Selling on Amazon Handmade: A Step-by-Step Guide

Amazon Handmade is a niche section of the e-commerce giant Amazon, where artisans can sell unique, handcrafted goods. According to JungleScout, handmade items rank among the top 20 categories with the highest number of successful sellers, achieving a net profit margin of 20% or higher. If you run a business producing exclusive, handmade products and are looking to break into the international market, Amazon Handmade could be a promising platform to consider.

In this guide, we'll explore the specifics of the types of products permitted for sale on Amazon Handmade, the marketplace fees, and the pros and cons of selling on this platform.

What is Amazon Handmade, and how do you sell there?

Launched in 2015, Amazon Handmade allows sellers to list unique, handmade items across categories like:

• Jewelry
• Furniture
• Textiles
• Clothing and footwear
• Bags and accessories
• Baby products
• Sports items
• Holiday decorations

Compared to selling on Amazon's primary marketplace, working on Amazon Handmade has some unique aspects:

1. Custom orders & flexible production time

If your items are custom-made, you can set a production time of up to 30 days, which buyers are willing to wait for one-of-a-kind pieces.

2. Professional seller account

Unlike Amazon's main marketplace, sellers on Amazon Handmade must register with a Professional Seller account, which is free after the first month.

3. No monthly fees

Amazon Handmade doesn't charge listing fees, monthly subscriptions, or hidden costs – only a 15% referral fee on each sale. On Amazon's main marketplace, sellers pay monthly fees ($39.99) for a Professional account and have varying referral fees.

4. Payment schedule

To receive payment for a sold product, sellers must mark it as "shipped." Payouts are processed every two weeks.

5. Handmade manufacturing models

You can make the products yourself, work with a team of up to 20 artisans, or add custom designs to mass-produced items, which would classify them as "customizable products."

Due to the more focused niche, Amazon Handmade has less competition than the main Amazon platform, making it easier to attract your target audience and sell your products.

Amazon Handmade offers the same fulfillment options as the main Amazon platform. You can either handle orders yourself through Fulfillment by Merchant (FBM) or use Amazon's Fulfillment by Amazon (FBA) service for storage, preparation, and shipping.

Registration on Amazon Handmade

To start selling on Amazon Handmade, you'll first need to create a seller account on Seller Central. Once registered, apply to sell in the "Handmade" category by providing:

• A scan of an ID (e.g., passport).
• Detailed business information.
• A photo of your workspace as proof of handmade production.

Pro Tip: Before registering, analyze your niche and competitors to understand market demand and ensure you can supply enough inventory.

Amazon Handmade product requirements

For your items to be approved for sale, they must meet Amazon Handmade’s requirements:

1. Uniqueness: products must be unique and genuinely handmade. Mass-produced items are strictly prohibited.
2. Upcycled & customizable goods: you can sell products upcycled from mass-produced items (e.g., a vase made from vinyl records) or customize existing goods (e.g., painted ceramics).
3. Customizable items: if selling customizable products, you must list them under the "Custom Amazon" section.
4. Prohibited items: reselling unaltered third-party goods, digital products, food, electronics, live plants, and craft supplies are not allowed.
5. Exceptions for craft supplies: handmade or modified craft supplies (like hand-spun yarn) and live plants as part of decorative compositions are permitted.

Examples of popular handmade categories on Amazon

Below are the most popular categories you can find on Amazon Handmade:

1. Wedding decor

Handmade decorations like artificial flowers, cake toppers, candles, and banners add a unique touch to weddings.

2. Kitchenware

Cutting boards, containers, and bakeware are highly sought after, with Home and Kitchen being the most popular category for small sellers.

3. Jewelry

A popular category for handmade artisans, allowing them to sell a wide range of accessories, from fine jewelry to costume pieces.

Amazon Handmade fees & charges

Compared to platforms like Etsy, Amazon Handmade has a more straightforward fee structure. Sellers must have a Professional Seller account (free after one month), and pay only a 15% referral fee on each sale.

Those using Amazon's FBA service will face additional fees for fulfillment, storage, and any long-term storage charges. A potential cost-saving option is Amazon's "Small and Light" program, which reduces shipping fees for small items.

Fulfillment by Amazon (FBA) fees are described here:

• FBA Fulfillment Fee: Starts at $3.22, based on item size.
• FBA Storage Fee: Calculated seasonally: $0.56 (January-September) and $1.40 (October-December) per cubic foot.
• Aged Inventory Surcharge: For items stored over 25 weeks.
• Return Administration Fee: If a buyer returns an item, a 20% return fee is deducted from the referral fee.

Sellers can leverage Amazon's advertising options, primarily through pay-per-click (PPC) models, with fees ranging from $0.02 to $3 per click.

Selecting products to sell on Amazon Handmade

Before choosing a product, analyze market demand using Amazon's "Best Sellers Rank (BSR)" and "Movers & Shakers" lists or external tools like:

• Google Trends: track search trends for your product.
• Jungle Scout: estimate sales for potential products.
• Unicorn Smasher: get insights on product ratings, monthly revenue, and reviews.
• Keepa: monitor price changes over time.

Study Amazon Handmade's search results, product ratings, and bestseller badges for insights on consumer preferences. Also consider choosing products with year-round demand to ensure consistent sales.

Final thoughts

To succeed on Amazon Handmade, you need to follow these simple steps:

1. Analyze the market, niche, and product demand.
2. Ensure your product meets Amazon's handmade criteria.
3. Calculate costs, including Amazon’s fees, before setting prices.
4. Weigh the pros and cons to make an informed decision.

If you're ready to take the next step and showcase your handmade creations to millions of potential buyers, then Amazon Handmade is an ideal platform to explore. Embrace the opportunity to build a brand, share your story, and grow your business in a community that values craftsmanship and creativity. And remember, while entering a new marketplace can be challenging, the reward of reaching a broader audience makes the effort well worth it. Happy selling!

If you need help setting up your seller account, SellerSail is here to support you. We offer expert guidance to help you make the most out of your Amazon Handmade store. Let us take care of the complexities so you can focus on creating amazing products. Reach out to us today!