New e-commerce entrepreneurs often find themselves torn between Etsy and Amazon as their launchpad. Both platforms offer massive opportunities – one is the go-to marketplace for handcrafted and creative goods, the other a global e-commerce powerhouse.
Choosing the right platform (or deciding to use both) can shape how quickly you gain traction. This comprehensive comparison will walk you through the key differences in setup, fees, audience, competition, and more, helping you make an informed decision.
Table of Contents
Etsy vs Amazon
We’ll explore what types of products thrive on each site, from print-on-demand merchandise to digital downloads, and how modern tools like MyDesigns can give new sellers an edge on either platform.
As a TL;DR, here’s a table comparing the two platforms.
| Category | Etsy | Amazon |
|---|---|---|
| Setup Ease | Quick and simple setup; open a shop and list products same day; no technical skills required. | Requires detailed business/tax info; choose plan (Individual or Professional); Amazon Handmade requires approval; more time-consuming. |
| Fees & Costs | $0.20 per listing (lasts 4 months). 6.5% transaction fee + ~3% + $0.25 payment processing fee. No monthly store fee. | No listing fee. Referral fee: 8–15% (avg. 15%). Individual plan: $0.99/item. Professional plan: $39.99/month. Extra for FBA (storage & shipping). |
| Audience & Traffic | ~95M buyers (2024). Shoppers seek unique, handmade, vintage, or creative products. Highly targeted niche audience. | ~310M+ active customers worldwide. 63% of consumers start searches on Amazon. Broad audience shopping for all product types; prioritizes price & speed. |
| Competition | 8M+ active sellers. Saturated in popular categories (jewelry, POD shirts). Level playing field (unique designs & good SEO can stand out). | Extremely competitive. Competes against major brands & Amazon itself. Visibility often requires ads & strategy. Huge demand but fierce competition. |
| Best Products | Handmade, custom, and personalized items. Strong for digital products (printables, graphics, patterns). POD works well in niche/creative designs. | Broad-appeal products, high demand items. POD via Merch by Amazon (high competition). Not suited for digital downloads (except Kindle eBooks). |
| Seller Tools & Support | Simple seller dashboard. Basic shop stats, discounts, Etsy Ads. Gentle learning curve. Support via email/tickets + community forums. | Advanced Seller Central dashboard. Analytics, FBA, Brand Registry, ads. Steeper learning curve. 24/7 support (but often templated). |
| Scaling & Growth | Scales well for niche businesses; hundreds of listings possible. Ceiling due to niche audience. No FBA (sellers must manage fulfillment or use POD partners.) | Built for massive scale. Global reach, FBA enables explosive growth. Requires higher investment in inventory & ads. Virtually unlimited potential if executed well. |
| Long-Term Strategy | Best for building brands in niche markets and personal/custom goods. | Best for scaling broad-appeal products into national/international brands. |
| Overall | Low-cost, creative-focused, easy entry. Best for artisans, creatives, digital sellers, and niche POD. | High-cost, broad scale, more complex. Best for sellers targeting mass-market appeal and large-scale growth. |
Getting Started: Setup Ease for New Sellers
For new sellers eager to launch quickly, Etsy offers a hassle-free setup. You can open an Etsy shop and start listing products on the same day. The process is intuitive and requires no technical know-how.
Amazon, by contrast, involves a bit more legwork. Registering as an Amazon seller means providing detailed business and tax information and choosing a selling plan (Individual or Professional). If you opt for Amazon Handmade for crafts, you’ll also need to apply and be approved. None of this is prohibitive, but it does take longer.
In short, Etsy wins on speed and simplicity of setup, whereas Amazon’s onboarding is more rigorous due to the platform’s larger scale.
Fees and Costs
Cost is a deciding factor when comparing Etsy vs. Amazon. Etsy keeps upfront costs low with a few small fees. It costs just $0.20 to list an item on Etsy (listing lasts 4 months) and when it sells, Etsy takes 6.5% of the sale price as a transaction fee.
If you use Etsy’s payment system, there’s also a payment processing fee (about 3% + $0.25 per order). Notably, Etsy has no monthly store fee, so you only pay when you list or make a sale.
For a full breakdown, refer to Etsy Fees and Payment Policy.
Amazon’s fees are structured differently. There’s no listing fee, but Amazon collects a referral fee on each sale This may be roughly 8% to 15% of the item’s price in most categories, or around 15% for many common products. New sellers can choose an Individual seller plan (no monthly fee, but Amazon charges $0.99 per item sold) or a Professional plan ($39.99 per month with no per-item fee).
On top of that, if you use Fulfillment by Amazon (FBA), you’ll pay additional shipping and storage fees.
For more information, refer to Amazon’s Standard selling fees.
All told, Amazon’s cut per sale tends to be higher than Etsy’s. For example, on a $20 sale you might pay around $1.50 in Etsy fees versus about $3+ in Amazon fees.
Etsy clearly has the advantage on fee percentages, while Amazon trades higher fees for access to its huge customer base and logistics network.
Please note that these fees can change over time, so refer to the official links shared above for the latest information.
Audience and Traffic Potential
Another key difference is the audience each platform attracts. Etsy is a specialized marketplace for handmade, vintage, and craft items. It had about 95 million buyers by 2024 – shoppers who come to Etsy specifically looking for unique, creative products.
This audience values craftsmanship and originality; they’re often seeking items they can’t find on Amazon or in big-box stores. The traffic on Etsy is smaller in absolute terms, but highly targeted to niche and artistic goods.
Amazon, in contrast, is one of the world’s largest online marketplaces. It boasts over 310 million active customers and enormous traffic across almost every product category. In fact, around 63% of consumers start their online product searches on Amazon, which shows how dominant it is for shopping.
The Amazon customer base expects convenience, competitive pricing, and fast delivery. They’re shopping for everything from books to electronics to apparel, a much broader scope than Etsy.
For a new seller, this means Etsy offers a more curated, niche audience while Amazon offers sheer scale. If your product appeals to a specific creative community or caters to personalization, Etsy’s audience will be easier to reach. If your product has broad appeal or you want maximum exposure, Amazon provides access to an almost unlimited pool of potential buyers.
Competition and Market Saturation
Both platforms are crowded marketplaces, but the competitive dynamics differ. Etsy hosts millions of active sellers, which means popular categories like jewelry or print-on-demand shirts can feel saturated. Even so, Etsy remains a viable marketplace for newcomers. It may be easier to succeed now by leveraging modern tools and trends, as discussed in our Comprehensive Guide to Making Money on Etsy.
You’ll be vying for attention against many other creative entrepreneurs. The good news is Etsy’s playing field is relatively level. Customers are looking for unique items, so a new shop with original designs can still stand out by carving out a niche.
Success often comes from great photography, SEO-friendly listings, and unique products that catch Etsy’s search algorithm and shoppers’ eyes.
Amazon has an even more intense competitive environment. With millions of sellers (including big name brands and manufacturers), a new seller on Amazon is up against well-established listings with thousands of reviews.
Amazon itself sells products and has its own brands, effectively competing with its third-party merchants. Gaining visibility on Amazon often requires investing in advertising or targeting less saturated product keywords.
On the flip side, Amazon’s market is so huge that even a small slice can be profitable. There’s high demand to go with the high competition. Still, new sellers need to be strategic to get noticed. Industry experts point out that while Amazon controls nearly 40% of U.S. online retail, sellers of handmade or artisanal products might be better off starting on a platform like Etsy where those goods are the focus.
In summary, Etsy’s competition is about standing out in a specialized crafts arena, whereas Amazon’s competition is about breaking through noise in a vast general marketplace. In either case, leveraging good keywords, compelling product listings, and even automation tools (like using MyDesigns to bulk optimize listings) can help a new seller gain an edge.
Best Products to Sell on Each Platform
Certain types of products tend to perform better on one platform versus the other.
| Category | Etsy | Amazon |
|---|---|---|
| Handmade & Personalized Goods | Etsy is built around artisan and custom goods. Buyers expect one-of-a-kind, handmade, and personalized items (jewelry, home décor, gifts, custom prints). The marketplace supports personalization requests, custom orders, and storytelling around craftsmanship. | Amazon offers large scale and exposure. Through Amazon Handmade, you can reach Amazon’s massive audience, potentially combining artisan goods with high visibility and fulfillment support (FBA). |
| Print-on-Demand (POD) Merchandise (e.g. T-shirts, mugs, posters) | Etsy often benefits niche designs, small runs, or creative themes. If your design appeals to a tight community (fandom, hobby, inside joke), you can carve out visibility. Etsy’s lower barrier to entry and built-in audience for creative goods help. Challenges: scaling large volume is harder (no fulfillment service built in). | Amazon (e.g. Merch by Amazon, or via third-party sellers using FBA) gives you access to a massive audience and automated fulfillment. However, competition is intense: many sellers list generic designs, and discoverability is harder. You’ll need strong marketing, good SEO, and competitive pricing. |
| Digital Products & Downloads (e.g. printables, templates, fonts, patterns, planners) | Very strong fit for Etsy. Sellers can upload files and customers get instant download access. The platform handles digital delivery. Many creators rely on digital goods as a passive-income stream. | Amazon’s marketplace does not generally support non-eBook digital downloads (outside of Kindle/eBooks, music, apps) for marketplace sellers. That means for general digital files (printables, graphic assets), Etsy is usually the practical mainstream marketplace. |
| Books & Written Works / eBooks | Possible, but less natural. You may list printed or handcrafted books (journals, art books). Some sellers list printed editions or artisan books in Etsy’s art / stationery categories. | Very strong on Amazon: Kindle Direct Publishing (KDP) handles eBooks, audiobooks, and print-on-demand paperbacks. Amazon’s book infrastructure, algorithms, and promotional tools (e.g. Kindle Unlimited, deals) are major advantages. |
| Mass-Produced or Branded Goods (electronics, appliances, mainstream fashion, accessories) | Less ideal. Etsy’s audience typically avoids generic mass-manufactured goods unless there’s strong differentiation, design, or personalization. Etsy may suppress listings that appear non-unique or too commercial. | Stronger fit. Amazon dominates for mass-market, branded, widely demanded goods. Brands and standard products tend to do well when matched with competitive pricing, Fulfillment by Amazon (FBA), and good reviews. |
| Niche Craft Supplies & Tools (e.g. specialty beads, art tools, unique materials) | Good fits: artists, crafters, and hobbyists go to Etsy for supplies they can’t find elsewhere. Unique materials or niche supplies can do well if properly marketed. | Can work, especially at scale. But on Amazon you’ll be competing with large retailers and distributors; margins may compress. Also, fulfillment logistics (size, weight, storage) matter more. |
| Consumer Goods / Home & Kitchen / Decor | Custom or handmade decor (ceramic vases, art prints, personalized wall signs) can perform well if they are stylish and unique. But standard mass decor items will struggle. | Strong fit, especially for popular or trending items with broad appeal. Amazon’s home & kitchen category is large; scale and fulfillment support help. |
| Services / Custom Work (e.g. custom design, commission-based work) | Etsy can allow “custom orders” or commissions (for example, custom portraits, bespoke jewelry). Because of its artisan ethos, buyers are more receptive. | Amazon generally does not support listing intangible services or commissioned work (except as part of the product listing, but not standalone services). |
| Bundles / Multi-product Sets | Bundles of handmade or artisan pieces (e.g. gift sets, curated kits) can do well on Etsy if presented uniquely. | Amazon supports bundled listings and multipacks; careful branding and listing optimization can help capture buyers looking for value or convenience. |
Related Read: 20 Best Things to Sell on Etsy
Seller Tools and Support
The two platforms differ in the resources and features available to help sellers. Etsy offers a simple, user-friendly seller dashboard suitable for beginners. You get basic shop stats, the ability to create discount codes, and a straightforward interface to manage orders and listings.
Etsy’s built-in marketing tools include Etsy Ads for promoting listings within Etsy search (learn more in Etsy’s seller handbook for ads) and integration options for print-on-demand or design apps. The learning curve on Etsy is gentle. You can navigate it even if you’re new to e-commerce. Support is provided through a help center and community forums (direct support is mostly via email/tickets), and the overall experience is tailored to solo creators.
Amazon provides a far more extensive toolset through its Seller Central portal. Sellers have access to advanced sales analytics, and you can leverage powerful programs like Fulfillment by Amazon (FBA) – which lets Amazon handle warehousing and shipping for you – and Amazon’s advertising platform for sponsored product ads.
Amazon also has programs for brand owners (Brand Registry, enhanced content) and a host of automation options, but all this comes with a steeper learning curve. The seller support on Amazon is 24/7, but with millions of sellers, responses can feel templated. Essentially, Amazon gives you more tools, but it expects you to manage a more complex operation.
MyDesigns connects with both Etsy and Amazon to provide additional capabilities. For example, you can manage your Etsy and Amazon listings together in one place, or generate SEO-optimized titles and tags with AI. These external tools can be a game-changer. They bring bulk editing, design creation, and cross-platform automation that save time and ensure consistency.
In short, Etsy keeps things simple, Amazon offers depth, and MyDesigns helps you leverage the best of both worlds.
Scaling Up and Long-Term Growth
Looking at long-term growth, Etsy and Amazon offer different trajectories. Etsy is an excellent starting point and can scale to a solid full-time business, especially if you continually add new products. Many Etsy shops have hundreds of listings and steady daily sales.
Amazon is built for massive scale. With FBA and Amazon’s global customer base, a successful product can explode in sales. The infrastructure (from warehousing to international marketplaces) exists to support huge growth. The challenge on Amazon is maintaining your edge as you scale – high sales attract competitors, and you’ll likely invest more in inventory and advertising to stay ahead. The upside is essentially limitless sales potential if you execute well; Amazon can turn a small home business into a national or international brand.
For many sellers, the optimal strategy is to not put all your eggs in one basket. By selling on multiple channels, you diversify your revenue and reach different customer segments.
As you grow, listing on both Etsy and Amazon (and perhaps your own website) can maximize exposure. Tools like MyDesigns make this easier by publishing products on, and managing orders across platforms so you’re not starting from scratch on each. Multi-channel selling also safeguards your business. If one marketplace changes its rules or slows down, you have other streams to rely on.
For a deeper dive into multi-channel strategy, see our Multi-Channel Seller’s Playbook.
Both Etsy and Amazon can play roles in a long-term growth plan. Etsy might give you a strong foundation in a niche, and Amazon can amplify your best-sellers to a much larger audience. By leveraging each platform’s strengths, you position your business to scale up efficiently over time.
Conclusion: Etsy vs Amazon – Which Should You Choose?
Ultimately, the choice between Etsy and Amazon comes down to your products and goals. Etsy is ideal if you are selling handmade, custom, or creative niche items and want a quick, low-cost way to reach a dedicated audience. Amazon is the better path if you aim for high-volume sales, a broad customer base, and don’t mind a steeper learning curve and higher fees to tap into that scale. Many entrepreneurs start with one and expand to the other. There’s no rule that you must stick to a single platform.
No matter which platform (or platforms) you use, setting yourself up with the right tools will make a huge difference. MyDesigns can help you design products, optimize your listings for each marketplace, and manage your Etsy and Amazon shops side by side. It removes a lot of the manual work, letting you focus on creating great products and providing good customer service.
Ready to take your shop to the next level? Whether you decide on Etsy, Amazon, or both, MyDesigns provides AI-powered tools and automation to help you scale up fast. Don’t limit yourself – leverage MyDesigns to effortlessly create, list, and fulfill products across platforms, so you can reach more customers and grow your business with confidence.
Sign up for MyDesigns today to get started.
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