A Complete Guide to Amazon Handmade [2021]

Is It Worth It To Sell On Amazon Handmade?

Amazon Handmade offers two distinct advantages over Etsy. You can list items on the site without paying any listing fee, and your listings never expire; both of which are unavailable with Etsy’s service models. While there is a 15% referral fee on the total sales price – including shipping fees – it has no minimum requirement so you’ll get something back every time you sell an item! For comparison purposes: while it does have transaction/processing costs at 3%, that comes out to $3 per sale when those expenses are taken into account (plus another 25 cents).

Before Amazon launched the Amazon Handmade in 2015, Etsy dominated the handmade, vintage, and craft marketplace. With a community of more than 4.3 million sellers and over 39.4 million active buyers, Etsy is truly an eCommerce powerhouse that cannot be taken for granted.

But with the inception of Amazon Handmade in 2015, we have a new and more reliable player in the game. The newest platform for homemade products has grown really fast to become one of the leading marketplaces for handcrafted goods.

Selling handmade products on Amazon comes with many advantages over selling on Etsy, and this partly explains why many artisans prefer selling on Amazon Handmade. We’ll look at the advantages of selling on this platform in another section in this blog post.

If you’re an artisan looking for a reliable marketplace to sell your handcrafted goods, you’ve come to the right place. Whether you are new to selling handcrafted goods online, or you’ve been selling on other platforms such as Etsy, and you’re looking to switch to a better marketplace, you are at the right place.

In this blog post, we look at the program in detail, explore how to sell your products on this platform, and compare it with Etsy.

In this blog post, we’ll go over:

  • What Is It?
  • How Can You Join As A Seller?
  • Advantages Of Selling Handmade Products On Amazon
  • Whether Amazon Handmade Is Worth It
  • Best Practices To Stay Ahead As A Seller

What Is Amazon Handmade?

As its name suggests, Amazon Handmade is a division of the Amazon.com marketplace that focuses on selling unique handmade and crafted products.

This platform is specifically dedicated to artisans who make handcrafted items. That means you cannot sell mass-produced items on this platform.

An Introduction to the Program Sunken Stone min

The Amazon Handmade platform is somehow different from other platforms on Amazon i.e FBA, FBM, and others. Its onboarding process, fee structure, and overall business model are quite different from regular Amazon seller accounts.

You can sell unique handcrafted items on Amazon in the following categories:

  • Artwork
  • Accessories
  • Beauty & Personal Care
  • Baby
  • Clothing
  • Home
  • Shoes & Handbags
  • Outdoor & Home Care
  • Kitchen & Dining
  • Jewelry & Watches
  • Sporting Goods
  • Pet Supplies
  • Toys & Games
  • Stationery & Party Supplies

Why Sell On Amazon Handmade?

The platform offers artisans a simple way to reach millions of potential customers for their handcrafted goods. With this platform, millions of customers from over 80 countries can access handmade products. Besides, they allow sellers to sell handcrafted goods in many categories, so you’re sure to find your preferred category to sell in no matter your area of specialization.

It is also known for its uncompromising quality standards and a strict onboarding process for sellers. Therefore, the platform consists of exclusively high-quality handcrafted goods, thereby winning customers’ trust around the world. So when you sell on Amazon Handmade, you have access to millions of customers who already trust the marketplace. If you offer high-quality items and take your time to understand Amazon’s algorithm and how it works, you can make stay ahead of your competition.

Even though launching your Amazon Handmade requires Amazon’s approval, the process is not that difficult. You just need to set up your seller central account, complete registration, and apply to join the artisan-only community.

Instead of starting your own website to sell your handcrafted goods, this platform offers you an opportunity to start selling immediately you create your account.

Why Sell On Amazon Handmade Sunken Stone min

Generally, selling on the leading ecommerce website can be lucrative if you offer high-quality items and adhere to the best practices for selling on the platform.      

How Amazon Handmade Works

Selling on Amazon Handmade is a fairly simple process. First, a person who’s interested in selling on the platform needs to create high-quality handcrafted items. The items must be made either by the seller or their employees if they have 20 or fewer employees. Next, they’ll apply to join the community. Amazon will go through the application to determine if the applicant is eligible to join the community. If approved, the seller will choose their preferred fulfillment method and start selling.

The platform works almost the same way as the regular Amazon.com platform, but the difference comes in at the onboarding process, the type of products sold on the platforms, and fees.

Similar to the regular Amazon.com platform, Amazon Handmade reviews are the backbone of getting your handmade items off the ground. Having more positive reviews on the platform improves your ranking and brings in more customers.

Moreover, users can filter handmade products by price, artisan location, category, and more, thanks to a feature-rich infrastructure.         

Regular Amazon vs Handmade Amazon

Understanding the differences between regular Amazon and Handmade Amazon can be a little confusing for new sellers. So it’s worth looking at how the two compare.

Amazon Handmade is a standalone platform specifically focused on selling unique handcrafted goods, while the regular Amazon.com marketplace sells a wide array of products. 

Sellers on regular Amazon can choose between the individual selling plan and the professional plan, while Amazon Handmade sellers can register with a professional selling plan.

Regular Amazon vs Handmade Amazon Sunken Stone min

Individual sellers pay $0.99 every time they sell an item, while the professional costs $39.99 per month. On the other hand, Amazon Handmade sellers don’t have to pay any monthly fee.

However, Handmade does charge a flat 15% referral fee on the total sales price. Regular Amazon sellers can expect to pay a referral fee anywhere between 8% and 15% of the product’s total sale price. Though some categories charge a referral fee of more than 15%.

Advantages of Selling On Amazon Handmade

Large Customer Base

There are more than 95 million Amazon Prime customers in the U.S. alone. By joining the platform, Amazon Handmade sellers can get their handcrafted products in front of millions of sellers. The chances of your items being seen by potential customers on Amazon are very high.  

Besides, many customers already trust Amazon when it comes to product quality, so it’s easy to make sales on Amazon Handmade even if you’re a new seller. In other words, if you’re selling handmade products and you want to make good profits, you want to be selling on Amazon Handmade.

However, you need to follow the best practices to stay ahead of your competitors on the platform. Remember, Amazon Handmade is just as competitive as the regular Amazon.com marketplace.

Be sure to use the relevant keywords in your listing, market your products, and provide exceptional customer experience. 

No Hidden Fees

Amazon Handmade fees are straightforward, so you don’t have to worry about hidden fees. Listing your products on Amazon Handmade is free, and they don’t charge transaction fees or processing fees. When you make a sale, Handmade will deduct a 15% referral fee. There’s also no subscription fee, unlike the regular Amazon.com marketplace.

When you compare Etsy’s fee structure with Amazon Handmade fees, you can see that the latter doesn’t seem too bad. Amazon Handmade straightforward fee structure makes the platform more approachable.  

Exclusivity

Amazon Handmade is exclusive to artisans who make handcrafted items. Before you get approved to sell handmade items on this platform, you’ll have to complete and pass an application process.

This platform is exclusive to artisans Sunken Stone min

The strict verification process ensures the items are actually handmade by the artisan or the company selling them and this builds trust among potential customers. Being a standalone platform, Amazon Handmade provides more exclusivity to the consumer experience.

Hassle-Free Fulfillment

You can choose to fulfill your Amazon Handmade orders via Amazon FBA, FBM, or Seller Fulfilled Prime, depending on what works best for you. If you choose Amazon FBA, Amazon will fulfill orders on your behalf. But if you want to avoid Amazon FBA’s steep fees, you can opt for Amazon FBM.

Robust Storefront Customization

One of the outstanding things about Amazon Handmade is that sellers can set up an artisan profile to share their stories and showcase their handmade items. Sellers on this platform can leverage the artisan profile to create an inspiring profile that sets them apart from the competitors.

A great profile is sure to attract more customers, which will translate to increased profits. In addition to the artisan profile, Handmade sellers can utilize A+ content to enhance their product descriptions and make them appealing to potential customers.

With the use of rich text, banners, tables, and images, sellers can make their storefronts unique.      

Exceptional Seller Support

Amazon generally offers responsive seller support in all their platforms, including Amazon Handmade. They have their sellers’ interests at heart, so they make it easy for them to get the support they need. You can reach them via phone, email, live chat, and more.

Whether it’s an issue to do with returns or you need help with setting up your account or artisan profile, you can easily get in touch with their support team. This is another area where Amazon Handmade has an upper hand against Etsy. 

No UPC Codes Needed

Sellers on the regular Amazon.com marketplace require UPCs for identification purposes, but Amazon Handmade doesn’t require UPCs to list items on the platform. This eliminates additional costs and makes the process of listing items hassle-free. 

Profitability

You can make decent profits as a seller if you follow the best practices. Around one-third of sellers on this platform have profit margins above 20%.

However, there are still many sellers who struggle with their business for various reasons. It’s important that you provide high-quality products to ensure a positive customer experience. This way, you can easily take your business to the next level.

Access to Amazon Prime

Sellers are eligible to join Amazon Prime and enjoy benefits such as quick delivery, early access during sales, more visibility, and Prime day benefits.  

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Cons to Selling On Amazon Handmade

Higher competition:

There are over 2.5 million sellers, so the competition can be stiff. You’ll need to be on top of your game to stay ahead of your competitors.

Higher fees to sell:

The platform charges more fees to sell on than Etsy charges. This can lower your profit margins, especially for those sellers who make a lower amount of sales.

Amazon vs Etsy

If you’re trying to decide which platform to use between Amazon Handmade vs Etsy, here are the differences between them to help you make an informed decision.  

Sign-Up Process

Joining Etsy is much easier compared to Amazon Handmade onboarding process.

To sign up for Etsy, you’ll be required to go to www.etsy.com, click sign in at the top of the site and enter the required information.

It’s that simple!

But joining as a seller requires you to complete and pass an application process. It can take anywhere between 2 days and four weeks to get approved. 

Joining Etsy is much easier compared to the leading ecommerce site's onboarding process Sunken Stone min

Customer Base

Another difference between Etsy vs Amazon Handmade lies in customer reach. Amazon gives sellers access to more than 300 million customers, while Etsy gives sellers access to over 39.4 million customers. Therefore, it’s evident that Amazon Handmade is ahead of Etsy by far in terms of customer base.

Listing Fees

Amazon Handmade does not charge sellers listing fees, while Etsy charges $0.20 per listing. 

Product Niches

Etsy offers 160 product niches, while Amazon Handmade has around 14 product niches.  For Amazon Handmade, you cannot list items that do not fit in the 14 product niches. This is one of the areas that Etsy gains an upper hand against Amazon Handmade.

Product Production

Etsy allows sellers to partner with other manufacturers to make products, while Amazon Handmade requires sellers to either handcraft the products themselves or have their employees create the products in a company with 20 or fewer employees. Amazon Handmade does not allow sellers to partner with other manufacturers.  

How to Sell Handmade Products on Amazon (Step by Step Guide)

Getting started with selling on this platform can be confusing if you don’t know the steps to follow. Here’s how to get started.

Step 1: Create A Seller Central Account & Complete Registration

You’ll need to have an Amazon seller central account to submit an application to sell items that you make. Creating an account is simple. Go to Amazon.com and follow the registration process.

Start Selling on the Leading Ecommerce Platform

Step 2: Apply to Become an Artisan

Go to the Amazon Handmade site and click on the “Are you a Maker?” banner. You’ll be required to enter basic information, including your production process, the category your items would fall under, and information about your company if you own one. You’ll also need to provide top-notch photos showing off your items.

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Wait for Amazon to review your application. This should take anywhere between 2 days and four weeks.

Step 3: Build Your Artisan Profile

Once approved, go ahead and build your artisan profile. This is your opportunity to tell your inspiring story that will set you apart from other sellers and entice customers to buy from you. You’ll be required to fill in your store name, preferred URL, biography, production process, location, inspiration, and your crafting niche. Apart from these text fields, you’ll need to add a profile picture and cover image. Try to get high-quality images of your items and workspace to accurately reflect your brand and what you do.

Step 4: List Your Handcrafted Products

At this point, your store is almost fully set up. Now all you need to do is list your products. Go to the “Inventory” tab on your seller central and tap “Add a Product” and create listings for your handmade items.

When listing your products, you’ll be required to select the categories and subcategories that your products fall under, product title & description, standard price, the quantity you have for sale, expected production time, product weight & materials, sizes, colors, and any other information that may be required.

Also, be sure to fill out your tags that potential customers may use to find your items and Meta description.  

It’s important that optimize your product listings, so you can reach the right audience. Ensure you fill in all the fields on your product listings to help Amazon’s search engine find your products when a customer performs a search for your relevant items.

You’ll also need to optimize your product titles, bullet points, and descriptions to make your handcrafted items more searchable. Use keyword research tools to find the best keywords for your products and use those keywords in your product titles, bullet points, and descriptions.

Step 5: Set Up Your Shipping Policy

Amazon assigns default shipping charges for your store when you list your products. You can adjust your shipping charges for your items based on weight and other factors. Also, be sure to enter the accurate production time to avoid problems down the road.

Step 6: Take Advantage of Amazon Advertising Options to Grow Your Amazon Handmade Business

Now that your Amazon Handmade is fully set up, it’s time to market your products to your target audience to attract potential customers. Some of the advertising options you can leverage include Sponsored Brands Ads, Sponsored Display Ads, Sponsored Products Ads, and social media advertising.

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Once you start making sales, it’s a good idea to ask for reviews. Most Amazon users read reviews before making a buying decision. So asking your customers to leave reviews after buying can help you build trust with future visitors.  

Best Practices to Stay Ahead As A Seller

Use High-Quality Images

One of the things that differentiate top-sellers on Amazon Handmade and those struggling to make sales is the quality of images they use in their product descriptions. Be sure to use high-quality, professional-looking photos to show off your product’s best aspects.

Share Your Product Page On Social Media

Start with building a strong social media presence and then share posts to promote your Amazon store.

Get Your Pricing Right

If you don’t get your pricing right, you’ll either have low profit margins or won’t sell anything. When setting your prices for your Amazon products, consider everything from the cost of components to the time spent on handcrafting and expertise. Getting your prices will not only increase your chances of winning the Buy Box but will also help you remain competitive in the marketplace.

Consider Fulfilling Your Order Via Amazon FBA

Fulfilling orders on your own can be overwhelming if you have a busy schedule. Using Amazon FBA to fulfill orders lets Amazon handle everything for you, from picking items to packing and shipping while you focus on growing your business.  

Bottom Line:

Is It Worth It to Sell On Amazon Handmade?

Selling on Amazon Handmade can be profitable if you produce high-quality products and follow the best practices for selling on the platform. Keep in mind that Amazon demands the best, so if you can offer the best handmade products, get your pricing right, do marketing the right way, and learn how the Amazon algorithm works, you’ll definitely make money on Amazon.

 

Download the Ultimate Amazon Success Guide by Sunken Stone

Frequently Asked Questions

Who Can Sell On Amazon Handmade?

The platform is specifically dedicated to sellers who make unique, handcrafted items. You cannot sell mass-produced products on this platform.

Is Amazon Handmade Better Than Etsy?

Both marketplaces have their own pros and cons. For instance, both platforms do not charge a listing fee, and they feature user-friendly interfaces. Etsy offers more product niches compared to Amazon Handmade. However, Amazon gives you access to a large customer base of more than 300 million active customers. Besides, customers already trust Amazon. So selling on Amazon gives you better chances of making sales as compared to Etsy.

Is Amazon Handmade Free?

Listing items is free, but they will deduct a 15% referral fee when you make a sale.

What Categories Are Available On Handmade?

You can sell handcrafted items under a wide array of categories on Amazon. Some of the categories available on Amazon Handmade include artwork, baby, pet supplies, Toys & Games, Accessories, Homes, Outdoor & Home Care, Jewelry & Watches, Beauty & Personal Care, and more.

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