Selling on Amazon vs Etsy: Which Marketplace is Best for You?

Etsy is the go-to marketplace for unique, handcrafted, or vintage items. It attracts buyers who appreciate uncommon finds and artistic talent. Amazon, on the other hand, is an e-commerce Giant that dominates the global book industry. Which platform is best for your publishing business? Amazon is the clear winner for us, but let's take a deep dive into both platforms to see why. 

Key Differences: Selling on Amazon vs Etsy

Amazon and Etsy cater to different types of sellers and customers. Understanding their differences is key to aligning your goals and business model with the right platform if you want to start an online side hustle.

Customer Base

Amazon boasts a massive and diverse customer base, with millions of shoppers seeking a wide range of products, including books. These customers are often drawn to Amazon's convenience, competitive prices, and fast shipping options. They value efficiency and a broad selection. 

In contrast, Etsy cultivates a more niche community of buyers who only appreciate handcrafted, unique, handmade, and vintage items. Etsy customers often seek something special with a personal touch and a story behind it. They are willing to pay a premium for originality and artistry.

Amazon Marketplace

Books and digital content are popular sellers on Amazon. Nonfiction and self-help books, in particular, do well on this platform. Low-content books like planners, journals, and notebooks are also very popular. Typically, Amazon readers Buy digital, paperback, or hardcover books from self-publishers or traditional publishing companies. 

Etsy

While Etsy does not cater to booksellers and publishers, many sellers offer some books and journals. The types of books and journals that sell well on Etsy are typically highly unique and feature some amount of hand production. This contrasts with Amazon, where books are produced and formatted online and sold as digital products or printed copies. 

Product Categories

Both Amazon and Etsy offer a wide range of products. Amazon specializes in everyday essentials, electronics, books, and apparel. At the same time, Etsy specializes in personalized items, handmade goods, vintage pieces, and antiques.

Amazon Handmade & Other Product Offerings

Amazon's diverse product catalog includes some handmade and vintage items. However, these items only make up part of Amazon's catalog. There is some overlap between the goods offered on both platforms. 

Etsy Craft Supplies

Etsy's Craft Supply category is a great place to sell digital content related to crafting. Books on painting, sewing, woodworking, or pattern-making would be relevant to this platform. Amazon still offers a much broader customer base, so selling these books on Etsy would be a good secondary source of sales.

Fees and Payment Processing

Amazon KDP and Etsy have distinct fee structures. Understanding these fee structures is crucial for self-publishers to accurately calculate their earnings and choose the platform that best aligns with their financial goals.

Amazon Fees

Amazon’s fee structure includes referral fees for handmade sellers, which vary by category, and a monthly fee for professional sellers. Additional costs include optional services like fulfillment by Amazon (FBA), simplified logistics, and enhanced customer satisfaction. While Amazon’s fees might seem high, the platform’s extensive reach and advanced tools often justify them.

Etsy Fees

Etsy charges listing, transaction, referral, and payment processing fees. While these fees may appear lower than Amazon’s, they can quickly add up for sellers with high volumes or custom requirements. Additionally, Etsy’s fees are less predictable, complicating budgeting for self-publishers.

Branding and Customization

Amazon is focused on booksellers and offers innovative branding tools like author pages, but Etsy provides a little more creative expression. 

Amazon vs Etsy

With personalized store friends that reflect their brand identity, Etsy sellers have a little more freedom for Branding and customization. Amazon has stricter design limitations, but its focus is on data-driven marketing, and it compensates for the lack of creative freedom with higher sales. 

Advertising and Marketing

As with branding, Etsy and Amazon approach advertising and marketing very differently. Amazon's platform takes a data-informed SEO-driven approach, leveragig keywords and understanding rankings, while Etsy's ads are less technologically sophisticated. 

Amazon Advertising

Amazon offers built-in advertising tools like Amazon Ads, where you can create targeted campaigns to reach readers searching for books in your genre. You can also utilize KDP Select's promotional programs, such as Kindle Countdown Deals and Free Book Promotions, to boost visibility and downloads. Amazon's algorithm organically promotes books based on sales and customer engagement.

Etsy Ads

Unlike Amazon's data-driven and SEO-informed approach, Etsy's marketing is more community-based. Etsy's personalized marketing focuses on your shop's followers and relevant Community forums. Sellers also leverage social media to drive traffic to their Etsy shops.

Etsy Ads enable sellers to promote their listings within Etsy’s marketplace. While these ads help gain visibility, they lack the sophistication and scalability of Amazon’s advertising tools. As a result, self-publishers and Etsy sellers may find Etsy’s advertising options less effective for driving significant sales growth.

Is it Profitable to Sell on Amazon?

Amazon’s profitability stems from its massive customer base, efficient fulfillment options, and advanced marketing tools. For self-publishers, Amazon’s Kindle Direct Publishing (KDP) platform offers competitive royalty rates and additional revenue streams, such as Kindle Unlimited. By leveraging Amazon’s global reach, sellers can achieve higher sales volumes and long-term profitability via KDP.

What are the Disadvantages of Selling on Etsy?

While Etsy offers a unique platform for reaching a specific audience to sell handmade items, it also has some drawbacks for self-publishers. First, Etsy's audience is significantly smaller and more niche than Amazon's, which could limit your book's visibility and potential sales. Second, Etsy's fees can be higher than Amazon's, mainly if you utilize their payment processing services and advertising options. Third, Etsy's focus on handcrafted and unique items might only be ideal for some books, especially those targeting a broader audience or falling within popular genres. Finally, promoting your book on Etsy requires more active and personalized marketing efforts than Amazon's built-in advertising tools and algorithm-driven promotion.

High Competition

Etsy’s niche focus attracts many sellers, leading to intense competition within its limited product categories, selling prices well. This can make it challenging for self-publishers to stand out unless their offerings are highly unique or well-marketed.

Limited Scaling Opportunities

Etsy’s smaller audience, low seller fees, and lack of advanced fulfillment options make scaling a business complex. Sellers must handle their inventory and shipping, which can become a bottleneck as demand grows.

Expensive Fees

Although Etsy’s fees may appear lower initially, they can add up quickly for high-volume sellers. The platform charges a 5% transaction fee, two selling fees, a $0.20 listing fee per item, and payment processing fees that vary by location.

Lack of Control

Etsy’s marketplace policies and algorithm changes can significantly impact sellers without warning. This lack of control over visibility and sales can be a significant drawback for self-publishers seeking stability.

The Benefits of Selling on Amazon vs Etsy

Both Amazon KDP and Etsy have unique advantages and disadvantages for self-publishers. Choosing the right platform depends on your specific needs, goals, and the type of book you're offering.

Broader Reach

Amazon’s massive customer base ensures that sellers can reach a global audience. This primarily benefits small businesses and self-publishers looking to expand their readership and increase sales.

Fulfillment by Amazon (FBA)

FBA simplifies logistics by handling inventory storage, shipping, and customer service. This allows sellers to focus on creating and marketing their products rather than managing operations.

Data Insights

Amazon provides sellers with detailed analytics, including sales data, customer behavior, and advertising performance. These insights enable self-publishers to make informed decisions and optimize their strategies for success.

Scalability

Amazon’s infrastructure supports business growth by offering tools for advertising, global expansion, and efficient fulfillment. Sellers can scale their operations without worrying about logistical constraints.

Why Amazon is the Better Choice for Sellers

Etsy is a fun and creative Marketplace for niche sellers, but Amazon is a better choice for self-publishers. The platform was designed with booksellers in mind, and its 300 million active users represent the world's most extensive book-buying customer base. We recommend our students publish their books on Amazon first because it gives you the greatest potential for success as a self-publisher. 

Free Webinar: Learn How to Succeed on Amazon KDP

Building a successful self-publishing business on Amazon KDP is a process. We've helped thousands of students build successful publishing businesses by following our unique and proven process. In our free webinar, we share expert tips on maximizing your royalties, reaching a global audience, and leveraging Amazon's advertising tools to increase sales. 

Register now and learn how to find profitable niches you can publish in today!

Final Verdict: Amazon vs Etsy

For self-publishers, Amazon is the superior choice. Its massive customer base, advanced tools, and scalable infrastructure provide the ideal environment for growing a profitable business. While Etsy may appeal to niche creators, its limitations make it less suitable for self-publishers seeking to reach a global audience and build a sustainable brand.