Is Amazon Handmade Worth It? Everything You Need to Know [November 2022]
Are you an artist, crafter, or maker thinking about selling your products on Amazon Handmade? Or maybe you’ve already started selling and want to learn more about the program? In both cases, we’ll help you understand what Amazon Handmade is, how to sell on Amazon Handmade, and if it’s worth it for your business.
We’ll also go through advanced topics such as product photography, optimizing your listings, and using analytics to improve your results.
Let’s get started.
What Is Amazon Handmade?
Yet another money making opportunity provided by Amazon, Amazon Handmade is a marketplace on Amazon.com for unique, handcrafted products from artisans worldwide.
The handmade category includes:
- home decor
- and clothing.
The caveat is that from manufacturing to shipping, human hands must complete every step of the product creation process (no assembly line or mass production).
Amazon offers professional selling account features like unlimited listings for free, competitive fees, order management tools, and reporting.
Handmade sellers also benefit from Amazon’s world-class fulfillment network and customer support. These are the same benefits that traditional product sellers have been had access to from Amazon FBA.
What Are The Allowed Categories?
If you’re looking to sell handmade goods on Amazon, you might wonder what types of products are allowed.
Here is a list of some of the main categories that are available for handmade sellers:
- Accessories: These can include things like purses, wallets, belts, and scarves.
- Artwork: For anyone looking to sell paintings, drawings, or sculptures.
- Baby: It can include clothes, blankets, toys, and bibs.
- Beauty And Personal Care: This category includes handmade soaps, lotions, perfumes, and cosmetics.
- Clothing: You can sell shirts, dresses, pants, skirts, and more. Keep in mind, selling shirts on Amazon handmade is NOT the same as selling shirts with the Merch by Amazon program.
- Shoes And Handbags: This category includes shoes and handbags that are handmade.
- Home: It can include items like candles, pottery, and furniture.
- Outdoor And Home Care: This category includes lawn and garden items and home care products.
- Jewelry And Watches: You can sell necklaces, bracelets, rings, and earrings.
- Kitchen And Dining: This category includes plates, bowls, cups, and utensils.
- Pet Supplies: You can sell items like pet beds, toys, and food.
- Sporting Goods: To sell items like golf clubs, hockey sticks, and yoga mats.
- Stationery And Party Supplies: This category includes cards, invitations, and wrapping paper.
- Toys And Games: You can sell items like dolls, puzzles, and games.
Several categories are available to sell handmade products, so explore all the options before deciding what to sell to Amazon customers.
Amazon Handmade Requirements
To sell on Amazon Handmade, your products must meet the following requirements:
- Genuinely Made By Hand: There’s a difference between “hand-assembled” and “handmade.” Your product must be created entirely by hand, from start to finish. Products that are mass-produced or made with molding techniques are not allowed on Amazon Handmade.
- Strict Application Process: The process to apply to sell on Amazon Handmade differs from signing up for a regular Amazon seller account. You’ll need to go through a strict application process and provide detailed information about your business and products.
- No Mass-Produced Products: Amazon does not allow mass-produced products on their handmade platform. All products must be handmade with care and attention to detail.
Three things must be true of the products you sell to qualify as handmade under Amazon’s guidelines.
- The product must be made entirely by hand.
- The product must be a new design, not simply a pre-existing mass-produced item that you have altered. An example of an acceptable listing would be hand-painted shoes.
- The product must be personalized. An example of an acceptable listing would be a towel with a hand-embroidered monogram.
Several company requirements must be met to sell through Amazon Handmade. They include:
- There can be no more than 20 employees.
- The company must make all products- outsourcing is not allowed.
- The company can’t resell products from a third party.
- There can be no dropshipping on Amazon.
- Products can’t be mass-produced with industrial machinery or assembly lines.
- There should be no digital products, food-related products, or electronics for sale.
Overall, Amazon Handmade has stricter rules than competing handmade platforms like Etsy. This is because they want to distinguish between handmade products and mass-produced goods.
Amazon Handmade Shop Fees
There is no monthly subscription fee to sell on Amazon Handmade. However, you will be charged an Amazon selling fee for each product. The amount they charge you per product sold will depend on the category that your product falls into. For example, the selling fees for jewelry are typically lower than the fees for furniture.
Some fee categories have a minimum referral fee that is applied on a per-item basis. For example, the minimum referral fee for clothing and shoes is $1.00. Even if you sell a $10 pair of earrings, they will still charge you the $1.00 minimum referral fee. The percentage-based referral fees range from 15% to 20%.
Amazon deducts the greater of the applicable referral fee percentage or the applicable per-item minimum referral fee from your sale proceeds. For example, if you sell a necklace for $100 and the referral fee percentage is 15%, Amazon will deduct $15 from your sale proceeds. However, if you were selling a clothing item under the $1.00 minimum referral fee, Amazon would deduct $1.00 from your sale proceeds instead of the 15% referral fee.
How To Make Money With Amazon Handmade?
The steps you need to take to make money with Amazon Handmade are:
Step 1: Create An Amazon Handmade Seller Central Account
First, you need to sign up for an Amazon Handmade Sellers account. There will be a series of questions that you need to answer to prove that you are a genuine handmade seller. Some of these questions include how many employees you have, what type of handmade products you sell, how your products are made, what the production process looks like, and what percentage of production is performed by you or your employees.
You also need to be careful with answering each question because your application will get denied if you answer any of them incorrectly. The approval process for Amazon handmade account can take anywhere from 2 days to 2 weeks.
Step 2: Research A Profitable Product To Sell On Amazon Handmade
Next, you must find a profitable product to sell on Amazon Handmade. This is probably the most important step because you won’t make any money if you don’t choose a good product. Consider the price, competition, and demand for the product before deciding.
You can use Amazon’s Best Seller Rank (BSR) to help you research products. The BSR is a number that shows how well a product is selling on Amazon. The lower the number, the better it is selling. You can find the BSR of a product by going to the product page and scrolling down to the “Product Details” section.
Step 3: Create An Amazon Listing
After you have chosen a product, you need to create an Amazon listing for it. This is where you will write a product description, upload pictures, choose keywords, and set a price.
Writing a good description is important because this will convince people to buy your product. You should also include keywords so that people can easily find your listing when they search for the product on Amazon.
While setting a price, you need to consider the cost of the product, shipping, and taxes. You want to ensure that you are making a profit after these expenses are considered.
Step 4: Advertise With Amazon Sponsored Products Ads
The final step is to advertise your product with Amazon Sponsored Products ads. This is a pay-per-click advertising program that allows you to place ads for your products on Amazon.com.
People who click on your ad will be taken to your product listing page of handmade store. They will charge you a certain amount every time someone clicks on your ad.
You can set a daily budget for your ad so that you don’t spend more than you are willing to. This is a great way to get exposure to your product and increase sales.
Benefits Of Selling On Amazon Handmade
Several factors make Amazon Handmade an attractive marketplace for online sellers. From no listing fees to exclusive placement in Amazon’s search engine, there are many reasons to consider selling on Amazon Handmade.
1. Amazon Associates Program
The Amazon affiliate program is one of the big advantages of selling on Amazon Handmade. With this program, you can place links to your products on your website and earn a commission on every sale you generate from these external placements. This is a great way to monetize your website traffic and boost your overall earnings.
Check out my Amazon associate program commission calculator here to see what sorts of commissions you can make for various items.
2. Amazon Is Huge
Amazon is the largest eCommerce platform in the world, with over 2.7 billion monthly visits. This gives you unparalleled reach when you list your products on Amazon. No other platform comes close to matching Amazon’s traffic levels. You’ll be able to reach a massive audience of potential buyers when you sell on Amazon Handmade.
3. No Listing Fees
Unlike other marketplaces, Amazon Handmade doesn’t charge listing fees. You also won’t pay any monthly subscription fees. This makes it very affordable to get started selling on Amazon Handmade. There is just a selling fee when you make a sale.
4. Exclusive Marketplace
Another big advantage of Amazon Handmade is that it is an exclusive marketplace. This means that only handmade products can be sold on the platform. This helps to differentiate your products from mass-produced goods and makes it easier to attract buyers looking for unique, handmade items.
5. Custom Storefront
You can create a custom storefront on Amazon Handmade to showcase your products. This is a great way to tell your story and build your brand. You’ll have complete control over the design and layout of your store, so you can make it look just the way you want. Also, your store will be hosted on Amazon’s powerful and reliable infrastructure.
6. Prime Shipping
If you use Amazon FBA, you’ll be eligible for the Prime badge, which guarantees 2-day delivery. This can help to increase your sales as buyers are more likely to purchase from a seller who offers fast shipping. You can also fulfill orders from your website with Amazon FBA.
7. No UPC Codes Are Required
Another great thing about Amazon Handmade is that you don’t need to purchase UPCs for your products. This can save you significant money, as UPCs can be quite expensive.
8. Personalized Support
When you sell on Amazon Handmade, you’ll have access to personalized support from Amazon. This is a great benefit, as you’ll be able to get help with any issues or questions that you have. Also, the platform is very simple and easy to use. You can list your products quickly and easily, and there are no complicated rules or regulations to follow.
Downsides Of Selling On Amazon Handmade
Apart from the few upsides of selling on Amazon Handmade, there are quite a few downsides that you should know before deciding to sell on this platform.
1. Strict Application Process
There is a tough application process. Unlike Etsy, where anyone can start selling immediately, it can take up to 2 weeks to get approved to sell on Amazon Handmade. Also, remember that there is no guarantee you will get approved.
2. Delayed Payment
Amazon only pays you every 2 weeks. This can be problematic if you need the funds to purchase additional materials to make your products or for other business expenses. Or if you simply want access to your earnings sooner rather than later.
3. Limited Category Selection
With Amazon Handmade, you are limited to selling into only 14 product categories. So, if you sell products that don’t fall into one of these categories, then you won’t be able to sell on Amazon Handmade. While 14 categories may seem like a lot, comparing it to Etsy, which has over 80 categories, is quite limiting.
4. Limited Repeat Business
Amazon hides all customer information from you. This makes repeat business very difficult since you cannot know who your customers are or how to contact them. In addition, you may not lead customers to any external website or collect email addresses. This further limits your ability to build relationships with your customers and do repeat business with them.
5. High Selling Fees
Amazon charges a 15% selling fee which is significantly higher than Etsy. For example, if you sell a product for $100 on Amazon Handmade, you will only receive $85 after Amazon takes its cut. It’s important to factor in these high selling fees when deciding whether to sell on Amazon Handmade.
6. Limited Search Visibility
Amazon’s Handmade products are displayed in their special category. As a result, Amazon Handmade products are less likely to appear in organic Amazon searches. This can make it difficult for potential customers to find your products.
So, Should You Sell On Amazon Handmade?
After weighing the pros and cons, we say go for it if you think selling on Amazon Handmade is right for your business. Just be sure that you are prepared to put in the work to create high-quality products, take great photos, write interesting product descriptions, and provide top-notch customer service.
There is less risk involved in starting an Amazon Handmade business than in other eCommerce businesses because there are no listing fees. Also, because Amazon is such a large marketplace, it’s worth the high selling fees.
If you have less than 20 people in your organization and create your products, then starting an Amazon Handmade business makes sense. However, we recommend you sell on as many marketplaces as possible, including Etsy, to reach the most potential customers.
What do you think? Is Amazon Handmade worth it for your business? Let us know in the comments below.