Faire vs Etsy vs Koti: Where Home Food Makers Should Sell

The cottage food industry has exploded over the past five years. What started as a pandemic-era side hustle for many has evolved into a $1.2 billion market, with home food makers now selling everything from artisan sourdough to small-batch hot sauce across the country.

But here's the challenge: where should you actually sell your products? Walk into any cottage food Facebook group, and you'll see the same question asked dozens of times a week. The three names that come up most often are Faire, Etsy, and Koti — each serving cottage food makers but in very different ways.

Who this guide is for

This comparison is designed for cottage food producers who are ready to sell beyond farmers markets and word-of-mouth. Whether you're just starting out or looking to expand beyond your current platform, we'll break down the real costs, audiences, and practical considerations of each option.

You'll learn the actual fees (not just the advertised rates), who shops on each platform, and which features matter most for food businesses specifically.

Understanding the three platforms

Faire: The wholesale marketplace

Faire positions itself as the bridge between small brands and retailers. Think of it as the digital equivalent of a trade show where store owners discover new products to stock their shelves.

For cottage food makers, this means selling to coffee shops, specialty stores, and gift boutiques rather than directly to consumers. Your strawberry jam might end up in a local café's retail section, or your granola could be featured in an independent grocery store.

Who buys on Faire: Retail buyers, café owners, boutique managers

Minimum order requirements: Typically $100-300 per order

Payment timeline: Net 60 days (retailers pay Faire, who then pays you)

Etsy: The handmade giant

Etsy has become synonymous with handmade and artisanal goods. With over 96 million active buyers, it's the largest marketplace for independent creators. For food makers, Etsy works best for shelf-stable items that can ship easily — think cookies, spice blends, or artisan salts.

The platform's strength lies in its massive audience actively searching for unique, homemade products. However, food items compete with millions of other listings across every category imaginable.

Who buys on Etsy: Individual consumers seeking unique, handmade items

Shipping requirements: Must be able to ship products safely

Competition level: Extremely high across all categories

Koti: The cottage food specialist

Koti was built specifically for the cottage food industry. Instead of adapting a general marketplace for food products, every feature was designed with home food makers in mind — from local delivery options to compliance tools for cottage food laws.

The platform focuses on connecting local producers with nearby customers who specifically want fresh, homemade food from their community.

Who buys on Koti: Local customers seeking fresh, homemade food

Geographic focus: Community-based, local connections

Specialization: 100% cottage food and homemade products

The real cost breakdown

Platform fees can make or break profitability, especially for food items with thinner margins than crafts or electronics.

Faire's fee structure

• No listing fees
• 15% commission on first orders from new retailers
• 10% commission on repeat orders
• Payment processing fees: 2.9% + $0.30
• Real cost example: On a $200 wholesale order, you'd pay $30-40 in total fees

Etsy's fee structure

• $0.20 listing fee per item
• 6.5% transaction fee on item price + shipping
• Payment processing: 3% + $0.25
• Optional advertising costs (many sellers spend 10-20% of revenue)
• Real cost example: On a $25 cookie order, you'd pay approximately $3-4 in fees

Koti's fee structure

• No listing fees. Create a profile, upload products, and get a storefront URL for free.
• 8% platform fee on orders that come through the Koti marketplace — only when you actually make a sale.
• 0% fee on direct orders. When you share your storefront link with your existing customers, Koti takes nothing. The fee only applies to buyers who discover you on the marketplace.
• Standard Stripe processing (roughly 2.9% + $0.30 per transaction) applies separately to cover card fees — same as any other online checkout.
• No minimum volume, no monthly requirement, no contracts.

Real cost example: On a $25 marketplace order, you'd pay $2.00 to Koti (8%) and about $1.03 to Stripe for card processing. You keep $21.97. If that same buyer orders from your direct link the next time, Koti's fee drops to $0 — you'd only pay Stripe's ~$1.03, keeping $23.97.

Audience and discovery

Finding customers on Faire

Faire's buyers are professional purchasers looking for products to resell. This means larger order sizes but longer sales cycles. Success depends on having professional product photos, wholesale pricing, and the ability to fulfill bulk orders consistently.

The platform's algorithm favors established brands with good reviews and consistent availability. New sellers often struggle to get initial visibility without significant marketing investment.

Finding customers on Etsy

With 96 million active buyers, Etsy offers the largest potential audience. However, standing out requires significant SEO optimization, professional photography, and often paid advertising. The platform's search algorithm favors listings with strong conversion rates and positive reviews.

Food sellers face unique challenges on Etsy. Shipping restrictions limit your potential customer base, and many buyers don't realize they're purchasing from home kitchens rather than commercial facilities.

Finding customers on Koti

Koti's audience specifically seeks out homemade, local food products. Customers understand cottage food laws and are comfortable buying from home-based producers. The platform's geographic focus means less competition but a smaller total addressable market.

Discovery happens through local search and community features rather than competing with millions of global sellers. This can mean faster initial sales but potentially slower long-term scaling.

Product categories and restrictions

What sells well on Faire

Wholesale buyers look for products with good shelf life and broad appeal. Successful cottage food items include:

• Artisan spice blends and seasonings
• Shelf-stable baked goods like crackers or biscotti
• Specialty condiments and sauces
• Unique pantry staples

Fresh items and products requiring refrigeration rarely work for wholesale distribution.

What sells well on Etsy

Etsy's shipping requirements favor shelf-stable products that photograph well:

• Decorative cookies and cake decorating supplies
• Specialty baking mixes and ingredients
• Artisan chocolates and candies
• Unique food gifts and bundles

The platform's gift-focused culture means seasonal items often perform particularly well.

What sells well on Koti

Local focus enables fresh and perishable items that other platforms can't support:

• Fresh breads and pastries
• Prepared foods like soups or casseroles
• Seasonal items using local ingredients
• Custom orders and special occasion foods

Making your decision

Choose Faire if you can produce consistently at wholesale volumes, have shelf-stable products, and want to build a B2B business selling to retailers rather than consumers directly.

Choose Etsy if you have unique, shippable products, can invest time in SEO and marketing, and want access to the largest possible customer base without geographic limitations.

Choose Koti if you prioritize local community connections, make fresh or perishable items, want the lowest fees, or prefer a platform built specifically for cottage food producers.

Many successful cottage food makers use multiple platforms strategically — perhaps Koti for fresh local sales, Etsy for shelf-stable gift items, and Faire for wholesale accounts.

Next steps

The right platform choice depends on your specific products, business goals, and local market. Consider starting with one platform to test your market, then expanding to others as you grow.

If you're interested in connecting with local customers who specifically seek homemade food, explore Koti's marketplace to see how cottage food makers in your area are building their businesses through community connections.