Etsy or Amazon Handmade in 2026? This Is the One to Start With

If you're thinking about starting a handmade business, this question comes up sooner or later.

Should you sell on Etsy, or try Amazon Handmade? Which is the best place to sell handmade items?

Both are well-known platforms. Both look promising at first glance. But once you start selling, they feel very different.

As we move into 2026, both platforms have updated their rules and fee structures. That makes the decision even more important for small business owners.

Below is a breakdown based on real seller experiences, recent platform changes, and 2025-2026 data.

We'll look at how each platform actually feels to sell on, what it really costs, and who each one makes the most sense for.

Quick Comparison Between Amazon Handmade and Etsy

Amazon Handmade: what it is and what sellers see

Amazon Handmade lives inside Amazon's main marketplace. It's not a separate site. That means instant access to a massive audience, but it also means your handmade items sit next to factory-made products.

That exposure can be powerful. It can also change how shoppers think about "handmade."

A common question is whether Amazon Handmade products are truly handmade. The answer is yes, but Amazon enforces this pretty strictly.

Sellers must apply, explain their materials, and sometimes upload photos of their production process before getting approved.

Based on Amazon's current policy, this vetting helps keep Handmade more legitimate than the rest of the marketplace.

Here are the main pros and cons of selling on Amazon Handmade:

Pros of Selling on Amazon Handmade

Massive audience

Millions of people shop on Amazon every day. If your product solves a clear need, the potential reach is huge.

Efficient fulfillment options

Fulfillment by Amazon (FBA) handles packing and shipping for you. This can be a big advantage if you're ready to scale and don't want to manage logistics yourself.

Freedom to sell almost anything

Amazon allows nearly any legal product. You're not limited to traditional handmade or vintage-style categories.

No monthly fees for Handmade sellers

Amazon usually charges a monthly professional seller fee, but for Handmade sellers, this is waived after the first month.

Unlike Etsy, which charges $0.20 per listing every four months, Amazon lets you list as many products as you want for free. You only pay when something sells.

Cons of Selling on Amazon Handmade

Higher fees

Amazon charges a flat 15% referral fee on every sale. This is much higher than Etsy's 6.5% transaction fee.

While Amazon's fee includes payment processing, the total cost per sale is still significantly higher. For low-priced or low-margin items, this can become a real problem.

Strict metrics and learning curve

Amazon is way stricter than Etsy when it comes to shipping metrics, product claims, and refunds. There is a steep learning curve.

As one user put it, "Amazon does not treat you any different" just because you are a handmade seller.

No store customization

Etsy already limits customization, but Amazon goes even further.

You have very little control over branding, layout, or store personality. This can make it harder to build a recognizable brand over time.

Etsy: what it is and what changed in 2026

Etsy is still the go-to for handmade, craft, art, and vintage goods. People visit Etsy looking for something personal, unique, or custom.

The platform has strict categories: arts, crafts, jewelry, homeware, baked goods, and vintage items (20+ years old). Selling outside these categories usually does not work well, as buyers come with very specific expectations.

As of December 31, 2024, Etsy had over 100 million items, 8 million sellers, and 96 million buyers.

So, that's a lot of potential customers, but it also means the competition is intense.

Updated Creativity Standards

Since June 10, 2025, Etsy's Creativity Standards have become more specific.

Each listing must clearly state whether an item is made by the seller, designed by the seller, handpicked, or sourced.

Using AI tools or production partners is allowed, but it must be disclosed properly. Items cannot be labeled as "made by a seller" if they are not.

For small business owners, this means clarity matters more than ever.

Pros of Selling on Etsy

A community that already exists

Selling on Etsy lets you join a crowd that's already active and shopping for creative work.

You don't have to convince them why handmade matters. While traffic to Etsy doesn't guarantee traffic to your shop, being inside this ecosystem helps with discovery.

Easy to start and show your brand personality

Opening a shop is straightforward. You can upload a banner, logo, and product photos that match your style.

Etsy gives you space to tell your story, which matters because emotional connection often drives handmade purchases.

Sell instantly

If you want to begin selling your products as soon as possible, Etsy is the route for you.

It has a really easy and fast sign up process. Once you have your account, you could start selling in just a few hours. This is much faster than the rigorous application process required by Amazon Handmade.

Loyalty and marketing tools

A great thing about Etsy is that it makes it very easy for you to implement various discount codes and shared shipping costs. It's an excellent marketing tool that you can use to drive customers back to your shop and gain more repeat orders.

Support for Customization and Communication

Etsy encourages direct communication between buyers and sellers. Custom orders, personalization requests, and detailed conversations are part of daily life on the platform.

Good service often turns first-time buyers into repeat customers.

Manageable Costs for Small Businesses

Etsy charges $0.20 per listing, plus transaction and payment processing fees.

Advertising costs increase if you use Etsy Ads or Offsite Ads. Once annual sales exceed $10,000, Offsite Ads become mandatory, adding a 12 to 15 percent commission on ad-driven orders.

For new shops, this threshold gives you time to learn before costs rise significantly.

Cons of Selling on Etsy

Search visibility issues

In late 2025, many sellers experienced search visibility glitches lasting over 3 weeks, especially around the November 6th Q4 holiday period. This caused major drops in sales with no explanation from Etsy, frustrating hundreds of sellers.

Oversaturation

Competition is high. With millions of active sellers, standing out requires strong product photography, compelling listings, and consistent shop branding.

Limited customization and independence

Shop URLs always end with .etsy.com and there's no HTML customization. Etsy can also change fees or suspend shops, so sellers don't fully own their customer relationships.

Should you sell on Etsy or Amazon Handmade?

Let’s answer that right away. Choosing between them can actually be simple if you match the platform to your stage of business.

Start with Etsy if

You're a beginner or hobby seller learning how things work. Etsy is the easiest place to test ideas and see what buyers actually respond to.

You can list several custom or UV-printed designs for just a few dollars and learn quickly which ones get clicks and favorites. There's less pressure, fewer strict metrics, and more room to experiment.

Etsy helps you build confidence, shape your brand, and figure out what sells before you think about scaling.

Move to Amazon Handmade if

Your process is dialed in. You've found profitable crafts ideas and you want steadier traffic.

Amazon's audience is massive, and once a listing gains traction, orders tend to come in more predictably. The platform rewards consistency, fast shipping, and reliable inventory.

If you're comfortable managing stock and meeting tight shipping expectations, Amazon Handmade can support real growth.

Using both platforms

Many sellers do both.

Etsy stays the creative space for testing ideas and custom work. Amazon becomes the channel for proven products that can be produced and shipped efficiently.

Used together, they offer a balanced path. Creative freedom on one side, stable revenue on the other.

Which Platform Fits Your Handmade Business Best?

Amazon Handmade suits sellers focused on scale, efficiency, and fast delivery. Etsy fits creators who want to build a brand and sell personalized or artistic products. Some businesses successfully use both platforms, assigning different product lines to each.

Start with the platform that matches your strengths. As your experience and capacity grow, expanding to multiple channels can become a natural next step.

FAQs

Is it better to sell on Etsy or Amazon Handmade?

For most beginners, Etsy is the better place to start. It’s easier, cheaper to test ideas, and buyers already expect handmade products.

Amazon Handmade makes more sense once you have a proven product and can handle fast shipping and steady inventory.

Is it hard to get approved for Amazon Handmade?

It takes more effort than Etsy, but it’s not impossible. You must apply and explain how your products are made. Approval can take time, and not everyone is accepted right away.