Amazon’s recent launch of Handmade, an online hub for homemade and handcrafted goods and services, is already looking like a formidable competitor for Etsy. All products are handmade, hand-altered, or hand assembled by a company with less than 20 employees, and include items ranging from jewelry and stationary to furniture and bedding. With pages and profiles detailing the artists, artisans, and crafters’ personal stories, contact information, and processes for creation, Handmade emphasizes the individuality and uniqueness of both the products and the people behind them. According to the company, the platform has over 5000 sellers from 60 different countries that sell more than 80,000 items, of which 30% can be personalized to the consumers’ discretion.
Statistically, Etsy employs a 3.5% transaction fee and a $.20 listing fee that gives the seller almost 96.5% of the revenue. Amazon however, charges either a 12% or $.50 transaction fee (whichever is greater) that includes payment processing. The company also requires a Professional Seller account and the payment of a monthly fee of $39.99.
Contributor: Katie Sun