Shopify vs Etsy: Which Is Better In Terms of Earning, Pricing, Marketing & More?

Shopify and Etsy are two of the world’s largest and most favored e-commerce marketplaces for businesses to sell physical items, digital services, and products from anywhere. These marketplaces help aspiring e-commerce businesses run a digital storefront without not being tech-savvy. While both Shopify vs Etsy seem to offer nearly equal opportunities, you might have questions in your mind about which one you should choose.

The major difference between Shopify and Etsy remains the fact that the former is more than just a marketplace; it is a website builder that helps you create a digital e-commerce store. Meanwhile, Etsy is just a marketplace where you can list your handmade goods, jewelry, and other unique items to sell to the end users.

To help you decide between Shopify vs Etsy, we have created this detailed comparison guide that will go through various aspects, including pricing, earning potentials, marketing, and more. So, let’s start this guide with the basics of these e-commerce giants.

Shopify vs Etsy: At a Glance

Before start comparing Etsy vs Shopify, we need to understand the basics of these platforms, including what they are, how they work, and who they are intended for. So, here’s the basics of Shopify vs Etsy comparison:

What Is Shopify?

Shopify is an e-commerce platform that allows entrepreneurs to start, manage, and expand a business. It provides the tools to set up an online store, oversee sales, promote to customers, and process payments in both virtual and physical settings.

Shopify stands as a leader in the commerce world due to its attentiveness to the experiences of millions of business proprietors. By catering to both individual entrepreneurs and large-scale brands, Shopify has developed features and products that not only drive current businesses but also pave the way for the future of commerce.

Who Benefits the Most from Shopify?

Shopify is an excellent option for businesses seeking a customizable e-commerce platform. It’s especially advantageous for those who have an established customer base and are prepared to invest in a scalable, subscription-based solution.

Shopify’s dropshipping feature simplifies the process of connecting with numerous suppliers, enabling you to offer a broad range of products without maintaining inventory. This selling method is perfect for anyone wishing to feature the most recent items across various categories and capitalize on trending products, such as tech gadgets or apparel.

What is Etsy?

Established in 2005, Etsy is a digital commerce platform that caters to independent creators, hobbyists, and collectors, providing them with a space to sell their goods online. About 80% of the sellers are women, and all are independent artisans.

Etsy can be compared to Amazon, but it’s tailored for independent merchants dealing in handcrafted, one-of-a-kind, or specialized items. The aim is to build a vast marketplace filled with diverse products from various vendors, enabling customers to discover exceptional sellers. As of 2024, Etsy boasts over 7.47 million sellers and more than 95 million active buyers.

Who Benefits the Most from Etsy?

Etsy is an ideal platform for artists, hobbyists, and designers seeking a simple, no-fuss online marketplace. It’s particularly beneficial for creative individuals aiming to attract customers who appreciate unique, personalized items such as bespoke clothing or home decor.

While Etsy’s dropshipping is more specialized, it’s an excellent option for sellers wanting to offer distinctive, custom designs across a range of products without the hassle of production and shipping. This model enables artists and small businesses to concentrate on their creative work while the dropshipping provider takes care of the logistics.

Key Differences Between Shopify vs Etsy

Now that you have understood the basics of Shopify vs. Etsy, it’s time for the most awaited part: comparing them to find out which platform rules the e-commerce space. So, let’s get started!

1. Costs

When comparing platforms like Shopify and Etsy, it’s important to consider the pricing aspects to make a well-informed decision, particularly for those who are just starting their e-commerce business.

Shopify

Shopify offers a subscription-based service with different tiers to cater to businesses of different sizes and requirements. The basic plan, priced at $29/month, provides fundamental features that are ideal for small-scale Shopify outlets.

As businesses expand, they can upgrade to more comprehensive plans, such as the Shopify plan for $79/month or the Advanced Shopify plan for $299/month. These plans offer additional benefits like enhanced analytics and reporting.

For those who already have a website and simply want to incorporate a sales feature and accept credit card payments, Shopify Lite is available for $9/month.

In addition to the monthly subscription charges, Shopify imposes transaction fees if you choose a payment gateway other than Shopify Payments. These fees fluctuate based on the plan and range from 2.4% + $0.30 to 2.9% + $0.30 per transaction.

While Shopify provides a variety of free themes, premium themes are available at an additional cost, typically between $100 and $180. Many third-party apps in the Shopify App Store also come with additional charges. Custom domain names also add to your costs. The annual cost for a basic .com domain typically ranges from $10 to $20.

Etsy

Unlike Shopify, Etsy charges fees on a per-sale basis. This includes listing fees, transaction fees, and payment processing fees. Each product listed on an Etsy store incurs a $0.20 listing fee. These listings expire after four months, requiring a renewal fee of another $0.20.

When an item is sold, Etsy levies a 5% transaction fee on the sale price in addition to shipping costs. There is also a payment processing fee, which varies by country, typically around 3% + $0.25 per transaction.

Additionally, there is an Etsy Plus plan for a monthly fee of $10, which offers 15 listing credits each month, making it easier to expand or update their product offerings without incurring additional costs.

2. Target Audience

Deciding between Shopify’s adaptability and Etsy’s community-focused ethos requires understanding the distinct audience each platform caters to.

Shopify

Shopify caters to a wide array of businesses, from budding startups to well-established corporations. Its user base typically comprises individuals with a solid grasp of technology or those willing to invest in the creation of a unique online storefront.

This includes businesses handling large inventories, those requiring advanced ecommerce functionalities (such as custom checkouts), and those needing bespoke features like email marketing or order management.

Etsy

Etsy deeply connects with those who value creativity, uniqueness, and sustainability. Its primary audience is shoppers on the hunt for one-of-a-kind, handcrafted, or vintage items, each with its own narrative.

These customers appreciate each product’s personal touch and authenticity, ranging from custom-made jewelry and original art pieces to personalized presents.

3. Store Branding

Shopify and Etsy are two different e-commerce platforms that provide various options for creating and defining your online store’s identity. Based on the level of personalization you want for your e-commerce business, here are some key points to consider.

Shopify

Shopify offers total control over your online store’s appearance, allowing you to modify your storefront’s design, layout, and user interaction extensively. If you aim to build a robust brand identity, this level of control aids in crafting a consistent brand experience throughout the customer’s journey. In addition to a personalized layout, you can incorporate branding elements such as logos and typefaces.

Etsy

Although Etsy’s customization options are more restricted than Shopify’s, it still provides branding opportunities within its marketplace structure. Etsy shops can customize their appearance, including the banner image, profile picture, and listings, to maintain a consistent visual identity.

For example, an Etsy store specializing in home decor can utilize its banner and listing images to display its unique aesthetic, be it minimalist, boho, or vintage. Sellers can establish a recognizable brand image by thoughtfully choosing these visuals, along with a consistent photography style and branding elements like a logo.

4. Apps and Integrations

The operational efficiency of an online store is a crucial factor for merchants of all sizes, influencing everything from the buyer’s journey to the logistics at the back end. Here’s a comparison between Shopify and Etsy, focusing on their apps and third-party collaborations.

Shopify

Shopify’s App Store is a hub for thousands of apps catering to a broad spectrum of functions, from marketing and sales to shipping and inventory control. This platform enables vendors to enhance their Shopify store’s functionality to adapt to changing requirements, enrich the customer’s journey, and simplify processes.

Etsy

In contrast, Etsy’s strategy towards apps and integrations is more restrained compared to Shopify, mainly due to its marketplace model. While Etsy does provide some integrations, they are typically more concentrated on marketplace features rather than comprehensive e-commerce operations. Etsy’s integrations comprise tools for store administration, marketing, and analytics.

5. Scalability

When deciding between Shopify and Etsy, it’s important to assess how each platform can support expansion and adapt to a business’s evolving needs over time.

Shopify

Shopify is well-known for its adaptability. It serves businesses of all sizes, from individual entrepreneurs to large corporations. Its structured subscription plans enable businesses to begin with a simple setup and progressively upgrade as they expand.

The platform’s capacity to integrate with many apps implies that Shopify can accommodate these changes as the requirements evolve, whether in marketing, inventory control, or customer relationship management.

Etsy

Although Etsy is an outstanding platform for small businesses and individual sellers, it has scalability limitations compared to Shopify. It’s perfect for small-scale Etsy stores, but as businesses expand, they might find Etsy’s capabilities constraining.

The platform’s framework is designed for simplicity of use and community interaction rather than high-volume sales and advanced customization.

6. Support

Running an online store requires prompt and efficient support. Both Shopify and Etsy offer this, but their methods of assistance vary.

Shopify

Shopify is renowned for its dependable support to its clients. It provides round-the-clock customer service through multiple channels such as live chat, email, and phone, ensuring that help is always at hand. This is particularly beneficial for addressing immediate issues that could affect sales, like problems with checkout or website downtime.

In addition, Shopify offers a wide range of online materials, such as in-depth guides, tutorials, and a community forum. These resources are especially useful for users who want to troubleshoot common issues or learn how to utilize the platform more effectively.

Etsy

Etsy’s support system is designed with its seller community in mind, providing resources catering to small businesses’ requirements. Etsy offers direct support via email and its help center, which houses a wide array of articles, guides, and FAQs.

Although Etsy doesn’t offer live support through phone or chat, its focus on online resources encourages sellers to seek solutions independently. Etsy also features forums where sellers can network, exchange experiences, and provide guidance to one another.

7. Marketing and Search Traffic

When it comes to promoting your e-commerce site, especially through SEO, both Shopify and Etsy provide unique benefits due to their platform designs.

Shopify

Shopify provides comprehensive SEO features, allowing e-commerce owners to have substantial control over elements that affect search engine rankings and traffic. It enables customization of vital SEO components such as title tags, meta descriptions, and URLs, which are essential for enhancing visibility in search engine results.

Moreover, Shopify stores can be enhanced with a blog, a potent tool for content marketing and attracting organic traffic. High-quality, SEO-optimized blog content boosts online visibility and establishes the brand as a leader in its field.

Etsy

Etsy’s strategy for search traffic varies, mainly due to its nature as a marketplace. While individual shops don’t have the same level of SEO control as a standalone website, sellers can choose keywords for titles, descriptions, and tags, aligning with what potential customers might search for.

Etsy also has its internal search algorithm, which considers listing quality, customer experience, and shop policies, among other factors. This means sellers also need to concentrate on maintaining high-quality listings and a strong customer service record to rank higher in search results.

Shopify vs Etsy: Which One Should You Choose?

When it comes to choosing between Shopify vs Etsy for your online business, the decision largely depends on the size of your business and the type of products you plan to sell.

If your goal is to establish a long-term brand with complete control over design and operations, Shopify could be your best bet. It offers a wide range of ecommerce tools, enabling you to tailor your store to fit your vision exactly.

On the other hand, Etsy is a lively and active marketplace filled with online shops selling unique goods. It’s an ideal platform for individuals and small businesses who want to be part of a community that values originality. For those who specialize in top-selling print-on-demand items such as bespoke t-shirts and personalized gifts, Etsy’s audience can be particularly attractive.

Whether you choose Shopify’s comprehensive, customizable platform or Etsy’s community-centric online marketplace, both provide promising prospects for operating a prosperous online store. Always remember, the optimal choice is the one that aligns with your business objectives and aids in connecting with your target audience.

FAQs

Is It Better to Sell on Shopify or Etsy?

Shopify offers more control over your store, no listing fees, and unlimited products. Etsy has a built-in audience for handmade and vintage items. The choice depends on your business needs and goals.

Why Switch from Etsy to Shopify?

Switching to Shopify offers lower transaction fees, more control over your store’s branding, and access to powerful marketing tools. It allows you to own your marketing and scale your business.

Can an Indian Sell on Etsy?

Yes, Indian sellers can sell on Etsy. The platform has a dedicated team in India to support exporters and sellers onboard with ease and sell across the globe seamlessly.

Can I Sell on Etsy via Shopify?

Yes, you can sell on both Etsy and Shopify simultaneously. You can manage your inventory in one place, providing the best of both worlds.

Does Shopify have Fees like Etsy?

Shopify charges a monthly plan fee and a per-transaction fee. Etsy charges multiple fees per sale for listing items but no monthly fee for its base service.