Amazon Handmade Review: Is It Worth Selling Homemade Products on Amazon?

Amazon Handmade is a division of the Amazon Seller program, open only to people who make their products by hand. Sellers have to apply for Amazon Handmade and then undergo verification and approval. This way, Amazon can ensure that all handmade products are legitimately handcrafted by the seller.

The Amazon maker application is a rigorous process, and it can take weeks before you get approved. But once you’re in, your products will appear in the Handmade category on the site as well as alongside regular products in search results. You’ll also have access to Fulfillment by Amazon (FBA), a program where Amazon handles the storage, shipping, and returns of items on your behalf.

Product categories

Amazon artisan sellers can only make and sell items in approved Amazon Handmade categories. Below are some examples of the kinds of handcrafted goods you can sell.

Amazon Handmade Product Categories

Restricted products

If your product category is not included under the Handmade department on the Amazon site, then it’s not currently available. For example, you can’t currently sell digital products, food, or electronics.

There’s also a long list of restricted products that you either need to get preapproval for or won’t be allowed to sell. Fulfillment by Amazon also has restrictions on what can be shipped, but that usually has to do with packages containing hazardous materials.

In addition, Amazon has strict rules regarding other kinds of products you can’t sell. For instance, there are special product compliance guidelines for certain items, especially those for children.

Amazon Handmade requirements for sellers

To become a seller, you need to meet certain requirements. To start, you need to be at least 18 years old, and everything you sell must be made by you and no one else.

Here are the other requirements for handmade sellers:

• Government-issued ID
• Proof of your residential or business address
• Valid credit card
• Phone number
• Tax information
• Bank account info from one of the countries supported by Amazon

In addition, you have to complete an online interview that determines what type of taxpayer you are as well as a video call where you provide proof of your identity.

While these requirements don’t seem overly strict, plenty of applicants have reported getting their Amazon Handmade application rejected. Others have simply gotten discouraged during the vetting process and given up. Overall, it seems Amazon Handmade is harder to qualify for than sites like Etsy.

Restricted locations

There are a small handful of countries on Amazon’s restricted list:

• Andorra
• Belarus
• Monaco
• Russia
• San Marino
• Vatican City
• North Korea

This list occasionally changes, so check for updates before you apply.

How you get paid

Sellers get paid by automatic deposit. To get paid for selling handmade items on Amazon, you need to set up your ACH-enabled checking account and provide a valid credit card number.

Amazon doesn’t specify when they pay US sellers, but online reports suggest that it takes at least 2 weeks since Amazon needs to confirm that the customer has received their purchase—it can even take 1 month or longer, depending on shipping. Once Amazon has sent that money, it typically takes another 3–5 business days to clear into your checking account.

Express Payout

You have the option to register for Express Payout to get paid in just 24 hours rather than the standard 3–5 days.

To qualify, you need three things:

• In-network US bank account
• Business address in the US
• Under $1 million in payouts

However, even with Express Payout, you need to wait until the goods have reached your customers before you can claim your money. This can take weeks.

Amazon Handmade fees fall into two categories: commission fees and signup fees. The main fee you need to worry about is the 15% commission fee. Amazon deducts this from every sale you make.

Handmade sellers are also required to sign up for a Professional Seller account, which comes with a subscription fee of $39.99 per month. You’ll need to pay this fee once when you sign up, but you should be able to get it waived once you’re approved as a Handmade seller.

According to Amazon artisans, the referral fee doesn’t just apply to the price you set for your products—it also includes shipping costs.  Moreover, these Amazon Handmade seller fees don’t even account for the costs of fulfilling orders, either through FBA or on your own.

Other expenses

Selling on the Amazon Handmade marketplace comes with additional costs beyond platform fees:

• Material costs: These are expenses you’ll need to pay regardless of how you choose to sell your homemade items, and the total costs vary depending on what you’re making.
• Shipping: You can choose to fulfill orders yourself or use FBA and have Amazon do it for you. Through Amazon, the cost to ship a package is anywhere from $3.06 per package to $194.95 + $0.19 per pound.
• Product storage fees: If you’re using FBA storage, you’ll need to pay anywhere from $0.56 to $2.40 per cubic foot.

If you’re interested in selling handmade items on Amazon, here is what you’ll need to do:

1. Go to the Amazon Handmade program page.
2. Click “Sign Up” to create an Amazon account if you don’t already have one.
3. Click “Apply Now” to log into your existing Seller Central account or to sign up as a professional seller.
4. Enter your seller info (e.g., name, contact info, government ID, tax and business details, and banking information).
5. Complete the Amazon Handmade application by selecting the “Handmade” business model, choosing your preferred fulfillment method, and describing your products and business.
6. Attend a video call to confirm your ID.
7. Receive application approval.
8. List and price your products.

Anecdotal reports suggest that it can take 1 month or longer to have your Amazon Handmade application approved. Be sure to set up your fulfillment method so that there’s no delay in getting items out to your first customers once your store is set up and ready to go.

If you look online, lots of people want to know if there’s anywhere else besides Etsy to sell handmade goods. What’s more, when they learn about Amazon Handmade, they want to know if it’s worth it. Here’s the general consensus about this handmade sellers’ marketplace.

Amazon’s customers are a different breed

Amazon has long made a name for itself as the go-to marketplace for low prices and fast shipping. Selling cheap products might not be a problem if you’re making inexpensive items, but fast shipping can be an issue if you’re fulfilling orders one at a time and by hand, especially if you’re selling personalized goods.

On a site like Etsy, customers are there to buy handmade goods, so they have realistic expectations. On Amazon, on the other hand, craftsmanship is more of an afterthought for customers.

User reviews:

“I used to sell on Amazon….never again. Customers are next level pains.” (Reddit, February 2024)

“Amazon customers expect prompt shipping. I batch all our products to keep in stock so it has not been an issue to ship next day or two. They also want free returns, which you don’t have to do with amazon, but can ding your seller metrics if they open a case.” (Reddit, February 2024)

“People come to Amazon for fast, Prime shipping. A lot of people, myself included, will literally go search for another brand if I don’t see Prime delivery next to it.” (Amazon Seller forum discussion, February 2024)

“The mentality of Amazon buyers verses Etsy buyers is different, or at least was. Handmade take time which goes against speedy delivery.” (Reddit, April 2023)

You’ll have limited rights over your brand and products

One of the quirks of Amazon Handmade is that you can’t use a brand name or branded packaging unless you register for a trademark, which costs time and money. Without branding, it’s hard for you to establish a good reputation and grow your business.

What’s more, some sellers claim that Amazon retains certain rights to your homemade products, even going so far as to resell your products at a lower rate if a customer returns an item or a package is lost in shipping and later found.

User reviews:

“Amazon, used to give brand waiver to the handmade artisons but now they have changed their mind and make you get trademarked before you can say you are a brand. This is doable but it costs a lot.” (Amazon Seller discussion forum, March 2024)

“Amazon is selling our trademarked branded products without authorization. They are selling our products for a ridiculously low price, lower that our MAP. We have no idea how they aquired our units either and would like to prevent them from selling our stock.” (Amazon Seller discussion forum, September 2023)

“There are articles out there that has proof Amazon steals your best sellers and makes copycat/knock offs.” (Reddit, September 2023)

“Amazon has the rights to your products. That meant that Amazon could see that you have a best selling wood sign and then they can create (mass produce) one of their own with your design and there was nothing you could do about it.” (Reddit, April 2023)

Handmade products compete with Amazon

While Handmade is its own dedicated category in the marketplace, handmade items also appear alongside regular product search results. This should be a huge plus since Amazon has hundreds of millions of customers—after all, there’s no other online marketplace with that kind of customer reach and earning potential.

However, according to the FTC’s lawsuit against Amazon, the platform is designed to keep many Handmade sellers from making money. Search results usually prioritize ads and Amazon products over artisan and craft products made by sellers. To have any chance of their goods being seen, sellers need to spend roughly 50% of their earnings on ads.

User reviews:

“I used to sell same products quite well before I switched to the ‘Handmade’ category and they were selling very fast. After our brand became ‘Handmade’, all of a sudden the ads stopped performing and all sales came to a halt.” (Amazon Seller discussion forum, March 2024)

“The left hand often does not know […] what the right is doing when it comes to differences between mainline Amazon and Handmade.” (Reddit, March 2024)

“I looked into using Amazon Handmade to sell my products (handmade purses/bags) but when I tried to search on Amazon Handmade for purses, I got pages with lots of Michael Kors bags. […] Trying to search for products like mine was difficult and I’m not sure how people would actually find a handmade product from a small seller.” (Reddit, March 2024)

“Some of my items won’t show up in search unless you specifically search Amazon handmade which no one does so those listings get 0 traffic. I tried asking Amazon chat and several people within Amazon and no one could give me a clear answer why.” (Reddit, August 2023)

The interface is terrible

From a usability standpoint, Amazon’s interface is awful. On the backend, it’s difficult to add new products and manage your inventory.

The frontend is even worse. It’s unattractive, cluttered, and contains more promotional material for other people’s goods and Amazon products than your own.

User reviews:

“I set up an account, saw how absolutely terrible the layout was for setting up listings and bounced immediately. You’d think such a big company would have a better interface. It’s literally worse than anything out there.” (Reddit, March 2024)

“The interface is horrible, the worst I’ve ever used and can’t believe it’s so bad, it’s genuinely worse than something I could have imagined. […] You have no info on how many people view your listings or how many people have your items in their basket. […] Your listings will not show up in Amazon search results until they have had several sales which is terrible. I only got my first sales when people found my listings through google or by viewing my shop.” (Reddit, April 2023)

“The interface is horrific, the worst I’ve encountered.” (Reddit, April 2023)

“I was disappointed. It felt like a tacked on wing of a shopping mall that had seen better days. I was hoping for it to be a far more distinct stand alone site just backed by the might of a trusted brand. It felt like an afterthought.” (Reddit, August 2022)

Sales can inexplicably plummet

Someone started a discussion on the Seller Central forum in 2023 about their handmade sales plummeting about 65% from the year before. The post received more than 50 replies, with many people chiming in to say they had similar experiences.

Amazon seller support was difficult to reach. When they did connect with someone, they suggested it had something to do with an erroneous AI bot update. Nevertheless, these sudden changes in revenue have been enough to prompt some crafters and artisans to stop selling on Amazon.

User reviews:

“We have been selling on Amazon Handmade for 7 years. At the end of July 2023 our sales decreased within days to 65-75% down and holding from the year before. Prior to this we have experienced consistent organic growth month after month, year after year with very consistent year round sales up until the end of July this year. Our account is considered to be (HV) high velocity seller. Our best selling product was ranking #4 in its category, it is now far from that position.” (Amazon Seller discussion forum, September 2023)

“I wish Amazon would admit what they are doing to handmade. I too always had increased sales YOY, but the past couple of months have been dismal.” (Amazon Seller discussion forum, September 2023)

“The last 12 months or so have been awful, im down maybe 80%, yet my in person events (i Do art shows comic cons etc) are up almost 300%. I dont know what Amazon has done but they messed it up.” (Amazon Seller discussion forum, September 2023)

Amazon Handmade may be worth it, but not for everyone. If you can get through the rigorous vetting process that Amazon Handmade sellers go through, definitely list your items on the marketplace. Nowhere else in the world has a customer base that big.

Unfortunately, however, Amazon doesn’t make it easy for sellers. From their high referral fee to the low visibility of handmade products on the marketplace, many creators will face challenges when it comes to sales and profitability.

You also have to consider the audience. So many people use Amazon for cheap and mass-produced products that can be fulfilled in 2 days or less. When you’re making handcrafted goods, that’s not always feasible or realistic.

Ultimately, even if you do use Amazon Handmade, it’s a good idea to sell your items on other sites as well, such as Etsy or another craft selling site. You can also build your own website, advertise your products, and then sell them directly through the site or direct customers to your Amazon Handmade shop links to buy them.

Pros and cons

How much can you really earn on Amazon Handmade?

The Amazon website claims that over 4.1 billion products were sold by sellers in 2022. On average, that comes to about $230,000 per seller. However, there’s no real data available regarding how much individual sellers make on Amazon Handmade.

To increase your profitability selling crafts on Amazon Handmade, you need to come up with a handcrafted item that’s easy to make, has low material costs, and can be made in bulk.

Competition is also important to consider. Making a handmade item that isn’t normally available from regular Amazon sellers could improve your product’s visibility on the site.

Marketing is a big one, too. If you don’t want to pay Amazon to sponsor your products or shop, you’ll need a great-looking online shop of your own, social media accounts, and a strong word-of-mouth marketing campaign. Customer reviews are critical to your success on Amazon Handmade.

Should you sell on Amazon Handmade or Etsy?

Wondering what’s the difference between selling on Etsy vs. Amazon? The customer base is a big one.

Etsy is a marketplace for handmade and vintage goods, so customers go there with the intent of buying those products. Amazon, however, is known as an online retailer that sells pretty much everything. Shoppers chase bargains and expect to get their purchases in a day or two.

Makers can sell their handmade goods on both sites, though users often prefer one or the other. Which one is best for you really depends on factors like how new your business is, what you’re selling, what tools or resources you need, and how well you’re treated by each site’s algorithm.

Amazon Handmade vs. Etsy Comparison Chart

Not sure about Amazon Handmade? Check out our Etsy review for sellers and learn more about how to sell on Etsy. Neither site has an exclusivity policy, so you can even sell on both platforms if you like.