Etsy CEO Chad Dickerson released this statement on Thursday, the day Handmade at Amazon launched:
We believe we are the best platform for creative entrepreneurs, empowering them to succeed on their own terms. Etsy has a decade of experience understanding the needs of artists and sellers and supporting them in ways that no other marketplace can. Our platform attracts 21+ million thoughtful consumers seeking to discover unique goods, and build relationships with the people who make and sell them.
Dickerson has said similar things in the past, but for many sellers his words fall on deaf ears. Over the last several years Etsy sellers have become disenchanted, accusing the site of losing its way. They point out the many resellers who stock their shops with cheap manufactured goods and sell at very low prices. There’s also concern over shops that seem to be clearly violating intellectual property yet are left unchecked and an overall disenchantment with what seems to be Etsy’s push to welcome sellers who work with manufacturers. Etsy has tried to dispel these fears over and over again, most recently by issuing a transparency report explaining how they handle shops that break the rules.
With nothing to hold Etsy up to, no real competitor to evaluate it side by side with, it’s been difficult to see Etsy’s true value to sellers. Other handmade marketplaces have existed for years, but none of them have rivaled Etsy’s customer base of 21 million. Without a true marketplace comparison it was hard to believe that Etsy was still a good platform.
Handmade at Amazon launched last week and now we’ve got a true competitor at last. With an active customer base of 285 million, Amazon has what it takes to make being part of a marketplace worthwhile.
The media is overwhelmingly describing Handmade at Amazon as “the Etsy killer.” In fact, I think it’s just the opposite. I’d argue that Handmade at Amazon is Etsy’s dream come true.
Etsy’s focus on serving the needs of small craft businesses is now shining more clearly. For one, the interface is incredibly easy to use. On Etsy setting up a new listing quick and easy. Use the one page editor to import multiple images at once and easily rearrange them. Need to change something? Make bulk edits to all your listings with just a few clicks. Sellers listing items on Handmade at Amazon are experiencing something very different. They can only upload one photo at a time and images can’t be rearranged. The listing text is in one long paragraph with no breaks (and using HTML to make paragraph breaks is not allowed). Mistakenly put your item in the wrong category? You’ll have to scrap the whole listing and start again. There are no shipping profiles which means there’s no way to bulk update shipping information on all of your listings. And you can’t create and control the sections of your store. Amazon is working to refine the process (they just added the ability to copy listings yesterday), but I now fully appreciate Etsy’s smooth user interface for sellers.
It’s also hitting home how much creative freedom Etsy gives sellers when it comes to photography and styling. Amazon strongly suggests that photos to be on a white or neutral background and props are only allowed in the main photo if they’re sold with the item. If sellers don’t follow the suggestions their items are suppressed in search.
Etsy now looks really affordable, too. Handmade at Amazon takes a 12% fee on each sale, assessed on the sale price plus shipping (note that this fee is 15% for sellers elsewhere on Amazon) and will begin charging handmade sellers $40/month beginning in August 2016, although there are no listing fees. Etsy’s .20 listing fee and 3.5% transaction fee is more affordable. For example, it costs a seller $5.76 to sell a $40 ceramic mug with $8 shipping on Handmade at Amazon, but just $1.60 to sell the same mug on Etsy, and this is not including the $40 monthly fee that hasn’t been implemented yet. Again, Etsy’s focus on helping tiny businesses to be profitable shines through.
For artisans who make items to order, Etsy’s payment structure is more favorable as well. When a buyer places a custom order on Etsy the seller gets the money right away. Amazon holds the money until the item is shipped, meaning you’re not able to use it to buy supplies. Go to https://www.emscorporate.com/industries/trade-services to understand electronic merchant systems and payment processing more. Online payment processing refers to the process of accepting and managing electronic payments made over the internet, including payments made through e-commerce platforms and online marketplaces.
Etsy’s comprehensive and ever-growing resource library to help sellers grow their businesses really stands out, too. The Etsy Seller Handbook and the Etsy Success Newsletter contain hundreds of articles on topics like photography, legal, talking to the press, pricing, and marketing. This resource library is incredibly valuable to novice and seasoned sellers alike. In comparison, sellers on Handmade at Amazon, who are in the mix with the hundreds of thousands of other sellers on Amazon, don’t have access to articles and tips for improving sales in their division. Handmade at Amazon is still very new and perhaps those resources will grow, but it’s also highly possible that Amazon won’t invest very much in them given that Handmade at Amazon is only one of many new divisions they’ve opened in recent months.
Amazon vetted every handmade seller to be sure their products were truly handmade. But how does Amazon define handmade? Items have to be “made entirely by hand, hand-altered, or hand assembled (not from a kit). Products must be handmade by you (the artisan), by one of your employees (if your company has 20 or fewer employees), or a member of your collective with less than 100 people.” Having one of your 20 employees add a bow to imported leg warmers? That seems like it would past muster. We’re seeing that defining handmade is very difficult for across the board, not just for Etsy.
And keep in mind that Etsy doesn’t manufacture anything itself. There is no fear that Etsy will notice the popularity of a particular item and begin producing that item and selling it at a lower price, undercutting the original maker. Amazon, on the other hand, is known for manufacturing products that do well in its marketplace. There’s no indication right now that they plan to use the handmade marketplace this way, but even if they never do the fear that they could and they might still exists.
None of this is to say that Handmade at Amazon is a bad thing or that Etsy has totally resolved its trust problem with sellers. What Handmade at Amazon does provide, though, is a comparison. Rather than killing Etsy, Handmade at Amazon is shining a light on its strengths.
Laura @ Prairie Sewn Studios says
This is a really great article on this, Abby. I too had only heard the “Etsy killer” concerns, but your really highlighted some of the ways this could be Etsy’s moment to shine!
Sheila says
In your blog you write that amazon manufactures, they do not. They designed the kindle and a phone which is from their software teams, not the manufacturing industry and manufactured elsewhere. Amazon takes well known brands and expands their product lines (when the data suggests people are interested in that type of product), for example originally kitchenaid mixer was only offered in the basic white home model. Then they played around with a few colors, then other models, now you can buy the pro models in every color available.
Another thing that might be worth mentioning in the blog are copyright infringement, trademark infringement and photo stealing. On etsy the listing is removed. On Amazon, the account will be terminated, and when registering your social or EIN or business ID is required so once terminated, that info stays in the system and sellers that have a habit of shoplifting other’s work will find it much more difficult to simply set up another store and start selling again.
Abby says
I thought this was an interesting article about the way that Amazon has undercut its sellers by going to the source: http://www.huffingtonpost.com/shannon-whitehead/why-isnt-anyone-talking-a_1_b_8288806.html
JL says
Yes, they do this kind of things, which is why private labelling is very popular now.
Lori says
this article might get you to rethink what you just said:
http://www.creationsfromthehart.com/amazon-review/
“License: You grant us a royalty-free, non-exclusive, worldwide, perpetual, irrevocable right and license to use, reproduce, perform, display, distribute, adapt, modify, re-format, create derivative works of, and otherwise commercially or non-commercially exploit in any manner, any and all of Your Materials, and to sublicense the foregoing rights to our Affiliates and operators of Amazon Associated Properties. “
Tana says
Lori, that statement from H@A only means that they have the right to resize our images, translate our descriptions to other languages, and use our images in ads without letting us know and without compensating us … and that sort of thing. It does NOT mean they’re going to steal our copyrights.
If you sell on Etsy, you should probably re-read their terms. They have a very similar statement. Here’s what Etsy says:
“B. Permission to Use Your Content. By posting Your Content through our Services, you grant Etsy a license to use it. We don’t claim any ownership to Your Content, but we have your permission to use it to help Etsy function and grow. That way, we won’t infringe any rights you have in Your Content and we can help promote your stuff.
C. Rights You Grant Etsy. (Here’s the legalese version of the last section). By posting Your Content, you grant Etsy a non-exclusive, worldwide, royalty-free, irrevocable, sub-licensable, perpetual license to use, display, edit, modify, reproduce, distribute, store, and prepare derivative works of Your Content to provide the Services and to promote Etsy, your Etsy shop, or the Services in general, in any formats and through any channels, including across any Etsy Services or third-party website or advertising medium.
That sounds like a lot, but it’s necessary for us to keep Etsy going. Consider these examples: if you upload a photo of a listing on your Etsy shop, first, we have permission to display it to buyers, and second, we can resize it so it looks good to a buyer using our mobile app; if you post a description in English, we can translate it into French so a buyer in Paris can learn the story behind your item; and if you post a beautiful photo of your latest handmade necklace, we can feature it on our homepage, in one of our blogs or even on a billboard to help promote your business and Etsy’s.” (Source: https://www.etsy.com/legal/terms-of-use)
It’s fine if you and others don’t want to sell on H@A. That’s your choice. And it’s less competition for those of us who ARE excited about this new venue.
James says
With one VERY important difference to Etsy TOS. If your work focuses on design, you do risk losing copyright. https://theartistsjd.com/handmade-at-amazon-terms-of-service/
Abby says
Right. If you use Etsy or Facebook you’ve agreed to nearly identical terms.
Breez says
You should read this one http://www.untamedrose.com/blog/arent-you-worried-amazon-going-steal-your-stuff-amazon-handmade-early-defense
Sarah Arnold says
My Etsy shop TutusChic carries high end tutus and tulle skirts~ I could not afford to give Amazon 12% of my sale. That was the clincher for me! Also with true handmade items it is hard to keep up with the demand that is already in my Etsy shop.
I have expanded to my own website for other reasons and incorporate my blog and art prints. Cannot do that on Amazon or Etsy. There I pay no one a fee and build my own e-mail list.
Etsy is super easy to use and is/was a great startup place for me despite some of my grumblings about resellers 🙂
Thanks Abby for another enlightening article regarding Etsy and comparissons.
XOXO Sarah
Tana says
Maybe your prices aren’t high enough? Since you don’t have 12% to spare in your current prices, it sounds like you’re selling at wholesale prices now, rather than retail prices. It also sounds like you’ve never sold on consignment, which usually costs 25% to 40% of the retail selling price. I haven’t sold on consignment in years, but I *have* sold wholesale thru a sales rep … where I had to pay the rep 15% of the wholesale price. Ouch. But the quantity sort of made up for it!
Since your Etsy shop is apparently very busy, you might want to consider raising your prices, if only a dollar or two on each item. Now, before you say that will price you out of the market, you said yourself that your tutus are high-end, so they’re probably worth more than you’re currently asking.
Neither Etsy or Amazon offer blogs for their sellers, but you could sell prints of your original artwork on both sites. And, unless you’re running your own web server, you are most likely paying some fees for your web site. What about the hosting fee? The domain name fee? And who does the actual web design? Even if you’re handling the web design and maintenance yourself, that’s time … and time is money. So it’s not as free as you might think. 🙂
Carley Biblin says
This is so true! It reminds me of a story from business school. People have a hard time buying an item when it is unique (such as a single model of a blender), but if you add a similar item to the shelf (such as a blender with more or fewer bells and whistles) people are actually more likely to make a purchase. Perhaps this will also be the case with selling/buying platforms. Maybe this will increase the number of people who choose something rather than nothing, whether it’s Etsy or Amazon Handmade. I’d be interested to see the statistics on this in the next year or so. Thanks for the great article.
Erin says
I recently set up a shop on Handmade at Amazon. I also sell on Etsy (and am perfectly happy with Etsy, actually), but I thought I would also give Amazon a try just to reach a wider non-Etsy shopping audience.
I have to say, I am super disappointed with Handmade at Amazon. They rolled out a “minimum viable product” for sure, and the features and page design are really lacking. I read a lot of their guides and advice from Amazon sellers to learn this whole other system (the SEO of which works completely differently than on Etsy). The handmade products don’t seem to be integrated into the main search. I can’t get my items to come up even with very specific search terms (and only a few pages of search results). I’m getting virtually no traffic, definitely no sales, and I feel like I wasted so much time (days!) on setting it up when I could have been working on something else. I’ve tweaked it endlessly and don’t know what else to try.
As it stands, this is no Etsy killer to be sure. Even as a shopper, the platform is so unpleasant. I’m going to leave my listings up for the holiday season, but will probably close it up after that.
Theresatron says
I totally wholeheartedly agree with Erin. I set up an Amazon Handmade shopfront expecting so much more from them. It’s not as though they don’t have plenty of successful hand-maker platforms to draw inspiration from. Its as though they have a “one size fits all” approach to their business models which is not how a lot of handmade buyers think.
Working with it is ugly, your listing gets lost, there’s very little control. I’m only just hearing that there will be a $40 charge next year, how are they expecting to make that charge worth it if they don’t help drive traffic to you?
I don’t expect to make many if any sales through Amazon. I’m going to cling on and see if they make improvements. Once they start charging and things haven’t changed, I’m cancelling too.
Laura Dodson says
It takes a while for amazon products to be found in search. Wait at least a day.
It takes more than a few sales to be listed as a primary option on amazon.
Listing on amazon is easy, selling there is difficult!
Abby says
I wonder if you could say more about what is difficult about selling on Amazon?
kathyh says
I sell on both platforms. Selling works on amazon if you are in peoples particular search words, i.e. name of craft book & author, but not by the general tag words etsy users are accustomed to.
If your item on amazon is popular, amazon will offer you money to buy it so one of their bigger sellers can sell it at a higher price (pros & cons to this). If it is truly popular, amazon will ask it’s top sellers to find the item and basically undercut you and flood the market (this is my main concern with selling handmade on amazon).
Listing on etsy is, of all the platforms, the easiest for me to list, to edit, to sell.
Also, etsy allows me to promote my personal web page, and communicate with buyers as a business will. I can give out my phone number if a lengthier discussion needs to take place. Ebay and amazon actively discourage any promotion on your part.
Keep going with the discussion. Handmade is successful because of etsy’s 25 million customers. Could it be more valued with amazons triple digit customer base?
marjbates says
WOW! I have experienced an entirely different experience. With trepidation I too set up a Handmade Amazon store. I sell glass knobs and finials. I have had an easy shop forever. I am selling way more on Amazon than Etsy. I come right up in a search.
Did you fill in space that allows all the keywords for your product?
Selling on Amazon still gives me the oogies though because it feels so ‘un artist -y’. Not sure I will continue when the 40$ month fee kicks
in though. I will have to crunch the numbers.
Marj
Caroline says
Abby, do you have any sense for how the two sites’ Terms of Use compare? I’ve read other blogs’ excerpts of Amazon’s non-exclusive right to exploit anything/everything from a seller, although selective quoting may have made this sound scarier than it really is… and I’ve no idea if Etsy has similar policies in place. What rights do sellers hand over to Amazon/Etsy when they sign up?
Alex says
I’m sure etsy will be fine. I was hoping Amazon would be more stringent about “handmade”… and maybe they will be more strict about straight-up resellers posing as makers (seeing as those sellers can just sell their wares elsewhere on the site anyway.) If that’s the case I’ll happily switch over. But I’m hesitant to sing their praises too soon. (Or maybe I’m just bitter because they made the bulk toilet paper I order “Prime only”. Grumble.)
Linda says
I agree with @Alex – and to add to that: The resellers posing as makers. It’s chronic both with overseas resellers and US-based. Putting a bow on something should not qualify that item to be deemed hand-made…especially when 95% of it was handmade in China (by a manufacturing process).
Linda says
And sorry if I was grumpy. I wanted to say to Abby that I love getting your newsletter in my inbox! Your articles are interesting and well-written!
Madelyn Lenard says
Thanks for the comparison between etsy and Handmade by Amazon. I have an account with etsy and was also invited to display my wares on Handmade by Amazon (“HBA”). My first indication that things were not all Amazon said it would be, was when I printed out the Terms of Use. It was 22 pages, single-space, legalese. I gave up after reading about 4-5 pages, and I worked in the legal field for 35 years. I was given 7 days to get my product up and running (which for various reasons was impossible for me to accomplish). I think the term “etsy killer” is simply a marketing term that HBA made up to discourage people. From what I am reading, I am glad I decided not to display on HBA.
On the other hand, I am concerned about the rampant trademark and copyright infringement I see when I go on etsy. After working in trademark law with lawyers for many years, I can say that if Disney, for example, ever began a campaign to stop the copyright infringements on etsy, they would make a bundle of money going after etsy crafters. Twenty years ago, an infringement penalty would net a company about $2,000. I can only imagine what it is now. So be warned, etsy crafters!
Meanwhile, as usual, I am very impressed with the While She Naps blog. It has helped me in many ways and I agree that HBA will not kill etsy. It simply makes for more informed crafters.
Abby says
Thanks Madelyn. I agree that crafters should be really cautious about using licensed designs and images no matter where they sell.
Stephanie says
This is really interesting! I wonder how nimble Amazon will be in response. I use Amazon’s “universal wish list” and always have Etsy stuff on there and the older folks in my family never cease to have issues ordering, for one reason or another. So I know they’d love the ease of ordering handmade off Amazon, from the buyer side! I’m going to go take a peek myself.
Diane says
So true how easy Etsy is to use. I’ve been on Etsy since 2007 and it was not always so easy to list products. I love the way Etsy has continued to update the site and add improvements making it easier to list items and process orders.
kathyh says
Etsy has continuously upped their game. Much easier to list today than seven years ago.
Tana says
Though Handmade @ Amazon has only been open for one week now, updating shipping on all items in a shop seems pretty easy. You can adjust the shipping fee per order as well as the shipping fee per item. Or, as many H@A sellers have chosen to do, you can offer FREE shipping (and of course include postage in the selling price); “free” shipping is working well for me so far, and I recently added “expedited shipping” for an additional $3.99 per order (this, in addition to the included postage, is enough to cover Priority Mail postage for my lighter weight items which would otherwise be sent via First Class Mail).
The biggest issue I’ve seen so far with H@A is that each customer support rep seems to interpret the rules differently!. This is wide-ranging, from background colors to the use of props in images, and other things. The reps do seem to be consistent when saying that HTML and watermarks are not allowed.
I have the feeling that H@A did little, if any, user testing with actual sellers. If they had, they would know what sellers are looking for in a selling platform.
Amazon’s fees ARE higher, this is very true. However, their customer base is perhaps 10x the size of Etsy’s … so think of this in terms of “you get what you pay for.” Granted, not ALL of Amazon’s shoppers will be interested in handmade items, but guess what?! Not all of Etsy’s shoppers are interested in handmade items either! Many shop there mainly for vintage or supplies, two categories which Amazon isn’t allowing in the H@A division (thank goodness!).
Contrary to a previous comment, H@A products DO seem to be included when searching on regular Amazon. You can search for “primitive snowman doll” and see several of my items on the first page!
There is a dedicated Amazon forum, as well as several Facebook groups, for H@A sellers. So, yes, we DO have ways to share tips and best practices.
I have always heard that Amazon runs a tight ship, however, I have done a quick survey (twice already) looking for potentially-infringing items; these are definitely there, though not yet in the huge numbers that you’ll see on Etsy. This may be simply because there are reportedly just 5,000 sellers on H@A at this time (vs. 1.5 million sellers on Etsy).
I have sold on Etsy for more than 9 years and plan to stay there for the foreseeable future. I have sold on eBay since 1998, and continue to sell there from time to time. I had my own web site for 12 years, and have tried other crafts-selling sites with no luck at all. I have sold at craft fairs for more than 35 years and currently sell on Etsy Wholesale and in several Facebook groups in addition to Etsy and H@A.
JohannaHS says
In Europe we have nive market place for handicrafts, supplies and vintage items, DaWanda.
I have experience only as a buyer. They work in several languages and have 300.000 shops.
Jan C McKenna says
I’m not an Etsy vendor, so cannot compare the 2 sites. However, I would like to say that I have received a great deal of helpful information and guides to setting up my ‘store’ on Amazon. Before going on line there were 2 handbooks and a series of ‘101’ emails.
Rebecca Chase says
So have I. I’ve spoken to a rep on the phone twice and the Handmade Seller book they sent before opening has been very helpful to me.
Irene says
That comparison of the cost to sell a $40 mug: on Etsy it would be $3.00 not $1.60. You forgot about the 3.5% credit card processing fee (paid to either Direct Checkout or Paypal).
Abby says
So Amazon Payments doesn’t charge a credit card processing fee?
Rebecca Chase says
The cc fee is included in the 12% You also neglected to mention that most small sellers to be seen on Etsy are also using Promoted listings and relist items daily. Most sellers I know spend closer to 10% for every sale they make, putting it right in line with Amazon.
I will be interesting for sure, to compare the two when Amazon is open for more than a week.
Abby says
Thank you for clarifying the fee. I didn’t realize that the credit card processing fee was included in the 12%. Amazon’s fees are still higher, but the audience is larger and if you’re able to reach more customers there the fee could certainly be worthwhile.
I’ve been selling on Etsy for 10 years and I’ve never paid for a promote listing. I don’t pay to relist items to bring them up higher in search. I know many sellers who do both, but I have a successful shop and I don’t do either.
Tana says
The comment about Etsy’s fee being closer to 10% is like comparing apples and oranges. Amazon also has a way to buy advertising/promotions. I received an email from them this week containing a link to a $50 credit for their advertising. I haven’t investigated that yet, however.
Etsy fees:
Listing fee: $.20 per item
Selling fee: 3.5% (only on selling price)
Direct Checkout fee: 3% + $.25 (on total amount processed) OR
PayPal fee: 2.9% + $.30 (on total amount processed)*
Promoted Listings: As little or as much as one wants to spend (not required, and not at all necessary if your SEO is awesome!)
Amazon fees:
Listing fee: $0
Selling fee: 12% (on total amount processed, includes payment processing fee)**
Monthly fee: $40 (waived until August 2016)
* These are fees for U.S.-based sellers, and may be higher for sellers in other countries.
** Amazon’s Selling fee will increase in August 2016 and will be equal with fees for the same departments in regular Amazon. Home Decor (where I list) will be 15% and Jewelry will be 20%
If my sales are good on Amazon, I don’t expect to have an issue paying a higher Selling fee OR the monthly fee. If I do feel like cringing, I just remember when I had several sales reps and paid them 15% of the wholesale price!
Jan C McKenna says
I feel that the venues we find to sell at, can be compared mathematically, but must also be weighed across the spectrum of availability. If I sell a book at my schools gift shop, they take 40 percent (some galleries take much more). If I sell a book at the local outdoor market my total fees (daily, monthly and credit card avvailabity) total at the end of the year almost 50 percent of my sales. I am still under the cost of a brick and mortar store. The advantages to each venue are: the school uses their cut for the store maintenance and the schools programs; the market’s share goes to keeping the market open so that artists have a way to start out, grow their business and meet national and international customers. A brick and mortar building doesn’t cope with selling in weather and when you are selling in feet of rain, that’s a big positive.
Tana says
Amazon’s 12% fee includes the payment processing fee.
Sara says
I just see two wrongs, which don’t make either right. I dislike both venues.
LeAllyson Meyer says
I have been selling on Etsy since 2006. Etsy has constantly improved their services across that time without increasing the listing rate or commission rate. As I learned more and devoted more time to my site, I began to earn more each month. I like the personal connection I have to my customers. I convo them when I make a sale with a snippet to thank them again, to ask for feedback after they receive the item, and to let them know about my newsletter. Some respond and many leave feedback. I like feeling connected to my customers and it helps me develop the persona of my group of customers.
I debated selling on H@A and decided against it. I also have my own ecommerce website on Shopify. I opened it in early 2014 and now sell a good amount there. I like that it is my own site, that I have one set monthly fee plus cc fees, and that I can promote however I want to do it. My current sales total over 10x the monthly fee every month, and that seems like a good return to me.
I don’t think H@A is an Etsy killer. I think healthy competition is what it is all about. I believe Etsy is more interested in pleasing its sellers than it ever has been. For example, I can now add Shop Updates to my Etsy shop via my iphone app. It allows me to say things about my shop, studio and whatever I want without the restrictions of the Info and Appearance section or the About page.
Thanks for letting us share our thoughts here, Abby.
margaret spiers says
As a buyer I must admit I wasn’t aware of Amazon Handmade, or whatever it’s, called, and I have mail from Amazon daily. Seems a bit shoddily done for you craftsfolk.
Janice Kennelly says
As someone who makes handmade shoes for dolls that I actually hand make, I’ve become frustrated with Etsy allowing sellers to list doll shoes imported from Asia. I see the same shoes listed on eBay and the sellers there don’t even pretend they are handmade as they obviously come from factories. So if Handmade at Amazon truly is keeping out these types of sellers I might be interested in creating an account there. My best hope is that Etsy will rethink some of their policies to keep sellers from leaving.
Jacquelynne says
First- Abby, I always enjoy receiving your newsletters. They are always crammed full of interesting and useful information.
I have an Etsy shop, but it is not my main business (I only get an order or 2 per month there), and I had not considered selling on Handmade at Amazon. However, I did hear a lot about it being an “Etsy killer.” I think your article just goes to prove something that is true in life as well as business- that amazing things happen when you look at problems as opportunities to grow & learn, and choose to look for the positive instead of the negative. Etsy may very well find that Amazon does spur them to improve their existing platform, and make others appreciate the differences between the two.
Lori says
This is very helpful, Abby. I had wondered about Amazon handmade and like many others — I’ve had a few issues with Etsy as a seller, although it’s still my favorite place to shop, especially for gifts. I just have to be a bit more careful now to make sure I’m truly getting something handmade, which is a true shame. Thanks for this very informative article — I know I wont’ be bothering to look into selling on Amazon now.
JL says
The other reason why Etsy is better is because it allows artists from outside US to sell on the platform. It is an international platform to support both local and foreign artists.
Jennie says
There are of course pros and cons for each site. Etsy’s decision to allow manufacturing of items was not spelled out. I realize that Etsy was at the same time trying to boost the company to sell stock. They have to make profits for their stock holders now. The manufacturing needed to be on a very limited basis. Like using a print shop to make your note cards once you the artist created the art for the front, print wonderful indie patterns, having canvases printed of your art, sending your quilts out for quilting on a long arm, having a small local seamstress or tailor help to sew your patterns. I think the problem was that Etsy never vetted the manufacturing companies. This allowed manufacturers all over the world, sellers of “handmade” items that they could sell very cheaply.
Etsy lacks the ability, nor do they see the need to protect intellectual property of large corporations, or even their own sellers. They need a rule that says sorry you can’t sell non licensed Disney, Sanrio, Warner brothers, etc here. And then make the licensed creators use one of the 5 photos to post their license. Creating a task force to rid the site of all of that, would bring etsy and the shops the respect they deserve.
At this point Etsy is the only place to go for small artists. AHM is too expensive, and really difficult to use for listing. They also take weeks to answer an email from what I understand. I do like that they vetted every artist prior to them setting up shop. Hopefully, that will stop some of the misuses.
I think there needs to be a definition of handmade that includes small manufacturing assistance. Just because you own a machine that makes phone covers does not make that cover is handmade if it’s not your art or your photograph on it. Owning a t-shirt press to make shirts that uses other’s witty sayings is not art it’s plagiarism, the same with wall decals, jewelry, and mugs. Using an indie pattern that you bought to load your shop with that item should not be allowed. Jewelry that consists of a bezel, a piece of domed glass a chain and a punched out print of someone else’s art or photography is not your art.
Since these items have been left to interpretation at etsy, it made it too difficult to sell. Adding one more department, supplies, vintage, handmade and manufactured. This would have given the company the income to to go public, satisfied the customers that really are looking for handmade, satisfied the artists that they could start out in a section on their own and allowed everyone to play. Done this way they would only need to deal with resellers, and intellectual property issues.
I must admit that closing my Etsy shop last month had the whole gambit of emotions. Sad, angry, and relieved were among them. I’m still battling with the feelings of defeat, and not being talented enough for my shop to hold its own.
I think AHM can really only help Etsy as long as they clean up their own site.
Linda Gillian says
Thanks so much for the inside story on Esty and Amazon Handmade. Should I go to the internet market to sell items, I will definitely go with Esty. I understand why you do now. . .
Thanks again,
Linda in OK
Melody says
One thing that no-one has mentioned is the killer Amazon minimum fees. Yes, it’s 12% which includes payment processing, however, for those who sell lower prices items need to take note, there are minimums! They are varied per category – for one of the categories I sell in it’s $1.60 for another it’s $2.00!!! So whereas I was under the impression that selling an $6 item would cost me $0.50 I was wrong – it’s $2.00… With that said, I’ve not yet even bothered to finish up even one listing on their ridiculously long form.
Zen says
Interesting post- thanks for saving me the research 🙂 As someone who’s been selling handmade jewellery for years, I really appreciate other handmade items and like shopping for them. Unfortunately, Etsy seems to be more mass manufactured than handmade now AND I have had 2 of 3 orders never get sent to me, so have sworn off ordering from it. I do think there is a lack of good places to sell/ buy handmade, which is why I’m starting my own boutique in London or Edinburgh dedicated to independent UK-based makers and designers. It’s a serviced retail concept and curated so the other crafters will be sharing the rent but as the person signing the lease, I am feeling the full weight of the rent hanging on me now!!! Fingers crossed it works out 🙂
Melissa says
I’m on both Etsy and Amazon. Lately, I’m getting more sales from Amazon. I use the same pictures with a note in listing that props aren’t included. Amazon already cleared us for that. As long as you can tell what is really for sale (which should be for any selling site… no need for tons of props if you have a good product).
It’s so far a very good experience and I’m glad to be given the opportunity to sell on both. 70% of people who I mention Etsy to reply with “What’s that?”. Pretty sure 100% have heard of Amazon and probably stop there first for shopping. I’ll pay a bit more in fees for that kind of exposure. It makes good business sense. If you can’t afford the fees, it’s time to rethink your prices anyway.
jamie says
Now that things have been running for a bit, are the folks here that said that they have had no sales on Amazon still in that boat. I was accepted and thought I would put it out there at least until the $40 fee (thanks for that clue Abby!). So…… Sales anyone???
Erin says
I’m one of the commenters above that had no sales and low views. I finally got my first (and still only) Handmade at Amazon sale last weekend. My views are still very low, some days with 0 views. As a reference, I’ve had 40+ sales on Etsy since HaA has been open, and usually get 100-200 views a day. I sell art prints. It’s possible sellers in other categories are doing better on HaA.
Paul Spencer says
Great article. Couldn’t agree with you more. I have never appreciated Etsy more than after opening my Amazon store.
I also think Amazon has had a positive effect on the rise in quality of Etsy sellers and buyers lately.
jeffrey lang says
This was a really great article.
I had been invited to sell on handmade at amazon. I am just now finding out about the 40 dollar monthly fee. We have busy months and slow months and the 12 percent fee doesn’t really bother me as much as the monthly fee. I think it is ridiculous and its like Amazon saying, If your really small we are not interested in you. I hear people say, just raise your prices while two of the largest retailers, Walmart and Amazon, boast the lowest prices. I build kitchens as well and I am always undercut but large stores like home depot and menards. If you raise prices, you just may not get the business. Raising prices too much is not the reality of it.
I was very disappointed to hear about Amazons monthly fee for handmade. I will attempt to sell my craft items on the normal amazon site, and just purchase my upc numbers from Ebay and assign them to my items. Basically selling my crafts is a sideline to go along with the cabinetry I build so if I sell 500 dollars of product a month on Amazon they get 20 percent, if I sell 100 dollars in a month Amazon gets 52 percent. It won’t work for the small shop. Monthly fees in a slow market would never work for the hobbyist or people just starting out. Unless Etsy raises fees, Amazon isn’t a threat as much as some think, in my opinion
Good luck everyone
Sonia says
Hi !
I am a Canadian jewelry maker. I have been selling on Etsy for more than two years. When I heard about the Amazon Handmade platform, I thought this would be another great channel for me to sell my work. I was wrong.
I started selling in October 2015. It is now February 26th and I have not received a single cent from Amazon, despite making 5 sales.
5 sales isn’t much nevertheless it is $200 for me.
Since the start, I have received numerous notifications from Amazon indicating how they keep reserves on my account. One week, I would receive an email stating I was subject to a 30 day reserve on my funds. Then, another week, I would receive a notification about being subjected to a 3-months reserve on my funds. After complaining, I was told that this should not have been mentioned to me, as it usually applies to Chinese sellers who are sometimes slow with the fulfillment of their orders (as per the Amazon rep). Amazon has mentioned many times that deposits were scheduled to be made in my account. To this day, zero money has been deposited.
I have sent all items within 1-2 days of payment from the customer, payed my fees to Amazon and also paid the customers shipping fees. On the other hand, me, the seller has not received a single penny from all these sales.
I am still trying to resolve these issues with them, in hope that they will give me the money they owe me.
They also refuse to transfer funds via Paypal, check or any other way. Their only method is by bank transfer.
I would not recommend this platform to anyone. I will stick with Etsy.
I have deleted all my items on Amazon while waiting for my funds to be transfered (hopefully).
Sonia
David Schneider says
Are there any recent comments on sales on Amazon compared to Etsy? We have been selling on Etsy for a number of years but only for about 45 days a year. The listing fees of course, don’t drop so for us; many of the listing fees end up in the waste basket.
It hurts to pay the fees at Etsy but compared to the 40% an art gallery takes from us, I’m not feeling the pain too much. If Amazon is working for sellers of handmade, we would up our prices to make up for the extra listing hassle etc.
However, we are definitely not going to list there until we have heard some success stories. Plus, we would keep using Etsy. I believe there are two different types of customers between the two very different venues.
We used to sell a lot on our own website but found Etsy much easier and just use that as our selling platform.
On another point, it does really irk us to see competitors on Etsy selling manufactured items as handmade.
Thanks so much for these articles, Abby.
David and Lin from OdysseySeaGlass
DesiCrafts says
My Etsy shop is DesiCraftShop. Etsy has changed the commission and made it 5%. Apart from this, PayPal charges its own commission. Overall, it is about 10%-12% commission plus Etsy’s other fees like renewal and GST.
On Amazon.com selling fee is $39 USD and there is no closing fee on such professional subscription. I am the manufacturer and seller, registered on Amazon.in and Amazon.com, at some point in 2019, I am planning to list the catalogue on Amazon Handmade too.