If you make handmade goods, start on Etsy to test demand with no monthly subscription. If you sell high-volume consumer staples and want hands-off shipping, Amazon gives you ready shoppers and Prime logistics. If you want repeat buyers, your own email list, and brand control, launch your own store on Shopify or Squarespace.
This guide breaks down the real cost of each channel, compares the math on identical orders, and shows where an independent store becomes cheaper than marketplace commissions. All prices and fee rates are US figures checked on 2026-10-03.
This guide provides general business information and is not legal or tax advice.
The three channels in one table
| Channel | Monthly fixed fee | Per-sale fee | Payment processing | Best for |
|---|---|---|---|---|
| Etsy | $0 | $0.20 listing fee + 6.5% transaction fee | Etsy Payments (typically 3.0% to 6.5% + fixed fee) | Handmade, custom gifts, vintage items |
| Amazon Individual | $0 | $0.99 per item + 8% to 15% referral fee | Included in referral fee | Testing under 40 units/month |
| Amazon Professional | $39.99/mo | 8% to 15% category referral fee | Included in referral fee | High-volume retail, FBA Prime shipping |
| Own store (Shopify Basic) | $29/mo (yearly) | $0 native platform fee | 2.9% + 30¢ (Shopify Payments) | Direct brand building, email lists |
Worked example: one $40 order on Etsy vs Amazon vs your own Shopify store
These stores are hypothetical, but the rates are official US rates from 2026-10-03.
Imagine you sell a handcrafted home item for $40. Product cost is $12, shipping is $6, and the customer pays $40 with free shipping. That leaves $22 in gross margin before platform fees.
Here is what platform and payment fees take:
- Etsy: A $0.20 listing fee plus a 6.5% transaction fee on the $40 order ($2.60). Etsy Payments ranges from 3.0% to 6.5% plus a flat fee per order that depends on your country. At the 3.0% low end that is $1.20 before the flat fee, so Etsy takes at least $4.00 ($0.20 + $2.60 + $1.20).
- Amazon Pro (Home and Kitchen): 15% referral fee ($6.00) with a $0.30 minimum. Payment processing is included. On Fulfilled by Merchant (FBM), total fees are $6.00.
- Own store (Shopify Basic): Shopify Basic is $29 a month on yearly billing. Online domestic cards on Shopify Payments cost 2.9% of $40 ($1.16) plus 30¢ = $1.46.
| Line item | Etsy | Amazon Pro (FBM) | Own store (Shopify Basic) |
|---|---|---|---|
| Sale price | $40.00 | $40.00 | $40.00 |
| Product cost | -$12.00 | -$12.00 | -$12.00 |
| Shipping cost | -$6.00 | -$6.00 | -$6.00 |
| Platform & payment fees | -$4.00 (at least) | -$6.00 | -$1.46 |
| Net profit per order | $18.00 (at most) | $16.00 | $20.54 |
On each $40 sale, your own store yields at least $2.54 more profit than Etsy ($20.54 vs $18.00) and $4.54 more profit than Amazon ($20.54 vs $16.00).
Monthly volume comparison: 30 orders a month
At 30 orders a month ($1,200 in sales), product costs are $360 (30 × $12) and shipping is $180 (30 × $6):
- Etsy: 30 orders × $4.00 fee per order = $120.00 in total fees, plus Etsy’s flat payment fee. (Offsite Ads adds 12% or 15% if attributed).
- Amazon Pro: $39.99 monthly plan + 15% of $1,200 ($180.00) = $219.99.
- Own store (Shopify Basic): $29.00 monthly plan + 30 × $1.46 ($43.80 in card fees) = $72.80.
| Metric (30 orders @ $40) | Etsy | Amazon Pro | Own store (Shopify Basic) |
|---|---|---|---|
| Total sales | $1,200.00 | $1,200.00 | $1,200.00 |
| Inventory & postage ($18/unit) | -$540.00 | -$540.00 | -$540.00 |
| Platform & payment costs | -$120.00 (at least) | -$219.99 | -$72.80 |
| Monthly take-home profit | $540.00 (at most) | $440.01 | $587.20 |
At 30 orders a month, your own store yields at least $47.20 more profit than Etsy and $147.19 more than Amazon.
The break-even: when an own store beats marketplace fees
Marketplaces charge low or zero monthly plans but take high cuts per sale. Your own store has a monthly subscription but low processing fees.
- Shopify Basic vs Amazon Pro: On a $40 order, Shopify saves $4.54 in variable fees ($6.00 minus $1.46). Since Shopify Basic ($29) is cheaper than Amazon Pro ($39.99) and has lower per-order fees, Shopify is cheaper at any order volume. Against Amazon Individual ($0.99 fee + $6.00 referral = $6.99 fee vs $1.46 Shopify fee), the saving is $5.53 per order. Dividing $29 by $5.53 gives a break-even of 6 orders a month.
- Shopify Basic vs Etsy: Shopify saves at least $2.54 per $40 order ($4.00 minus $1.46). Dividing Shopify’s $29 fee by $2.54 gives 11.4 orders, so from about 12 orders a month ($480 sales) Shopify Basic costs less in fees than Etsy.
The catch: these break-evens assume the same buyers find you. On Etsy and Amazon, the fee pays for shoppers who are already searching there. On your own store you bring every buyer yourself, through search, social or ads. If you would spend more than the fee saving to get each order (about $2.54 vs Etsy, $4.54 vs Amazon Pro), the marketplace is cheaper. Many sellers keep the marketplace shop and add their own store for repeat buyers.
Run it with your own numbers: Break-even orders = Store monthly fee ÷ (Marketplace fee per order - Card fee per order). Test custom numbers in the profit per order calculator and compare ongoing costs in our monthly cost of running an online store guide.
Etsy: for handmade goods and immediate marketplace discovery
Etsy fits makers, artisans, and collectors who want qualified shoppers without running ad campaigns.
What Etsy gives you
Shoppers search Etsy specifically for gifts, crafts, and vintage goods. You need no existing audience to make your first sale.
- No subscription fee: List items without paying monthly plan fees.
- Low listing cost: Pay $0.20 per item listed, valid for four months or until sold.
- Built-in checkout: Etsy Payments handles card processing directly to your bank.
Where Etsy restricts you
- Creativity Standards: Items must be made, designed, handpicked, or sourced by you. Commercial reselling of mass-produced goods in handmade categories is banned.
- Vintage rule: Vintage items must be at least 20 years old.
- Customer data: Buyer contact details belong to Etsy; you cannot export emails to a newsletter.
- Offsite Ads: Etsy advertises listings externally; attributed sales carry an extra 12% or 15% fee.
Read how to price your products to ensure prices absorb marketplace fees.
Amazon: for high-volume consumer goods and Prime delivery
Amazon is built for convenience, standardized catalogs, and rapid fulfillment.
What Amazon gives you
Millions of shoppers start searches on Amazon, giving immediate volume to competitive consumer products.
- Two plans: Individual ($0.99 per item sold, no monthly fee) for testing under 40 units/month; Professional ($39.99/month, no per-item fee) for bulk listing, advertising, and automated pricing.
- Fulfillment by Amazon (FBA): Outsource storage, packing, shipping, customer service, and returns to Amazon, qualifying products for Prime two-day delivery.
- Merchant fulfillment (FBM): Ship orders yourself directly to buyers.
Where Amazon restricts you
- Category approvals: Regulated categories require pre-approval via Add a Product, often needing commercial supplier invoices.
- Referral fees: Amazon takes a percentage of total price: 15% on Home and Kitchen and Toys and Games; 8% on Consumer Electronics; 5% to 17% on Clothing; $0.30 minimum on all categories. Media adds a $1.80 closing fee.
- No customer relationship: Amazon masks customer emails, preventing remarketing or external email lists.
- Buy Box competition: Multiple merchants share product pages, making price competition intense.
See our guide on how to source products for an online store.
Your own store: for customer ownership and long-term brand profit
Operating a store on Shopify or Squarespace means running an independent website on your own custom domain.
What your own store gives you
- Full customer ownership: Capture customer emails at checkout for newsletters and automated flows. See email marketing basics for an online store.
- Lower variable costs: Pay standard card processing (2.9% + 30¢ on Shopify Payments or Stripe; 2.99% + 0.49 USD on PayPal) instead of 6.5% to 15% marketplace commissions.
- Brand control: Display your full catalog without competitor ads on your product pages.
What your own store requires
- Traffic acquisition: Attract your own shoppers through organic search and social media. See SEO for a new online store and Instagram marketing for an online store.
- Fixed monthly plan: Shopify Basic is $29/month billed yearly ($39 monthly). Squarespace Core is $29/month billed yearly. See Shopify pricing explained and Squarespace pricing explained.
- Policy compliance: You manage packing, FTC 30-day shipping compliance, refund terms, and sales tax. See shipping basics for a new online store and legal pages and policies for an online store.
Running both: the hybrid strategy
Many ecommerce businesses use marketplaces and their own store together:
- Validate on marketplaces: Use Etsy or Amazon to test demand, confirm pricing, and generate initial revenue.
- Build your independent store: Launch a Shopify or Squarespace site as the official brand home.
- Unboxing experience: Pack marketplace orders with branded cards that encourage buyers to search your brand for future purchases.
- Sync inventory: Use software to sync stock levels across Etsy, Amazon, and your store. Read inventory basics for a small store.
Who should pick something else
- Wholesale and B2B: Selling bulk raw materials or custom fabrication with negotiated quotes works better on dedicated wholesale platforms.
- Freelance services: Client consulting and digital client deliverables need invoicing software, not a shopping cart.
- Used personal items: Clearing secondhand goods under 20 years old belongs on local classifieds, Craigslist, or eBay.
Common mistakes when choosing where to sell
- Relying solely on marketplaces: Algorithm changes or fee increases can hurt sales overnight. Always build an independent site alongside marketplaces.
- Ignoring fees when pricing: Forgetting Etsy’s 6.5% cut, $0.20 listing fee, or Amazon’s 15% referral fee leaves no profit margin.
- Launching an own store with no traffic plan: A Shopify store has no foot traffic without SEO, content, or social promotion.
- Upgrading to Amazon Pro too early: The $39.99 monthly plan only beats the $0.99 Individual fee once you sell over 40 units a month.
- Scraping marketplace buyer emails: Directing marketplace shoppers off-platform violates terms and risks account closure.
How to decide what to do this week
- Check your products: Handmade, craft, or 20-year-old vintage fits Etsy. Standard consumer goods fit Amazon or your own store.
- Check your unit margins: Calculate fees with our profit per order calculator.
- Check your budget: If startup cash is $0, pick Etsy or Amazon Individual. If you can invest $29/month, launch on Shopify Basic or Squarespace Core.
- Set up fulfillment: Prepare packaging and weigh items. Follow our shipping basics guide and download the launch checklist to track every step.
Sources (checked 2026-10-03)
- Etsy, Inc.: Form 10-K Annual Report, official disclosure of the $0.20 listing fee, four-month listing duration, 6.5% transaction fee, 12% or 15% Offsite Ads fees, and Etsy Payments processing fee ranges
- Etsy: Vintage items policy, requirement that vintage merchandise must be at least 20 years old
- Etsy: Creativity Standards, rules requiring items to be made, designed, handpicked, or sourced by sellers
- Amazon: Selling fees and pricing plans, Individual plan ($0.99 per item), Professional plan ($39.99 per month), category referral fees (8% to 15%, $0.30 minimum), clothing tiers, and media closing fees
- Amazon: Fulfillment by Amazon (FBA), overview of FBA outsourced storage, packaging, Prime delivery, customer service, and returns
- Amazon: Seller Central category approvals, category gating and approval requirements via Add a Product
- Shopify: Plan pricing, Basic plan ($29/mo yearly, $39/mo monthly), Grow ($79/mo yearly), Advanced ($299/mo), and third-party transaction fees (2%, 1%, 0.6%, 0.2%)
- Stripe: Pricing overview, US domestic card processing rates of 2.9% + 30¢, international card add-on (1.5%), currency conversion (1%), and dispute fee ($15.00)
- PayPal: US business fees, standard card processing of 2.99% + 0.49 USD, PayPal Checkout rate of 3.49% + 0.49 USD, and chargeback fee (20.00 USD)
- Squarespace: Website and commerce pricing, online store transaction fees of 2% on Basic and 0% on Core and Advanced plans, 14 days free trial
- FTC: Business guide to the mail, internet, or telephone order merchandise rule, federal requirements for 30-day shipping windows, delay notices, and prompt customer refunds
