Amazon announces the launch of their new handmade marketplace, Handmade at Amazon. Will you be opening shop or buying there? Compare the fees
Yesterday Amazon announced the launch of their new handmade marketplace, Handmade at Amazon and describes it as ‘a new store featuring genuinely handmade items crafted and sold directly from artisans’. With online marketplaces for designer-makers seemingly overtaken by businesses selling mass-produced products at prices small business cannot compete with, is Handmade at Amazon the solution, or will craft sellers be wary of signing up?
Handmade at Amazon shops are available by invitation and application only and currently just two categories are being accepted: Jewellery and Home (Home includes Baby, Kitchen & Dining, Patio, Lawn & Garden, Art, Bath, Bedding, Furniture, Home Décor, Lighting, Storage & Organisation, Party Supplies, and Stationery). To be eligible, your products must meet their definition of handmade which is: ‘All products available in your Handmade at Amazon store must be made entirely by hand, hand-altered, or hand assembled (not from a kit). Products must be handmade by you (the artisan), by one of your employees (if your company has 20 or fewer employees), or a member of your collective with less than 100 people. Mass-produced products or products handmade by a different artisan are not eligible to sell in Handmade.‘
Craft sellers have been debating whether to leave Etsy for the shiny Handmade at Amazon virtual storefront by comparing fees. In case you’re wondering, here’s the breakdown:
Handmade at Amazon
Sign up fee: Registering for Handmade at Amazon comes with a free Professional selling plan. Selling more than 40 non-handmade items in different categories on your Handmade account will result in you being subject to the monthly fee of $39.99. The current $39.99 monthly Professional selling plan subscription fee is waived through August 1, 2016 for Handmade at Amazon artisans.¹
Listing fee: None. Listings don’t expire.
Transaction fee: Included in 12% referral fee.
Payment processing fee: Included in 12% referral fee.
Referral fee: Sellers pay a referral fee on each item sold. Items in several categories have a per-item minimum referral fee. Sellers pay the greater of the referral fee or the per-item minimum referral fee which is $0.50.
Customers on Amazon: 250 million.
Sign up fee: None.
Listing fee: $0.20 USD for each item.
Transaction fee: When you make a sale through Etsy, you will be charged a transaction fee of 3.5% of the item price. This percentage does not apply to the shipping cost or tax.
Payment processing fee: 4% + 0.20 GBP. This fee is assessed on the total amount of the sale, including tax and shipping.
Referral fee: None.
Customers on Etsy: 54 million.
While the initial membership fee is waived until next year, some are concerned that on top of a 12% deduction from every sale, it could eat into their profits. Will Handmade at Amazon’s large customer reach bring craft sellers much needed custom? Will you be selling your wares on Handmade at Amazon? As an independent craft shop owner, what do you make of the new launch? We’d like to hear from you.