Amazon FBA vs Etsy: Which Platform Keeps More of Your Money?
· 6 min read
Etsy and Amazon FBA sell to very different audiences and suit different kinds of products, but sellers weighing both often end up asking the same practical question: for the same item, which platform actually leaves more money in your pocket? The honest answer is "it depends on the product," but the reason it depends is worth understanding before you commit inventory to either channel.
Two very different fee shapes
Etsy's fee structure is comparatively simple and mostly percentage-based:
- A $0.20 listing fee
- A 6.5% transaction fee
- A payment processing fee (around 3% + $0.25 in the US)
- Optionally, Offsite Ads at 12–15%
Amazon FBA's fee structure is heavier and much more dependent on the physical product itself:
- A referral fee (Amazon's commission), typically 8–17% depending on category, occasionally as high as 45% for specific categories like Amazon Device Accessories
- A fulfillment fee based on size and weight — Amazon physically picks, packs, and ships the order, so a small lightweight item might cost a few dollars in fulfillment fees, while a large or heavy item can cost considerably more
- A monthly storage fee based on how much warehouse space your inventory occupies, which climbs sharply during the October–December peak season
That last point is the key structural difference: Etsy charges fees per sale and nothing if an item isn't selling. Amazon FBA charges storage fees on inventory sitting in its warehouses whether or not it sells that month — so slow-moving or bulky inventory has an ongoing cost on Amazon that simply doesn't exist on Etsy.
Where each platform tends to win
Etsy tends to win on: lightweight, handmade, vintage, or niche craft items where buyers are specifically browsing Etsy for that kind of product, and where per-unit fulfillment costs would be disproportionate to the item's price.
Amazon FBA tends to win on: items that are heavier or bulkier relative to their price but sell in high enough volume that storage costs are a small fraction of revenue, and products where Amazon's search traffic and Prime shipping matter more to the buyer than a handmade/marketplace feel.
Run the actual numbers for your product
Because the fee structures are shaped so differently — Etsy scaling mostly with price, Amazon scaling with size, weight, and category — a rule of thumb only goes so far. The only reliable way to compare them for a specific product is to run its actual price, weight, and dimensions through both fee schedules.
Our Etsy Fee Calculator and Amazon FBA Fee Calculator are built for exactly this comparison — plug the same product into both, and look at the net proceeds each one leaves you with. If you're specifically deciding between Etsy and building your own store rather than Amazon, the Etsy vs Shopify Calculator covers that comparison too, including the break-even revenue where a Shopify store's fixed cost starts paying for itself.
The non-fee factors still matter
Fees are only half the decision. Amazon's built-in search traffic and Prime badge can move volume that would be hard to replicate elsewhere, while Etsy's buyers are often specifically looking for handmade/vintage goods and browsing with different intent. Many sellers ultimately run the same product on both — but going in with the actual fee math, rather than a guess, makes it much easier to price consistently and know which channel is really carrying its weight.