Etsy vs. Amazon: Which Platform is Best for Your Online Business?

When deciding between selling on Etsy and Amazon, knowing their scale is crucial. In 2024, Etsy's marketplace processed over $12.6 billion in gross merchandise sales, serving nearly 8 million sellers and 96** **million buyers¹.

Comparatively, Amazon offers vast infrastructure and audiences but different economics. This guide helps you compare fees, seller tools, and audience fit so you can choose confidently between the two platforms.

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Whether you're building your business on Etsy, Amazon, or both, Wise helps you manage your income. With no monthly fees, low-cost international transfers, and local receiving account details, it’s never been easier to get paid from global marketplaces.

Etsy vs Amazon: Quick Overview

Etsy and Amazon are two of the most popular e-commerce platforms for small business owners, each with its unique selling points that cater to different business needs.

Etsy is tailored to handmade, vintage, and unique items, catering to artists, crafters, and niche creators.

Amazon, on the other hand, is a massive global marketplace that is ideal for mass-produced products, brand scaling, and a broad consumer reach.

Here’s a quick side-by-side comparison to help you understand which might be the better fit for your business:

Platform	Key Features	Best For
Etsy	Focus on handmade, vintage, and craft supplies; customizable storefronts; active seller community	Creatives, artisans, and small-scale sellers with niche products
Amazon	Massive customer base; Fulfilled by Amazon (FBA); advanced logistics and advertising tools	Sellers with scalable inventory, mass-produced goods, or ambitions to grow quickly

Key Differences Between Etsy and Amazon

While both platforms offer powerful opportunities for sellers, the experience of selling on Etsy vs Amazon can be significantly different depending on what you’re offering and who your audience is.

From product types to fees and features, here’s how the two platforms compare so you can choose the best fit for your business.

Product Types

One of the most significant differences when comparing selling on Etsy vs Amazon is the type of products each platform is built to support.

Etsy specializes in handmade goods, vintage items, and unique craft supplies. It’s a go-to for buyers seeking bespoke, creative, and artisanal products, ranging from custom jewelry to printable planners and crochet patterns.

Amazon focuses primarily on mass-produced items and mainstream retail. That includes everything from electronics to books to bulk household goods. While there are pockets of the site that feature artisanal products, these tend to comprise a smaller portion of the overall listings available on the platform.

So, which platform is better for handmade products? Etsy is widely considered the superior choice. It was designed from the ground up to support makers and creatives, and its audience tends to value uniqueness and craftsmanship over speed and discounts.

What Are the Fees for Selling on Etsy vs. Amazon?

One of the primary factors in the decision to sell on Etsy vs. Amazon is cost. Both platforms charge sellers, but the way they do so and the amount charged differ significantly.

Etsy charges a listing fee of $0.20 per item, plus a 6.5% transaction fee² on the sale price (including shipping). There are also optional fees for advertising and payment processing. For a full breakdown, seehow much Etsy takes per sale.

Amazon, on the other hand, offers two types of seller accounts: Individual and Professional. The Individual account charges $0.99 per item sold, while the Professional plan costs $39.99 per month, plus referral fees (usually 8–15%, depending on the category). Additional fees may apply for Fulfilled by Amazon (FBA) services. You can learn more about Amazon seller fees.

Customer Base

Another major difference in the comparison of selling on Etsy vs. Amazon lies in their customer demographics and shopping behaviors.

Etsy attracts a niche audience looking for handmade, vintage, personalized, and artistic goods. Many customers on the platform value craftsmanship, uniqueness, and direct engagement with small business owners.

This makes Etsy an ideal platform for creatives and artisans seeking to establish a loyal, values-aligned customer base.

Amazon, however, serves a massive global audience with over 300 million active users. The platform has a strong focus on convenience, speed, and competitive pricing rather than forming direct connections with customers.

Shoppers here are more likely to prioritize fast delivery, product variety, and trusted reviews. It’s an ideal platform for high-demand, mass-market products or businesses looking to scale fast.

Platform Features

When it comes to tools and seller support, Etsy and Amazon offer very different experiences, especially depending on the size of he business and whether you're just starting out or aiming to scale.

Etsy offers user-friendly tools for setting up a shop quickly, including listing templates, a beginner-friendly dashboard, and seamless integrations with tools like Canva and Printify. You’ll also find marketing tools, such as Etsy Ads, and basic analytics to help track your performance. However, Etsy’s customization and data capabilities can feel limited as the business grows.

Amazon, on the other hand, offers a more robust infrastructure, especially through Fulfillment by Amazon (FBA). With FBA, Amazon stores your products in their warehouses, picks, packs, and ships them to your customers, and provides customer service. This service is ideal for sellers who want to scale their business without worrying about the logistics of order fulfillment. You’ll also have access to extensive warehousing, shipping logistics, advertising platforms, and advanced analytics. However, with these tools comes a steeper learning curve and less direct control over how your shop looks and operates.

Pros and Cons of Selling on Etsy

Pros

1. Niche Market Etsy is designed for creative entrepreneurs. Its audience is specifically looking for handmade, vintage, or one-of-a-kind items, making it easier to reach customers who value craftsmanship and uniqueness.

2. Supportive Community Unlike larger marketplaces, Etsy fosters a more personal seller experience. With forums, seller tools, and a culture of collaboration, it feels less like a giant marketplace and more like a supportive, creative ecosystem.

3. Creative Freedom Etsy shops offer far more room for personal branding. From shop banners and logos to storytelling in product descriptions, you control the look, feel, and voice of your store.

Cons

1. Smaller Audience While Etsy attracts millions of shoppers, it doesn’t have the sheer scale of Amazon or eBay. That means your potential customer pool is more limited, especially if your product isn’t niche-specific or if you’re hoping for high-volume sales from the outset.

2. Higher Competition in Popular Niches Certain categories on Etsy, such as jewelry, digital planners, or wedding décor, are oversaturated. Standing out requires not just quality but clever marketing, consistent branding, and standout listings.

You can learn more about the experience of selling on Etsy in Wise’s guide to selling on Etsy to learn more.

Pros and Cons of Selling on Amazon

While Etsy offers a niche, artisan-focused environment, Amazon brings sheer scale and infrastructure. But is it the right fit for your business? Let’s take a closer look.

Pros

1. Larger Audience With over 2 billion monthly visitors, Amazon gives you access to one of the largest online customer bases in the world if your goal is to reach as many people as possible, including impulse buyers and regular shoppers.

2. Robust Infrastructure Amazon’s platform is fine-tuned for efficiency. Their backend systems, seller dashboard, and built-in analytics help streamline operations, while their trusted checkout process helps boost conversions.

3. FBA Support (Fulfillment by Amazon) FBA takes the hassle out of storage, packing, and shipping. Amazon stores your inventory, handles delivery, and even deals with customer service and returns. This can be a major time-saver, especially if you're scaling up or managing orders across borders.

Cons

1. Higher Fees Amazon’s convenience comes at a price. Between referral fees, closing fees, and FBA charges, your margins can shrink quickly, especially for lower-cost items.

2. Intense Competition With millions of sellers and many selling similar or even identical products, standing out can be difficult. Competing on price, speed, and reviews has become the norm, especially in high-demand categories such as electronics, home goods, or apparel.

3. Less Control Over Branding Compared to Etsy, Amazon is far more restrictive about how sellers can present their brand. Product listings adhere to strict formatting, and Amazon’s emphasis is on the item itself, rather than the seller behind it.

Want to learn more about what it takes to succeed on Amazon? Check out Wise’s guide to starting out on Amazon for tips on setup, fulfillment, and managing fees.

Is it Better to Sell on Etsy or Amazon? Choosing the Right Platform

Choosing between Etsy and Amazon depends on your specific business goals, product type, and growth ambitions.

• Business Goals: If your primary goal is to build a brand around handmade or niche products, Etsy is often the better fit. On the other hand, if you’re focused on high-volume sales, rapid fulfillment, or leveraging a massive customer base, Amazon may be more aligned with your objectives.

• Product Type and Audience: For artisan goods, vintage finds, or custom items, Etsy offers a more curated and appreciative audience. If you're selling household staples, electronics, or mass-market products, Amazon’s broader appeal will serve you better. \

• Scalability and Growth: Amazon’s infrastructure, including Fulfillment by Amazon (FBA), is designed to support rapid scaling, even for sellers with limited logistics experience. Etsy, while excellent for passion projects and niche markets, may require more effort to scale efficiently.

Can You Sell on Both Etsy and Amazon?

Yes, you can sell on both Etsy and Amazon, and many successful sellers do. Operating across both platforms enables you to diversify your audience, test various product types, and increase your overall sales potential.

It’s essential to keep in mind that each platform has its own rules, customer expectations, and seller tools. You'll need to manage inventory, pricing, and branding carefully to ensure consistency and avoid overlap or confusion.

But for many small business owners, this dual-platform strategy can be a smart way to maximize reach without putting all their eggs in one marketplace basket.

Discover Wise: The Smarter Way to Manage Marketplace Earnings

Whether you're selling on Etsy, Amazon, or both, managing your online business finances shouldn’t be a hassle. With Wise, you can receive payments from both platforms with ease, avoid unnecessary currency conversion fees, and keep more of your profit.

With no monthly fees, the ability to hold over 40 currencies, and international payments at the mid-market rate, Wise is designed for global sellers who want clarity, control, and cost-efficiency.

Open a Wise Business account online

Some key benefits of Wise Business include:

Major local account details to receive international payments with ease No monthly account fees just a simple one-off fee for account details Receive payments from e-commerce platforms such as Amazon or via Stripe. Free invoicing tool to generate and send invoices. Create invoices using the Wise invoice generator or invoice templates. Accounting integrations, including a QuickBooks Bill Pay connection. Bill payments will be synced, matched, and categorized in QuickBooks for simple reconciliation. Access to BatchTransfer. Fast payment of up to 1,000 people.

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1. Etsy annual GMV 2024| Statista
2. Fees & Payments Policy - Our House Rules | Etsy
3. Standard selling fees