Etsy vs. Amazon Ads: Which Platform Gives a Better ROI in 2025?
Written by Shahid R. KhanReviewed by Andrew L. Adler & Jonathan M. Adler
In 2025’s competitive e-commerce landscape, selecting the right advertising platform can significantly impact your business success.
Amazon Ads and Etsy Ads are two dominant players, but which delivers superior return on investment (ROI)?
This guide compares recent data, seller experiences, and key performance metrics to help you strategically allocate your advertising budget.
Quick Snapshot: Etsy vs. Amazon Ads
- Average ROI: Amazon Ads at 3.8x; Etsy Ads at 2.7x
- CPC (Cost-Per-Click): Amazon ($1.20-$3.50); Etsy ($0.30-$0.80)
- Conversion Rates: Amazon (9.8%); Etsy (5.2%)
- Audience Size: Amazon (310+ million); Etsy (95+ million)
- Best Fit Categories: Amazon for mass-market items; Etsy for unique, handmade, or vintage goods
Detailed Amazon Ads Performance in 2025
Cost and Bidding
Amazon Ads primarily uses a CPC model with an average cost of $1.20 to $3.50. Costs vary by category demand, with premium rates in highly competitive niches like electronics and beauty.
Audience and Reach
With over 310 million global customers, Amazon targets users with high buying intent. Ad types include:
- Sponsored Products
- Sponsored Brands
- Sponsored Display
- Amazon DSP (Demand-Side Platform)
- Video ads
Key Metrics for Amazon Ads
- ROI: 3.8x
- Conversion rate: 9.8%
- Average ACoS: 24%
- CTR (Click-Through Rate): 0.41%
Detailed Etsy Ads Performance in 2025
Cost and Bidding
Etsy Ads offer more accessible CPC rates ($0.30 to $0.80), attractive for smaller businesses. Ads are optimized based on listing quality, relevance, and seller reputation.
Audience and Reach
Etsy reaches over 95 million buyers, primarily seeking handmade, customized, or vintage products. Ad options include:
- On-site Etsy Ads
- Offsite Ads (12-15% fee per sale)
Key Metrics for Etsy Ads
- ROI: 2.7x
- Conversion rate: 5.2%
- Advertising cost percentage: 32%
- CTR: 0.92%
Comprehensive ROI Comparison: Amazon vs. Etsy
| Metric | Amazon Ads | Etsy Ads |
| Average CPC | $1.20-$3.50 | $0.30-$0.80 |
| Daily Budget Minimum | $10 | $1 |
| Ad Fee Structure | CPC | CPC + Commission |
| Conversion Rate | 9.8% | 5.2% |
| ROI | 3.8x | 2.7x |
Best-Suited Product Categories
- Amazon Ads: Electronics, everyday essentials, mass-produced goods
- Etsy Ads: Handmade, vintage, personalized items, specialty niche markets
Decision-Making Framework
Choose Amazon Ads If:
- Your products appeal broadly
- You can manage higher ad costs
- Your operations handle high-volume sales
Choose Etsy Ads If:
- Your products are handmade, unique, or personalized
- You have a limited advertising budget
- Your market is niche-focused
Platform Optimization Tips
Amazon Ads Optimization
- Target specific long-tail keywords
- Implement comprehensive negative keywords
- Start with automatic campaigns to identify converting terms
- Optimize product listings for high conversion
- Adjust bids based on peak conversion times
Etsy Ads Optimization
- Prioritize high-margin products
- Optimize listings thoroughly with relevant SEO tags
- Set realistic budgets and scale strategically
- Monitor onsite vs. offsite ad conversions
- Maintain competitive pricing
Hybrid Advertising Approach
Many sellers successfully combine both platforms:
- Test and segment products across Amazon and Etsy
- Use Etsy for niche customer acquisition, Amazon for broader reach
- Seasonally adjust advertising budgets
- Cross-promote products strategically
Real Seller Experiences
Amazon Ads Success Story
Sarah’s Kitchen Gadgets increased sales by 217% with a 3.9x ROI after shifting focus to Amazon Ads.
Etsy Ads Success Story
Handcrafted Haven experienced a 165% visibility boost and 3.2x ROI, with a significant increase in repeat customers through Etsy Ads.
Future Advertising Trends in 2025
Amazon Innovations
- Advanced AI-driven optimization
- Expanded video advertising
- Enhanced targeted ads based on buyer history
- Improved cross-platform analytics
Etsy Innovations
- More refined audience targeting
- Automated bidding improvements
- Enhanced seller analytics tools
- Expansion of offsite advertising channels
Frequently Asked Questions
Which platform has a lower barrier to entry?
Etsy, with minimum daily budgets from $1 and lower CPCs.
Can handmade products succeed on Amazon?
They can, but Etsy typically offers better ROI due to its audience specifically seeking handmade items.
How quickly can I see advertising results?
Amazon typically shows results within 7-14 days, Etsy within 14-21 days. Both recommend 30-day assessments for accuracy.
Do I need continuous advertising?
Periodic campaigns tied to seasons or product launches work well. Continuous ads enhance visibility but aren’t mandatory.
How do Etsy’s offsite ads compare to Amazon DSP?
Etsy’s offsite ads charge a commission only upon sale (12-15%). Amazon DSP requires larger upfront minimum spends (around $5,000).
Which offers superior analytics?
Amazon provides more detailed analytics, though Etsy’s analytics are improving, particularly for seller-level insights.
Conclusion: Selecting Your Platform
While Amazon Ads offer higher average ROI (3.8x), Etsy provides more affordability and niche-targeted performance. The best platform choice depends on your product type, audience, and business objectives. Consider starting small, testing across both platforms, and expanding strategically based on data-driven results.
For optimal advertising success, continuously refine your listings and campaigns, keeping your audience and performance metrics central to your strategy.
Ready to enhance your advertising strategy?
- Analyze your product-market fit
- Run controlled advertising tests
- Optimize consistently based on performance data
Take action today—boost your e-commerce growth by choosing the right advertising platform for your products in 2025.
