In this blog post, we will compare Amazon Business Account Benefits vs Etsy to give you more insight into both website marketing as a seller and determine which may benefit your business more.
The online e-commerce market is highly competitive, with many options for sellers. Among the most popular choices, Amazon and Etsy are two platforms that offer unique selling points when compared to one another.
If you are an online seller, it is essential to consider the pros and cons of each marketplace to make an informed decision about the best option for your business.
1. What is the Difference Between Amazon and Etsy?
The primary difference between Etsy and Amazon is in their business models; Etsy is an online marketplace for handmade, vintage, or one-of-a-kind products, while Amazon sells mostly mass-produced merchandise from various different brands. This means buyers on Etsy can find unique items that cannot be found anywhere else, whereas many items sold on Amazon can also be found in physical stores or other online retailers.
Etsy has seen tremendous growth over the past decade.
As of April 2020, it had more than 60 million buyers, over 2.9 million active sellers, and a total of 55 million unique items listed on its platform, more than double what it was five years ago.
Today, Amazon is one of the leading e-commerce companies in the world and is valued at more than $800 billion. Its popular services include Amazon Prime, Amazon Video, Kindle Direct Publishing, and Alexa. It has even entered into grocery market with its acquisition of Whole Foods Market in 2017. Furthermore, it has recently begun offering virtual healthcare services through its new venture “Amazon Care”.
On other hand, Etsy transactions are worth around $35 per order, with a total of $10 billion in sales generated over the last 12 months alone. Etsy has reshaped the way people shop for unique items and gifts by connecting buyers with independent makers from all over the world. The site provides a one-stop shop for customers looking for handmade items, vintage goods, and custom-made products such as furniture, jewelry, clothing, home decor, and much more.
Etsy also features a robust digital marketplace where buyers can find irreplaceable new items or seek out rare finds from past generations.
The mission of Etsy is to keep commerce human. It aims to direct buying and selling between customers and sellers to a more personalized experience rather than just a transaction. This is achieved through their suite of services that support individual buyers and sellers.
While Amazon’s retail marketplace is easy to use, with product reviews that help shoppers make informed decisions about what they buy, millions of third-party sellers offer competitive prices, making it an excellent option for shoppers seeking quality items at low prices. Many buyers appreciate Amazon’s Prime service, which offers free two-day shipping and access to thousands of exclusive deals each month.
2. The Amazon Business Account Benefits
● Wide range of potential customers: Amazon is the world’s largest online marketplace, with customers located in over 180 countries. By selling on Amazon, you can access an enormous customer base that would otherwise be unreachable. Furthermore, sellers can target buyers by creating tailored ads and implementing Amazon’s marketing tools. Additionally, Amazon cross-sells items to increase your sales exposure even further potentially.
● Convenience: There are numerous advantages to selling through Amazon compared to Etsy; for example, setting up a store is simpler than ever. The Seller Central interface allows sellers to quickly create their page and start listing products in no time. Furthermore, sellers can manage their entire business from one centralized location. Amazon has features such as tracking orders and inventory management, allowing them to keep track of everything they need to ensure smooth operations.
● Fulfillment Services: For those without a warehouse or logistical team, selling on Amazon will enable them to access fulfillment services such as Fulfilment by Amazon (FBA). This service simplifies managing a business by handling things like shipping orders and providing customer support services like returns processing and customer service queries.
● Competitive Pricing: Sellers can choose from different tiers regarding fees, meaning they have more flexibility when deciding how much they want to spend on fees while still making profits from their sales. Moreover, several discount programs are available for sellers looking for additional savings on these fees, allowing them more control over their budgeting costs while remaining competitively priced against other marketplaces.
3. The Cons of Selling on Amazon
● Unpredictable Changes: As Amazon is constantly updating its algorithms and introducing new policies, sellers must keep up with any changes in order to remain competitive and successful on the platform. Failure to do so could mean that your products no longer appear in search results or shoppers don’t find them appealing due to poor presentation or slow loading times – all of which could lead to fewer sales and lower profits over time.
● Heavy Competition: Amazon is one of the most popular e-commerce platforms out there which attracts many sellers. This means that you’ll face stiff competition when selling on Amazon, which can make it difficult for new entrants and small businesses who lack resources or visibility compared to larger sellers already established on the platform.
● Uncontrollable Market Fluctuations: Selling on Amazon can be risky as the ever-changing market, including fluctuating consumer demand and competitor prices, can cause product prices to become highly unstable. This could lead to unexpected losses for all sellers, especially if they fail to keep track of price changes and adjust the pricing accordingly. Furthermore, if the market takes an unexpected downturn, it could mean that sellers have too much inventory sitting in their warehouses with no customers willing to buy it. Additionally, if Amazon decides to raise or lower its fees or alter any of its policies in a way that might limit sellers’ profits or activities, this could also cause financial losses for sellers.
● Brand Dilution: Another issue associated with selling directly on Amazon is that brands can sometimes suffer from brand dilution when competing with unauthorized resellers who may not offer original items at discounted rates or even counterfeit items that damage buyer trust by providing inferior quality goods compared with genuine products sold by authorized dealers like yourself. This can cause frustration among loyal customers who bought directly from your store only to find out they are no longer getting exclusive deals or, even worse, being offered fake goods instead of genuine ones – something that reflects poorly upon your business as well as possibly leading them away from your store altogether!
4. The Pros of Selling on Etsy
- Targeted customer base: Etsy’s focus on handmade, vintage, and unique items draws a specific audience interested in creativity and craftsmanship. This niche market consists of customers who value originality and quality over mass-produced items. By selling on Etsy, you can tap into this highly engaged audience, which is more likely to appreciate and purchase your products. The platform’s reputation and existing customer base can help you build brand recognition and reach potential buyers who share your values and aesthetic.
- Ease of setup: Etsy’s user-friendly platform makes setting up your online store seamless, even if you are new to e-commerce. You can quickly create a professional-looking storefront with customizable shop sections, product listings, and shipping options. Etsy’s straightforward fee structure and built-in payment processing system also simplify the financial side of your business. With minimal technical expertise required, Etsy allows you to focus on creating and selling your products without the need to build and maintain your website.
- Global reach: Etsy provides an opportunity to connect with customers worldwide. With millions of shoppers visiting the platform each month, you can expand your market beyond local buyers and gain international exposure for your brand. Etsy offers tools and resources to help sellers navigate international shipping and customs, making it easier to reach a diverse and global audience. This international reach can help you grow your customer base, increase sales, and establish a stronger presence in the creative community.
- Supportive community: Etsy fosters a supportive and collaborative environment for sellers. The platform offers various resources, such as the Etsy Seller Handbook and the Etsy Success newsletter, to help sellers improve their businesses. The Etsy forums and Teams provide opportunities for sellers to connect, share experiences, and seek advice from one another. This sense of community can be invaluable, especially for small business owners and artisans looking for guidance, inspiration, and networking opportunities. By selling on Etsy, you can benefit from the collective knowledge and support of fellow creative entrepreneurs.
Amazon business offers some great benefits for buyers that make it stand out from other B2B marketplaces: 1. Huge Product Selection: You get access to millions of products, from office supplies to heavy-duty tools, all in one place. 2. Bulk Discounts: If you’re buying in large quantities, you can score special discounts and save big. 3. Multiple User Accounts: Amazon Business lets you set up accounts for your team members, so everyone can order what they need. Plus, you can track spending and set approval workflows to keep things organized. 4. Exclusive Pricing: Many items are priced lower jusr for Amazon Business buyers, so you can get better deals. 5. Tax Exemptions: If your business qualifies, you can make tax-free purchases, which is a big bonus for saving costs. 6. Flexible Payment Options: You can enjoy extended payment terms, use purchase orders, or even set up a credit line, which gives you more control over cash flow. 7. Purchase reports: Amazon Business provides reports and analytics to help you keep track of what you’re buying and how much you’re spending, making it easier to manager your budget. These features make Amazon Business a flexible and easy to use platform that helps businesses save time and money.
Etsy and Amazon are both popular marketplaces, but they cater to different types of sellers and buyers. Here are the key differences: 1. Focus: • Etsy specializes in handmade, vintage, and unique items. It’s the go-to for custom or artisan products, creative goods, and personalized gifts. • Amazon sells just about everything, from everyday household items to electronics and apparel. It’s a vast marketplace with a more general product focus. 2. Seller Type: • Etsy attracts smaller, individual sellers, many of whom create and sell their own products. You’ll find a lot of independent artisans and craft makers here. • Amazon is home to large-scale sellers, brands, and even major retailers. It’s ideal for businesses looking to sell at a higher volume. 3. Product Range: • Etsy is more niche, offering a smaller, curated selection of items that are often one-of-a-kind or limited in quantity. • Amazon offers a huge variety of products, from big-name brands to everyday essentials. 4. Fees and Pricing: • Etsy charges listing fees, transaction fees, and payment processing fees, but its overall fee structure is simpler for smaller sellers. • Amazon has more complex fees, including referral fees, storage fees (for FBA), and professional seller account fees, making it more suited for larger-scale businesses. 5. Customer Base: • Etsy appeals to buyers looking for something unique or personalized, often for gifts or home décor. • Amazon attracts a wide range of customers looking for fast, convenient purchases, often focused on price and delivery speed. Cutting it short, Etsy is ideal for small, creative businesses, while Amazon is better for high-volume sellers or those offering a wide range of products.
Yes, you can integrate Etsy with Amazon using third-party tools or software that help you manage both marketplaces in one place. These tools allow you to sync your inventory, orders, and listings between Etsy and Amazon, making it easier to sell on both platforms without manually updating everything. Some popular integration tools include: 1. Sellbrite: Helps you list products on both platforms, manage inventory, and fulfill orders from a single dashboard. 2. LitCommerce: Enables multi-channel selling by syncing your products, orders, and stock across Etsy and Amazon. 3. Shopify: If you use Shopify as your online store, you can integrate both Etsy and Amazon into your Shopify dashboard, allowing you to manage everything from one spot. 4. Exportyourstore: Exportyourstore allows you to export your products from Etsy and import them to Amazon with just 3 simple steps. By using these tools, you can streamline your operations, save time, and avoid overselling products on either platform. It’s a great way to reach more customers while keeping everything organized!
Yes, you can create an Amazon Business account even if you don’t have a registered business. Amazon allows you to sign up as a sole proprietor or individual. When registering, you can select the option that applies to you, such as “Sole Proprietor” or “Individual” and provide the multi-user accounts and business pricing. However, you might miss out on certain benefits that registered businesses get, such as tax exemption or access to business credit options. But if you’re just starting out and don’t have a registered business yet, you can still enjoy most of the features Amazon Business offers, like multi-user accounts and business pricing.
Yes, an Amazon Business account is different from a regular Amazon Seller account, even though both can be used for selling on Amazon. Here’s how they differ: 1. Amazon Business Account: • Primarily for business buyers but can also be used by sellers who want to sell to other businesses. • Business sellers can offer business-only pricing, bulk discounts, and even tax-exempt purchasing to verified business buyers. • Designed for B2B (business-to-business) transactions, allowing sellers to target other businesses, organizations, or professionals with special features like multi-user accounts, purchase approvals, and detailed reports. 2. Amazon Seller Account: • Focused on selling to general consumers (B2C), where you can sell products to individual customers across the Amazon platform. • You can choose between an Individual or Professional seller account, depending on your volume of sales and whether you want to use Amazon’s fulfillment services (FBA) or fulfill orders yourself. While both accounts allow you to sell, an Amazon Business account provides additional features specifically designed for B2B transactions, while a Seller account is typically for selling to the general public.
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