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cut to the trace

by The Handcrafter Soap & Cosmetic Guild

Amazon: The Truth About Selling on Amazon Handmade

Did you know that Amazon has a program specifically for handmade products? Amazon Handmade was launched back in 2015 as a response to the growing demand for more handmade items. It differs from Etsy because items sold through Amazon Handmade have to be handmade or hand-assembled at the very least. You can’t buy mass-produced items and resell them through this service. 

So, why aren’t all makers selling on Amazon Handmade? Let’s look at details, pros and cons that you’ll want to consider before jumping on the platform.

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Amazon: An Incredible Reach

An easily identifiable benefit of Amazon is the reach. It’s is everywhere, all the time. How many people do you know haven’t ordered from the online-shopping giant? 

It’s is prolific, and many buyers default to it simply because the selection is nearly unbeatable; this goes for the handmade service as well.

Amazon Handmade has been around since 2015. In an article celebrating its five-year anniversary, the merchant claims that Amazon Handmade’s worldwide selection increased by over 2000% in five years, and the number of makers increased by 750%.

The size and growth of Amazon Handmade suggests that it’s a serious contender in marketplace options for handcrafters. This brings me back to another potential benefit of selling with the handmade service; the colossal reach of Amazon. According to Shopify, as of April 2022, Amazon was the 5th most visited site in the US.

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What about the fees?

That’s the most important part, right? How much money goes to the service, and how much money goes into your pocket?

I had a hard time finding an exact fee structure, but I did find a comparison with Etsy through Shopify that breaks things down a bit.

Amazon doesn’t charge a product listing fee. You do need to sign up for either an individual or professional plan (the professional plan will cost $39.99 per month). You’ll pay a flat 15% transaction fee on all sales as well; this differs from Etsy, where you do have to pay per listing (20 cents for four months), plus 6.5% of the total cost of the product and shipping plus 3% + 25 cents. 

Using these numbers, the handmade service is a good choice if you’re planning on selling a lot of different products since they offer fulfillment assistance and free product listings. However, if you are not selling a large variety of products and need fewer listings, Etsy may still be the best choice.

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Final Thoughts

Selling on Amazon Handmade isn’t as easy as creating an account and listing products. It’s important to note that anyone who wants to sell through them must go through an application process. Submitting an application is not a guarantee of approval. 

I couldn’t find a timeframe on Amazon’s website regarding the approval process. I did see a few sites that said 7-14 business days – however, there is an area where you can check your Amazon Handcrafted Application Status here.

Whether you decide to sell on Amazon, Etsy or another online marketplace, make sure you have everything in place to make your business successful:

  1. Insurance: Are You Covered?
  2. Truth in Marketing
  3. HSCG Membership

A Penny For Your Thoughts...