If you’re making and selling handmade products, it makes sense to have as many revenue streams as you can. And the more places you have where to sell crafts online, the better your chances for increasing your revenue streams.
You may have started out hitting local craft markets, and you probably have your own website and Facebook page. You may have some items listed for sale on Etsy, eBay, or Amazon.
It’s always a good time to sell your homemade crafts on Amazon Handmade. With just a few clicks, you can begin promoting – and selling – your shop of genuinely handcrafted products.
What is Amazon Handmade?
Amazon Handmade launched in 2015 as an online store within the Amazon Marketplace. Handmade sellers could place their products in the special Amazon Handmade niche.
Through the connection with Amazon, a seller can connect with 95 million Amazon shoppers in the United States, not to mention more than 250 million Amazon shoppers worldwide.
Amazon Handmade is a special store within Amazon for artisans who want to sell their handmade items. But there are some steps you must take for how to get on Amazon Handmade.
Who Can Sell on Amazon Handmade?
First, you must have a professional Amazon Sellers Account.
There’s an application process to get your items into the Handmade store. Through the application, you’ll provide basic information, then answer a series of questions about your products. You’ll also provide photos of your items, and describe your production/creation process.
You should hear back from Amazon on the status or approval of applications within 48 hours.
What Can My Business Sell on Amazon Handmade?
According to Amazon guidelines, your product “must be made entirely by hand, hand altered or hand-assembled.” The products must be made by you or your employees.
Your company that makes the handmade products must employ 20 or fewer employees (or you can be a member of a collective with 100 or fewer members).
Amazon Handmade has created categories for the products such as Amazon wedding shop. Here are some of the categories:
- Clothing and Shoes
- Pet Supplies
- Toys and Games
- Handbags, Home, Outdoor
- Sporting goods
What does Amazon Handmade Charge?
Your Amazon Professional Seller Account requires a $39.99 monthly subscription fee. You have to have an Amazon Professional Seller Account to list your products on Amazon Handmade.
Amazon charges a transaction fee of 12%. There is no listing fees – you can list as many products as you want.
As a person selling on amazon, you have to weigh the pros and cons. A seller has to calculate how the Amazon costs cut into your profit margin.
Let’s devise an example. You have 10 products that cost $20 each, that you hope to be selling on amazon, at the handmade store. In one month you sell all 10, making $200.
Your costs are the $39.99 professional seller account monthly fee, plus $24 (the total 12% transaction processing fees). $200 less $64 = $136 for the 10 products, or $13.60 for each.
How does it work on Etsy? Etsy charges .20 as a listing fee for each item. Etsy charges a 3.5% commission and a 3% processing transaction fees, for a total fee of 6.5%. Your costs with Etsy are $2 for 10 listings, and 6.5% of the $200 ($13). Your total would be $200 less $15 = $185, or $18.50 for each. Etsy may also charge a $1 referral fee.
Should you be selling on Amazon, or Etsy? Many sellers list on both, as a sure way to calculate which site is performing best. The impact of fees lessens and profit margins improve when the numbers of sales increases.
How to Sell on Amazon Handmade
Here are the steps to get started with Handmade at Amazon as a seller.
1. Create a Selling Account
This is step 1 of the program. The professional selling account requires a complete registration. The monthly subscription fee is $39.99.
At tax time, your business can deduct the cost of the subscription fee for the professional selling registration. Amazon will provide tips to get you started with a professional selling plan for your shop.
2. Complete the Application and Audit Process for Handmade at Amazon
You’ll have to answer questions about your handmade products and include pictures of them. You’ll also have to detail the steps that you and/or your employees take to product the handmade products.
3. Create Your Artisan Profile
As part of the sign up process through seller central, you will create an artisan profile with a picture. This will help promote your business within the artisan community, and will help customers identify you on a future search.
You’ll be able to create a shop banner for your store within the handmade larger store. You can feature your home state or area of the country.
You can choose and feature up to four of your handmade items.
4. Decide How You Want to Fulfill Orders
Since you’ll be shipping from your location, you’ll choose how the goods are shipped and the terms for what customers will pay.
Here’s something good to know – if you ship every business day, you can use Seller-fulfilled Amazon Prime. This is an advantage, since your handmade store will display the Prime banner, with will help with customer confidence.
You can also use Amazon FBA. With FBA, artisans ship their goods to an Amazon warehouse, and the goods are shipped from Amazon. To do this, you must be sure that you can keep the warehouse stocked in a timely manner.
5. List Your Handmade Products
Product listings must be made one at a time. It’s a learning curve, and can be time consuming.
You must choose the category where your product will appear. Some categories may overlap. For example, you may choose the category Jewelry instead of the category Gift for a handmade necklace.
6. Share the News
Let your existing customers know via social media that you’ve joined the businesses that are selling on the Handmade storefront. You can also make an announcement using a mass email list from your existing customers.
7. Grow Your Customer Base
On Handmade, you can provide links to the url of any other sites you have. This will help more customers find you and see each item you make and sell.
Once you are established on Amazon Handmade, each customer can rate their shopping experience with each sale. You’ll be rated on:
- Customer feedback
- On time shipments
- On time delivery
- Time it takes to respond to customers messages (no more than 48 hours).
It’s important to remember that ratings are public.
Can I sell homemade products on Amazon?
Yes. You’ll set up a professional seller account. You’ll also go through an application process to prove that your products are made entirely by hand, hand altered or hand assembled.
You must have 20 or fewer employees, or be part of a collective (no more than 100).
You can’t sell handmade things that are made by someone else (not made by you), or things that are not made by one of your employees.
Is it hard to get approved to Amazon Handmade?
No. It is a step by step process to apply and you should hear back within 48 hours via an email.
You’ll be asked details about the production of your products and you’ll be asked to submit photos. You may be asked to submit photos both of the production process and of the products as well.
It’s all time consuming but it’s a one-time requirement. Once you’ve been accepted, you may make changes such as which products you want to feature, add or remove. But you won’t have to apply again.
What percentage does Amazon Handmade take?
There is a 12% processing fee. You will also pay a $39.99 monthly fee to be a professional seller.