In the evolving world of e-commerce, two giants have carved out massive yet very different spaces for online sellers: Etsy and Amazon. Both platforms offer lucrative opportunities for entrepreneurs, but they cater to different audiences, business models, and profit margins.
If you’re trying to decide where to invest your time and resources, understanding how Etsy and Amazon compare in terms of profitability is essential.
This detailed comparison will explore the pros, cons, and real money-making potential of each platform, so you can make an informed decision.
1. Understanding the Platforms
Etsy is a marketplace known for handmade goods, vintage items, and craft supplies. It attracts customers looking for unique, personalized, or artisanal products.
Amazon, on the other hand, is the world’s largest online retailer. It caters to a wide variety of product categories and has a massive global customer base.
2. Startup Costs and Fees
Etsy:
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Listing fee: $0.20 per item
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Transaction fee: 6.5% of the selling price (including shipping)
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Payment processing fee: 3% + $0.25 (US)
Amazon:
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Individual account: $0.99 per item sold
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Professional account: $39.99/month
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Referral fees: 8–15% depending on the category
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Fulfillment fees (for FBA sellers): Varies by size and weight
Winner in Lower Startup Cost: Etsy—Easier and cheaper to start with minimal fees.
3. Product Types and Buyer Expectations
Etsy buyers expect custom, handmade, vintage, or artistic items. Popular categories include
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Jewelry
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Home decor
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Personalized gifts
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Digital downloads
Amazon buyers expect convenience, quick delivery, and standardized products. Popular categories include
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Electronics
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Home goods
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Books
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Everyday essentials
Best for Niche or Artistic Products: Etsy
Best for Mass-Produced or Retail Products: Amazon
4. Traffic and Customer Base
Amazon:
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Over 2 billion visits per month
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Huge brand trust and global reach
Etsy:
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Around 450 million visits per month
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Loyal customer base interested in artisan and handmade products
Winner in Traffic: Amazon—Greater potential for high-volume sales.
5. Ease of Use and Seller Experience
Etsy:
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Very easy setup
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No need to manage complex logistics
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Built-in tools for small sellers
Amazon:
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Requires more setup and knowledge
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Fulfillment options (FBA vs. FBM) can be complex
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Higher competition
Winner for Beginners: Etsy—Easier learning curve.
6. Branding and Store Customization
Etsy:
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Customizable storefronts
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Space to tell your story and build a brand
Amazon:
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Limited branding opportunities unless you're brand registered
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Most customers buy based on product, not seller
Winner for Branding: Etsy—Ideal for creating a loyal customer base.
7. Profit Margins and Pricing Flexibility
Etsy:
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Typically higher margins due to unique products
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Less price competition
Amazon:
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Lower margins due to competition and fees
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Race-to-the-bottom pricing is common
Winner for Higher Profit Margins: Etsy
8. Scalability and Growth Potential
Etsy:
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Best for boutique businesses
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Limited in how big you can grow without off-platform expansion
Amazon:
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Highly scalable
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Tools, logistics, and automation make it ideal for building a large e-commerce business
Winner for Scalability: Amazon—Better for long-term expansion.
9. Advertising and Visibility
Etsy:
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Etsy Ads available but limited reach
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Relies heavily on SEO within Etsy
Amazon:
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Advanced advertising tools (PPC, Sponsored Products, etc.)
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Ability to scale ads and visibility
10. Which Makes More Money Overall?
It depends on your business model.
Choose Etsy if:
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You create unique, custom, handmade, or vintage products
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You want to build a boutique brand with loyal customers
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You prefer low overhead and a simpler selling process
Choose Amazon if:
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You’re focused on scalability and large volume sales
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You sell retail or private-label products
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You’re ready to invest in marketing and logistics
Final Verdict: Etsy vs. Amazon
Factor | Etsy | Amazon |
---|---|---|
Startup Cost | ✅ Lower | ❌ Higher |
Ease of Use | ✅ Beginner-friendly | ❌ Complex setup |
Traffic | ❌ Lower | ✅ Higher |
Branding | ✅ More control | ❌ Less control |
Profit Margins | ✅ Higher | ❌ Lower |
Scalability | ❌ Limited | ✅ High potential |
Bottom Line: Etsy is better for creatives and small businesses. Amazon is better for scaling and volume. Both can be extremely profitable—but success depends on your products, goals, and commitment.
Still unsure? Try both! Many sellers operate stores on both platforms to maximize reach and income.
Have you sold on Etsy or Amazon? Share your experience in the comments!
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