E-commerce is currently on a stroll. It is redefining commercial activity worldwide and has evolved dramatically throughout the years.
Businesses and consumers progressively “went digital,” providing and purchasing more products and services online while lockdowns became the new normal.
Options are many, and choices are limited. This is the case with buyers of two such e-commerce platforms, i.e., Etsy and Amazon. Etsy and Amazon host sellers from across the world to sell goods to customers.
Etsy and Amazon are similar yet distinct. Let us know how.
What is Etsy?
Etsy is an online marketplace that specializes in selling handmade crafts and antique things. Etsy is home to a plethora of craftsmen and craft dealers that offer their skills to buyers without any geographical limitations.
According to Etsy’s company standards, sellers do not need a business license to start or manage a store on the marketplace. As a seller, all you need to do is research your competitors, create a logo, provide high-quality goods, and offer excellent customer service.
Etsy was launched in June 2005 and is now a place with 96.3 million users and 7.5 million sellers. Etsy’s net worth as of September 2022 is approx $14 billion.
So, What Etsy is offering?
On Etsy, there are many categories to browse through such as jewelry, clothing, house decor items, live plants, home & pet goods, art &paintings, beauty products, and a lot more. On Etsy, you are not supposed to find ample business mass-produced stuff as it is a marketplace for local artisans and craftsmen.
Etsy is a global shopfront with high visibility that provides considerable recognition to modern, independent craftspeople worldwide. 40% of Etsy’s users are repeat buyers.
Pros of Selling on Etsy-
Below are the four reasons why Etsy is worth it for sellers-
Low Cost and Fees-
Etsy is well-known for its inexpensive listing costs. On Etsy, you may post products for as little as $0.20 USD and there are no monthly fees to keep them up. Etsy appears to be one of the most economical e-commerce sites for beginners.
Etsy earns a tiny portion of the revenues from each sale as processing fees and shipping expenses.
Etsy Ads and Offsite Ads are two other services that might help you market and promote your business. The fees for these services are higher and distinct, although they are voluntary to get.
Analytics and Data –
Etsy offers built-in analytics to its sellers. Etsy Plus offers personalized programs, tools, and credits to help you grow your business. Even Etsy’s basic subscription offers you access to information about traffic volume and visitor intent.
Etsy also offers its users a versatile advertising package. Etsy facilitates access to many marketing tools aimed at enhancing consumer acquisition and brand value proposition.
Better User Experience-
Etsy is the home to an established community of precisely niched products. Customers come to Etsy with more specific requirements and categories in mind. The consumer’s more enticing buying intent improves the user experience.
Etsy has a good reputation for getting the sale money to the merchants as soon as feasible. Meanwhile, some e-commerce platforms use a time-consuming method to make payments available to vendors. When a consumer makes a payment on Etsy, the funds are transferred from the buyer to the seller.
Cons of Selling on Etsy-
Below mentioned are the cons of selling on Etsy.
Not all types of Items Can be Sold
Etsy is an e-commerce platform that specializes in personalized handcrafts and antique things. Your selling products must fall into one of these categories To acquire a listing on Etsy.
Because of these constraints, this market is flooded with competition. There are other merchants giving clients items and services that are fairly comparable.
No Fulfillment Services-
It is not solely the obligation of Etsy authorities to meet all shipping logistical requirements. Packaging and delivering items to consumers remains a challenge for Etsy-hosted vendors.
Etsy provides its labels on prices that fall outside of the realm of the listing charges. There is a limitation on the shipping of heavy-volume items. As a result, Etsy offers a zero-integrated fulfillment service for high-volume merchants.
What is Amazon Handmade
Amazon Handmade is a division of Amazon.com. Amazon Handmade is an online sector dedicated to handmade crafts and antique products created by craftsmen and craftworkers in some countries.
Amazon Handmade stores are available in some regions of North America and Europe.
Amazon launched Amazon Handmade in the year 2015. Amazon Handmade offerings include accessories, artwork, cosmetics and personal care, clothes, crafts, jewelry, toys, and a variety of other items. Amazon Handmade has a stringent quality control standard in place, as well as an artisanal auditing method.
Some activities are forbidden on Amazon Handmade, including outsourcing product manufacture, drop-shipping items, reselling products by third parties, raw materials and crafting supplies, and others.
Amazon handcrafted works in a manner similar to the rest of the Amazon marketplace. Amazon Handmade functions as a digital marketplace that includes photographs and reviews of products for sale. At this marketplace, customers may purchase or buy and post reviews.
Pros of Selling on Amazon Handmade
Here are the advantages of selling on Amazon handmade.
No Listing Fees
Amazon Handmade offers user listing services at no cost. Furthermore, there is no requirement for future payment because the free listing service has no expiration date.
When you make a sale, Amazon Handmade will only charge you a commission.
Highest eCommerce Marketplace Traffic
Amazon has seen unprecedented success as an e-commerce platform. Amazon has more customers than any other online eCommerce platform in history. Amazon Marketplace has a significant number of sales and visits.
Offers fulfillment services-
Amazon Handmade provides complete fulfillment and shipping logistics services to their listed vendors. It saves you time on order fulfillment, packaging, and customer support inquiries, among other things.
There is an extensively managed support system for both, the buyers and the sellers.
Amazon Marketplace provides both an individual and a professional plan choice to support and raise your business income strategy. Once your business is up and going, Amazon will assist you by examining ideas for enhancing your discoverability and sales.
Cons of Selling on Amazon Handmade
Amazon Handmade has some disadvantages too. Some of them are:
Higher Sales Fees
Although Amazon Handmade does not charge a listing fee, the commission charged on each transaction is larger than on many other sites. Higher sales fees eat up a significant portion of the vendors’ profit margins.
Strict metrics to follow-
Amazon Handmade provides merchants with very tight criteria for setting up their accounts and company functions. Some rules and processes are burdensome for entrepreneurs who run small, handcrafted businesses. Signing up as an Amazon seller is also a time-consuming procedure in and of itself.
Etsy and Amazon Handmade are well-established e-commerce sites with a large number of visitors and purchasers. Both the marketplaces deliver niched products and perfectly cater to their visitors’ intent.
Etsy and Amazon Handmade are marketplaces that are similar yet have different characteristics. Etsy and Amazon Handmade have diverse standards and practices, which contribute to their respective advantages and disadvantages.
The choice between Etsy and Amazon Handmade should always be based on a comprehensive understanding of both sites.