So you’ve decided to start an online store and sell your unique products to the world. Congratulations! Now comes the tricky part — choosing an eCommerce platform. The two big names you’ve probably come across are Shopify and Etsy. Shopify is a popular choice for anyone looking to build a branded online store. Etsy, on the other hand, is focused on handmade or vintage goods and has a built-in audience of buyers.
As you weigh the pros and cons of Shopify vs Etsy, there are a few key factors to consider. Do you already have an established brand and want full control over your store’s look and features? Shopify may be better for you. Are you looking to tap into Etsy’s community of handmade goods buyers? Then Etsy is probably your best bet.
Pricing, fees, customization options, and ease of use are all things to take into account. We’re here to walk you through the basics of Shopify and Etsy so you can decide which platform is the right fit for your business. By the end of this article, you’ll be well on your way to running a successful eCommerce business!
Overview of Shopify and Etsy
Shopify and Etsy are two of the biggest eCommerce platforms out there, but how do you know which is the right one for your business? Here’s an overview of what each platform offers to help you decide.
Shopify is a hosted eCommerce solution, meaning they handle all the technical aspects so you can focus on your business. They offer elegant, mobile-friendly themes to showcase your products, and they handle web hosting, payment processing, and shipping. Shopify is ideal if you want to sell products under your own brand. They do charge a monthly fee for their service, but they have plans for businesses of all sizes.
Etsy, on the other hand, is a marketplace specifically geared toward handmade goods, vintage items, and craft supplies. As an Etsy seller, you can open your own virtual shop for free and connect with their community of buyers. However, Etsy charges listing fees and takes a percentage of each sale. They also have some restrictions on the types of goods allowed. Etsy is a great option if you want to test out selling handmade products or vintage goods with minimal upfront costs.
Pricing and Fees: Which is Better for the Price?
When it comes to pricing, Shopify and Etsy have some key differences you’ll want to consider.
Shopify has three plans – Basic, Standard, and Advanced. The Basic plan starts at $39 per month and includes listing up to 1000 inventory locations, 2 staff accounts, and basic reports. The Standard plan is $105 per month and allows up to 1000 inventory locations, 5 staff accounts, eCommerce automation, and more advanced reports. The Advanced plan is $399 per month for up to 1000 inventory locations, 15 staff accounts, and additional features like calculated shipping rates.
Etsy has both free and paid plan that start at $10 per month. The free plan includes 5 product listings, basic stats, and chat support. The paid Etsy Plus plan ($10/month) offers 15 product listings, restock requests, and additional search ranking benefits. Unlike Shopify, Etsy charges a 6.5% transaction fee on all sales in addition to the monthly fee for paid plans.
In the end, it comes down to your business needs and costs. If you’re on a tight budget and want to test the waters, Etsy’s free option could be a good to start. However, for larger stores with more products, Shopify’s scalability and lack of additional fees may save you money in the long run. Think about how fast you want to grow your store and how much time you want to spend on the technical parts of running it. Let your priorities guide you to the right solution for your handcrafted business.
Ease of Use: Is Shopify or Etsy Easier to Set Up?
When it comes to ease of use, Shopify and Etsy each have their pros and cons. Both platforms are designed to be user-friendly for people without technical backgrounds, but Shopify may have a slight edge.
Shopify is a fully hosted eCommerce solution, meaning they handle all the technical aspects like hosting, security, and maintenance. All you have to do is choose a template, upload your products, set your prices, and you’re ready to start selling. Shopify’s intuitive interface and simple dashboard make it easy to set up and run your business without any coding knowledge required.
Etsy also provides an easy way for crafters and makers to open an online store, but it does require a bit more work. You’ll need to create individual listings for each of your handmade goods, which includes uploading photos, writing detailed descriptions, and setting prices for each item. While Etsy’s listing tool is simple to use, creating listings for a large inventory can be time-consuming. Etsy also charges listing fees and transaction fees for each sale in your shop.
When it comes down to it, both platforms are ideal for beginners, but Shopify is generally more user-friendly while giving you more control and customization over your store. However, if you’re looking to sell handmade or vintage goods, Etsy’s large community of buyers may work better for your particular niche. The choice ultimately comes down to your specific needs, technical skills, and what will allow you to run your online store most efficiently.
Payment Processing: How Shopify and Etsy Handle Payments
When it comes to accepting payments from your customers, Shopify and Etsy handle things a bit differently. With Shopify, you have a lot more control and flexibility over the payment process. Etsy simplifies things but also takes a percentage of each sale.
Shopify Payments
Shopify comes with its own payment gateway called Shopify Payments, which lets you accept major credit cards right out of the box. You can also choose from over 100 third-party payment gateways if you prefer, like PayPal, Authorize.net, and Stripe. Transaction fees for Shopify Payments are 2.9% + $0.3 per transaction.
If you use a third-party payment gateway with Shopify, their fees will apply instead. A big benefit of Shopify Payments is that the money from sales goes directly into your linked bank account, usually within 2 business days. You have control over enabling additional payment methods like Apple Pay and can set up manual or recurring billing.
Shopify also provides a fraud analysis to help prevent unauthorized purchases. You can customize your checkout page to match your brand and set up automatic tax calculations for different regions.
Etsy Payments
With Etsy, sellers are required to use Etsy Payments to handle all transactions. Etsy charges a 6.5% transaction fee on the total price of each sale, including shipping. The money is deposited into your Etsy account and then you can request a payout to your bank account. Payouts typically take 3 to 5 business days. Additionally, Etsy also charges 3% + $0.25 payment processing fee.
Etsy Payments accepts most major credit and debit cards as well as Etsy gift cards. You have limited options to customize the checkout page. Etsy does provide fraud prevention tools and collects and remits sales tax on orders. One of the benefits of Etsy Payments is that it’s very simple to set up since Etsy handles everything. However, the higher fees and lack of control over the payment process may be downsides for some sellers.
In the end, you need to weigh the pros and cons of each platform’s payment handling and fees to determine what will work best for your business model. Shopify generally offers more customization and control, while Etsy simplifies the process at a higher cost. But for casual sellers just starting out, Etsy can be an easy place to begin accepting payments with minimal hassle.
Marketing and SEO Features: Which is Better at Promoting Your Products?
When it comes to marketing your products, Shopify and Etsy offer some useful features, but there are a few key differences to consider.
Shopify gives you more control over your SEO and marketing. You can customize page titles, meta descriptions, and URL slugs for each product to help improve search ranking. Shopify also has apps and plugins for email marketing, social media integration, and affiliate programs. If you want to run marketing campaigns or build an email list, Shopify provides more flexibility.
On the other hand, Etsy has some built-in marketing features that can help boost visibility. Etsy automatically optimizes your page titles, descriptions, and product listings for search engines. Etsy also has an active community of buyers who discover new shops and products through the Etsy website and mobile app. Getting featured in Etsy’s curated collections or “Editors’ Picks” provides major exposure. However, you have fewer options for customizing your marketing or running your own campaigns on Etsy.
Social Media Integration: Which has better Integration Support?
Both platforms include simple social sharing buttons for promoting your products on social networks such as Facebook, Twitter, and Pinterest. However, Shopify has more advanced features for managing your social media profiles, posting updates, engaging with followers, and running social media ads or contests. With Shopify, you can connect multiple profiles, schedule posts in advance, and see analytics for your social media performance.
On Etsy, you’re mainly limited to sharing your Etsy shop and product listings organically on your social media profiles. Etsy does not provide tools for managing your profiles, posting updates, or analyzing your social media metrics within their platform. You’ll need to use third-party social media management tools.
In the end, if you want more control over your marketing and SEO, Shopify is probably your best choice. But if you’re looking for built-in exposure and community, Etsy provides some advantages. The option that’s right for you depends on your skills, resources, and how much customization you need.
Product Types: What You Can Sell on Shopify vs Etsy
When determining which platform is right for your business, the types of products you want to sell are crucial to consider. Shopify and Etsy each cater to particular product categories.
Handmade goods
If you create handmade or vintage products, Etsy is likely the best platform for your business. Nearly all of the items sold on Etsy are handmade, vintage, or craft supplies. Whether you make jewelry, art, clothing, home decor, or anything else, Etsy specializes in unique, artisanal goods. Shopify, on the other hand, is better suited for businesses selling more standard retail products.
Print on demand
Want to sell custom t-shirts, phone cases, or other printed merchandise? Both Shopify and Etsy support print-on-demand businesses, but Shopify may have a slight edge here. With the Shopify App Store, you’ll find many highly-rated apps for integrating print-on-demand services like Printful and Printify. Etsy also works with some print-on-demand companies, but the options may be more limited.
Dropshipping
If you want to get into dropshipping—where you sell products from a third-party supplier who then ships them directly to your customers—Shopify is the superior choice. It offers many resources and apps tailored to dropshippers. Etsy, on the other hand, is less suited to dropshipping since most items sold there are handmade or vintage. Dropshipped goods from platforms AliExpress or Oberlo would not meet Etsy’s product guidelines.
Digital goods
For selling e-books, online courses, music, or other digital downloads, either Shopify or Etsy would work. However, Shopify may have a slight advantage here again due to its App Store. You’ll find apps for integrating digital product delivery and fulfillment. Etsy can also be used to sell digital goods, but the options for seamlessly delivering products may be more limited.
In summary, while both Shopify and Etsy are excellent eCommerce platforms, the types of products you want to sell should strongly influence your choice. Shopify caters well to standard retail and dropshipping, while Etsy specializes in unique handmade and vintage goods. But either can work for digital and print-on-demand products. Consider your product lineup carefully to determine which platform is better.
Customer Support: Getting Help When You Need It
When issues arise or you have questions, customer support can make or break your experience with an eCommerce platform. Both Shopify and Etsy offer help resources, but there are some key differences in their customer support offerings.
Shopify provides 24/7 support via phone, email, and live chat. As a premium Shopify customer, you’ll have access to help from support specialists any time of day or night. They aim for fast response times and most customers report receiving helpful answers to their questions quickly.
Etsy also provides phone, email, and chat support, but only during business hours (Monday to Friday, 9 am to 6 pm EST). Outside of those hours, you’ll have to rely on Etsy’s help forums and documentation. While Etsy’s support team receives positive reviews, some shop owners do note longer wait times to receive responses, especially outside of normal business hours.
For urgent issues, Shopify’s 24-hour support is ideal. Their specialists can quickly help troubleshoot problems and get your store back up and running. With Etsy, you’ll have to wait until the next business day for help with critical issues that arise outside of business hours.
Both platforms offer detailed knowledge bases, FAQs, and community forums as self-help resources. However, Shopify’s library of educational content for store owners is more extensive.
Etsy also has an active forum, but some information may be geared more toward casual sellers rather than established store owners. That said, for unique questions related to selling handmade goods or vintage items, Etsy’s community can be an invaluable resource.
At the end of the day, you need to weigh what level of support is most important for your business. If 24/7 access to help specialists is critical, Shopify is the clear winner. For a smaller shop where you’re less reliant on instant customer support, Etsy should work fine!
Apps and Integrations: Extending Functionality
Shopify and Etsy both offer apps and integrations to extend the functionality of their platforms, but Shopify is the clear winner here.
Shopify has a robust app store with over 8000 apps available to help you customize your store and streamline operations. Apps are available for things like email marketing, product reviews, loyalty programs, shipping, accounting, and more. Many are free, and paid apps are very affordable.
Because Etsy lacks an in-house app store, you must rely on third-party apps to modify your Etsy store. The selection and availability are not nearly as extensive as what Shopify provides.
Both platforms also offer API access so you can build custom integrations and apps to meet your specific needs. Shopify’s API is very robust, while Etsy’s API is more limited.
If extending your store’s functionality through apps and integrations is important to you, Shopify is undoubtedly the better choice. With a huge selection of apps for any need and a powerful API, Shopify gives you opportunities to customize and scale your business that you just can’t get with Etsy.
Pros and Cons: Key Differences to Consider
When deciding between Shopify and Etsy for your eCommerce store, there are some key pros and cons to consider.
Cost
Shopify’s monthly fees start at $39/month for their basic plan. Etsy charges $10/month plus a 6.5% transaction fee. Shopify’s prices are higher but cover unlimited products and listings. Etsy’s lower fees only include 15 listings, with additional listings costing $0.20 each.
Ease of Use
Both platforms are user-friendly with drag-and-drop interfaces, pre-made themes, and lots of helpful resources. Shopify may have a slight edge with its all-in-one design. You can manage your store, products, orders, and shipping in one place. With Etsy, you’ll also need to handle money transfers and shipping labels separately.
Product Type
Shopify accommodates all types of products — physical, digital, or service-based. Etsy focuses on handmade, vintage, and craft supplies. If you sell unique, artisanal, or custom goods, Etsy’s dedicated audience may be ideal. For mass-produced or dropshipped goods, Shopify is better suited.
Sales Channels
With Shopify, you can sell on social media, marketplaces like Amazon, and in person using their POS system. Etsy only allows selling on Etsy.com. This can limit your reach and revenue opportunities. However, Etsy’s dedicated marketplace sees lots of organic traffic, which can drive more sales.
Support
Both platforms offer support via phone, email, or live chat. Shopify also has an active community forum to get advice from other merchants. Etsy’s support focuses specifically on using and optimizing its marketplace.
In summary, Shopify is an all-in-one eCommerce solution suitable for most stores. Etsy provides an affordable way to sell handmade goods to a dedicated audience. Evaluating your needs around cost, product type, sales channels and more will help determine which platform is the best fit for your unique business.
Conclusion
So there you have it, the pros and cons of Shopify and Etsy laid out for you. At the end of the day, you need to choose the platform that fits your business needs and goals.
If you’re looking to scale fast with lots of customization options, Shopify is probably your best bet. But if you want to tap into an existing community of buyers, Etsy could be the perfect place to start selling your handmade or vintage goods.
We hope this post has helped you make the right choice for your business when choosing between Shopify and Etsy!
