Amazon FBA vs Etsy: Fees Compared
Compare the fee structures of Amazon FBA and Etsy side by side to find which platform gives you better margins.
All calculatorsAmazon FBA vs Etsy
Amazon FBA vs Etsy: What's Different?
Amazon and Etsy serve very different markets. Amazon is a mass-market megastore focused on convenience and speed, while Etsy is a curated marketplace for handmade, vintage, and unique items. Amazon charges 8-20% referral fees depending on category (15% for most) plus FBA costs and a $39.99/month subscription. Etsy charges a $0.20 listing fee per item (lasts 4 months), 6.5% transaction fee, 3% + $0.25 payment processing fee, plus Offsite Ads fees on ad-attributed sales (15% and optional below $10,000 in trailing 12-month revenue; 12% and mandatory above).
When you add up Etsy's fees, the total take rate is roughly 10-12% per sale (before Offsite Ads). Amazon's total take rate with FBA can be 25-35% depending on product size and category. On a pure fee basis, Etsy is significantly cheaper. However, Etsy's audience is a fraction of Amazon's size, and Etsy buyers expect unique, artisan products, not mass-produced goods.
The seller experience also differs dramatically. Etsy gives sellers a personalized storefront, direct messaging with buyers, and a community feel. Amazon treats sellers as interchangeable suppliers. The product listing is king, not the seller's brand. For makers and artisans, Etsy's ecosystem is purpose-built. For sellers sourcing products from manufacturers, Amazon's scale is unmatched.
Compare Fees on the Same Product
Enter your product details once, see how fees compare on both platforms
Enter Product Details (same product, both platforms)
Amazon FBA
Profit
$9.39
31.3% margin
Etsy
Lower feesProfit
$14.69
49.0% margin
Etsy saves you $5.30 in fees per sale
Estimates are based on item price only. Marketplaces may also apply fees to buyer-paid shipping and tax, and rates vary by category and promotions. Confirm current rates with each marketplace.
Fee Structure Comparison
Which Is Better For...
Best for handmade and artisan products
Etsy
Etsy's entire brand is built around handmade and unique products. Buyers come to Etsy specifically looking for items they can't find on Amazon. The lower fee structure means more margin on handmade goods that often have higher production costs. Etsy's search algorithm also favors genuine handmade items.
Best for mass-produced private label products
Amazon FBA
If you're sourcing products from manufacturers and selling under your own brand, Amazon is the better fit. Etsy technically requires items to be handmade, vintage, or craft supplies. Amazon welcomes private label products and provides the FBA infrastructure to scale quickly.
Best for sellers who want direct customer relationships
Etsy
Etsy allows direct messaging, personalized thank-you notes, and custom order requests. Sellers can build genuine relationships with repeat buyers. Amazon deliberately insulates sellers from customers, controlling all communication and owning the customer relationship.
Frequently Asked Questions
Etsy's policy requires items to be handmade, vintage (20+ years old), or craft supplies. Mass-produced items technically violate Etsy's terms. However, Etsy allows sellers to use production partners for manufacturing if they design the product themselves. Enforcement varies, but sellers risk shop suspension if reported.
Etsy is excellent for digital downloads like printable art, SVG files, planning templates, and digital patterns. The $0.20 listing fee with no inventory or shipping costs makes digital products highly profitable on Etsy. Amazon also supports digital products through Kindle and Merch, but Etsy's handmade audience converts better for creative digital goods.
Etsy runs ads for your products on Google, Facebook, Instagram, and Pinterest. If a buyer clicks an Offsite Ad and purchases within 30 days, you pay a 15% fee on that sale (12% if you make over $10,000/year). Sellers earning over $10,000 annually cannot opt out. This can significantly increase your effective fee rate on those sales.
Amazon product listings frequently appear in Google search results due to Amazon's domain authority. Etsy listings also rank well on Google, especially for long-tail handmade queries. Within each platform, Amazon's A10 algorithm favors sales velocity and relevance, while Etsy's algorithm weighs recency, listing quality, and shop reviews.
Etsy's fees are more straightforward: $0.20 to list, 6.5% transaction fee, 3% + $0.25 processing, and optional 15% Offsite Ads fee. Amazon's fees are more complex: category-dependent referral fees, variable FBA fees based on size and weight, monthly storage fees, long-term storage surcharges, and seasonal surcharges. Most sellers find Etsy's fees easier to predict.
More Fee Comparisons
Fees are only one leak. Our guide to ecommerce accounting covers COGS, settlements, and the P&L that shows what you actually keep per sale.
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