Is Amazon Handmade Your Best Path Forward?
If you’re a handmade brand looking to expand your business onto Amazon or contemplating a venture into handmade products, you’re in the right place.
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Is Amazon Handmade the Right Fit for You?
Amazon Handmade caters to sellers offering uniquely curated and distinguished hand-crafted products, which is why many Etsy sellers find it a natural pathway forward for their business.
To succeed on Amazon Handmade, preparation is key.
You need an established shop, ample inventory, and a degree of online credibility.
The application process is crucial (discussed in detail below).
Amazon needs to ensure that its customers enjoy a positive shopping experience, which is why verification of your handmade status remains a core requirement.
You will need to provide documentation, photos of your workspace, and a comprehensive explanation of your production process. If you meet these criteria and if you can physically ship or utilize Amazon FBA, Amazon Handmade is an exciting option.
The Power of Amazon Traffic
For many artisans, the primary draw of Amazon Handmade is the unparalleled traffic.
Amazon boasts a colossal audience that eclipses Etsy by a significant margin. To put it into perspective, just over a year ago, Amazon hosted approximately 2.4 billion visitors in a single month, whereas Etsy reported 1.7 billion visitors for an entire year. This vast difference underscores the tremendous potential for growth on Amazon Handmade. The potential to reach Amazon’s main marketplace through handmade listings is a powerful tool for artisans.
Laser-Sharp Advertising
Amazon Handmade offers access to Amazon’s proven and highly-targeted advertising platform.
Sellers can precisely offer advertising directly to their target customer. This precision is achievable by running advertisements initially, collecting data, and then refining the campaign to focus on the most converting keywords. They can even use advanced strategies like affinity targeting and organic pushover techniques found in the playbook Your Next Five PPC Moves for Amazon Domination.
Bottom line: Unlike Etsy, Amazon provides tools that enable sellers to fine-tune their advertising strategies to maximize conversion rates.Account Health Notifications
A unique feature of Amazon Handmade is its proactive approach to account health.
Sellers are promptly informed about issues that might affect their account’s health, such as delayed orders or a high volume of negative reviews. This communication is vital for resolving problems before they lead to severe consequences, unlike Etsy, which may abruptly suspend or put your shop in vacation mode without prior consultation.
Shipping Savings
Amazon Handmade offers better shipping rates with UPS compared to USPS. This can lead to significant cost savings for sellers, as Amazon secures discounted shipping rates, often making UPS the more affordable option. These savings can positively impact your bottom line.
Debunking Myths About Amazon Handmade
Some common misconceptions about selling on Amazon
Fast Shipping Focused:
First, Amazon is not only about fast shipping; sellers can opt for longer processing times and will often do so for handcrafted items.
Second, your prices don’t have to be lower than your Etsy prices; you can adjust pricing to account for Amazon’s higher fees. Though this may change, and you may want to take the safeguards mentioned in the section titled: “Leveraging Amazon Handmade for Maximum Visibility”
The Customization Advantage
Amazon Handmade outshines Etsy in terms of product customization. While Etsy offers two variations for product options, Amazon Handmade allows for a more extensive range of customizable options, empowering customers to personalize their purchases significantly.
The Learning Curve
One notable drawback of Amazon Handmade is the steep learning curve. Compared to Etsy’s user-friendly interface, Amazon can be overwhelming, particularly when it comes to advertising. The intricacies of Amazon’s platform can be challenging to navigate, requiring patience and dedication to master. If you have a brand doing over $1M USD a year, and would like some help. Feel free to reach out to the team at Ecom Optimization for help. We are here for you!
Costly Advertising Mistakes
Amazon’s extensive advertising options can be a double-edged sword. Sellers must be cautious not to overspend or target overly broad keywords. These mistakes can lead to substantial financial losses if not managed carefully.
Strict Account-Health Requirements
Maintaining a healthy account on Amazon Handmade is essential. Amazon is exceptionally stringent about account health, making it crucial for sellers to fulfill orders promptly and garner positive reviews. The platform provides continuous feedback to ensure sellers stay on top of their performance.
One option is to consider using Amazon FBA in conjunction with your Handmade account.
Customer Behavior: Etsy vs. Amazon Handmade
Sellers should be aware that customers on Amazon Handmade may have different expectations compared to Etsy shoppers. Amazon customers often expect fast, Amazon Prime-like service and may be less forgiving of imperfections. Understanding these nuances is critical for success.
Again, refer to the note above about possibly using Amazon FBA to your advantage.
Key Differences Between Amazon Handmade and Regular Amazon (Amazon FBA)
Amazon Handmade Difference #1: Cost
Firstly, Pro Accounts come with a monthly fee of $39.99, along with associated transactional fees which can change based on product categories. Amazon Handmade, on the other hand, exempts sellers from the monthly fee once they gain approval, offering a flat 15% referral fee across all product categories.
Generally, these fees work out to be less than normal FBA fees.
Amazon’s Revenue Calculator can help (choose: Continue As A Guest): https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US
Amazon Handmade Difference #2: Application Process
Amazon Handmade takes pride in its vetting process.
Why?
Products must be genuinely handmade, which helps maintain the platform’s integrity.
By contrast, Amazon Seller Accounts allow you to sign up without a formal application, though there is vetting for selling into certain categories of products that go on, or in the body, or if the materials used include possible hazmat dangers.
For most handmade sellers, this type of vetting for Seller Central won’t be an issue.
Amazon Handmade Difference #3: Brand Benefits
The simplicity of branding sets Amazon Handmade apart. Handmade artisans enjoy simplified branding options than Pro Account holders, who face the legal complexities of Amazon Brand Registry.
Amazon’s Brand Registry requires a verified trademark. Handmade offers similar benefits to the Amazon Brand Registry but without the trademark hassles.
Amazon Handmade Difference #4: UPC Codes
One significant advantage of Amazon Handmade is the flexibility concerning product identifiers (e.g., UPC codes).
Amazon FBA demands UPC codes for every product and variant, creating potential financial and logistical burdens of a GS1 account.
At the time of this writing, Amazon Handmade allows product identifiers if available, they are not required.
This can be a significant cost savings, especially for products with numerous variations, like personalized items or diverse color options where Variations play a pivotal role.
That leads us to…
Amazon Handmade Difference #5: Listing Process
Amazon Handmade streamlines the listing process for products with variations. For Pro Accounts, handling variations is notably complex.
This level of personalization is where Amazon Handmade truly shines.
Handmade offers a user-friendly interface for customizations. In contrast, achieving personalization in Pro Accounts can be a tedious and complicated process sometimes involving Flat-Files and Seller Support case management.
Leveraging Amazon Handmade for Maximum Visibility
One of Amazon Handmade’s standout features is its integrated visibility within Amazon’s vast marketplace. While many buyers don’t initially realize that Amazon has a Handmade section, this actually works to your advantage.
When shoppers search for products, they’ll see your handmade items in the search results alongside Pro Account, FBA products. This visibility empowers artisans to compete effectively alongside major brands. And offers a unique advanting, particularly in niche markets.
Although Amazon’s fees may be higher than Etsy’s, the exposure to a broader audience could well justify the investment.
This may mean adjusting your pricing for your on-Amazon offerings, but the potential for greater sales volume makes it worthwhile.
A quick note on this split pricing strategy: Historically, if Amazon finds that you have lower pricing on any other platform, they will punish your visibility on the platform. This is not currently true with Etsy, but knowing how fast Amazon’s algorithm changes it is best to be safe.
The best move is to create a unique listing with new copy and fresh images.
Honestly, this is advisable regardless, as the SEO and Sales process on Amazon’s super-competitive marketplace is unique and requires specialized care and attention.
Leveraging Amazon FBA For Handmade
One of the most significant advantages of Amazon FBA is that Amazon handles most of the logistics for you.
Instead of shipping orders one by one, you can choose to ship your products to Amazon’s fulfillment centers. From there, they take care of processing orders, shipping, and even handling returns. This allows you to focus on growing your business and less on the day-to-day operations.
The Two-Part Amazon Handmade Application Process
STEP 1 – Your Professional Sellers Account
You’ll need to gather information about yourself and your business (even if it’s a one-person operation). Prior to registering for your Amazon Sellers Account.
I provide detailed instructions in this article: https://ecomoptimization.com/amazon-seller-central-sign-in/
STEP 2 – Mix that with the process on this page and you are set:
https://sell.amazon.com/programs/handmade
What To Expect:
Required Documents: To verify your identity, you’ll need documents like your passport or driver’s license, a bank account, and an email address. A utility bill to prove your address might be needed but isn’t always a requirement.
Document Format: Make sure all your documents are in the correct format, such as color and PDF. It’s essential for a hassle-free verification process.
Bank Statement: Your bank statement serves as proof of a legitimate bank account. Ensure that it’s recent, within the last 90 days. You can blur out sensitive financial information if you prefer.
Additional Amazon Handmade Verification steps:
Amazon Handmade verification is an additional step that handmade sellers must go through. It’s designed to ensure that only genuine handmade products are listed on the platform.
Amazon Handmade accepts products that are either handmade, hand-altered, or hand-customized. You need to fall into one of these categories to qualify.
Picture Your Handmade Process: Amazon wants to see your workspace, your tools, and your creative process. You don’t need professional photos; simple pictures taken with your phone are sufficient. They’re looking for authenticity.
Describing Your Products: You’ll need to provide a detailed description of your products and the processes involved in making them. This includes the materials, tools, techniques, and time required. The goal is to prove that your products are genuinely handmade.
Business Details: Amazon will ask for information about your business, such as your category, seller type, and the number of employees. Be careful with tricky questions to ensure you qualify.
Is Amazon Handmade Right for You?
Selling on Amazon Handmade is a choice that demands careful consideration. Assess whether you have enough physical inventory to handle the increased volume that often follows an Amazon launch.
Also, consider the economics, specifically the fees, and consider how they align with your business model. If you’re ready to venture into the world’s largest e-commerce marketplace, Amazon Handmade can be a game-changer. Expand your reach, tap into a vast audience, and explore new opportunities.
Also, feel free to reach out with any questions you may have, the Ecom Optimization team is always here to help.
FAQ - Amazon Handmade: Your Path to Expanding Your Business
Q1: What is Amazon Handmade, and how is it different from regular Amazon?
A: Amazon Handmade is a marketplace within Amazon specifically designed for artisans and creators offering unique, handcrafted products. It differs from regular Amazon FBA (Pro Accounts) in several ways, including its application process, branding options, fees, and the flexibility it offers for product identifiers and variations.
Q2: Can I sell digital products on Amazon Handmade?
A: No. Amazon Handmade is exclusively for physical products. However, Amazon offers other platforms, such as Kindle Direct Publishing, for selling digital products like ebooks.
Q3: How does Amazon Handmade’s application process work, and what do I need to get approved?
A: The application process for Amazon Handmade aims to verify your legitimacy as a seller. You’ll need to provide documentation, photos of your workspace, and a detailed explanation of your production process. This process has become more accessible over time, focusing on ensuring you can deliver a positive customer experience. Visit Amazon directly to learn more: https://sell.amazon.com/programs/handmade
Q4: What are the fees associated with Amazon Handmade compared to Etsy and regular Amazon?
A: Amazon Handmade differs from both Etsy and regular Amazon in terms of fees. Amazon Handmade typically charges a 15% referral fee on all product categories, while Etsy’s fees vary. Regular Amazon FBA (Pro Accounts) involves a $39.99 monthly fee and referral fees that vary by product category. It’s essential to consider these fees when pricing your products. Amazon’s Revenue Calculator can help (choose: Continue As A Guest): https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US
Q5: How does Amazon Handmade handle product identifiers, and what are the advantages?
A: Amazon Handmade offers flexibility regarding product identifiers like UPC codes. While you can use them if available, they are not mandatory for the Handmade category. This feature is especially beneficial for sellers offering products with multiple variations, where UPC codes can become burdensome and costly.
Q6: What are the advantages of personalization on Amazon Handmade?
A: Amazon Handmade simplifies the personalization process, allowing sellers to offer customizations easily through a user-friendly interface. By contrast, personalization in regular Amazon Pro Accounts can be complex and far less user-friendly.
Q7: How can Amazon Handmade help my products gain visibility within Amazon’s vast marketplace?
A: Amazon Handmade products appear in search results alongside regular Amazon Pro Account products, even though many buyers may not initially realize there is a Handmade section. This visibility allows artisans to compete effectively, particularly in niche markets, and tap into Amazon’s 60-million shoppers-a-day traffic.
Q8: Is Amazon Handmade suitable for small businesses and individual artisans?
A: Yes, Amazon Handmade is an excellent platform for both small businesses and individual artisans. It offers a unique opportunity to showcase handmade products to a massive audience and compete on equal footing with larger businesses.
Q9: Can I sell on both Amazon Handmade and other online marketplaces simultaneously?
A: Yes, you can sell on Amazon Handmade while also selling on other online marketplaces. Many sellers choose to diversify their presence across multiple platforms to reach a broader customer base. But, see my notes above about price splitting.
Q10: How do I get started on Amazon Handmade, and where can I find more information?
A: To start on Amazon Handmade, visit their official website and begin the application process. For more in-depth guidance and insights, you can refer to resources, guides, and tutorials available on Amazon Handmade’s website, or feel free to reach out to the team at Ecom Optimization for experienced help.
Take the Next Step Toward Unlocking The Power Of Amazon
If you’re looking to get more money from your Amazon efforts, hiring an expert is your best bet. An Amazon Account Management Agency will work with you on so much more than just setting up an Amazon Handmade Account.
Daily management covers optimization of your ad campaigns, decreasing your advertising cost of sales (ACoS), and boost Sales Conversions, all while taking advantage of Amazon’s highly-effective Enhanced Marketing to grow Organic Attraction.
In other words, if you sell on Amazon (or want to) you can’t afford to not be leveraging experienced Account managers to your benefit.
ECOM OPTIMIZATION Amazon Account Management can help you to build an effective strategy that aligns with your unique brand needs.
Using a hands-on, human-led approach, we’ll help you get more from your Amazon sales channel, so you can enjoy more growth for your business in less time.
Ecom Optimization Amazon Account Management is here to Help
Ecom Optimization is a full-service Amazon Account Management Agency. Our team consists of specialists in all areas of Amazon optimization and management.
When you look at the many ways that Ecom Optimization Account Management can help you grow your brand on Amazon, you’ll see why selling on Amazon becomes headache-free with Ecom Optimization:
Strategic Growth Planning
Amazon Copywriting Optimization
Amazon Image Optimization
Paid Advertising Management
Seller Support Management
Amazon Enhanced Marketing
Brand Reputation Management
Amazon Posts
Full-Service Amazon Account Management
