Shopify vs. Etsy: Should You Sell Your Products Through an Online Store or an Online Marketplace?

Shopify vs Etsy: Should You Sell Through an Online Store or an Online Marketplace?

Shopify is the superior option for online commerce. It is more scalable and versatile than Etsy, and it provides greater ecommerce capabilities. With an overall rating of 4.6 out of 5, our in-depth testing rates Shopify as the second best ecommerce platform on the market, just behind Wix.

Whether you want to sell customized t-shirts, antique things, or just want to dabble in ecommerce, Shopify and Etsy are two of the most popular platforms for getting your site up and running. However, how can you decide between the two?

Shopify vs. Etsy: What’s the Difference?

Etsy has 7.5 million users who sell to more than 96 million consumers. From October to December 2020, consumers spent more than $3 billion on the site. Shopify has an even more remarkable figure: $79.5 billion in sales in 2021.

We don’t blame you for wanting to be a part of the fun!

Both have advantages and disadvantages, as do any ecommerce systems. This is why we do research to offer you with all of the information you need to make the best option for you and your growing company. So, let’s figure out which platform will be most effective for you, since this is where your selling adventure starts.


Shopify
Etsy
Ease of Use
Winner: Draw!
Shopify makes it super simple to set up a powerful online store.Etsy is great for anyone less tech-savvy! Simply set up an account and get selling.
Design Flexibility
Winner: Shopify
Shopify has tons of templates to choose from, and provides helpful customization tools, so you can personalize your store to suit your brand.Etsy limits your customization since it manages your storefront layout for you. Your products are the only way you can stand out from other sellers.
Domain & URL Structure
Winner: Shopify
Shopify encourages using a custom domain to create a unique website address, and promote a clear brand.There’s no room for a unique domain on Etsy’s marketplace, meaning your website address is harder to remember for customers.
Ecommerce Tools & Features
Winner: Shopify
Shopify comes packed with powerful tools, and a massive app store, so you can create a perfectly tailored site for your business.Etsy’s features are good, but there are few of them, and they’re relatively simple. However, they do aim to make running a business as easy as possible.
Payment Options & Fees
Winner: Shopify
Shopify has no transaction fees when using Shopify Payments, just the expected credit card charges. It also supports hundreds of payment gateways.Etsy has listing fees, transaction fees, and credit card charges.
Attracting Customers
Winner: Etsy
Shopify gives you all of the tools you need to create and promote your business, but it doesn’t do the work for you. You’re responsible for driving traffic to your website through marketing, SEO, social media, and campaigns.Etsy is an extremely popular platform with millions of buyers. This gives your products great exposure, and it means you don’t have to work hard to get visitors to come to your site.
Help and Support
Winner: Shopify
Shopify has a wide range of support options, including 24/7 phone and live chat, email, and an extensive help center.Etsy has a clear and useful help center, as well as a community forum. You can also email Etsy’s support staff, or request a call.
Pricing & Value For Money
Winner: Draw!
Shopify has three price plans, ranging from $29 to $299 per month. But, you can start with its 14-day free trial if you want to test it out first. Additionally, larger stores can upgrade to Shopify Plus which has custom pricing.Etsy users can start with its free plan, or upgrade to the Plus plan for $10 per month.
Are You Ready?ShopifyEtsy

What Is the Distinction Between Shopify and Etsy?

First, let’s look at what Shopify and Etsy have to offer. What distinguishes them? What are their strong points? Where do they falter?

Shopify is an ecommerce platform, designed for people to set up and grow their online stores (check out some successful stores built with Shopify). It has a whole bunch of powerful ecommerce tools and apps to help you do this.

You may use Shopify to build your own ecommerce website, add items, and monitor client orders. It’s a simple method for creating an internet shop.

Etsy, on the other hand, is a marketplace rather than a specialized ecommerce platform. You open an Etsy account to sell with other Etsy vendors. It bills itself as a “creative marketplace” and offers exclusively handmade, vintage, or craft items.

Pattern from Etsy

Though Etsy is primarily a marketplace, it also has an ecommerce platform, Etsy Pattern, where you can create a website to sell your items. Interestingly, it has less product limits than the Etsy marketplace, so it’s worth considering if your items don’t match the typical Etsy specialty.

Etsy Pattern is available for free for 30 days. Following that, it costs $15 each month. Because this is not part of the Etsy marketplace, you will be responsible for creating your own traffic.

Overall, it’s a basic platform — it’s not up to the same standards as Shopify, but it’s a useful add-on if you want to sell on the Etsy marketplace.

To use Etsy Pattern, you must already be an Etsy seller – in this post, we’ll just look at Etsy as a marketplace rather than its website building service.

Further Information

  • Shopify Review: For a more detailed discussion on Shopify’s features, pricing, design, and more.
  • Shopify Pricing Review: Just want to know about the cost? Our pricing review tells you all you need to know about Shopify’s monthly plans, value for money, and extra fees.
  • Compare Ecommerce Platforms: Head on over to our interactive article that pits the best ecommerce platforms against each other.
  • Selling Digital Downloads: See how Shopify and Etsy compare when it comes to selling digital downloads.

Utilization Ease

Who says you have to be a computer wizard to sell online? Certainly not Shopify or Etsy!

Shopify is intended to make creating your own online shop as simple as possible. Because of all the sophisticated tools required to manage an ecommerce company, ecommerce systems sometimes struggle with this, but Shopify excels at making it an easy process.

However, our analysis gives Shopify a 3.5 out of 5 for simplicity of use, which is about average for a basic builder. However, in our ecommerce platform testing, Shopify received the greatest customer score – top of the league with a score of 4.7 out of 5, indicating that consumers definitely approve of Shopify.

Shopify ensures that its customers are guided through the setup process via action buttons and a user-friendly menu. Furthermore, when you’ve input all of your information, Shopify will assist you in managing your business by synchronizing your inventory, monitoring orders, and more. Simply told, Shopify provides everything you want while keeping its interface clean, clear, and simple to use!

Etsy is less comprehensive than Shopify, but it is just as simple to use. It’s very easy and uncomplicated, so you’ll be up and running in no time.

All you have to do is create an account, choose a business name, stock your store, and provide your payment information to ensure you get paid!

Etsy, like Shopify, helps consumers through each process, making it simple to complete each stage:

You can see how close you are to getting your Etsy shop up and running, and it even provides tailored options for your business name if your original pick isn’t available.

That’s all there is to it after you’ve completed the setup procedure! You may begin selling now! This makes it excellent for beginners who want to get their business up and running fast.

You don’t have to develop your whole website with Etsy, like you do with Shopify, which reduces some of the burden. Simply add your items and descriptions, and you’re ready to go. Within an hour, you may be an internet vendor.

Design Versatility

Have you ever been turned off by an online store’s poor site design? You are not alone in this!

With Etsy, you don’t have to worry about making the appropriate design choices. On the one hand, that’s fantastic! It does, however, make it more difficult to stand out from the throng.

Your shop page will be designed and put up in the same way as other seller pages on Etsy, with your business name, logo, goods, and descriptions configurable for your own content.

It has both benefits and drawbacks. You can rely on Etsy to utilize a clean, clear, and appealing design that showcases your items and gives a positive customer experience. However, since Etsy allows for very little customisation, it might be difficult to distinguish your business from others.

If you want to build a great online brand, Etsy is not the place to be.

It’s an excellent service whether you’re selling a few products or just getting started. However, if you want to expand your company, you’ll need to create a distinct and established brand, which is impossible to do on Etsy.

On Shopify, it is possible.

Shopify has over 90 themes to select from when developing your shop. These themes serve as the foundation for your website. Our study gives Shopify a 3.9 out of 5 for design, indicating that it does the job well. The themes available on Shopify span a wide variety of sectors, from furniture to clothes and fashion. As a result, you’re guaranteed to locate something that meets your requirements.

Your theme not only guides the style of your website, but it also includes industry-specific functions. For instance, a product zoom function at a clothes shop.

Shopify now offers nine free themes and over 80 premium themes ranging in price from $200 to $350. All themes are mobile-responsive, professional, and contemporary in appearance, and you may effortlessly switch between them at any moment (you just might need to reformat your content to match).

Most importantly, you can personalize anything to your liking!

The themes are there to assist you, so choose one that meets the purpose of your shop and has a look that you enjoy. However, you are free to customise, change, and rearrange as much as you like.

You can use Shopify to develop a genuinely distinctive brand for your online business.

Structure of the Domain and URLs

If you’re starting an internet company, domain names are crucial.

A domain name is the address that visitors will use to discover your website. For example, www.websitebuilderexpert.com is our domain name. You pay to have that address, which means no one else can use it online. It is unique to your website, making it an important aspect of your brand.

Custom domains are domains like these that you pick and pay for yourself.

Shopify is clearly the victor in this area since it supports the usage of a custom domain. Why? Because a custom domain is critical for developing a reliable, professional, and identifiable brand for your company.

Shopify even has an automated setup to make it as easy as possible to get a totally personalized name for your online store.

Etsy, on the other hand, is very different. You do not acquire your own domain name since you are selling via Etsy’s marketplace. Your domain will instead look like this: www.etsy.com/shop/your-store-name-here.

You cannot have a custom domain since you are an Etsy seller. If you’re using the Etsy Pattern website builder, you can only link your own domain. So, although Etsy isn’t great for creating your own brand space, it shouldn’t be a deal breaker for individual sellers who want to keep things modest and basic.

Tools & Features for Ecommerce

Design and domain names are great, but if your site has adequate ecommerce features, you’ll be in trouble shortly, no matter how cool your website address is!

Etsy includes simple yet effective ecommerce capabilities that make operating your business a breeze. You can remain on top of things while on the road by using the ‘Sell on Etsy App.’

You may also use your Etsy account to simply purchase and print cheap postage. This can help you save money on shipping while also speeding up the process.

Etsy also provides useful marketing and promotion tools to help you grow your consumer base, get noticed online, and get new fans. A particularly beneficial feature given how difficult it can be to stand out in the Etsy marketplace. To broaden your audience reach, you may publish on social media networks like Instagram and Twitter, generate discounts, or utilize third-party tools like Google Shopping.

Remember that on Etsy, you may only sell handcrafted items, antique items, and creative materials. If you wish to sell anything that falls outside of these categories, Etsy is probably not the best option for you.

You may also subscribe to Etsy Plus if you need more sales tools or want to take your business to the next level. This provides you with:

  • Options for customization, such as banner templates
  • Offers on your own website URL
  • Discounts on promotional items such as business cards
  • Email notifications to clients when an item is restocked Advertising credits

Because Etsy is a marketplace rather than an ecommerce platform, your inventory is not included in your shop account and must be kept separately.

Overall, Etsy’s “simple, strong tools” adequately summarize it. They are not the most stunning ecommerce capabilities available, but they are enough for small-scale sale of handcrafted and craft items.

Shopify clearly outperforms the bulk of the competitors when it comes to ecommerce tools. According to our study, it ranks second for sales features, with a score of 4.5 out of 5. This makes Shopify an excellent alternative for any company trying to expand online.

On all Shopify plans, you may sell an infinite number of items, and there are no limits on what you can sell. Shopify provides more ecommerce flexibility than Etsy.

Shopify also includes a large app store where you may add whatever you want to your website. This provides you complete customization as well as a plethora of strong accessories to select from!

Here’s a rundown of some of the features included with all Shopify plans:

  • Fraud investigation
  • Asset management for brands
  • Selling across many social networks through multiple channels
  • Coupon codes
  • SSL certificate for free
  • Recovery of Abandoned Carts
  • Gift certificates
  • Rates determined by a third party
  • App for Shopify POS (Point of Sale)

Multichannel selling is critical for expanding your consumer base and providing your customers with a smooth purchasing experience. The free SSL (Secure Sockets Layer) certificate ensures that your site is secure for visitors to submit their payment information, and it is a must-have feature for every online business.

Abandoned Cart Recovery delivers emails to consumers who have abandoned their purchases during the checkout process, encouraging them to return. This may help you reclaim up to 20% of your consumers!

The inventory system is one of Shopify’s top-selling features. Unlike Etsy, Shopify offers a large inventory, making it ideal for developing businesses. You may upload items in bulk or one at a time, and Shopify includes stock management features that make it simple to monitor and evaluate sales.

Fees and Payment Options

Transaction fees might be the monster lurking under the bed on certain platforms, ready to spring out and surprise you at the last time. Although neither Shopify nor Etsy charge such outrageous costs, it’s always a good idea to research payment methods and transaction fees before committing to a platform.

While Etsy does not charge monthly fees, it does charge $0.20 per product listing cost. This is the cost of publishing your listing for four months, or until the item sells.

When you sell a goods, there is a 6.5% transaction fee plus a 3% + $0.25 payment processing cost. That’s a lot of numbers; what do they all mean?

Payment processing fees are levied by the payment provider (such as a credit card company) or the payment gateway that processes the transaction. This is quite normal and usual, albeit Etsy’s fees are somewhat more than typical, putting them at a disadvantage when compared to Shopify.

Etsy’s fees aren’t the lowest on the market. However, if you’re selling on a modest scale, they shouldn’t hurt your wallet too much. Only when you start making huge dollars will you feel the pinch of that 6.5% transaction charge.

If you’re already seeing dollar signs, Shopify may really be a better value for money, depending on the size of your company.

Shopify offers a variety of payment alternatives. It has its own payment gateway, Shopify Payments, that does not charge transaction fees. You simply have to pay the card processing cost on Shopify Payments, which begins at 2.4% + 30 with the Advanced Shopify plan.

If you do not wish to utilize Shopify Payments, there are several additional payment choices available, including the standard PayPal, Google Pay, Apple Pay, and others.

The highest transaction charge is 2% if you use one of these payment solutions instead of the Shopify Payments gateway, and the lowest is 0.5%. When comparing the two, Shopify offers much lower rates than Etsy.

Getting Customers

Your shop deserves to be seen after you’ve spent time uploading great product photographs and writing informative descriptions. You don’t want your website to be buried in the depths of the internet.

Etsy will undoubtedly put a bright light on your shop. With over 96 million active purchasers, it is a very popular marketplace. People do not need to deliberately seek you out. They just browse Etsy for your stuff and buy them.

The disadvantage of Etsy is that there is no way to ensure that those visitors will finish up in your shop and purchase your stuff. There are over 97 million things on Etsy, so standing out is essential!

Shopify, on the other hand, provides you with the tools to advertise yourself. Visitors will have no idea your store was built on this platform, so they’ll have to search for it by name.

However, in order to rank on Google, you must manage your own search engine optimization (SEO), advertise yourself on social media, and establish your brand to attract more clients.

It might seem overwhelming, so if you’re wondering where to begin with any of that, don’t stress! Though Shopify does not manage it for you, it does provide you with all of the necessary tools. SEO apps and guides, to email campaigns, and multichannel selling both on Facebook and Instagram

Although it requires more effort overall, you have complete control over communicating with your clients and generating killer marketing campaigns. You are not required to sit and wait for guests to come to you.

Assistance and assistance

What if all of your product photos vanish at 2 a.m.? Do you get scared? No! You make touch with your own own support staff!

Shopify understands that your company never stops. That’s why Shopify offers live help 24 hours a day, seven days a week. Here is a list of all the various support choices available to you:

  • 24/7 phone
  • Social networking sites
  • Live chat is available 24/7.
  • Forum
  • Email
  • Tutorial videos
  • Advanced specialized assistance (on Plus plans)

With that in mind, our study gives Shopify a favorable rating of 3.8 out of 5 for assistance and support, placing them equal third in the rankings.

So, whether you’re a complete phone averse or like perusing a community forum, Shopify offers something for everyone. The Shopify Assistance Center is simple to use and offers a wide selection of help articles and instructions.

When you ask for assistance in the editor, Shopify brings you directly to the correct help page in the help center, which is one of the nicest features of their service. This saves you time and eliminates headaches!

Etsy also features a support section. It’s simple to use and has a search option, so you can get to the answer quickly if you know what you’re searching for.

Etsy also features a forum where you can read and participate in community conversations, ask questions, and keep up with Etsy news. If you want more assistance, you may contact Etsy’s support team or book a phone call. Etsy’s assistance and support offerings just cannot match with those of Shopify.

Pricing

When it comes down to it, cost is often what attracts or repels us from items. This is particularly true if you have a limited budget or prefer to earn money rather than spend it!

In this instance, determining a winner between the two platforms is impossible.

On the one side, Etsy boasts very low startup expenses. The Etsy Standard plan has no monthly fees, simply the listing fees, transaction expenses, and payment processing charges applied to items.

For $10 per month, you can switch to Etsy Plus, which provides you a broader collection of tools to help build your business, such as extra personalization choices and email notifications.

Shopify, on the other hand, has greater initial prices, but you get what you pay for. Shopify offers three pricing tiers as well as a 14-day free trial. Prices vary from $29 to $299 per month (beginning at $14.44 per month if paid annually), with each upgrade unlocking additional capabilities.

Shopify earns an average of 3.0 out of 5 in our value-for-money tests, so let’s take a closer look at its plans:

PlanBasicShopifyAdvanced
Price$29 per month$79 per month$299 per month
Features– Ecommerce website & blog
– Unlimited products
– 2 staff accounts
– 24/7 support
– Multichannel selling
– Discount codes
– Free SSL certificate
– Gift cards
– Abandoned cart recovery
– Fraud analysis
– Shopify POS App
– Standard credit card rates
– Everything from Basic plan
– 5 staff accounts
– Standard professional reports
– 88% shipping discount
– Cheaper credit card rates
– Everything from Shopify plan
– 15 staff accounts
– Advanced report builder
– Lower credit card rates
– Duties & import tax calculator at checkout

Simply said, the Basic plan is $29 per month and includes everything you need to get started with your business. This account includes unlimited goods, multichannel selling, discount code generation, and abandoned cart recovery, to name a few features.

Upgrade to the Shopify plan for $79 per month and you’ll have everything you need to keep your company flourishing. Enjoy all of the Basic plan’s benefits, plus more, such as expert reports and lower credit card rates.

The most costly Shopify plan is the Advanced plan, which costs $299 a month. This plan includes everything from the previous two options, as well as an advanced report builder, cheaper credit card rates, and up to 15 staff accounts.

These are Shopify’s primary price levels, but there’s also Shopify Plus, which includes bespoke pricing and is aimed for large ecommerce firms.

Although Shopify’s plans may seem exorbitant in compared to Etsy’s inexpensive costs, Shopify provides excellent value for money due to the features and long-term scalability that come with it.

As we previously noted when discussing payment methods, Etsy’s costs may creep up due to transaction fees, and Shopify’s monthly cost might rise due to the usage of third-party applications. So, in terms of total price, the two remain reasonably balanced.

Using Etsy in conjunction with Shopify

If you’re still undecided after reading this, we have good news for you. It is possible to enjoy the best of both worlds!

By using the Shopify App Store, you can integrate the Etsy marketplace with your Shopify store. By synchronizing your Etsy and Shopify shops whenever you make updates, real-time synchronization ensures that you prevent misunderstanding or overselling.

There is a one-week free trial, however after that you must select between three paying plans:

  • Beginner: $25 per month
  • Standard: $39 per month
  • Regular: $59 per month

Each plan offers personalized features, product administration, and restricted product uploads; the Starter plan enables you to publish up to 100 goods on Etsy, while the Standard plan allows you to publish up to 1000.

Overall, if you have a Shopify business but want to broaden your online presence, the integration is an excellent alternative. You may reach a new audience and make the most of this popular marketplace by connecting with Etsy.

Conclusion: Shopify vs. Etsy

Although Shopify and Etsy may seem to be comparable at first glance, they are completely distinct selling platforms. This article has examined the fundamental distinctions between them, what they excel at, and where they fall short for consumers.

Shopify delivers everything your company needs to flourish It includes strong sales tools, scalable plans, and there are no restrictions on what you may sell. Etsy, on the other hand, has product limits and minimal functionality. Still, it’s simpler and less expensive than Shopify, making it ideal for small-scale merchants with a specific specialization.

To summarize, below is an overview chart for easy reference:


Shopify
Etsy
Ease of Use
Winner: Draw!
Shopify makes it super simple to set up a powerful online store.Etsy is great for anyone less tech-savvy! Simply set up an account and get selling.
Design Flexibility
Winner: Shopify
Shopify has tons of templates to choose from, and provides helpful customization tools, so you can personalize your store to suit your brand.Etsy limits your customization since it manages your storefront layout for you. Your products are the only way you can stand out from other sellers.
Domain & URL Structure
Winner: Shopify
Shopify encourages using a custom domain to create a unique website address, and promote a clear brand.There’s no room for a unique domain on Etsy’s marketplace, meaning your website address is harder to remember for customers.
Ecommerce Tools & Features
Winner: Shopify
Shopify comes packed with powerful tools, and a massive app store, so you can create a perfectly tailored site for your business.Etsy’s features are good, but there are few of them, and they’re relatively simple. However, they do aim to make running a business as easy as possible.
Payment Options & Fees
Winner: Shopify
Shopify has no transaction fees when using Shopify Payments, just the expected credit card charges. It also supports hundreds of payment gateways.Etsy has listing fees, transaction fees, and credit card charges.
Attracting Customers
Winner: Etsy
Shopify gives you all of the tools you need to create and promote your business, but it doesn’t do the work for you. You’re responsible for driving traffic to your website through marketing, SEO, social media, and campaigns.Etsy is an extremely popular platform with millions of buyers. This gives your products great exposure, and it means you don’t have to work hard to get visitors to come to your site.
Help and Support
Winner: Shopify
Shopify has a wide range of support options, including 24/7 phone and live chat, email, and an extensive help center.Etsy has a clear and useful help center, as well as a community forum. You can also email Etsy’s support staff, or request a call.
Pricing & Value For Money
Winner: Draw!
Shopify has three price plans, ranging from $29 to $299 per month. But, you can start with its 14-day free trial if you want to test it out first. Additionally, larger stores can upgrade to Shopify Plus which has custom pricing.Etsy users can start with its free plan, or upgrade to the Plus plan for $10 per month.
Are You Ready?ShopifyEtsy

To elaborate, Shopify is a specialized ecommerce platform and an excellent choice for any small company wishing to develop online and establish itself in the ecommerce sector. Although it has higher initial charges than Etsy, Shopify is jam-packed with robust features and a great app store.

Unlike Shopify, which is ideal for individual or small-scale vendors, Etsy is a marketplace. It is much simpler than Shopify, yet there is no monthly membership cost (apart from its product fees). So, if you’re interested in getting into ecommerce but don’t want to commit to anything just yet, Etsy is a wonderful place to start.

Overall, Shopify is the superior e-commerce platform. However, Shopify and Etsy are significantly different, making it difficult to suggest one over the other. It is very dependant on your company’s requirements. Etsy is the ideal option if you just sell a few handcrafted things every month.

Why not create an Etsy account and give it a go, or take advantage of Shopify’s 14-day free trial to see what you think? After all, it’s always a good idea to test before you purchase!

FAQs about Shopify vs. Etsy

Is Etsy less expensive than Shopify?

When it comes to upfront costs, Etsy is less expensive. If you’re on a limited budget or simply want to sell a few products, Etsy will almost certainly be less expensive than Shopify. However, if you make a lot of transactions, Etsy’s 6.5% transaction costs may become prohibitively costly, making Shopify cheaper in the long run.

In our Shopify Pricing Review, you can discover more about Shopify’s plans and costs.

If you’re on a tight budget, compare free trials and plans in our post on the Best Free Ecommerce Platforms.

Why should I sell my items on Etsy?

Etsy is a popular destination for both customers and merchants! It has over 96 million consumers, which is a sizable market that you don’t want to overlook. However, you can only sell on Etsy if you’re selling handmade things, antique items, or craft materials. It is best suited for extremely small-scale vendors.

If you need something a little more complex, check out our Online Store Builder Comparison Chart or our in-depth tutorial on How to Sell on Etsy.

Which is better for growing my company? Etsy or Shopify?

Shopify is superior when it comes to expanding an online company. It contains a plethora of features as well as an outstanding app store to help you develop your site and attract more users. Shopify serves small companies as well as huge corporations like as Penguin. For additional details, please see our Shopify Review.

What distinguishes Etsy from Shopify?

Simply said, Etsy is a marketplace where sellers and buyers may meet. It is not an ecommerce platform in the same way that Shopify is. Etsy offers fewer features, product limits, and scalability limitations. Shopify, on the other hand, is better suited for developing firms seeking to create an online presence.

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