January 24, 2023

Ultimate Guide on How to Sell on Amazon Handmade

This guide will help you learn everything you need to know about selling on Amazon Handmade. You will learn what tools and resources you need to start selling on Amazon and how to set up a successful store.
Ultimate Guide on How to Sell on Amazon Handmade
Ultimate Guide on How to Sell on Amazon Handmade

Ultimate Guide on How to Sell on Amazon Handmade

Are you an artisan looking to reach millions of customers with your handcrafted products? 

Amazon Handmade is a unique solution that allows you to bring your creative crafts to life while expanding your customer base through Amazon's massive reach. 

If you're ready to make a business out of your unique craft, read on as we look at what Amazon Handmade is and all you need to start selling on Amazon Handmade. 

What is Amazon Handmade? 

Amazon Handmade is a community of artisans and artists who sell unique handcrafted products around the world.

Everything that is sold on Amazon Handmade must be handmade, hand-assembled, or hand-altered. Sellers are not permitted to sell mass-produced Amazon products on the platform. 

According to Amazon, handcrafted goods are made entirely by hand. Hand-altered goods are existing products altered into a new design and Handmade customized goods are products made by hand and customized per customer request.

Amazon Handmade is different from the Amazon marketplace as it operates with a different Amazon Seller account and business model. 

Some products sold on Amazon Handmade include soaps, abstract art, pottery, jewelry, candles, bedding, hair accessories, and so on.

How does Amazon Handmade work? 

The process of selling on Amazon Handmade is quite simple.

First, you or you and the members of your team must hand-make all your products. 

Secondly, you will need to fill out an application regarding your business.

Lastly, you need to choose a fulfillment method for shipping your products and have them delivered to your customers. 

You could fulfill your orders with Fulfillment by Amazon (FBA) or Fulfillment by Amazon (FBM)

With Amazon FBA, you simply have to send your handcrafted products to the Amazon warehouse and have them packaged and delivered to your customers by Amazon. On the other hand, with Amazon FBM, you can be in control of the process by fulfilling the orders yourself or using third-party logistics. 

Pros and Cons of Amazon Handmade

So should you sell on Amazon handmade? Is it worth it? Well, let's examine some of the pros and cons of selling with Amazon Handmade: 

Pros of Amazon Handmade

  • Customizable shop: As an Amazon Handmade seller, you can create a custom shop to showcase your handcrafted products. You can also create an artisan profile that sellers can use to share the story behind the product.
  • Massive reach: Selling on Amazon Handmade means you will be getting potential customers quickly. With billions of monthly visits to Amazon.com, you can be sure to reach a wide range of customers on the platform.
  • High-profit: Not only will you be taking advantage of Amazon's customer base, but you can also incur higher profits. In fact, according to Jungle Scout’s report, 33% of handmade sellers have a profit margin that goes above 20%. 
  • Affordability: Amazon Handmade is quite affordable. There are no subscription fees, listing fees or any additional charges. You will only be charged a fee of 15% per sale. You can also see a clear breakdown of other costs on your inventory dashboard.
  • Access to Amazon FBA and Amazon Prime: In addition to a customizable shop, shipping is also an easy process. You can opt for Amazon FBA and have Amazon fulfill your orders. Also, you can sell your creative crafts to millions of Amazon Prime members. You can also list your products without UPCs. 

Cons of Amazon Handmade 

  • Slow application process: As the name applies, Amazon Handmade products must be ‘handmade’. To stay true to this, Amazon may take time to verify that you are not getting your products manufactured. As a result, it may take as long as two weeks to get approved to sell on Amazon Handmade. 
  • Not user-friendly: Compared to other platforms like Etsy, the features and functions on the Amazon Handmade Seller Central are not easily navigable which can be overwhelming for Amazon sellers. 
  • Limited product categories: On Amazon Handmade, you only get to choose from a limited 14 product categories. Some of these product categories include Accessories, Artwork, Baby, Beauty & Personal Care, Clothing, Shoes & Handbags, Home, Outdoor & Home Care, Jewelry & Watches, Kitchen & Dining, etc. 
  • Payments are only made when orders are marked as shipped. You have to wait to get your payment deposited. 

How to start selling on Amazon Handmade 

Now you have beautiful handcrafted products you want to sell on Amazon Handmade. Let's walk you through the process of getting your account set up. You will need to fill out a thorough application so Amazon can be sure your products are truly handcrafted.

  • First, Amazon will require some information about you and your business. Some of these questions include “What kind of Maker are you?” “What best describes your production process?” “Tell us about your products and processes”, etc. 
  • Next, you will be required to provide images of your handmade products including pictures of the production process. You want to ensure you provide as many details to avoid delay in the approval process. 
  • You will need to choose from the drop-down menu which product category you want to sell in. 
  • After your application gets approved, you will need to set up your artisan profile, list your products and start selling! 

We recommend that you provide as much information as needed throughout your application process. This will help speed up the approval process.

Before applying, you also want to go through the Amazon Handmade Terms and Conditions to ensure you are up to date with the rules. 

Finding products to sell on Amazon Handmade  

Perhaps you have many product ideas and don't know which product to sell on Amazon Handmade. Here are simple tips to help you choose the right handmade product and increase sales on Amazon. 

  • Go through the Amazon or Etsy handmade category: You can start by looking through some best sellers in the handmade category. Pay attention to customer reviews to get an idea of what customers want. Customer reviews can give you some insights on how to better improve your product and service. 
  • Check demand for your product: Are your products in demand? You don't want to put up a product that customers don't want to buy. You can use Google Trends to track your product’s demand over the past year. You can also check reviews on Amazon to find out when the last sale was made. This will give you an idea of the product's demand. 

Creating products to sell on Amazon Handmade

To become a successful artist or craftsperson on Amazon Handmade, it is important to estimate the time you need to create products. The last thing you want to do is accept orders and not fulfill them on time. 

Ensure you set accurate lead times so that your customers know what to expect when they order your product. 

Once you start getting orders, estimate how long it takes to create the product. We recommend creating as much inventory as you can ahead of time. You also want to ensure you have other materials available. This includes shipping labels, boxes, tapes, and so on. 

Amazon Handmade vs Etsy 

Amazon Handmade and Etsy are both great platforms for artisans and craftspeople to monetize their crafts. Let's look at these two platforms side by side, examining their pros and cons.

Fees

On Amazon Handmade, there are no subscription fees, listing fees, or additional charges. You only have to pay a 15% referral fee for every sale you make. On the other hand, Etsy charges a $0.20 listing fee which you have to renew every four months, a 6.5% transaction fee, and a 3% + $0.25 payment processing fee. 

Categories

Amazon Handmade is only limited to 14 product categories while Etsy has over 160 product categories that you can choose from. 

Approval process 

On Amazon Handmade, you need to go through an application process to be approved. In addition, Amazon requires that you create your product yourself or with a team of fewer than 20 people. On the other hand, Etsy allows you to set up your account quickly with no application or approval processes. You can also work with production partners. 

Product listings 

When it comes to listing products on Amazon Handmade, you can list as many as you want at no cost. Also, your listing doesn't expire which means you don't need to pay renewal fees, unlike Etsy which charges a listing fee of $0.20 (expires every four months). However, setting up your product listing on Amazon Handmade may not be very easy as the dashboard is not user-friendly. 

Advertising 

With Amazon Handmade, you can promote your products using Amazon advertising options. On the other hand, Etsy allows you to access both on and off-site advertising options.

Payments 

When customers purchase a product on Etsy and the transaction is completed, the funds are available to you immediately. You can also request for daily disbursement. 

On the other hand, on Amazon Handmade, your funds will only be available when orders are marked as shipped. Plus, payment can only be disbursed every two weeks. 

Both platforms have their pros and cons. Etsy has a reputation for serving handmade products. So many customers on Etsy are in search of unique handmade products. On the other hand, Amazon has a massive customer base and can increase your business exposure. But who says you have to choose? You can choose to sell on both platforms and increase your company sales. 

Final thoughts on selling on Amazon Handmade 

Amazon Handmade is a fairly new platform that offers artisans and craftspeople the opportunity to sell their products to millions of Amazon customers all over the world. With little competition on the platform, you can easily list your products for free, start selling, and dominate! 

Enjoying our articles?

Subscribe to our newsletter to receive ePlaybooks insights directly in your inbox. Don't worry we will respect your inbox.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.