules. It also lets you collect GST from customers. Having this registration is important for your business to be legal and for staying good with the tax authorities.
Can I sell on both platforms at the same time?
Yes, you can sell at the same time on both Etsy and Amazon Handmade. Doing this lets you reach more people, try out different places to sell, and help you get more sales. But, you should pay attention to what each website asks from you. Each one has different rules, fees, and ways to handle your products, so keep an eye on those to make sure everything goes well.
What types of handmade items sell best online?
Some of the best-selling handmade items online are jewelry, home décor, personalized gifts, and unique clothing. Holiday decorations and other seasonal products can also do well. To get more sales on places like Etsy and Amazon Handmade, it is important to know about market trends and what customers like.
