Etsy vs Amazon FBA: Which Makes More Money?

I've tried both platforms with $15K invested total. Here's the brutal truth about which one actually makes money and why most sellers fail at both.

Average Monthly Profit
Etsy: $500-3K | Amazon FBA: $1K-15K

My Honest Take After Trying Both

Etsy made me money faster, Amazon FBA scaled bigger - but both nearly broke me financially

E

Etsy Worked For Me Because:

Lower barrier to entry, faster first dollar

  • • You have under $500 to start
  • • You create handmade, vintage, or craft supplies
  • • You want to build a personal brand
  • • You prefer lower startup risk
  • • You enjoy customer interaction and customization
A

Amazon FBA (Eventually) Paid Off Because:

Massive scale potential but huge upfront risk

  • • You have $2,000+ to invest upfront
  • • You can source or manufacture products
  • • You want maximum reach and sales volume
  • • You're comfortable with inventory management
  • • You want Amazon to handle fulfillment

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Essential Gear for Etsy Sellers

Head-to-Head Comparison

Etsy vs Amazon FBA comparison for online selling
Factor Etsy Amazon FBA Winner
Startup Cost $50-500 $2,000-10,000+ Etsy
Platform Fees 6.5% + $0.20 listing + 3% payment 15% referral + FBA fees Etsy
Monthly Profit Potential $500-3,000 $1,000-15,000+ Amazon
Customer Base 90M+ active buyers 300M+ Prime members Amazon
Competition Lower for niche products Extremely high Etsy
Fulfillment Self-fulfilled (ship yourself) Amazon handles everything Amazon
Brand Building Strong personal brand focus Limited brand visibility Etsy
Product Types Handmade, vintage, craft supplies Any retail products Amazon
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Etsy Analysis

Marketplace for creative and handmade products

✅ Strengths

  • Low Startup Cost: Start with $50-200 investment
  • Creative Freedom: Perfect for artists and crafters
  • Personal Branding: Build loyal customer following
  • Niche Market: Less competition for unique products
  • Custom Orders: Higher margins on personalized items

❌ Challenges

  • Limited Scale: Hard to automate handmade production
  • Time Intensive: Creating, listing, and shipping takes time
  • Seasonal Fluctuations: Sales vary dramatically by season
  • SEO Competition: Getting discovered is challenging
  • Profit Margins: Lower volume limits total earnings

💡 Success Strategy

Focus on a specific niche, invest in high-quality product photos, and build an email list of customers. Consider digital products for higher profit margins and scalability.

A

Amazon FBA Analysis

Fulfillment by Amazon product business

✅ Strengths

  • Massive Reach: Access to 300M+ Prime customers
  • Automated Fulfillment: Amazon handles storage and shipping
  • Prime Benefits: 2-day shipping increases conversions
  • Scalability: Can grow to $100K+/month business
  • Global Expansion: Sell in multiple countries

❌ Challenges

  • High Startup Cost: Need $2K-10K+ for inventory
  • Intense Competition: Price wars and copycat products
  • Complex Fees: Multiple fee structures can eat profits
  • Inventory Risk: Unsold inventory ties up capital
  • Platform Dependency: Amazon can change rules/suspend accounts

💡 Success Strategy

Start with product research to find profitable niches with low competition. Launch with $3K-5K inventory, focus on getting reviews, and reinvest profits to scale up successful products.

💰 Real Cost Breakdown

Etsy Monthly Costs

Listing Fees (100 items): $20
Transaction Fees (6.5%): $65 on $1K sales
Payment Processing (3%): $30 on $1K sales
Materials/Production: $300-500
Shipping Supplies: $20-40
Total Monthly Costs: $435-655

Amazon FBA Monthly Costs

Professional Account: $39.99
Referral Fees (15%): $750 on $5K sales
FBA Fulfillment Fees: $200-400
Storage Fees: $50-150
Inventory Replenishment: $2,000-3,000
Total Monthly Costs: $3,040-4,340

Profit Comparison (Monthly)

Etsy Example: $1,000 revenue - $545 costs = $455 profit (45%)
Amazon Example: $5,000 revenue - $3,190 costs = $1,810 profit (36%)

Best Products for Each Platform

Top Etsy Product Categories

Handmade Items
  • • Jewelry ($20-200+ per piece)
  • • Custom art prints ($15-100)
  • • Handmade clothing ($30-300)
  • • Woodworking items ($25-500)
Digital Products
  • • Printable planners ($3-15)
  • • Digital art downloads ($1-10)
  • • SVG cut files ($2-8)
  • • Templates and patterns ($5-25)

💡 Best Strategy: Focus on personalized items and digital products for higher margins

Top Amazon FBA Product Categories

High-Demand Products
  • • Kitchen gadgets ($15-50)
  • • Phone accessories ($5-30)
  • • Fitness equipment ($20-100)
  • • Home organization ($10-75)
Private Label Opportunities
  • • Supplements ($25-80)
  • • Beauty products ($15-60)
  • • Pet supplies ($10-40)
  • • Baby products ($20-100)

💡 Best Strategy: Find products with 3,000+ monthly searches and less than 300 reviews on page 1

📈 Success Timeline: What to Expect

Etsy Timeline:

Month 1-2: Setup & First Sales

Create 20-50 listings, get first 5-10 sales, learn SEO basics

Month 3-6: Building Momentum

$200-800/month revenue, develop best sellers, improve photos

Month 6-12: Scaling Up

$500-2,000/month, expand product line, build repeat customers

Year 2+: Optimization

$1,000-5,000/month, consider digital products, automate processes

Amazon FBA Timeline:

Month 1-2: Product Research & Launch

Find product, order samples, create listing, ship to Amazon

Month 3-6: Getting Traction

$1,000-5,000/month, focus on reviews and optimization

Month 6-12: Scaling & Expanding

$3,000-15,000/month, launch additional products, optimize PPC

Year 2+: Business Growth

$10,000-50,000+/month, expand to international markets

💡 Hybrid Strategy

Many successful sellers use both platforms: Start with Etsy to test products and build brand recognition, then expand successful products to Amazon FBA for higher volume sales.

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Written by

Glen Meade

Side hustle expert who has personally tested 50+ platforms since 2019. Sharing real earnings data and honest assessments to help you find legitimate income opportunities.

Last updated: January 2026