How to Sell on Amazon Handmade and Build a Profitable Business: Everything You Need to Know

Amazon Handmade is a powerful platform that can expand your reach and boost your sales.

If you’re making and selling handmade products, having as many revenue streams as possible makes sense. And the more places you have where to sell crafts online, the better your chances for increasing your revenue streams.

You may have started hitting local craft markets and 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.

How to Sell on Amazon Handmade: Step By Step Guide

When researching how to start a handmade business and exploring handmade business ideas, I’m sure you’ve come across Etsy. Besides Etsy, Amazon is one of the best places to sell handmade crafts online. If you’re considering Amazon as your selling platform, it’s important to understand the steps to creating a business with Amazon Handmade.

From setting up your Amazon business account to optimizing product listings and leveraging marketing tools, this guide will provide you with a comprehensive roadmap to establish and grow your handmade business on Amazon Handmade successfully.

Step 1: Create an Amazon Seller Central Account

To start selling on Amazon Handmade, you must create a Seller Central account if you don’t already have one. This account will serve as your central hub for managing your Amazon sales and inventory.

To begin, visit the Amazon Seller Central website and click on the “Register Now” button. Provide the required information, including your business, contact, and payment details. It’s essential to enter accurate and up-to-date information to ensure smooth communication and payment processes.

Once your Seller Central account is set up, you’ll have access to various tools and features that will help you manage your Amazon business effectively. These include inventory management, order processing, marketing and advertising options, and detailed sales reports. Take the time to familiarize yourself with the Seller Central dashboard and explore the available resources to optimize your selling experience.

Step 2: Upgrade to a Professional Selling Account

To sell on Amazon Handmade, you need a Professional Selling Account. While an individual account for selling is available, upgrading to a professional selling plan is recommended due to its additional benefits and access to advanced selling features. With a professional account, you can create product listings in bulk, utilize advertising and promotion tools, and participate in programs like Amazon’s Subscribe & Save.

To upgrade your account, navigate to the “Settings” tab in Seller Central and select “Account Info.” From there, click on the “Upgrade Account” button and follow the prompts to complete the upgrade process. Note that a monthly subscription fee applies for a professional account, in addition to referral and other selling fees based on your product categories.

Step 3: Check Eligibility Requirements for Handmade Category

Before proceeding, ensure that your products meet the eligibility criteria for the Handmade category on Amazon. Handmade items must be created entirely by hand, hand-altered, or hand-assembled. While there are some exceptions for tools used in the production process, mass-produced or manufactured goods are not eligible. Review the Amazon Handmade guidelines thoroughly to ensure that your products align with the category’s requirements.

Additionally, familiarize yourself with the specific product types allowed in the Handmade category. Amazon has defined various subcategories, such as Jewelry, Home, Beauty, and more, where you can list your handmade items. Make sure your products fall within the appropriate subcategories to ensure proper visibility and discoverability for potential Amazon customers.

By ensuring your products meet the eligibility requirements, you can save time and avoid potential issues during the application process. It’s crucial to maintain the integrity of the Handmade category by offering truly handmade products.

Step 4: Apply to Sell on Amazon Handmade

Once you have a Professional Selling Account and your products meet the eligibility requirements, you can apply to sell on Amazon Handmade. In Seller Central, go to the “Inventory” tab and click on “Add a Product.” From there, select the “Handmade” category and provide all the necessary information about your business and products.

Amazon will review your application to ensure that you meet the Handmade category’s criteria. This review and audit process typically takes several business days, and you will receive an email notifying you of their decision.

It’s essential to provide accurate and detailed information in your application to enhance your chances of approval. If your application is rejected, Amazon will often provide specific reasons for the rejection, allowing you to address any issues and reapply if necessary.

Step 5: Set Up Your Handmade Shop

Upon approval to sell on Amazon Handmade, it’s time to set up your Handmade shop. This shop will be your dedicated space within Amazon where customers can explore and purchase your unique handmade products. Customize your shop’s name, banner, logo, and other visual elements to create a distinctive brand identity that reflects the essence of your handmade products. A well-designed and visually appealing shop can attract customers and build trust in your brand.

To set up your Handmade shop, navigate to the “Manage Your Shop” section in Seller Central. Here, you can upload your logo and create a banner that showcases the essence of your brand. Take advantage of the customization options to create a cohesive and professional-looking shop that aligns with your brand image.

Next, create detailed and compelling product listings for your handmade items. Use high-quality images that accurately represent your products and highlight their unique features. Craft engaging and informative descriptions that provide relevant details about materials, dimensions, and any special techniques used. Incorporate relevant keywords to optimize your listings for search visibility within Amazon’s marketplace.

Step 6: Fulfill Orders and Provide Excellent Customer Service

Once your Handmade shop is up and running, it’s crucial to stay on top of your orders and provide exceptional customer service. Regularly monitor your inventory levels to ensure you have sufficient stock to fulfill customer orders promptly. Consider leveraging Amazon’s fulfillment options to streamline the order fulfillment process.

With Fulfillment by Amazon (FBA), you can store your products in Amazon’s fulfillment centers, and they will handle storage, packing, and shipping on your behalf. Alternatively, you can choose Fulfillment by Merchant (FBM) and fulfill orders from your own location.

Timely order fulfillment is key to keeping customers satisfied and maintaining positive reviews. Ensure that you follow Amazon’s guidelines for packaging and shipping to provide a professional and secure delivery experience.

Promptly respond to customer inquiries and address any concerns or issues with empathy and professionalism. Positive customer interactions can contribute to building a strong reputation for your Handmade shop and encourage repeat purchases.

As you navigate the world of selling on Amazon Handmade, always stay informed about the latest updates and resources available to sellers. Regularly review Amazon’s seller support documentation, participate in forums and seller communities, and stay up to date with industry trends. By continually learning and adapting, you can optimize your selling strategies and maximize your success on Amazon Handmade.

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 on 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.

Amazon Handmade Vs. Etsy

When it comes to selling handmade products online, two prominent platforms emerge: Amazon Handmade and Etsy. Let’s explore their differences and key features to help you make an informed decision.

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How Much Can You Make on Amazon Handmade?

Achieving financial success on Amazon Handmade varies among sellers, with many generating a minimum of $1,000 in monthly sales. Exceptional sellers, known as super-sellers, even reach sales figures exceeding $100,000 per month. Approximately 45% of Amazon sellers fall within the range of $1,000 to $25,000 in monthly sales, translating to potential annual sales between $12,000 and $300,000.

These figures highlight the wide spectrum of earning possibilities on the platform, showcasing the potential for significant revenue streams for those who implement effective strategies and tap into customer demand successfully.

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 are 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 number of sales increases.

Finding Products to Sell on Handmade at Amazon

When searching for products to sell on Handmade at Amazon, prioritize the creation of genuinely handcrafted goods. Start by researching popular trends and identifying your niche market. Focus on creating unique, high-quality handmade items that align with customer demand.

Conduct market analysis, analyze competitors, and leverage customer feedback to refine your product selection and increase your chances of success. Let’s take a look at four things you could sell on Amazon handmade…

Handmade Jewelry

Design and craft unique jewelry pieces that showcase your creativity and craftsmanship. Once you learn how to start a jewelry business, you can offer a variety of styles, materials, and personalized options to cater to different customer preferences. Focus on delivering high-quality, eye-catching designs that stand out in the competitive jewelry market.

Handmade Home Decor

Create beautiful and functional home decor items that add a touch of style and uniqueness to living spaces. From hand-painted ceramics to intricately designed textiles, offer a range of products that cater to various interior design themes and customer tastes. Emphasize the quality and attention to detail in your handmade creations.

Handmade Personal Care Products

Craft natural, organic, and artisanal personal care products that prioritize quality ingredients and promote self-care. Learn how to start a soap making business, or focus on other products like bath bombs, skincare, or haircare products. Focus on providing a luxurious and indulgent experience while highlighting the benefits of using natural and handmade alternatives.

Handmade Stationery

Appeal to stationery lovers by creating a range of handmade paper goods. From notebooks and journals to greeting cards and planners, offer unique designs that showcase your artistic flair. Emphasize the use of quality materials, such as recycled paper or sustainable alternatives, to attract environmentally conscious customers.

Amazon Vs Amazon Handmade

When comparing Amazon to Amazon Handmade, one key distinction lies in the type of selling account required. While Amazon allows anyone to sell various products through a standard professional selling account, Amazon Handmade focuses exclusively on handmade items. Amazon Handmade provides a dedicated artisan-only community to showcase their unique creations, with a focus on quality, craftsmanship, and individuality.

This specialized marketplace offers a curated experience for customers seeking genuinely handcrafted products. By contrast, Amazon’s broader platform accommodates a wide range of sellers and products, catering to diverse consumer demands.

Another notable difference between Amazon and Amazon Handmade is the availability of additional programs and services. For instance, Amazon Brand Registry is a program designed to help sellers protect and manage their brands on the Amazon platform, providing tools for brand protection and enforcement. On the other hand, Amazon offers the Amazon Subscription Box program, allowing sellers to create subscription-based product offerings and provide customers with a recurring delivery experience.

These programs provide additional opportunities for sellers to enhance their brand presence and explore innovative selling models beyond the traditional marketplace approach. Understanding these differences helps sellers choose the most suitable platform for their specific offerings and target customer base.

Handmade Amazon Pros

Amazon Handmade offers numerous advantages for artisans and craftsmen looking to showcase and sell their unique creations. With a focus on quality and craftsmanship, the platform provides opportunities for sellers to reach a wide customer base while enjoying several key benefits, including:

• Large customer base: Benefit from Amazon’s massive customer base, increasing your potential for sales and exposure.
• Brand visibility: Leverage the power of the Amazon brand to enhance your visibility and credibility as a seller of handmade goods.
• Ease of use: Enjoy a user-friendly interface and streamlined processes that make it convenient to list, manage, and sell your products.
• Global marketplace: Tap into international markets and reach customers around the world, expanding your business beyond local boundaries.
• Fulfillment services: Take advantage of Amazon’s efficient fulfillment services, allowing for faster and more reliable order processing and shipping.
• Marketing and advertising: Access various marketing and advertising tools offered by Amazon to promote your handmade products and increase sales.
• Flexibility: Amazon Handmade offers you the flexibility to invest as much time as you prefer. Start small and manage all aspects or expand as needed.
• Home-Based Business: Begin and operate your business from home, making it accessible and convenient.
• Scalable: The business model and platform allow for scalability, with continuous demand for new features, products, and services.

Handmade Amazon Cons

While Amazon Handmade provides several advantages for sellers of handmade goods, it is important to consider potential drawbacks as well. Understanding the challenges can help artisans make informed decisions about their selling strategies. Here are some key cons to consider:

• Competition: The platform’s popularity means increased competition among sellers, requiring effective differentiation and marketing strategies to stand out.
• Fees: Amazon charges various fees for selling on their platform, including referral fees and monthly subscription fees, which can eat into profit margins.
• Strict guidelines: Amazon Handmade has strict guidelines regarding product eligibility, ensuring items are genuinely handmade, which may require additional effort to meet and maintain compliance.
• Crowded Space: High competition requires effective strategies to stand out.
• Finding the Right Supplier: Identifying a suitable supplier can be time-consuming and critical for success.
• Security Issues: Data loss and security issues may arise, emphasizing the need for understanding responsibilities and precautions.
• Limited customization: Compared to having your own independent website, customization options may be more limited on Amazon Handmade, impacting your ability to showcase your brand identity fully.
• Dependency on the platform: Relying solely on Amazon Handmade means being subject to any changes in policies, algorithms, or fees, which can impact your business operations and profitability.

Amazon Handmade Sellers Tips

For sellers of handcrafted goods on Amazon Handmade, implementing effective strategies is important for success in the competitive marketplace. By following these Amazon Handmade seller tips, you can maximize your visibility, enhance customer satisfaction, and boost your sales:

• Niche targeting: Identify a specific niche market and tailor your products to cater to their needs, standing out amidst the competition.
• High-quality product images: Invest in professional product photography to showcase your items in the best possible light, attracting customers’ attention.
• Diversify Product Lines: Avoid repetitiveness by diversifying your product offerings.
• Build Trust with Customers: Engage more to establish trust, as face-to-face interaction is minimal.
• Consider Physical Activity: Balance your time between sedentary and active work to maintain health.
• Understand the Learning Curve: Be ready to learn all business aspects, as decision-making is solely in your hands.
• Leverage Ecommerce Growth: Utilize the rapid growth of ecommerce to drive sales and reach a wider audience.
• Optimized product listings: Craft compelling, keyword-rich product descriptions and titles that are informative, engaging, and optimized for search results.
• Customer reviews: Encourage satisfied customers to leave reviews, as positive feedback helps build trust and credibility with potential buyers.
• Marketing outside Amazon: Promote your Handmade Amazon shop through social media, email marketing, and collaborations to drive traffic and expand your customer reach.
• Exceptional customer service: Provide prompt and friendly customer support, respond to inquiries promptly, and ensure timely order fulfillment to foster positive customer experiences and encourage repeat business.

FAQs

Is it worth it to sell on Amazon Handmade?

Selling on Amazon Handmade can be worthwhile for artisans and craftsmen looking to reach a vast customer base and benefit from the platform’s brand visibility and ease of use. With a large customer base and access to fulfillment services, sellers can tap into global markets and leverage Amazon’s marketing tools.

However, it’s essential to consider factors such as competition, fees, and platform dependency before determining if Amazon Handmade is the best online marketplace that aligns with your business goals.

Do you have to have a business license to sell on Amazon Handmade?

While having a business license is not explicitly required to sell on Amazon Handmade, it is advisable to comply with local regulations and obtain any necessary licenses or permits for your specific location and type of business.

Operating legally and transparently ensures you can conduct your handmade business smoothly and provides reassurance to customers. It’s essential to research and understand the legal requirements and consult with relevant authorities or professionals to ensure compliance.

How long does it take to get approved for Amazon Handmade?

The approval process for Amazon Handmade typically takes several business days. After submitting an application, Amazon reviews it to ensure the products meet their criteria for handmade goods. Factors that may affect the approval timeline include the completeness and accuracy of the application, as well as the current volume of applications being processed.

While approval times can vary, sellers are encouraged to provide accurate information and documentation during the application process to expedite approval.

Do you need UPC codes to sell on Amazon Handmade?

Unlike the main Amazon marketplace, Amazon Handmade does not require Universal Product Codes (UPC) for product listings. Instead, sellers can use the Amazon Standard Identification Number (ASIN) assigned to each product when listing their handmade items.

ASINs help identify specific products within Amazon’s catalog. As a result, sellers can focus on creating and selling their unique, handcrafted goods without the need for UPC codes, simplifying the listing process on Amazon Handmade.

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 by Amazon Handmade?

No. It is a step-by-step process to apply and you should hear back within 48 hours via email.

You’ll be asked for 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.

Image: Envato Elements

This article, "How to Sell on Amazon Handmade and Build a Profitable Business: Everything You Need to Know" was first published on Small Business Trends