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Shopify VS Etsy: Which Is the Best for Your Business?

Written by Cody McGuffie on April 18, 2024

Deciding whether to sell on Shopify or Etsy can be a tough decision. They are both great platforms with a lot to offer, but they also have their own unique set of pros and cons. In this blog post, we’ll break down the key differences between Shopify and Etsy so that you can decide which one is right for you and your business. 

Etsy is a marketplace where you can sell handmade, vintage, and craft items. It’s been around since 2005 and has over 4 million active sellers. Shopify, on the other hand, is a platform that allows you to create your own online store. It’s less than 10 years old, but currently powers over half a million businesses. 

 

Shopify VS Etsy

 

Shopify

Pros:

  • You have more control over the design and branding of your store. 
  • Shopify offers built-in blogging capabilities, which can be a great way to drive traffic to your site. 
  • Shopify is PCI-compliant, which means that it meets all the security requirements for online businesses. 

Cons:

  • Shopify has higher transaction fees than Etsy: 2% – 2.9% + $0.30 per transaction (paid by the buyer) 
  • Shopify requires you to sign up for a monthly subscription plan (Starts at $29/month).
  • You will need to invest time and money into setting up and marketing your Shopify store. 

Etsy

Pros:

  • Etsy has lower transaction fees than Shopify:
    Listing Fee: $0.20 per listing (listings expire after 4 months)
    – Transaction Fee: 5% of the total sale price
    – Payment Processing Fee: 3% + $0.25 per transaction (paid by the buyer)
  • Setting up an Etsy shop is quick and easy. You can be up and running in no time! 
  • Since Etsy is such a popular platform, there is already built-in traffic that you can tap into. 
  • There is a large community of Etsy sellers that you can connect with for support and advice.

Cons: 

  • You have less control over the design and branding of your store compared to Shopify. 
  • Etsy does not offer built-in blogging capabilities, so you’ll need to drive traffic to your shop through other channels (e.g., social media). 
  • Some people view Etsy as being “crafty” or “hobbyist,” so it might not be the best platform if you’re selling more expensive items. 
  • Etsy’s search algorithm favors sellers who have been on the platform longer, so it can be difficult for new sellers to get noticed. However, with EverBee you can effortlessly check the listings and shop age of your competitors, then you can use our software to keep track of your competitors.

Payment Processing

Another key difference between Etsy and Shopify is how they handle payment processing. With Etsy, payments are processed through PayPal, direct checkout, or Apple Pay. This can be limiting for some buyers who don’t have PayPal or don’t want to use it for their purchases. With Shopify, you have more options for payment processors, including PayPal, Stripe, Authorize.net, and more. This gives you more flexibility to choose the payment processor that works best for you and your business.

 

Shipping & Dropshipping

Etsy has a built-in shipping calculator that allows you to calculate shipping costs based on the item’s weight and dimensions, as well as the buyer’s location. You can also offer flat-rate shipping or free shipping if you want to attract more buyers.

 

With Shopify, you’ll need to use a third-party shipping app like Shipstation or Shippo to calculate shipping costs and print labels. However, these apps typically offer more features than Etsy’s shipping calculator, such as batch labeling and automated order tracking.

 

If you use dropshipping on Etsy be sure to read their rules because they only allow you to sell vintage, handmade, or craft supplies, so any items you sell need to be made or designed by you. With Shopify dropshipping, it’s easy to connect your shop with their marketplaces of different companies that offer this service so you can sell a variety of products and don’t have to keep stock of everything.

 

Both Etsy and Shopify offer unique benefits for sellers looking to start an online business. If you’re looking for a marketplace with low fees and no monthly subscription cost, then Etsy may be the right platform for you. However, if you prefer having your own standalone website with more flexible payment processing and shipping options, then Shopify would be a better fit for your business needs. Ultimately, the decision comes down to evaluating your needs and finding the eCommerce platform that best suits your business goals!

Happy selling!

About EverBee

EverBee is the best product research for Etsy sellers and is used by Top 1% sellers all over the world.

About the Author

etsy best sellers

Cody McGuffie

Top 1% Etsy seller that’s been in the ecommerce industry for over 5 years. 

Has done over $330,000 in revenue on Etsy alone.

 

Successfully owned and operated 2 online companies selling on platforms such as: 
Etsy, Amazon FBA, Walmart.com, and Shopify.

 
Founder of EverBee.io
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