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Thursday, September 25, 2025

Is Payhip Similar to Amazon or Etsy? Understanding the Differences

 Many people looking to sell products online wonder whether Payhip works like Amazon or Etsy. While all three platforms allow you to sell goods, they differ significantly in structure, focus, and target audience. Let’s break it down.


Payhip vs Amazon

Amazon is a massive online marketplace where sellers compete for visibility alongside thousands of other products. Key points:

  • Marketplace structure – Amazon is a centralized marketplace where buyers come to browse and compare items.

  • Fees – Amazon charges listing fees, referral fees, and sometimes fulfillment fees.

  • Control – Sellers have limited control over branding and customer data; Amazon owns much of the customer relationship.

  • Focus – Amazon supports both physical products and a few digital formats (like Kindle ebooks).

Payhip, on the other hand:

  • Independent storefront – You create your own branded store and sell directly to your audience.

  • Control over customers – You retain customer data and can build direct relationships.

  • Digital-first – Payhip excels at selling digital products, memberships, subscriptions, and online courses, though physical products are also supported.

  • Fees – Payhip’s fees are simple: free plan 5% per sale, paid plans lower or eliminate transaction fees.


Payhip vs Etsy

Etsy focuses on handmade, vintage, and creative goods. It’s a marketplace for artisans and small business owners. Key points:

  • Marketplace structure – Etsy is a community of buyers looking for unique items; sellers are discoverable through Etsy search and ads.

  • Fees – Etsy charges listing fees and transaction fees per sale.

  • Customer relationships – Etsy manages much of the transaction experience; customer data is limited.

  • Focus – Primarily physical products like crafts, jewelry, art, and home goods.

Payhip, in contrast:

  • Lets you sell digital products, physical products, memberships, subscriptions, and courses all in one store.

  • Offers full control over branding and pricing.

  • Provides instant digital delivery for downloadable files.

  • Allows for direct marketing tools, like discount codes and affiliate programs.


Key Differences Summarized

FeatureAmazonEtsyPayhip
Store OwnershipLimited, marketplace-controlledLimited, marketplace-controlledFull ownership of your storefront
Product FocusPhysical & some digitalHandmade, vintage, craftsDigital, physical, memberships, subscriptions
FeesListing + referral + fulfillmentListing + transactionFree plan 5% per sale, Paid plans lower/0%
Customer DataLimitedLimitedFull control
BrandingLimitedLimitedFully customizable

Conclusion

While Amazon and Etsy are marketplaces where you compete with other sellers, Payhip is a platform for direct-to-customer sales, giving creators control, flexibility, and tools for recurring income. It’s best for authors, artists, educators, and entrepreneurs who want to sell digital products, courses, memberships, or even physical goods under their own brand.

👉 Want to see how Payhip works in practice? Check out Tabitha Gachanja’s books on Payhip here: https://payhip.com/TabzGM.

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