Amazon vs Etsy: Which Marketplace Wins for Sellers in 2026?

The world of online marketplaces continues to evolve, and the choice of where to sell your products has never been more consequential.

If you are reading this, you are probably weighing your options between two very different selling experiences. You may have been selling handmade jewelry from your kitchen table and wondering if Amazon could help you reach more buyers. Or you are already on Amazon and feeling lost in a sea of competitors, curious whether Etsy’s community-driven approach is a better fit.

Both platforms serve very different seller mindsets. Amazon prioritizes reach and efficiency, rewarding sellers who can optimize listings, manage inventory at scale, and compete on price. Etsy celebrates individuality and the value of handmade, giving creative entrepreneurs a platform where storytelling and authenticity can drive sales.

But in 2026, where should sellers invest their time, effort, and budget? Let us break it down with actual numbers and fundamental considerations.

Company Overview: Amazon and Etsy at a Glance

Before diving into the specifics, it helps to understand the sheer scale difference between these two marketplaces. Amazon generated approximately $638 billion in revenue in 2024, while Etsy brought in $2.81 billion. That is not a typo. Amazon is roughly 227 times larger in terms of revenue.

But size is not everything. Etsy’s smaller scale comes with advantages that matter to certain sellers, including lower competition, more brand control, and a buyer base actively seeking what you might be selling.

These numbers tell an interesting story. Amazon has roughly 9.7 million sellers worldwide, though only about 1.9 million are considered truly active. Etsy saw its seller count decline from around 9 million in 2023 to 5.6 million in 2024, but that is mainly because the platform cleaned house, removing inactive and low-quality sellers to improve the marketplace experience.

The buyer-to-seller ratio on Etsy now sits at 16:1, which is good news for sellers worried about overcrowding.

Audience Profile: Who Shops Where

Amazon shoppers are typically looking for convenience. They know what they want: it’s fast and at the best price. The average Amazon Prime member placed nearly 100 orders in 2024, or almost 2 per week. These are habitual buyers who trust the platform and value the Prime ecosystem.

Etsy buyers are different. They come looking for something unique, often for gifting occasions. According to Etsy’s own data, gifting drives 44% of all purchases on the platform. About one in three Etsy transactions involves personalized or customized items. These buyers are willing to wait longer and sometimes pay more for products that feel special.

Notice that Etsy’s average order value is actually higher than Amazon’s. This makes sense when you consider the nature of what people buy on each platform. Amazon is great for everyday essentials and commoditized products. Etsy attracts buyers looking for meaningful purchases they cannot find at big box retailers.

The demographic breakdown is also worth noting. About 58% of Etsy visitors are female, and the largest age group is 25-34. Two-thirds of Etsy’s visitors are between 18 and 44 years old. These are buyers who grew up with eCommerce and actively seek alternatives to mass-produced goods.

Seller Experience: Ease of Setup and Growth

Let us talk about what it actually feels like to sell on each platform day to day.

Getting started on Etsy is remarkably simple. You can have a shop up and running in an afternoon. The listing process is straightforward, the interface is intuitive, and you do not need technical skills or specialized knowledge to get going. Etsy charges a small $15 setup fee for new sellers, but beyond that, the barriers to entry are minimal.

Amazon is a different story. While anyone can technically sign up, succeeding on Amazon requires understanding product listing optimization, compliance requirements, and the intricacies of Amazon’s algorithm. The learning curve is steeper, and the stakes are higher. Get your listing wrong, and you will struggle to gain visibility among millions of competing products.

Here is something that surprises many new sellers: Amazon itself competes with its own third-party sellers. Amazon’s private-label products often get priority placement in search results.

On Etsy, you are competing with other creative entrepreneurs, not with the platform itself. This creates a fundamentally different dynamic.

That said, Amazon’s infrastructure is unmatched. More than 82% of Amazon sellers use Fulfillment by Amazon (FBA), which handles storage, packing, shipping, and customer service. FBA sellers save about 70% per item shipped compared to major US carriers. If you want to scale without building your own logistics operation, Amazon makes that possible.

Insight:

• For sellers who prioritize automation, logistics, and global scale, Amazon wins.
• For those focused on authentic branding and niche discovery, Etsy provides better creative autonomy.

Whether you are a beginner or an experienced seller, Willow Commerce equips you with the infrastructure you need to succeed in the competitive e-commerce landscape.

Pricing and Fee Structure

Fee structures can make or break your profitability, so let us get specific about what each platform actually charges.

Amazon’s fee structure is more complex than it appears at first glance. In 2024, Amazon introduced several fee changes, including inbound placement fees for distributing inventory across fulfillment centers. These can add $0.21 to $6.00 per unit, depending on size and shipping weight. Amazon also charges a low-inventory-level fee if your stock drops below 28 days of supply for fast-moving products. 

The referral fee (typically ~15% for most categories) is just the starting point. If you use FBA, you are also paying fulfillment fees based on product size and weight, monthly storage fees, and potentially additional charges for long-term storage, removal, or disposal. Here is Amazon’s 2026 US Referral and FBA fee changes summary.

Etsy’s fees are simpler but have grown over the years. The base structure includes a $0.20 listing fee (renewed every four months or when an item sells), a 6.5% transaction fee on the total sale price, including shipping, and payment processing fees of approximately 3% plus $0.25 per transaction in the US.

But here is the fee that catches many Etsy sellers off guard: Offsite Ads. Etsy automatically enrolls all sellers in its Offsite Ads program, which advertises your listings on Google, Facebook, Instagram, and Pinterest. If a sale results from one of these ads within 30 days, you pay either 12% (if your annual sales exceed $10,000) or 15% (if under $10,000) of the total order amount on top of all other fees.

Once your shop earns over $10,000 in a rolling 12-month period, you cannot opt out of Offsite Ads. This means your total Etsy fees can climb to 20% or more on advertised sales.

The bottom line

Amazon’s fees are higher on paper, but FBA can reduce your overall costs if you are shipping products yourself. Etsy’s fees look lower initially, but can accumulate quickly with renewals and mandatory advertising.

Branding Flexibility

If you care about building a recognizable brand rather than just moving products, this comparison matters a lot.

This is where the platforms diverge most dramatically.

Amazon tightly controls the customer relationship. You cannot email your customers directly, you do not get their contact information, and Amazon discourages anything that might drive buyers away from the platform. Your brand is secondary.

Etsy takes the opposite approach. Sellers can communicate directly with buyers, tell their story through shop profiles and about sections, and build genuine connections. Many Etsy sellers report that customers specifically seek them out for repeat purchases because they remember the seller, not just the product.

This distinction matters enormously for long-term business building. If you want to eventually move beyond marketplace selling or create a brand that exists independently, Etsy gives you more tools to build that foundation. If you are focused purely on driving volume and do not care about brand building, Amazon’s limitations may not bother you.

Observation:

• Etsy empowers brand personality. Amazon optimizes conversion.
• Your choice depends on whether you sell products or a story.

Fulfillment and Delivery

In eCommerce, delivery speed increasingly determines purchase decisions. This is one area where Amazon has an almost unfair advantage.

Amazon delivered over 9 billion items same-day or next-day in 2024, and Prime members saved an average of over $500 on delivery fees that year. The company expanded its Same-Day Delivery sites by more than 60% in 2024, now serving over 140 metro areas. Prime members in the US placed an average of nearly 100 orders per year.

Etsy sellers are responsible for their own shipping, so delivery times vary widely. Some sellers ship within a day. Others, especially those making custom or handmade items, may take weeks. Etsy buyers generally understand and accept this, but it does limit your potential customer base.

However, Etsy’s slower fulfillment model aligns with its marketplace philosophy. Many buyers specifically come to Etsy because they want handmade, thoughtfully crafted products. They expect and accept longer wait times as part of that experience.

Insight:

• If logistics reliability matters most, Amazon wins.
• If sustainability and handmade credibility matter, Etsy resonates better.

Revenue Potential: Scale vs Sustainability

• Amazon sellers report higher revenue ceilings but thinner margins due to advertising and fulfillment costs.
• Etsy sellers often earn lower total revenue but enjoy higher profit margins and loyal buyers.

These numbers reveal a fundamental tradeoff. Amazon sellers typically generate higher revenue but work with thinner margins due to fees, advertising costs, and competition. Etsy sellers earn less in total but keep more of what they make.

Amazon’s advertising costs have become a significant factor. Many sellers report spending 25-30% of their revenue on Amazon’s Sponsored Ads to maintain visibility. Without advertising, your products can disappear into the algorithmic void.

On Etsy, the average seller earns about $1,299 per year. That is significantly less than Amazon, but Etsy sellers are often part-time creators who use the platform as a source of supplementary income. About 29% of Etsy sellers use their shop as their primary income source.

The real question is what kind of business you want to build. Amazon rewards scale and efficiency. Etsy rewards craft and differentiation.

Which Marketplace Should You Choose?

Choose Amazon if you:

• Want to scale globally and automate fulfillment.
• Sell standard or replenishable items.
• Have capital to invest in ads and logistics.
• Value volume over niche positioning.

Choose Etsy if you:

• Sell handmade, vintage, or artistic products.
• Want more control over branding and customer relationships.
• Value creative storytelling and community-driven discovery.
• Prefer lower entry barriers and organic reach.

Final Verdict: Scale or Soul?

Amazon dominates in infrastructure, efficiency, and global reach.

Etsy leads in authenticity, personalization, and creator trust.

The better platform depends on your business model and brand DNA; Amazon sells faster, Etsy sells deeper.

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