Amazon vs Etsy
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
Amazon wins on shipping speed and buyer reach; Etsy wins on authenticity, curation, and being the default handmade destination.
At a glance
| Metric | Amazon | Etsy |
|---|---|---|
| Revenue | $717B (FY2025) | $2.88B (FY2025, +2.7% YoY) |
| Profit | $77.7B (Net Income, FY2025) | $163M net income (FY2025) |
| Active users | 250M+ Prime Members | ~86.5M active buyers |
| Employees | ~1,560,000 | ~2,400 |
| Founded | 1994 | 2005 |
| HQ | Seattle, WA | Brooklyn, NY |
LLitmus Framework Score
Overall: Amazon 93 · Etsy 90
Customer Segment
99
96
Value Proposition
98
94
Marketing Channel
95
85
Engagement
94
88
Income Source
92
95
Asset Validation
97
82
Core Operations
90
85
Strategic Alliance
85
90
Expense Validation
88
93
Amazon leads 6 modules, Etsy leads 3. Overall edge: Amazon.
Head to head
| Dimension | Amazon | Etsy |
|---|---|---|
| Category ownership | Minor tab in mass-market store | Owns "handmade/vintage" mindshare |
| Buyers | 250M+ Prime members | 86.5M active buyers |
| Logistics | Prime same/next-day delivery | No owned fulfillment; seller-shipped |
| Unique inventory | Largely mass-produced overlap | 87% of buyers find items nowhere else |
| Take rate | 15-40% on marketplace sales | ~24.5% effective |
FAQ
Is Amazon or Etsy a better business?
Amazon wins on shipping speed and buyer reach; Etsy wins on authenticity, curation, and being the default handmade destination. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Amazon and Etsy's business model?
Amazon operates in Ecommerce / Technology (Earth's Most Customer-Centric Company), while Etsy is Ecommerce (Keep Commerce Human). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Amazon or Etsy?
Amazon: $77.7B (Net Income, FY2025). Etsy: $163M net income (FY2025).