Amazon opens online shop for handmade goods

Debuting yesterday, Amazon’s artisanal marketplace Handmade at Amazon exclusively sells, yes, handmade goods direct from producers, reports the New York Times.

Handmade at Amazon includes 5,000 sellers from 50 states and 60 countries offering 80,000 items.

“Knowing an item has a unique story behind it creates a personal experience that customers have told us makes owning handmade items special”, Peter Faricy, vice president for Amazon Marketplace, said in a statement.

While Amazon’s initial seller base is significantly smaller, the company does have the benefit of having a 285 million-strong customer base.

Etsy Inc. started 10 years ago as a marketplace for homemade goods and went public on April. Handmade at Amazon will take a 12 percent referral fee in exchange for listing the products and payment processing.

On the side of manufacturing, the two platforms have different takes, as well.

In order to get wares onto Handmade, sellers have to apply and be vetted to check on the materials they use and to ensure all products are made by hand.

On the other hand, the 1.5 million sellers at Etsy pays 3.5% fee on overall sale with 20 cent listing fee per item listed.

As far as competing against Amazon, Dickerson said that about half of Etsy sellers already sell via multiple venues, and of those sellers, Etsy is still usually their primary source of income. Also, as Etsy has moved to offer more manufactured goods, Amazon established Handmade to offer only certified handcrafted products. Before Amazon’s launch, Etsy staked the claim as the premier marketplace where artists could sell directly to consumers, but the Brooklyn-based company must now contend with Jeff Bezos’ massive business.

Will you stay loyal to Etsy, or are you excited for the chance to pick up a handmade beaded bracelet with your bulk purchase of shaving cream?