Etsy gives you built-in traffic but takes substantial fees and controls your customer relationships. Shopify gives you full control but requires you to drive all your own traffic. Amazon Handmade offers massive reach but intense competition and strict policies. There's no universally "best" platform—the right choice depends on your product type, price point, and how much time you can invest in marketing. Many successful sellers use multiple platforms simultaneously.
Fee Structures Compared
| Fee Type | Etsy | Shopify | Amazon Handmade |
|---|---|---|---|
| Monthly fee | $0 (or $10/mo Plus) | $39/mo Basic | $0 (waived for artisans) |
| Listing fee | $0.20/listing | $0 | $0 |
| Transaction fee | 6.5% | 0% | 15% |
| Payment processing | 3% + $0.25 | 2.9% + $0.30 | Included in 15% |
| Offsite ads (if applicable) | 12-15% of sale | N/A (you control ads) | N/A |
| Total on $50 sale | ~$5.25-8.50 | ~$1.75 + monthly | $7.50 |
Etsy's fees add up quickly: 6.5% transaction + 3% payment + $0.25 per sale = roughly 10-12% on most orders. Add offsite ads (mandatory for sellers over $10K revenue) and you're at 22-27% on those sales. Shopify has lower per-sale costs but requires the monthly subscription. Amazon's flat 15% is high but predictable.
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Essential Gear for Etsy Sellers
- Photo Light Box - Professional product photography for listings
- Thermal Label Printer - Fast shipping label printing
- Poly Mailer Bags (100 pack) - Protect items during shipping
- Digital Kitchen Scale - Accurate weight for shipping costs
What to Realistically Expect
- Time required: Etsy requires least upfront time (built-in traffic). Shopify demands significant marketing time (SEO, social media, ads). Amazon Handmade requires application process and strict listing compliance. All require ongoing customer service and order fulfillment.
- Earnings range: Highly variable. After all fees, expect to keep 75-88% of revenue on Shopify, 73-85% on Etsy (without offsite ads), 85% on Amazon Handmade. Profitability depends heavily on your margins and volume.
- Main tradeoffs: Etsy = built-in traffic but high fees and no customer data ownership. Shopify = full control but you find your own customers. Amazon = massive reach but fierce competition and rigid rules.
Platform-by-Platform Breakdown
Etsy
Etsy's strength is its 90+ million active buyers specifically looking for unique, handmade, and vintage items. You benefit from their SEO, advertising, and marketplace trust. The downside: you're competing with millions of other sellers, you don't own customer relationships (no direct email access), and fees have increased significantly over the years.
Best for: New sellers who need exposure, unique handmade items that match Etsy's aesthetic, sellers who don't want to manage their own website and marketing.
Challenges: Algorithm changes can tank visibility overnight, offsite ads are mandatory above $10K revenue, heavy competition in popular categories like jewelry and stickers.
Shopify
Shopify gives you a professional storefront with full control over branding, pricing, and customer data. You own your customer email list and can build direct relationships. The catch: zero built-in traffic. Every visitor must come from your own marketing efforts—SEO, social media, paid ads, or existing audience.
Best for: Sellers with existing social media followings, those building a brand (not just selling products), sellers with marketing skills or budget for ads, those who want to eventually sell their business.
Challenges: Steep learning curve for driving traffic, monthly costs add up regardless of sales, requires significant time investment in marketing.
Amazon Handmade
Amazon Handmade puts your products in front of Amazon's 300+ million customers. The application process verifies you're actually a handmade seller (not a reseller). Prime eligibility can significantly boost sales. However, the 15% fee is steep, and you're competing with Amazon's own brands and millions of other sellers.
Best for: Sellers who can handle volume, products that benefit from Prime shipping, those who've already maxed out Etsy growth.
Challenges: Strict product requirements, aggressive return policies, limited branding options, difficult to stand out among millions of listings.
Traffic Sources and Marketing Reality
This is the fundamental difference that determines which platform suits you:
- Etsy: ~70% of traffic comes from Etsy search and browse. You optimize listings for Etsy SEO. The platform does most of the marketing work, but you have no control over algorithm changes.
- Shopify: 100% of traffic comes from your efforts. You need skills in SEO, social media marketing, email marketing, or paid advertising. Most new Shopify stores get zero organic traffic for months.
- Amazon: ~80% of traffic comes from Amazon search. You optimize for Amazon's A9 algorithm. Prime badge and reviews heavily influence visibility. Sponsored Products ads are often necessary to gain initial traction.
If you have no existing audience and limited marketing budget, Etsy's built-in traffic is valuable despite higher fees. If you have 10,000+ Instagram followers, Shopify might work better because you can drive traffic directly.
Common Pitfalls
Starting Shopify without an audience
A beautiful Shopify store with zero traffic makes zero sales. Unless you have an existing following or paid ads budget, you'll likely make more on Etsy despite higher fees. Shopify works best when you already have a way to drive visitors.
Ignoring Etsy's offsite ads impact
If you make over $10K/year on Etsy, offsite ads become mandatory. When a sale comes through their ads, you pay 12-15% extra on top of regular fees. Factor this into pricing or you'll lose margin on a significant portion of sales.
Underpricing for Amazon's 15% cut
Amazon customers expect competitive prices and free Prime shipping. Between the 15% fee, shipping costs (if you fulfill FBM), and competitive pricing pressure, margins can evaporate. Calculate your true net profit before listing.
Putting all eggs in one basket
Platform algorithm changes, fee increases, or policy shifts can devastate a single-platform business. Many successful sellers diversify across 2-3 platforms and gradually build their own Shopify presence for long-term stability.
Frequently Asked Questions
Can I sell on multiple platforms simultaneously?
Yes, and many successful sellers do. The main challenges are inventory management (avoid overselling) and maintaining consistent pricing. Some sellers list on Etsy and Amazon while building a Shopify store for long-term independence.
Which platform is best for beginners?
Etsy has the lowest barrier to entry: no monthly fees, built-in traffic, and relatively simple listing process. You can start selling within hours. Shopify requires more setup and marketing knowledge. Amazon Handmade requires an application and approval process.
What about eBay for handmade items?
eBay is less ideal for handmade goods. Its buyer base expects deals and low prices, not artisan premiums. Final value fees are 12.9% plus payment processing. Consider eBay for vintage items or supplies, but Etsy/Amazon Handmade are better for handmade.
How do I decide where to start?
Ask: Do I have an existing audience? (Shopify). Do I make unique, search-friendly handmade items? (Etsy). Can I handle volume and Prime expectations? (Amazon). Most sellers start with Etsy to validate demand before expanding.
Are Etsy ads worth it?
Etsy's on-site ads can work, but ROI varies wildly by category. Some sellers see 3-4x returns; others lose money. Start small ($1-5/day), track conversion rates carefully, and only scale what's profitable. Offsite ads (mandatory for larger sellers) are a different story—you can't opt out.
What's the real profit margin after all fees?
On a $50 product with $15 in materials/supplies: Etsy keeps ~$5-8 in fees (you net $27-30). Shopify keeps ~$1.75 in payment processing (you net $33, minus $39/mo subscription). Amazon keeps $7.50 (you net $27.50). At low volume, Etsy often wins. At high volume, Shopify's fixed cost spreads thin.
Should I eventually move everything to Shopify?
Many sellers aim for this, but it's not always optimal. Etsy and Amazon provide ongoing exposure to new customers. A hybrid approach—using marketplaces for discovery and Shopify for repeat customers and brand building—often works better than going all-in on one platform.
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