Etsy vs Amazon Handmade Profit Calculator
Independent planning estimate for the United States. A higher modeled profit is not a platform recommendation. Confirm current fees and your actual statements before pricing.
Should you sell a handmade product on Etsy or Amazon Handmade? The useful answer is not whichever marketplace advertises the lower headline percentage. Listing fees, referral or transaction fees, payment processing, conditional advertising charges, country-specific fees, fulfillment, and your own production costs all affect what remains from an order. This calculator places the same product into comparable US or UK scenarios so you can estimate profit instead of comparing unlike fee schedules.
Enter the same item price, buyer-paid shipping, production cost, and fulfillment cost for both channels. Then choose assumptions that genuinely apply, such as an Etsy Offsite Ads order or a UK seller scenario. The result shows a modeled marketplace deduction and order profit for each platform. It is a planning comparison, not a forecast of demand or a replacement for either marketplace's live account statement.
How to compare Etsy and Amazon Handmade fairly
- Select the US or UK scenario that matches the seller's location and account, not merely the buyer's delivery address.
- Use the same product price, shipping charged to the buyer, quantity, production cost, and merchant-fulfilled delivery cost on both sides.
- Enable Etsy Offsite Ads only when testing an attributed order, and use the rate that applies to the shop.
- Review estimated profit and margin, then test a second price or advertising scenario rather than relying on one result.
A side-by-side result is most useful when inputs remain consistent. If Amazon uses FBA while Etsy uses merchant fulfillment, replace the shared fulfillment assumption with each channel's real per-order cost before acting on the difference. For a deeper audit, run the same order through the standalone Etsy fee calculator and Amazon Handmade fee calculator.
Headline fee differences in the US
Etsy's standard marketplace model combines a $0.20 listing or renewal fee, a 6.5% transaction fee, and US Etsy Payments processing of 3% plus $0.25 per order. The transaction and processing bases are not always identical, particularly when tax is involved. Etsy may also charge an Offsite Ads fee of 15% or 12% on an attributed order, subject to its policy and order-level cap.
Amazon's official US Handmade page states a referral fee of 15% or $0.30 per unit shipped, whichever is greater. Amazon Handmade requires a Professional selling plan; approved Handmade sellers receive a monthly plan-fee waiver after the first month under the current program description. Neither headline includes materials, labor, postage, returns, optional advertising, or seller-specific tax costs.
Official references: Etsy fees, Etsy Payments, Etsy Offsite Ads, and Amazon Handmade US.
Headline fee differences in the UK
A UK Etsy seller still faces the $0.20 USD listing fee converted into the payment-account currency, the 6.5% transaction fee, and UK Etsy Payments processing. Etsy also lists a 0.48% Regulatory Operating Fee for UK sellers. Currency conversion and VAT on seller fees may add costs depending on how the shop and tax details are configured.
Amazon's detailed UK pricing schedule lists Handmade at a 12% referral rate with a £0.25 minimum per item, while its UK Handmade page displays 12.24%. Amazon's Digital Services Fee treatment can depend on where the seller is established and which store records the sale, so do not apply one effective rate to every cross-border situation. Check the Amazon UK pricing schedule and Amazon Handmade UK for the current account-specific context.
Etsy's own explanation of the UK Regulatory Operating Fee should control over a third-party summary. UK businesses should also distinguish VAT included in a consumer-facing price from marketplace-collected tax and VAT charged on platform fees.
Profit comparison formula
Order revenue can include the item price and shipping charged to the buyer. Production should include material, direct labor, consumables, machine time, packaging, and a realistic failure or defect allowance. Fulfillment is the actual postage and handling cost for a merchant-fulfilled order, or the relevant FBA estimate when Amazon fulfills it. Add advertising, returns, currency conversion, and fee taxes when they are not already represented.
Compare margin as well as currency profit. Margin divides profit by revenue; markup compares profit with cost. Read markup vs. margin before using either measure to set a price.
A higher modeled profit is not always the better platform
The calculator deliberately holds sales volume constant, but real marketplaces do not. Etsy and Amazon can deliver different audiences, search behavior, conversion rates, competition, and customer expectations. A platform showing $2 more profit per order can still produce less monthly profit if it generates fewer qualified orders, requires more support, or causes more returns. Conversely, higher fees may be commercially acceptable when a channel adds dependable demand or reduces fulfillment work.
Treat the result as one decision input. Track conversion, average order value, advertising cost, cancellation rate, return rate, fulfillment time, and contribution profit for each channel over a meaningful sample. The higher modeled profit is not universally the better platform.
Non-fee differences to evaluate
Audience and discovery
Etsy is strongly associated with handmade, vintage, and creative goods, while Amazon places Handmade products inside a much broader shopping ecosystem. The better audience depends on the product, brand story, price point, and search competition—not simply marketplace size.
Eligibility and personalization
Both programs have seller and product rules. Amazon Handmade requires approval, eligible categories, and proper Handmade classification. Personalized Amazon Custom products must be merchant fulfilled rather than sent through FBA. Etsy also enforces creativity standards and seller disclosure requirements. Verify eligibility before treating either estimate as obtainable.
Fulfillment and operations
Etsy orders are normally fulfilled by the seller. Amazon supports merchant fulfillment and, for eligible non-customized inventory, FBA. FBA can reduce daily handling but adds fulfillment, inbound transport, storage, return, and possible inventory charges that a headline referral rate does not show.
Advertising, tax, and cash flow
Etsy Offsite Ads are attributed-order charges, while on-platform ads use separate budgets. Amazon advertising is also separate from the Handmade referral fee. Marketplace tax collection does not remove every seller filing obligation, and reserves, refund timing, payout schedules, or cross-border conversion can affect cash flow even when modeled profit is positive.
Which marketplace should a maker choose?
Start where the target customer already searches, provided the product is eligible and the modeled contribution margin survives a conservative scenario. Then test the second channel with a controlled product set. Keep product and fulfillment costs consistent, record actual platform deductions, and compare profit per order and profit per working hour. A multi-channel strategy can be stronger than choosing one permanent winner, but only if inventory, lead times, and customer service remain manageable.
If the next decision is marketplace versus owned storefront, use the Etsy vs Shopify fee calculator to include Shopify's recurring plan allocation and customer-acquisition assumptions.
Methodology and independence
MakerGauge documents its formula and update approach in the calculation methodology. The editorial policy explains sourcing, corrections, and commercial independence. Estimates are rounded for display while calculations may retain greater precision.
Check each marketplace separately before making a final channel or pricing decision.
Open the detailed Etsy calculator