With so many choices in this era, we sometimes have difficulty picking the perfect one for our online explorations. As such, it's an easy decision: choose either Amazon or Etsy, the two e-commerce titans, for our online venture. Despite these distinctions, the two marketplaces and e-commerce websites give business entrepreneurs another venue to sell their products to online shoppers.
How do you decide on which best suits your needs?
Today, this platform is a large e-commerce company operating a marketplace that requires no introduction. Originally an online bookstore, Amazon eventually became one of the world's most successful online companies ever. Today, Amazon has grown into a giant ecommerce player with millions of engaged and active users. This way, you can tap into one of the largest ecommerce audiences worldwide for maximum sales volume.
Amazon has a global presence in 58 countries, giving it extensive coverage and the ability to interact with many clients worldwide. This is how Amazon has delivered products so quickly worldwide. Approximately 2.7 billion people shop on Amazon, where they get their wealth. Depending on your goals and target market, this global expansion may be necessary to impact your success positively.
This program efficiently eliminates sellers of the logistical strain and offers a wide range of fulfillment choices that facilitate online product sales. Amazon handles the shipping, packing, and storage via FBA, relieving you of the logistical burden. The vendors have simplified operations by delegating tasks to Amazon, thus saving enough time for product development and marketing.
As we said earlier, Amazon does not need any introduction. With their reputation of serving billions of online shoppers worldwide, they are known to be a reliable and trusted platform. Shoppers trust the platform for the most necessary and frivolous buys that hit the web. The confidence and credibility that have forever been attached to the Amazon brand can be reflected through your online business, outshining its reputation on your brand. Online shoppers are generally more likely to make purchases on a platform they perceive as trustworthy rather than on an obscure website. Amazon's reputation for being the reliable go-to for online shopping can benefit sellers by building their customer base, allowing you to drive repeat business and ultimate success.
Although Amazon is the world's most popular and successful e-commerce marketplace, the number of Amazon sellers is vast, making competition steep. Of course, it is common knowledge that competition will make business stiffer, especially for new or niche products to gain traction. You must spend money and learn strategies to make your store's offers different to stand out from other sellers and products on the Amazon marketplace.
Another con related to Amazon involves hefty fees and commissions. Even though Amazon opens its platform to many customers, that comes at an expense. Fees are charged at various rates on a few dozen different items. These can involve referral fees, fulfillment fees, storage fees, FBA fees, and other charges, thereby eating into one's profit margin. This would be especially bad for people who sell low-cost items that do not sell quickly.
If you imagine building an online business around a unique brand, Amazon marketplace may not be your choice. You're better off on platforms like Shopify if you wish to make a brand. On Amazon, branding options are limited, and Amazon's set template limits how you display products and branding elements.
An online e-commerce marketplace provides a virtual storefront for independent makers and collectors to sell their products. It is like Amazon, but instead, it is for independent sellers selling handmade, unique, or niche products. The purpose of this site is to provide a massive marketplace with the works of multiple sellers; in this case, a buyer would find a fantastic vendor. Over 7.47 million sellers sell their goods on Etsy as of 2022, and more than 95 million active buyers.
If your business sells handmade or antique goods, Etsy is a specialized website with a narrow and focused clientele. More than 95 million people searching for handcrafted and distinctive products are drawn to it, providing creative sellers with access to a niche market looking for their type of products. The other platforms, such as Amazon, do not have the approachable appeal that comes with Etsy, making it more personal and grounded in the human artistic spirit.
Etsy's more personal nature fosters a sense of community among buyers and sellers. The platform features forums, teams, and events, and it takes community building further by hosting online and offline events. This personal shopping experience builds brand loyalty for sellers, making them feel connected and involved in the platform's vibrant community.
Etsy is a place of creativity and craft. Therefore, it could be the best marketplace for artists, crafters, and small business owners whose businesses are based on handcrafted or made-to-order items. In that regard, there is a further emphasis on how sellers can design their shops to align with their brand identity. The seller can customize his shop banner and icon, and even how you arrange items in your shop and which items to feature. This gives a high chance of using attractive visuals, and such a level of control enables the seller to curate a coherent shopping experience with branding elements that attract customers.
Joining Etsy as a seller is pretty straightforward. It's as easy as going to Etsy's seller page and clicking on the "Get Started" button, and you'll be guided through a rapid process. In under 30 minutes, you can start listing products and designing your storefront.
Etsy is so strict about handmade or vintage items that it doesn't allow anything outside these definitions. If you want to sell mass-produced, factory-made goods that are not handmade, then Etsy, as a site and community, is not suitable for you. Staying afloat on and joining the platform may be challenging if your goods fall outside this spectrum.
It shows that Etsy has a much smaller user base than Amazon, which may affect sellers' sales volume and visibility. With this comes the addition that selling on Etsy itself may be full of competition, especially in specific niches, requiring sellers to build strong branding and marketing strategies to stand out.
Etsy and Amazon are both online retail platforms where goods may be sold. However, different vendors utilize them to target different kinds of clients. The most effective platform for you will be the one that lets you achieve your company objectives and communicate with your target audience. Amazon is a superior choice for reaching a large client base and selling various goods. However, Etsy can be a fantastic option for selling artisan, handcrafted, collectible, or creative goods.
The comparison of the two markets is shown below.
Knowing the selling costs associated with dropshipping on Etsy and Amazon is crucial for setting the proper product pricing, guaranteeing profitability, and efficiently managing budgets. It also serves as a roadmap for strategic choices, including competitive pricing, platform selection, and alignment with business models.
Etsy is known for its moderately detailed fee structure. Here's what it consists of:
Benefits: Etsy is cheaper, making it more accessible to artists, small businesses, and entrepreneurs.
Cons: Using other services can drive up your overall costs, including using services like advertising.
The fee structure of Amazon is a bit complicated, consisting of the following:
Benefits: Amazon's large consumer base may result in increased sales volumes, which would balance the expenses.
The cons are that the competition is fiercer, and the pricing structure might be more costly, particularly for small enterprises.
Although Amazon's reach is far greater, both marketplaces are among the top 5 popular online shopping websites globally. This implies increased competition as well as more visitors. Although Amazon's reach is far greater, both marketplaces are among the top 5 popular online shopping websites globally. This implies increased competition as well as more visitors. Etsy has a niche market where customers mostly order based on highly distinctive designs and handmade products. The audience here is smaller than Amazon's but is also well-targeted and loyal. Customers often purchase bespoke products with stories and love being told of such backgrounds.
Amazon has a vast worldwide customer base. Amazon customers love the variety, convenience, and low prices. This audience ranges from the regular purchaser of everyday items to the shopper looking for unique finds. The audience of Etsy might be more appropriate if your products are for a more discerning market that appreciates uniqueness. However, if you want to target a more extensive and diverse customer base and can manage higher competition, Amazon customers provide greater exposure and volume in sales.
For a small business owner using print-on-demand, the choice will depend on the type of products and business goals. Consider where your products will stand out more and align with customer preferences and shopping behavior.
The most striking difference between Etsy and Amazon is the type of products their potential customers seek.
Customers search Etsy for craft materials, personalized items, handcrafted goods, and original artwork. However, Amazon's audience searches for various products, including appliances, gadgets, household products, and apparel.
Both marketplaces are suitable for the best-selling print-on-demand products, but you should evaluate which platform better suits your brand before selling.
Fulfillment by Amazon offers customer service, shipping, and packing, enabling vendors to keep their goods at Amazon's warehouse.
The kind and quantity of items you assign to Amazon will determine the FBA fees. The FBA fees are as follows:
The decision for small business owners is based on the size of the company and their desired level of involvement. If we talk about Etsy now…….
Etsy does not provide fulfillment services the sellers are responsible for order fulfillment themselves. By fulfilling an order through one of Etsy's shipping partners, you save money that you would otherwise spend on the shipping labels you buy online.
The support systems on Etsy and Amazon differ, impacting how ecommerce business owners navigate challenges and queries.
Etsy offers a more personalized support experience. Sellers can access a comprehensive Help Center, community forums, and direct email support. Etsy's community-driven approach fosters a sense of connection, and seller forums often provide valuable peer advice and insights.
Amazon offers a more formal support system with extensive resources, such as Seller Central, guidebooks, and customer service via email and phone. Its support focuses on a high volume of sellers and prioritizes efficiency and standardization.
In conclusion, if you are a seller trying to decide between Amazon and Etsy, the best option will vary depending on your custom products and objectives. Etsy could be chosen, where the individual seller does their best to showcase handmade vintage or crafting products. When there are masses of products under which not just mass-produced items also lie, you should go to Amazon. Can selling be done at both places from one dashboard? That sounds intriguing, and a third-party integration solution such as MapMyChannel can help you boost your revenue and create a higher customer base.
