Do you have the spirit of a creative individual who loves making special, unique things? If you are, you probably have wondered about capitalizing on your hobbies. The arts and crafts market has been booming in recent years, and the market is estimated to be 70,331.63 million USD by 2032. Establishing your brand online will help you claim your share of the market and make a profit as massive as possible.

However, which is the best digital marketplace for artisans? That’s where Amazon Handmade enters the picture! The platform is specially designed for craftsmen and artisans to showcase and sell their handcrafted products to people across the globe.

If you are a handmade seller aiming to succeed in the marketplace, clearly understanding Amazon's handmade fees and various aspects is important. In this blog, we will break down the fee structure and provide practice insights on selling your products on the platform. Let's get started!

What is Amazon Handmade?

Amazon Handmade is a niche marketplace within the Amazon ecosystem dedicated just to handmade and hand-altered products. The handmade creations in this section are individually crafted, giving the Wonders a branded storefront on Amazon. The platform's personalization allows artists to tell the story of their products, which allows the customer to feel connected and appreciate the craftsmanship. As a part of Amazon Handmade, you will get access to the huge customer base of the platform as well as dedicated e-commerce infrastructure. 

Understanding Amazon Handmade Fees

Amazon Handmade fees include several types of charges. It includes listing fees, referral fees, fulfillment fees, and additional service fees.  The fees for every product can vary based on its type and selling plan. Typically, the nominal Amazon handmade fee is about 15% per sale, with an accurate breakdown of fees in your managed inventory dashboard.

Handmade goods are often categorized into different sections, each with a unique fee structure. Sellers from Amazon Handmade choose to take full orders themselves to save on fees, especially for customizable items. In such cases, you need to consider the high referral feel in your pricing strategy. It will help you achieve significantly higher prices compared to mass-produced items. 

How are Amazon Handmade Fees Calculated?

The calculation of Amazon handmade fees might seem complex, with intricate details on effective pricing and profit management. Here, we will take a closer look at how it is determined.

• Referral fees - The percentage of the total sales price, including the item price plus any shipping or gift wrap charges.
• Fulfillment fees (FBA) - These are based on the physical characteristics of the product, including its size and weight. These fees also cover the cost of picking, packing, shipping, customer service, and processing returns.
• Additional Fees - If you exceed a particular number of active non-media listings, additional fees will be applied to your total charge.

Strategies to Minimize Amazon Handmade Fees

Optimizing the Amazon handmade fees requires a proactive approach, with a focus on product lists, shopping, and inventory facilities. These strategies help you make the most of every sale and operation, ensuring every fee paid to Amazon gives you maximum return in terms of efficacy and profitability. 

• Optimizing product listing: This includes certain practices like bundling the products together. It will attract more customers and increase your sales while reducing the per-item selling fee. In addition, targeting the higher price points with feasibility will better absorb the impact of Amazon handmade fees, as Amazon's percentage will be constant.
• Bulk shipping and inventory management: These are specific criteria for fulfillment by Merchant sellers. When you ship products in bulk, you significantly reduce storage expenses and shipping costs. This approach is beneficial for Amazon handmade products that have consistent sales patterns, where bulk processing streamlines operations and reduces overhead costs. 

Requirements to Sell on Amazon Handmade

To sell your products on Amazon Handmade, you should create genuinely handcrafted goods while adhering to the following eligibility requirements.

1. Origin and production 

The products you listed on Amazon Handmade should be designed and produced by you or a small group of family members or employees. Hand tools and light machinery are allowed to be used within your home, studio, or compact workplace. Mass-produced products created by using automation technology will not be eligible.

2. Hand-Altered and Upcycled Items

Hand-altered, pre-made items are acceptable to list on Amazon handmade. For instance, you are allowed to apply your designs to any drinkware products. Upcycling involves enhancing the value of used items through refinement or upgrades.

3. Repurposing 

Repurposes is the act of using an item or its parts for something entirely new is allowed. For instance, you can make pillow covers from your vintage rugs. However, outsourcing to third parties, dropshipping to fulfill orders, reselling products, digital or downloadable products, and live plants are not allowed. 

4. Raw materials and crafting supplies

You cannot sell raw materials and crafting supplies on Amazon, excluding the Do-it-Yourself (Kit) or any crafting supply that you have made or hand-altered yourself. This category excludes any dyed material, yarn, and more. 

Steps to Start Selling on Amazon Handmade

Registering on Amazon Handmade is quite simple, even for beginners. Here’s a step-by-step guide to help you start selling your products online.

• Make the product yourself - The product you intend to sell on Amazon handmade should be made by yourself. The product’s marketability and consumer demand are based on the quality and appearance of your product.
• Answer the questions in the application form - If you want to sell the products, you need to apply for it. You will have to answer certain questions about your business, thereby testifying to your qualification as a seller on the platform.
• Choose the shipping method - There are two methods for delivering Amazon handmade products. These include FBA and FBM. Ensure to analyze them in detail to make an informed decision.
• Explore the shipping information - FBA differs from FBM in how you are involved in the selling process. Simply put, with the fulfillment by Amazon, the platform will take care of everything for the merchant. It includes packaging, preparation of goods, shipping, and customer service. Therefore, fulfillment by a merchant indicates the usage of your resources for all the relevant processes.

Selling Tips for Amazon Handmade - Best Practices 

To begin selling your handmade product on Amazon, it is important to build an online storefront within the platform, which is visually rich an easy-to-navigate. Nonetheless, if you want to broaden your sales volume, you have to use some smart promotional strategies to get in front of your target audience. Below are the best-selling tips for Amazon handmade.

1. Advanced Listing 

While you are listing the products on Amazon Handmade, ensure to use the right keywords in your titles and product descriptions to make them easily searchable. You can make use of Amazon keyword research tools to find popular search terms for your specified category. You can also add other information, including detailed decisions and uses, to bring more customers to the listing. 

2. Share on social media.

Once your Amazon handmade storefront is fully finished, it's time to market your brand in the digital world. Create a social media presence, and then start sharing inspiring posts to promote your store. For instance, you can create video content or graphics to share within minutes. Investing in such social media advertisements will drive more traffic to your handmade store. You can also use email marketing strategies to engage with your consumer market. 

3. Monitor Performance

After implementing your promotional strategies, gauge the sales performance, customer reviews, and all other pivotal metrics from the analytical section of the Amazon platform. You should also keep updating your listings to align with customer reviews and evolving market trends.

3. Analyze the Top Sellers

There is a reason why the top sellers rank the best in Amazon handmade. In addition to having a great product, they are also likely to master their selling strategies on the platform. Sort the listings by the top sellers in your category and analyze their success patterns. Ask queries like what kind of images and descriptions they use for their product and what their copywriting style. 

4. Use Top-Quality Images

Of all the top-selling tips, using high-quality images should be your highest priority. Images are undoubtedly the first thing your users will notice when sifting through the results pages. No one will click on your listing if your photos are captured in poor lighting. Therefore, ensure to have a precise photo with a clean backdrop, with diffused, bright lightning. 

5. Narrate your Story in the Copy

Amazon Handmade is popular among customers due to the intimacy of the items made by human hands with real stories. People tend to respond to unique narratives, triggering them to pay attention. Therefore, make sure to get real with your audience and tell your story.  While crafting such marketing copy, ensure that it is concise, grammatically correct, and readable. You may even get help from AI tools to get started. 

Benefits of Selling on Amazon Handmade

Since its launch in 2015, Amazon Handmade has slowly progressed as one of the leading platforms for handmade and crafted goods. Here are some benefits of selling your handcrafted products on Amazon.

• Wider reach - Amazon Handmade is designed to help you reach out to a wide array of customers since millions of people visit the platform every day. Hence, you can increase your sales numbers and reach your brand better.
• Customizable storefront - As a seller on the platform, you can design and create your customizable storefronts. You can build your brand from scratch to share stories about your products and illustrate the artisan manufacturing process.
• Affordable commissions - Amazon handmade fees for your products do not involve any listing charges. You just have to pay 15% for any purchase. Moreover, you are waived from paying the monthly subscription fees, which makes it more affordable for every artisan.
• Marketing tools - Amazon Handmade provides you with multifaceted marketing tools, such as sponsored ads within their platform. These will improve the visibility and exposure of the seller’s products across a vast audience base.

Carve out a Digital Identity for your Craftsmanship with Neo!

Being a part of Amazon Handmade will get you access to the huge customer base of the Amazon platform itself, where you can preserve the authenticity and uniqueness of your handmade products. But what if you want to tap into a wider global audience? Then, it's time to build your digital identity with a one-page page website feature! With their pre-designed templates, you can easily build your web presence, even with a need for coding language. You can simply list your products and add the link to Amazon's handmade site, social media, links, and more. 

Wrapping Up!

Amazon Handmade offers an incredible opportunity for every craftsman to convert their passion into a successful business.  It upholds the potency of your creativity, craftsmanship, and personalization, allowing you to expand your footprint across global marketing for impressive business growth. With the platform, you can reach millions of international buyers and gain their trust. It takes commitment, dedication, and strong will to build and improve your business with Amazon Handmade.

Being a part of Amazon Handmade will get you access to the huge customer base of the Amazon platform itself. You can create higher brand awareness with a professional business email. Designed for small businesses and entrepreneurs, Neo is an excellent email hosting website that allows you to create a free email address during its trial period. It also lets you make a com, biz, or an edu email with your custom domain. So, start your entrepreneur journey with Amazon today and enhance your branding with Neo’s services!

Frequently Asked Questions (FAQs)

Q1. How does Amazon Handmade charge?

The nominal Amazon handmade fee is about 15% per sale, with an accurate breakdown of fees in your managed inventory dashboard. 

Q2. Is it profitable to sell your products on Amazon Handmade?

Selling your handmade products on Amazon can be highly profitable. It shows that 33% of the handmade sellers on Amazon have a higher profit margin and fairly low seller fees when compared to other sites. Moreover, amazon's handmade products are customized and are not proper for resale. Hence, GST does not apply to them. Nonetheless, make sure to be aware of your local laws of the state. 

Q3. How to list with Amazon Handmade?

There is a simple process you have to follow to list your products with Amazon Handmade. The steps include:

• Go to the Seller Central Account, and below Inventory, you should select Add a Product option.
• Choose Create a new product listing
• Now tap on the product category, which is Handmade
• Fill in the accurate title and description for your product, and add relevant images.