How to Sell on Amazon Handmade | 2024 Guide

Amazon Handmade is a specialized marketplace within Amazon dedicated to artisans selling unique, handcrafted products. It launched in 2015 and offers creators a platform to reach millions of Amazon customers worldwide.

The global handmade market is expected to nearly triple from $788 billion to $2.2 trillion by 2032.¹ This presents a major opportunity for artisans and individuals selling handcrafted products.

Let’s explore Amazon Handmade's features, benefits, and potential drawbacks to help you determine if it's the right fit for your handcrafted business.

How to Sell on Amazon Handmade: Getting Started

To join Amazon Handmade, artisans must apply and be approved. Here's what you need to know:

The Application Process

Unlike the standard Amazon marketplace, Handmade has a unique application process aimed at maintaining artisan integrity.

Here's what you need to know:

Make sure you’re eligible: To be eligible, your products must be handcrafted, hand-altered, or hand-assembled. Reselling or selling mass-produced items is not allowed. Gather needed documentation: Prepare images of your products, workspace, and any tools used in the creation process. Apply: Go to Amazon Handmade and click “Apply now.” Be thorough and honest in your answers, as the review process can take a few weeks.2 Get approved: You'll receive an invitation to set up your storefront. If denied, you can reapply after 30 days.

Setting Up Your Storefront

Once accepted, you’re ready to set up your storefront. Your storefront is your virtual shop. Here's how:

1. Create your profile: Write a compelling bio highlighting your craft and unique story.
2. Build your product listings: Create detailed listings with high-quality images that capture the essence of your products.
3. Get good photography: Invest in professional-looking product photos. Good lighting and composition are key.
4. Add descriptions: Craft engaging descriptions that not only inform but also tell a story.
5. Choose relevant categories and attributes: Select the most appropriate category for each product.

Pricing Your Handmade Items

Determining the right price is important to ensure you’re profitable and competitive. When trying to decide what prices to set, you’ll want to consider your costs, as well as competitor prices.

Here’s a simple strategy for pricing your Amazon Handmade goods:

1. Calculate your costs: Add up all the costs involved with making your products, such as materials, labor, and overhead like tools and workspace.

2. Research competitor pricing: Look at similar items on Amazon Handmade and other platforms to gauge the market rate for your goods.

3. Factor in Amazon's fees: Add in the referral fee (typically 15%) and consider FBA fees if using Fulfilment by Amazon.

4. Use a pricing formula: Create a pricing formula that helps you achieve your desired profit margin. You can use a profit margin calculator to help with this.

5. Test and adjust as needed: Start with your ideal price and offer promotions to gauge demand. Monitor your sales and adjust pricing as needed.

To further increase sales you may consider offering variations, such as different sizes, colors, or customization options at various price points.

Marketing Your Amazon Handmade Products

Speaking of increasing sales—marketing is key to driving traffic and boosting sales on Amazon Handmade. Here are some strategies to get you started:

Utilizing Amazon’s Marketing Tools

Amazon offers a variety of built-in marketing tools for Handmade sellers. Here are the most useful ones:

• Sponsored Products: This is a pay-per-click advertising program where you can pay to promote your products in relevant search results and product pages.³

• Early Reviewer Program: This is a program where Amazon encourages early customer reviews by offering to pay them a small reward.⁴

• Amazon Live: If you're comfortable on camera, you can host live streams to showcase your products in action and interact with potential buyers.⁵

External Marketing Strategies

Once you’ve maximized Amazon’s internal marketing tools, you can tap external marketing strategies to boost your products further.

Here are some external marketing tactics to consider for handmade products:

• Partner with influencers in your niche
• Run targeted ads on other platforms
• Build an email list
• Participate in local craft shows
• Partner with fellow artisans

Experiment with different strategies to find what works best for your brand and budget. Choose platforms that align with your target audience.

Optimizing Your Amazon Handmade Store

A well-optimized store makes attracting buyers easier—ultimately helping maximizing sales. Here are some key strategies:

SEO Best Practices for Amazon Handmade

Search engine optimization (SEO) helps your products rank higher in search results, leading to increased visibility and sales. Here's how to apply SEO to your Handmade store:

• Identify relevant keywords buyers might search for
• Include your keywords in your product titles and descriptions
• Add hidden keywords (backend keywords) to your listings
• Fill out every relevant field in your product listing and be specific

Then, once you have your SEO strategies in place, you’ll want to make regular updates. Keep your content fresh by updating seasonally or with new trends

Managing Orders and Customer Service on Amazon Handmade

Now it’s time to sell and ship products. Efficient order management and excellent customer service are great for building a loyal customer base. Here are the best ways to do that:

• Offer fast shipping
• Communicate clearly
• Create an unboxing experience
• Be open to returns and exchanges
• Get customer feedback

You can also consider using FBA for faster shipping and Prime eligibility.

What are the best practices for customer service on Amazon Handmade?

Managing customer service on Amazon Handmade is similar to managing customers across other ecommerce platforms. You’ll want to do things like:

• Use Amazon's messaging system for all communications
• Respond to customer questions within 24 hours
• Provide clear, detailed answers to product questions
• Be proactive in addressing potential issues or delays
• Offer solutions or alternatives when facing problems

Going above and beyond will help you exceed customer expectations.

How much does it cost to sell on Amazon Handmade?

There are two main fees associated with selling on Amazon Handmade:

1. Monthly subscription fee: $39.99 per month for a professional selling plan. However, this is waived if your application is approved.

2. Referral fee: A percentage of each sale, which is 15% for Handmade items.

You’ll also have other costs, however, such as shipping fees, packaging materials, and currency conversion.

💡You can receive money from Amazon with Wise to save money on conversion costs.

Tips for Success on Amazon Handmade

Your store is up and running, now it’s time to fine-tune things with best practices and pitfalls to avoid.

Here are some tips for success:

• Well-made, high-quality products
• Price your products competitively
• Promote on social media and other online platforms
• Diversify your products
• Adapt to meet seasonal demands

In addition to the things you can do for success, there are things to watch out for.

Here are some common pitfalls to avoid:

• Poor-quality photos
• Descriptions too short or too vague
• Products priced too high or too low
• Poor customer service
• Not marketing your store

By following these tips, you can increase your chances of success on Amazon Handmade.

Frequently Asked Questions

Selling on Amazon Handmade can raise many questions for new sellers. Here are some of the most common ones:

Is it worth selling on Amazon Handmade? Amazon Handmade can be worth it for many artisans due to its vast customer base and built-in trust. However, success depends on various factors including your product niche, pricing strategy, and marketing efforts.

How do I make my Amazon Handmade products stand out? To make your products stand out:

1. Use high-quality photos
2. Write compelling descriptions
3. Feature your unique selling proposition (USP)
4. Offer excellent customer service
5. Leverage marketing

Can I sell on both Amazon Handmade and other platforms? Yes, Amazon Handmade does not require exclusivity. Selling on multiple platforms can expand your reach and diversify your income streams.

Amazon Handmade vs. Other Selling Platforms

When considering where to sell your handmade products, it's important to compare Amazon Handmade with other popular platforms.

Let's focus on a comparison with selling on Etsy, one of the most well-known marketplaces for handcrafted items.

1. Audience reach: Amazon Handmade offers access to Amazon's vast customer base, while Etsy attracts buyers specifically looking for vintage and unique items.

2. Fees: Amazon Handmade charges a fee of 15% of the transaction value, while Etsy has a 6.5% transaction fee and a 3% payment processing fee. Note you can receive Etsy payments with Wise.⁶

3. Brand identity: Amazon Handmade offers limited customization of storefront, while Etsy has more flexibility in shop design.

4. Competition: Amazon Handmade is a less saturated market, while Etsy has more direct competition with other handmade sellers.

5. Marketing tools: Amazon Handmade comes with access to Amazon's powerful advertising tools, but Etsy also offers on-site advertising.

Ultimately, the choice depends on your specific products, target audience, and business goals. Many sellers find success in utilizing multiple platforms to maximize their reach and sales potential.

Receive Ecommerce Payments With Wise Business

Amazon Handmade offers artisans a unique platform to showcase their creativity. And for artisans selling internationally on platforms like Amazon Handmade or Etsy, managing cross-border payments efficiently is important. This means being able to streamline your international transactions, reduce fees, and simplify financial management.

Whether you choose Amazon Handmade or another platform, managing your finances efficiently is crucial for success. Wise Business provides a seamless solution for receiving international payments, especially if you have customers overseas.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local.

Key features of Wise Business for handmade sellers:

• No monthly fees
• Easy to create an account online
• Receive payments from e-commerce platforms (such as Amazon or via Stripe)
• International payments at the mid-market rate
• Simplify accounting by integrating with popular bookkeeping software.

Open a Wise Business account online

By simplifying your finances and optimizing your payment process, Wise Business empowers you to focus on what you do best—creating beautiful handmade products.

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Sources:

1. Expert Market Research - Global Handicrafts Market Outlook
2. Amazon - Amazon Handmade
3. Amazon Ads - Sponsored Products
4. Amazon - What is the Early Reviewer Program?
5. Amazon - Amazon Live
6. Etsy - Fees & Payments Policy

All sources checked June 2024