Etsy vs Shopify vs Amazon Handmade: Where to Sell Your Products First
When you are launching a product business, the channel you choose first shapes everything — your traffic, your margins, your customer relationship, and your long-term optionality. Etsy, Shopify, and Amazon Handmade each offer a different trade-off between ease of setup, fee structure, and who owns the customer relationship. Here is how to think through it.
READY TO TAKE ACTION?
Use the free LaunchAdvisor checklist to track every step in this guide.
The Quick Answer
Start on Etsy if you make handmade, vintage, or craft products and want built-in traffic from day one. Build your own Shopify store in parallel if you want to own your customer list and avoid fee dependency long-term. Add Amazon Handmade only after you have validated demand and can handle higher volume — the traffic is enormous but the margin compression is real.
Side-by-Side Breakdown
Etsy: $0.20 listing fee per item, 6.5% transaction fee + 3% + $0.25 payment processing, high built-in organic traffic for craft and handmade categories, limited brand control, Etsy owns the customer relationship. Shopify: $29–79/month platform fee, 2.4–2.9% payment processing (no additional transaction fee with Shopify Payments), you own the customer list and brand experience, you drive your own traffic. Amazon Handmade: 15% referral fee on every sale (no monthly fee for approved sellers), largest customer base in ecommerce, brutal competition on price, Amazon owns the customer relationship, strict category approval required.
When to Prioritize Etsy
Etsy is the fastest path to your first sale if your product fits the handmade, vintage, or craft category. Millions of buyers are already searching on Etsy for exactly what you make — you inherit that traffic from day one without spending on ads. The trade-off is that you are building Etsy's marketplace, not your own brand. Etsy can suspend accounts, change search algorithms, or increase fees. Treat it as a sales channel, not a business foundation.
When to Prioritize Shopify or Amazon
Build your Shopify store once you have proven product-market fit on Etsy. Use Etsy to learn which products sell and what customers say in reviews, then invest in your own branded storefront. Amazon Handmade makes sense if you can produce at scale and compete on the world's largest marketplace — but at 15% referral fees plus shipping costs, the math only works if your margins are strong. Do not start on Amazon Handmade before you understand your true landed cost.
The Verdict
Etsy + Shopify in parallel is the right multi-channel strategy for most handmade product businesses. Etsy drives discovery; Shopify captures direct repeat customers and lets you build an email list. Over time, shift your marketing effort toward your own channels to reduce fee dependency. Add Amazon Handmade as a third channel when volume justifies the operational overhead.
How to Get Started
1. Etsy: open a shop at etsy.com/sell — you need 5–10 high-quality product photos, a complete shop bio, and your pricing set before you launch. 2. Shopify: start your free trial, install a simple, clean theme, and mirror your top Etsy products. Set up email capture from day one. 3. Amazon Handmade: apply at sell.amazon.com/programs/handmade — approval takes 1–2 weeks and requires documentation of your handmade process.
RECOMMENDED TOOLS
Some links above are affiliate links. We may earn a commission if you sign up — at no extra cost to you.
FREQUENTLY ASKED QUESTIONS
Can I sell on both Etsy and Shopify at the same time?
Yes. Many sellers run both simultaneously. Shopify has an Etsy integration app that can sync inventory between both platforms. This avoids overselling and saves time managing listings separately.
Does Etsy allow you to direct customers to your own website?
Etsy prohibits directly linking to your own shop in messages or listings as a means to circumvent Etsy's transaction fees. However, you can include your website URL in your shop bio and branding materials. Buyers who want to purchase directly can find you through your brand name.
What is the total fee percentage on an Etsy sale?
Roughly 9.5–10% total on most sales: 6.5% transaction fee + approximately 3% + $0.25 payment processing + $0.20 listing fee. On a $50 item, you pay approximately $5.15 in fees. Factor this into your pricing from the start.
Apply This in Your Checklist