Etsy vs. Amazon: Which One’s Right for Your Business in 2025?

Choosing the right marketplace can be challenging for ecommerce beginners, and it’s easy to see why—there are many factors to consider.

In this article, we’ll compare Etsy vs. Amazon, exploring fees, audiences, store customization, support, pros and cons of selling, and more.

Let’s get into it!

Key takeaways

• Etsy is best for niche, creative sellers specializing in handmade and vintage items. It’s also suited for print-on-demand sellers offering personalized products.

• With its huge customer base, Amazon is perfect for sellers targeting high-volume sales and rapid growth.

• Fees and structures differ significantly. Etsy has lower startup costs but charges recurring fees. Amazon has higher fees but provides better scalability through Fulfillment by Amazon (FBA). 

• Etsy allows more personalization and storytelling, making it better for building customer loyalty. Amazon is more product-focused, prioritizing efficiency over creativity.

• Choosing the right platform depends on your goals. Etsy suits smaller, creative businesses, while Amazon works better for sellers seeking exposure and high sales volume. 

1. What is Etsy

Etsy is an online marketplace for selling handmade items, vintage items, craft supplies, and unique products. It’s ideal for independent businesses, artists, and print-on-demand sellers offering creative and personalized designs. 

Source: Printful

When selling on Etsy, you’re catering to a specific demographic—people looking for unique, one-of-a-kind products. Etsy is perfect for print-on-demand dropshipping businesses that thrive on creativity and personalization.

Pros of selling on Etsy

• Low initial startup costs: The free Etsy Standard plan makes it accessible for new sellers and small businesses

• Strong niche audience: Etsy shoppers actively seek handmade items, vintage finds, and custom products

• Personal branding opportunities: Etsy’s focus on creativity and personalization allows sellers to build a unique brand identity

• Simple sign-up process: Creating an Etsy shop is straightforward and seller-friendly

• Advertising options: Etsy Ads help sellers boost their listings within the marketplace, increasing visibility

• Seller support: Etsy offers community forums and a helpful Etsy Help Center for troubleshooting and guidance

Cons of selling on Etsy

• Recurring listing fees: Etsy charges a $0.20 listing fee per item, which renews every four months, adding to costs over time

• Transaction fee: Etsy’s 6.5% transaction fee applies to the total order amount, including shipping costs. For some sellers, Etsy's commission rates can impact profit margins, especially when combined with other fees.

• Competitive marketplace in niche markets: The popularity of some product categories, like handmade items, makes it challenging to stand out

• Limited scalability: Etsy’s audience is smaller compared to Amazon’s diverse customer base, which can limit growth potential

• Reliance on Etsy’s algorithm: Success heavily depends on Etsy’s search algorithm, which can be unpredictable

• Restrictions on product types: Unlike Amazon, Etsy is stricter about prohibiting mass-produced items

2. What is Amazon

Amazon is the largest online marketplace, known for its wide reach, efficiency, and huge customer base. It’s great for sellers looking to connect with a broad audience and scale quickly.

Amazon is the most popular online marketplace in the US in 2025, holding a staggering 37.6% market share:

Source: Demand Sage

Unlike Etsy, Amazon focuses on volume and variety, making it perfect for sellers aiming for high sales.

Pros of selling on Amazon

• Huge customer base: Amazon attracts millions of shoppers worldwide, providing a vast potential audience for sellers

• High-volume sales potential: Amazon’s scale and reach make it easier to achieve large sales volumes, especially for popular product categories

• Scalability: The Amazon marketplace offers tools and resources to help sellers quickly expand their operations

• Access to Amazon Handmade: Sellers specializing in handmade items can use Amazon Handmade to reach a broader audience

• Fulfillment services: With Fulfillment by Amazon (FBA), sellers can outsource storage, shipping, and customer service, making scaling easier

• Customer trust: Amazon’s reputation for reliability can enhance the credibility of your listings

Cons of selling on Amazon

• Complicated sign-up process: Amazon’s registration can be demanding, especially for new sellers. Setting up a Professional account requires providing detailed business information, tax documentation, and adhering to strict compliance guidelines.

• Higher selling fees: Amazon charges referral fees based on product categories, which can be high for certain items

• Monthly subscription fees: Sellers with a professional account pay $39.99 per month, which can be costly for small businesses with lower sales volumes

• Complex fee structure: Amazon’s fees include referral, fulfillment, transaction, and storage fees, making budgeting more complicated

• Tough competition: Amazon’s massive customer base also means fierce competition from other sellers, including established brands

• Limited branding options: Unlike Etsy, Amazon prioritizes functionality over personal branding, making it harder to build a unique identity

• Restricted categories: Certain product categories require approval, which can limit opportunities for new sellers

3. Differences between Etsy and Amazon

Amazon and Etsy are both huge, trusted platforms for selling custom products and growing your ecommerce business. But when it comes to print-on-demand, which one’s the better fit? It all comes down to your business goals, brand identity, and audience.

Let’s dive into the differences.

Source: Printful

Seller fees

Understanding Etsy and Amazon dropshipping fees is essential for setting the right selling prices, profitability, and budget management. It guides strategic decisions like platform selection, alignment with business models, and competitive pricing.  

Etsy fees

Etsy is known for its relatively straightforward fee structure. 

• Listing fees: Etsy charges $0.20 for each product you post. Whether you’re selling handmade or custom items, digital products, craft or party supplies.

• Transaction fees: Set at 6.5% of the total order amount, which includes both the cost of the items and the shipping costs

• Payment processing fees: A set rate + a % of the total transaction value, depending on the seller’s location (in the US, this fee is 3% + $0.25)

• Optional fees for advertising tools: You can buy Offsite Ads or promote your products on Etsy through ad campaigns

Benefits: Etsy’s fees are lower than Amazon’s, making it more accessible for small businesses, startups, and artists.

Cons: The cumulative fees can add up, especially if you use additional services like advertising.

Amazon fees

Amazon’s fee structure is more complex, involving:

• A monthly subscription fee: If you’re selling more than 40 items per month, you can get a professional Amazon Seller account subscription for $39.99/month

• A per-item fee for individual sellers: If you’re selling less than 40 items per month, you’re charged $0.99 per item

• A referral fee: All sellers pay a percentage of each sale, varying by category

• Additional fees for Fulfillment by Amazon (FBA)

Benefits: Amazon’s vast customer base can potentially lead to higher sales volumes, offsetting the costs.

Cons: The fee structure can be more expensive, especially for small businesses, and the competition is significantly higher.

Audience 

Both Amazon and Etsy rank among the top 5 most visited online retail websites worldwide. However, while Amazon’s reach is considerably higher, Etsy has carved out a loyal, niche audience. Understanding their differences will help you decide which marketplace suits your products best.

Source: Statista

Etsy
Etsy attracts a niche audience looking for vintage and handmade products, DIY supplies, and unique, personalized items. Shoppers on Etsy appreciate creativity, originality, and craftsmanship.

They’re often drawn to small entrepreneurs and artists who offer something they can’t find elsewhere. This loyal, highly targeted audience values personal branding and enjoys discovering new, creative designs.

Source: CedCommerce

Etsy’s audience is perfect for sellers focusing on print-on-demand dropshipping with niche-specific or personalized products. If your business thrives on creativity and storytelling, Etsy’s community-driven marketplace offers the right environment to foster customer loyalty. 

Amazon
As the largest online marketplace, Amazon attracts millions of shoppers worldwide looking for everything from everyday essentials to high-quality niche items. Amazon customers value convenience, competitive pricing, and speed, making it ideal for sellers targeting high-volume sales.

Unlike Etsy, Amazon appeals to a broader range of customers with varying interests. Whether they’re searching for electronics, home goods, or custom products through Amazon Handmade, shoppers often look for practical, well-priced options.

Source: SellerAssistant

Amazon’s diverse customer base offers excellent growth potential but also allows shoppers to compare prices easily across different sellers, making it a highly competitive marketplace.

Valuable read: How to Find Products to Sell on Amazon: Complete Step-by-Step Guide

Which audience is right for you?

If you’re selling handmade products, craft supplies, or personalized items and want to build a brand with a unique identity, Etsy offers a niche, loyal audience perfect for your business.

However, if you want to reach a wider audience with higher sales potential and are prepared to face more competition, Amazon provides unmatched exposure and growth opportunities.

Valuable read: 11 High Profit Margin Dropshipping Products

Fulfillment methods

On Etsy, you typically handle fulfillment yourself or use print-on-demand fulfillment services. This setup offers personalized control over shipping and customer interactions, which is vital for maintaining your brand’s personal touch.

On Amazon marketplace, you have the same options as on Etsy (fulfilling yourself or through a third-party supplier like Printful), plus you can use Fulfillment by Amazon (FBA). With FBA, you send your products to Amazon’s fulfillment centers, and Amazon will pack and ship your products and handle customer service and returns for you.

The FBA costs depend on what kind and how many products you’ll delegate to Amazon. Here are the FBA fees:

• FBA fulfillment costs

• FBA storage costs

• Returns processing

• Removal, disposal, and liquidation orders

• Charges for aged inventory

For small business owners, the choice depends on the business’s scale and how hands-on the owner wants to be.

Store customization and branding options

There are 3 main differences between the marketplaces:

Personal touch: Etsy allows for a more personal touch in your store’s design, fostering a closer connection with customers, but Amazon focuses on streamlined, efficient product presentation.

Brand storytelling: Etsy offers better customization options for storytelling and creating a unique brand identity to foster customer loyalty, while Amazon’s approach is more practical and suitable for straightforward product showcasing.

Audience expectations: Etsy’s audience expects and appreciates creative presentation and branding, but Amazon shoppers are typically more focused on product specifics, pricing, and reviews.

Etsy customization

Etsy stands out for its focus on individuality and personalization. Sellers can:

• Customize their Etsy store layout and banner 

• Craft a unique store biography to tell their story

• Feature their items in a way that highlights their brand’s aesthetic

This customization level helps build a brand identity that resonates with Etsy’s audience, who often seek a personal connection with sellers.

Amazon customization

Amazon, while a larger platform, offers less flexibility in personalization. Marketplace sellers can:

• Create a basic storefront

• Use limited customization options for their store’s look and feel

• Focus more on product listings rather than the overall brand story 

Amazon’s model is more product-centric, emphasizing the items over the seller’s brand story. The platform is designed for efficiency and volume, prioritizing functionality over ecommerce business individuality.

Product restrictions

Each marketplace has different guidelines and limitations. Let’s break down the differences.

Etsy product restrictions

Etsy’s terms emphasize the uniqueness and handcrafted nature of products. For print-on-demand sellers, this means:

• Products or designs must be original

• Reselling mass-produced goods isn’t allowed unless they are vintage items

This platform is ideal for sellers specializing in original designs and custom-made items.

Valuable read: How to Sell Printful Products on Etsy

Amazon product restrictions

Amazon, with its broader scope, has a different set of restrictions:

• It allows a wider range of products, including mass-produced items

• There are specific categories that require Amazon’s approval before listing

• Compliance with Amazon’s policies regarding product safety and authenticity is crucial

The Amazon marketplace is more accommodating for a diverse range of products, but it’s important to navigate its regulations carefully when selling products.

Valuable read: How to Sell on Amazon with Printful’s Integration

Support

Etsy and Amazon offer different support systems, which affect how ecommerce business owners handle challenges and inquiries.

Etsy support

Sellers can access a thorough Etsy Help Center, community forums, and direct email support. Etsy’s community-driven approach encourages a sense of connection, with seller forums often providing valuable peer advice and insights.

Amazon support

Amazon provides a more structured support system, with extensive resources like Seller Central, detailed guides, and customer service through email and phone. Its support is geared towards handling a high volume of Amazon sellers, focusing on efficiency and standardized solutions. 

Your turn to choose between selling on Etsy vs. Amazon

Picking the marketplace for your print-on-demand business depends on many important factors covered in this article. Use this information to decide which platform fits your business needs and goals the best.

Let us know in the comments below if you have any questions or suggestions. Happy selling!

Read next:

• Etsy vs. eBay: Which One is Best for Your Online Business?

• Selling on eBay vs. Amazon: Which Is Best for You?