Amazon FBA vs. Etsy

Amazon FBA is managed through “Seller Central”, an online dashboard that all Amazon merchants use to manage their inventory, product listings, storefronts, and analytics.

The interface is very user-friendly, and you can add and configure products quickly. There is a substantial amount of help documentation online through the “Seller Central” portal and Amazon also offers an “Amazon Seller App” for mobile devices. All in all, it’s a very good option for beginners, along with retailers who have limited technical expertise.

Configuring fulfillment options is also a straightforward, linear process and is completed within the “Seller Central” area once products have been added to a catalog.

Finally, you can manage your own independent store, which will show all your Amazon listings, via the “Stores” tab.

"This website is good for beginners who want to earn."

"This platform is the most solid on the web to sell products online."

"They have never failed to pay me and they have been supportive when deviant customers have tried to steal from me."

You won’t find a platform that is easier to use than Etsy. This is partly due to the fact that there aren’t lots of complex features (which some might see as a downside) and partly due to the simple, intuitive design of the seller dashboard. Etsy makes essential tasks, like creating listings and generating reports, nearly effortless.

“Discovering Etsy and opening a shop enabled me to take control of sales.”

“Etsy has allowed me to build an international customer base that already appreciates handmade products.”

“Etsy has been an incredible experience for me.”

Amazon doesn’t offer much in the way of design freedom. Sellers can only customize specific product page elements, such as the title and description, images, and in-depth “body copy”. The layout and overall page design cannot be altered.

Once they have registered their brand, sellers can also open their own Amazon storefront, which affords a greater (albeit still limited) level of design flexibility.

If you’re looking for complete control over your store, you will likely find that a self-managed ecommerce solution like Shopify or WooCommerce better fits your needs.

Design flexibility and freedom isn’t one of Etsy’s strongest points. Most Etsy stores look very similar, and there’s a reason for this: Etsy only offers a limited number of customization options.

As a seller, you can change the colours, fonts, and photo styles in your store. You’ll also be able to upload a unique logo and banner - which has the option of a photo “carousel” - and set a homepage description.

Users of the Etsy Plus premium plan will have access to a handful of additional features, such as the option to highlight top-performing products on the homepage.

Customizing your store is a very fast and straightforward process. While design freedom is limited, this won’t be a problem for people with little development experience who already like the standard Etsy storefront.

“Value for money” is a slightly mixed bag when it comes to Amazon FBA. It’s important to stress that all serious Amazon FBA sellers will have to purchase a subscription to an Amazon Seller account. There are two plans available. The “Individual” plan is free, but a charge of $0.99 per item sold is collected. The “Professional” plan is $39.99 per month.

On the surface, these figures don’t seem significant. It’s when you get down to the nitty-gritty of item fees that a more precise picture starts to emerge. FBA sellers have to account for several charges: a referral fee (which can be up to 15% of the item sale price, a storage fee), storage costs, and a fulfillment fee. All of these can quickly add up, so it’s essential to familiarize yourself with the fine print and do all your calculations to ensure you can make a sustainable profit.

At first glance, Etsy looks like one of the most cost-effective ecommerce solutions on the market. It has a forever-free plan and even the premium option, Etsy Plus, only costs ten dollars per month. “Pattern by Etsy”, a service which allows you to run an “independent” online store on your own domain (in conjunction with your Etsy store) only costs $15 a month.

But it’s crucial to take account of fees. Retailers are charged $0.20 for every listing. When a sale is made, Etsy takes a 5% transaction fee, along with a 4% payment processing charge, which amounts to nearly 10% of the overall item price.

If you only process low sales volume, then these fees can be viable. With higher volumes, however, Etsy becomes less feasible.

Amazon provides support to sellers through online tickets and has published extensive online documentation and training for new users. There is also an active community forum where it’s possible to get answers to questions.

While the support options are reasonable, we would like to have seen phone and email support in conjunction with the options already on offer.

Etsy has an excellent support package, even on its free plan. Along with one of the largest seller communities on the web and extensive and in-depth training materials, users can also take advantage of live-chat and phone service.

Inexperienced retailers, in particular, will find a lot to like in the comprehensive tutorials and “seller handbook”. The online forum, through which users can join “teams” to exchange ideas and collaborate, is an excellent learning tool.

All support options are accessible from a tab in the seller dashboard, so assistance is easy to find when you need it.

The FBA (Fulfilment by Amazon) program has done a lot to open up Amazon’s sizable marketplace to new sellers and streamline the often-complex process of storing items and fulfilling purchases.

If you are starting out in the ecommerce space, and find the prospect of running an independent store daunting, then Amazon is a viable option. Equally, if you already have an established online presence and want to reach new customers, selling your top-performing products through Amazon is also worth considering.

Just keep in mind that running a profitable Amazon FBA business is different from running your own online store. It requires a unique skill-set and the ability to evaluate competition and find gaps in the market.

Retailers considering Etsy should understand that it isn’t an ecommerce platform in the traditional sense. It’s not a standalone app like Shopify, WooCommerce, and BigCommerce. You should only consider it as an option if you’re planning to sell your products to the broader Etsy marketplace.

If you do fall into that category, however, then you’ll find a lot to like - it’s a streamlined, easy-to-use platform at a fantastic price.

Furthermore, Etsy “Pattern” enables retailers to have a store at their own domain that isn’t bound by typical Etsy restrictions but is still managed from the central store manager. If you think it might be for you, sign up for a free account and give it a whirl.