Core formulas
The formulas to keep straight
Amazon Handmade referral fee = sale amount x 15%, subject to $0.30 minimumEtsy standard fee = listing fee + transaction fee + Etsy Payments processingChannel profit = order revenue - channel fees - COGS - shipping - packaging - adsBetter channel = higher profit per order x realistic order volumeIs Etsy or Amazon Handmade cheaper?
Etsy is usually cheaper on fee percentage for a simple handmade order. Amazon Handmade uses a 15% referral fee, while Etsy combines listing, transaction, and payment processing fees.
That does not mean Etsy always wins. A product that sells twice as often on Amazon at the same profit can still be worth the higher fee. The fee is only one part of channel economics.
Etsy vs Amazon Handmade fee example, checked July 4, 2026
| $50 order | Estimated platform fee | Seller receives before COGS and shipping |
|---|---|---|
| Etsy standard US example, no Offsite Ads | $5.20 | $44.80 |
| Amazon Handmade at 15% | $7.50 | $42.50 |
| Difference | $2.30 more on Amazon | Amazon needs stronger demand to justify it |
When is Amazon Handmade worth the higher fee?
Amazon Handmade is worth testing when the product already matches Amazon buyer behavior: clear keywords, fast production, reliable fulfillment, simple variants, and enough margin to absorb the referral fee.
One-of-a-kind products, slow custom work, and fragile margin often fit Etsy better because the product story and search behavior matter more.
Channel fit signals
| Signal | Better fit |
|---|---|
| Personalized but repeatable | Either channel |
| One-of-a-kind art | Etsy |
| Fast replenishable item | Amazon Handmade |
| Thin margin | Etsy or direct |
| Strong brand search | Own website or both |
Should prices be the same on Etsy and Amazon Handmade?
Prices should protect profit by channel. If Amazon Handmade costs $2.30 more on a $50 order, either the Amazon price must rise, the cost must fall, or the seller must accept lower profit.
Copying the Etsy price to Amazon is fine only after the calculator shows the margin still works.
- Calculate fee by channel.
- Add shipping and packaging.
- Use the same labor value.
- Compare net profit, not revenue.
Decision table
Etsy vs Amazon Handmade decision table
| Question | Choose Etsy when | Choose Amazon Handmade when |
|---|---|---|
| Fee sensitivity | Margin is thin | Margin can absorb 15% |
| Product style | Story and custom work matter | Product is repeatable |
| Fulfillment | Lead time is flexible | Fast shipping is realistic |
| Demand | Etsy search fits the item | Amazon buyers already search it |
| Operations | Small catalog | Catalog can be kept clean |
Worked examples
Examples you can compare against your own numbers
Example: $50 bracelet
A seller lists a handmade bracelet for $50 with no buyer-paid shipping.
| Etsy standard fee | $5.20 | US example with no Offsite Ads. |
|---|---|---|
| Amazon Handmade referral fee | $7.50 | 15% of $50. |
| Extra Amazon fee | $2.30 | $7.50 - $5.20. |
| Required answer | More demand or higher price | Amazon must earn back the difference. |
Takeaway: Amazon Handmade needs either higher order volume or a higher price to beat Etsy on profit.
Action checklist
Before you use this number in the real business
- 1Run the same product through both fee calculators.
- 2Add shipping label cost.
- 3Add labor and packaging.
- 4Compare profit per order.
- 5Test only products with enough margin.
Common mistakes
Mistakes that make the answer look better than reality
FAQs
Questions people ask before making the decision
Does Amazon Handmade waive the monthly seller fee?
Amazon says the Professional selling fee is waived for Handmade sellers. The referral fee still applies.
How much is the Amazon Handmade referral fee?
Verified July 4, 2026, Amazon Handmade lists a 15% referral fee or a $0.30 minimum.
Is Etsy cheaper than Amazon Handmade?
For the $50 US example in this guide, yes. Etsy standard fees are $5.20 before Offsite Ads, while Amazon Handmade is $7.50 at 15%.
Can I sell on both Etsy and Amazon Handmade?
Yes, but track inventory and profit by channel. Multi-channel selling only helps if it does not create stock errors or margin leaks.
Sources and notes
Where the assumptions come from
Official Etsy seller fee policy checked July 4, 2026.
Official Amazon Handmade program page checked July 4, 2026.
FeeProofed source, calculator, and review methodology.