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Is Amazon Handmade Better Than Etsy for Handmade Businesses?

Apr 22, 2026

This is one of the most common questions I get from Etsy sellers considering a move to Amazon Handmade. The answer is not as simple as either platform's advocates would have you believe.

I work with a lot of Etsy sellers who are thinking about adding Amazon Handmade or switching to it entirely. And the question they almost always lead with is some version of "is Amazon better than Etsy for my business?"

My honest answer: stop trying to answer that question before you have real data. The comparison is less useful than you think, and the time you spend trying to decide is time you could spend testing.

That said, I understand why the question matters. You have limited time and energy. You want to put your effort where it will pay off. So let me give you a more useful frame for thinking about this than "Amazon vs. Etsy."

What the Question Is Really Asking

When sellers ask if Amazon is better than Etsy, they usually mean one of a few things: Which one will make me more money? Which one is easier to figure out? Which one treats sellers more fairly? Which one has buyers who actually value handmade work?

All of those are legitimate questions. The honest answer to all of them is: it depends on your products, your price point, whether your items are customizable, how much time you're willing to invest in learning the platform, and frankly, what your competitors are doing in each marketplace.

I have seen sellers whose revenue on Amazon dwarfs their Etsy numbers. I have seen the reverse. I have a client whose gift boxes barely moved on Etsy for two years and then sold consistently from her first month on Amazon Handmade. The platform wasn't the variable that changed — her products were always good. What changed was that Amazon's buyer base was a better match for what she was selling.

The only way to know which is true for you is to be on both and read your own data.

Where Amazon Has a Clear Structural Advantage

On raw traffic and buyer intent, Amazon wins. It is the largest online marketplace in the world, and the buyers there are in a different mindset than Etsy buyers. They are not browsing for inspiration. They are shopping with intent. They have a credit card saved, a Prime membership running, and often a specific gift or purchase in mind. When your listing appears in front of that buyer and it is optimized correctly, the conversion rate is significantly higher than most other platforms.

Amazon also gives you access to FBA, which changes what scale is possible for a handmade seller. When Amazon handles your fulfillment, you're not limited by how many orders you can personally pack and ship in a day. That ceiling disappears.

And the Prime badge matters. A large percentage of Amazon shoppers filter their searches to Prime-eligible products only. If you're not on FBA, you're not visible to that segment of the market at all.

Where Etsy Has a Clear Structural Advantage

Etsy's community and buyer relationship culture is something Amazon genuinely does not have. Etsy buyers often care who they're buying from. They read shop stories. They come back to specific sellers. They leave reviews that feel personal. That kind of buyer relationship is harder to build on Amazon, where the platform itself is the dominant brand and individual sellers are less prominent.

For highly personalized, custom, or one-of-a-kind items, Etsy's model works better because FBM with full customization options is seamless there in a way that Amazon Handmade's FBA-required non-personalized listing structure makes more complicated.

The barrier to entry and the learning curve on Etsy are also lower. If you're just getting started with online selling, Etsy is a gentler place to learn the fundamentals before layering in the additional complexity of Amazon Seller Central.

The Mindset Shift That Actually Helps

The most successful handmade sellers I know stopped thinking of Amazon and Etsy as competitors for their attention and started thinking of them as complementary channels that reach different buyers at different stages.

Etsy often works well for building relationships, getting early feedback on new products, and serving buyers who specifically want the handmade origin story. Amazon often works well for volume, reaching buyers who want the product but care less about the maker story, and scaling production through FBA.

Neither platform owes you traffic or sales. Both require ongoing attention, optimization, and learning to perform well. The sellers who succeed on both are the ones who treat each platform as its own discipline rather than expecting one to work like the other.

The Part Most People Skip

You should also be building your own website alongside both of these platforms. Not instead of them — alongside them. Because marketplaces, including both Etsy and Amazon, own the customer relationship. When someone buys from you through either platform, they are technically that platform's customer, not yours. You cannot follow up with them directly, cannot add them to your email list, cannot market to them on your own terms.

Your own website changes that. It takes longer to build traffic, but every customer who buys from your site is genuinely your customer. That is a different kind of asset than any marketplace presence you build.

My recommendation: sell on both Etsy and Amazon Handmade, learn them seriously, and build your website at the same time as a long-term foundation. Stop asking which one is better and start asking how to make all of them work.

Ready to Get Serious About Amazon Handmade?

If you are ready to give Amazon Handmade a real shot, the content inside The Growth Thread covers everything you need — how the platform's algorithm actually works, how to build listings that convert, how to run FBA efficiently, and how to read your data to keep improving over time.

Enrollment is not always open, but you can get on the waitlist and be first to know when doors open:

Join the Waitlist at TheGrowthThread.com

Not ready for that yet? A good next read is the complete introduction guide to selling on Amazon Handmade, which covers exactly how the platform works and what to do first after you get accepted.

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