Shopify vs Etsy – Which is better for your business?
First, let’s be clear about this: Shopify is an eCommerce platform, and Etsy is an online marketplace. From this very distinguished point and our experts’ perspectives, Shopify would win over Etsy if you are looking to build a functional online store and spread your brand awareness.
And those who just want to focus on the listing and earning part? Etsy would be the better choice. Evidently, Etsy has massive built-in traffic and huge credibility as it is the world-leading trading spot for creative and unique goods.
Wonder why we state these points? Keep reading and walk through our detailed Shopify Etsy comparison. The following comparison of Shopify vs Etsy goes deep into 9 aspects, including:
- Seller fees
- Ease of use
- Product types
- Domain and URL structure
- eCommerce features
- Traffic and Marketing
- Design flexibility
- Integrations and apps
- Help and support
Here we go!
You may want to check out Etsy vs eBay comparison. Click here to read!
Shopify vs Etsy: The Overview
What is Shopify?
Shopify was founded in Canada in 2004 and has become one of the best eCommerce platforms. It is a fully-hosted solution, making it easy for anyone to start an online store.
By 2024, over 4.4 million stores are using Shopify, according to Yaguara.co. Experts predict Shopify will stay popular in the future because it offers great features and a simple, user-friendly experience.
Shopify’s main goal remains the same: helping merchants quickly create websites and open stores without needing any technical skills.
Quick update for Shopify newbies: Currently, Shopify offers sellers a 3-day free trial. After that, you are able to join the deal “$1/month for 3 months” using all the Shopify pricing plans.
What is Etsy?
Etsy has been a very popular marketplace site since its introduction in 2005. Like Amazon and eBay, you register an account to create spaces for displaying your products. The special thing about this marketplace? It is the 1st place whenever you think of selling or buying creative and unique products.
For those who want to start small, Etsy shopping online would sound very good. The marketplace will give you the most concentration on developing your products. However, it comes with a lack of the ability to manage your store, grow your brand, and scale up, which we will discuss later in the article.
Etsy Pattern – the website platform edition of Etsy was launched in late 2016, allowing people to sell custom goods on their own standalone websites. With Etsy Pattern, you have fewer restrictions on products than in the Etsy marketplace. You can try Pattern for 30 days for free and then be subject to a monthly fee of $15.
From the overview, there is one huge difference between Shopify and Etsy—one is a platform, and the other is a marketplace. Selling on these channels will require different efforts and skillsets. In detail, selling on stores powered by Shopify requires time and resources to enhance your overall online presence and manage customer experience. Meanwhile, selling on Etsy focuses more on the marketplace itself and listing promotion within it.
Selling on Shopify vs Etsy: Pros and Cons
What are the pros and cons of Shopify?
Pros:
- Powerful eCommerce tools: Shopify provides you with a complete set of powerful eCommerce tools covering any aspect of online business growth. Some of the essentials include a complete inventory management system, abandoned cart recovery, flexible payment options, and more.
- Great scalability: Shopify varies its plans for all types of business sizes, from small and medium to large. You can control how your brand grows, choose the upper grade for more features, and add apps.
- No restrictions on types and number of products: With Shopify, you can sell any type of product (physical goods, digital products, subscriptions, etc.) without the existence of quantity limits.
- Suitable pricing plans: For those who haven’t tried Shopify may assume Shopify is costly. However, Shopify pricing is completely reasonable once your business reaches potential growth.
Cons:
- Customer exposure: Selling with a standalone website, you will be the one who is totally in charge of SEO, ads, and email marketing so as to display your products to your customers as much as possible.
- Stacking up cost for Apps: For the need to grow your business, you might have to purchase lots of apps to add functionalities.
What are the pros and cons of Etsy?
Pros:
- Customer exposure: As a marketplace possessing very high popularity, Etsy helps its merchants immediately approach a large number of customers
- Easy to use: You simply register for an account, upload product images, set prices and promotions, then roll out!
- Low cost: With the Standard plan, you will pay for listing products and transaction fees. Aside from that, you don’t have to pay any extra monthly charges.
Cons:
- Product limit: There are regulations on what types of products you are allowed to sell on Etsy. This is mainly to guarantee that Etsy is a marketplace of distinctive, including handcrafted, vintage, and unique products.
- Lack of control: You will be sliding products along with other sellers in the same place and won’t be able to modify the look of your storefront. This makes it hard for you to approach customers via visual attraction, and you must rely mostly on ratings.
Pricing
Shopify Pricing Overview
New to Shopify? Don’t worry. You can start with Shopify’s 3-day free trial, which includes friendly onboarding instructions to help you quickly understand the platform. After the trial, Shopify offers a 3-tier pricing plan, each designed for different levels of scalability. The higher the plan, the more features you unlock.
Shopify Pricing Plans:
- Shopify Basic: $2.9 + 30 cents per transaction
- Shopify Plan: $2.6 + 30 cents per transaction
- Advanced Shopify: $2.4 + 30 cents per transaction
Ways to Save:
- Annual Plan Savings: Save 25% in your first year by subscribing annually.
- Two-Year Contract: Offers a 20% discount.
Note: If you rely heavily on Shopify’s app store, keep in mind that some Shopify apps may have high charges, which can add up to your overall fees.
Etsy Pricing Overview
Is Etsy free? Not quite, but Etsy’s fees are minimal compared to other platforms. There are no monthly operating expenses with Etsy’s standard plan, but there are some costs associated with listing and transactions.
Etsy Fees:
- Product Listing Fee: $0.20 per product listing (covers publishing and displaying the product for several months or until it sells).
- Transaction Fees: 6.5% per sale.
- Payment Processing Fee: 3% + $0.25 per transaction.
Offsite Ads:
- Etsy offers offsite ads to promote your products.
- You only pay when you make a sale from those ads.
Key Takeaways:
- Shopify: Offers scalable plans with feature-rich tools.
- Etsy: Keeps it simple with minimal listing fees.
Each platform has its unique advantages, so consider what aligns best with your business model.
The Perfect Match – Shopify and Etsy
Expand your market presence, increase brand visibility, and turn potential customers into loyal fans with LitCommerce Shopify Etsy integration.
Ease of use
Shopify
Whether you’ve had experience selling on other eCommerce platforms or are an online business beginner, Shopify – one of the most significant Etsy competitors makes it super simple for you to get up and running. It’s easy to understand because hosted solutions like Shopify are much easier than self-hosted solutions.
Shopify is not the easiest platform on the block, but it makes setting up an online store a breeze. You won’t get a site live in 5 minutes, of course! But Shopify manages to combine powerful eCommerce features with an easy-to-use editor, even for total beginners.
After registering an account on Shopify, you can follow its Shopify tutorial to set up your store. Basically, there are 3 primary steps you will have to go through, including adding products, designing your store, and configuring settings.
Etsy
Things are even a lot easier when selling on Etsy. All you need to do is to sign up and upload your products and information, then be ready to sell on Etsy! The most time-consuming process probably is when you upload products, it requires a lot of information.
Etsy’s overall setup costs need less effort compared to Shopify. Therefore, it would be ideal if you are looking for speed and simplicity in selling online.
Key Takeaway: Shopify has strong eCommerce tools and an easy editor for beginners, but setting it up takes more time. Etsy is simpler and faster, great for quick selling.
Product types
One of the biggest differences between Shopify and Etsy is product types. Here is one thing to keep in mind: Shopify has no product restrictions, while Etsy sets some rules to make sure its trading community is safe.
Shopify
As mentioned above, Shopify has no product restrictions. This means you can sell anything once you’ve built a store. From consumption goods to furniture, feel free to list anything on Shopify.
More about Shopify products, this eCommerce platform would be a wonderful place to start a brand and spread your brand awareness. And if you are wondering what you should sell at your Shopify store? Here are some recommendations from Shopify itself for 2024:
- Vitamin and health supplements
- Perfume and cologne
- Skincare and makeup products
- Coats and jackets
- Bedding items (sheets and blankets)
- Drinkware
- Bath and body care products
- Candles
- Underwear
- Wine
Take these recommendations into account if you choose Shopify to be your main sales channel. They can help a lot!
Etsy
Etsy products are more specific, compared to Shopify. This marketplace is well-known for being the top shopping spot for artisans, sculptures, wall art, posters, and more. Products listed on Etsy must always align with the house’s spirit, which refers to creativity and uniqueness.
So, given the circumstances, what should you sell on Etsy in 2024? Here are some suggestions:
- Children’s and baby clothes
- Accessories
- Pet supplies
- Wallart
- Personalized gifts
- Drinkware
- Office supplies
- Craft supplies
We have more suggestions for best products to sell on Etsy, available on LitCommerce’s Retail Blog with updates!
Key Takeaway: Shopify is great if you want to sell a wide range of products without restrictions, making it ideal for general or branded items. Etsy, however, is perfect for artisans, vintage items, or craft supplies, making it a top choice for handmade and creative goods.
Domain and URL structure
Shopify
Registering to sell on Shopify, you will be asked to create a domain name for your website. During the trial period, there’s an additional “myshopify” in your website’s address. The address may look uncomfy for you but once you pick a plan, you’ll immediately get your custom domain name without the “myshopify” standing in between.
It also means that you are the owner of that domain, it’s unique to your website, making it a powerful part of your brand. A custom domain name on Shopify costs $11 per year. It should look like this:
Free trial | Official |
www.shopname.myshopify.com | www.shopname.com |
Shopify encourages you to create custom domains for your websites. It’s a crucial part of identifying that your brand is trustworthy, recognizable, and professional. It also helps customers find your websites a lot easier in comparison to stores in a space-sharing environment.
Having a standalone website with a custom domain creates chances for you to put the effort into Shopify SEO, which is very important for steady growth in the long term.
Etsy
Selling on a marketplace like Etsy, you can’t have a custom domain like what Shopify has on offer. Instead, your store’s address should look like this: www.etsy.com/shop/shopname.
This may lead to situations where your customers must browse through pages before coming to your store. Plus, it is not convenient if you are planning to build a brand.
Shopify helps merchants clarify their brand names better than Etsy does. With Shopify, you will have complete access to all customer data and grow your brand identity. Meanwhile, on Etsy, even if your products are unique, it’s extremely challenging to develop brand awareness or differentiate your business.
eCommerce features
When selling on Etsy vs your own website using Shopify, the availability of eCommerce features is a must. It decides whether or not you will get covered with the ability to manage your business and get more Etsy sales.
Shopify
With Shopify, it’s amazing how the abundance of features this all-in-one solution provides sellers even in its standard plan. Here we have a list of some features coming along with every plan on Shopify, including:
- Gift cards
- Discount codes
- Shopify point of sale
- Multichannel selling
- Abandoned cart recovery
- SSL certificate
- Dropshipping
- Overview dashboard
- Finance report
- Fraud analysis
- Blogging
- Inventory and order management
- Unlimited bandwidth and online storage
Among these above features, multichannel selling is pretty important to help you expand exposure to potential customers. You should learn more about multichannel selling guides and find the right add-ons on Shopify to get your multichannel selling chapter started. Speaking of which, LitCommerce is a trusted app, used by 20+ thousand of multichannel sellers. Learn more about LitCommerce and check out the best features there are for multi-selling.
Abandoned cart recovery reminds customers if they almost finished a purchase but decided to leave the checkout page (unknown reasons). This helps you make sure there are no sales slipping away from your pocket.
SSL certificate is crucial for secure transactions on your website. This thus contributes to trust-building and credibility with prospects. You will have the default authentication of an SSL certificate on every plan you choose.
Most importantly, Shopify is by far the platform with the largest app store on the market, with over 8000 apps, which means you can find everything you want there.
Etsy
At this point, Etsy does it well by gearing you up with toolkits to help you manage your store with ease.
You can use the “Sell on Etsy app” to manage orders, update items, and respond to your customers on the go. Etsy also provides promotional tools that drive traffic, enlarge the customer base, or draw more followers for brand building.
Analyzing performance is crucial for any business and Etsy knows that at its best. In fact, Etsy provides you with the analytics report feature by default on every plan, showing detailed statistics on performance trends and traffic sources.
By upgrading to Etsy Plus, you will get access to more features:
- Create your own domain
- Advanced shop customization, such as multiple banners and layout options
- Access to discounts and perks
- Item availability email alert to customers
Looking at eCommerce features alone between Shopify vs Etsy, Shopify certainly wins over Etsy. The greater availability of features in Shopify may come along with higher fees compared to Etsy. If you want to keep it simple and small then Etsy’s basic features are good enough.
Traffic and Marketing
Here is another significant aspect for any seller looking to compare Shopify and Etsy.
So, speaking of Shopify vs Etsy, regarding Traffic and Marketing, which would win? Let’s take a glance!
Shopify
Take these highlights:
- Traffic
Traffic on Shopify highly depends on your strategies and practices because you will be driving traffic to your website all by yourself.
Will it be difficult? Yes, it will be! But do you have any support? Yes, you do.
Fortunately, Shopify has a powerful app store with all types of apps and integrations to help you enhance your SEO effort, drive traffic, and convert visitors to shoppers.
Some SEO add-ons you may consider using are SEO Manager, SEO Doctor, and Ultra SEO. All are available now in the Shopify app store.
One more thing about traffic and SEO on Shopify is that it is more about your overall online presence since your store will appear across different search engines. Keep that in mind.
- Marketing effort
In general, this eCommerce platform provides sellers like you with a wider range of marketing tools. You can create a custom domain name and brand identity, run email marketing campaigns, integrate with social media platforms, and utilize various SEO strategies to improve your search ranking. Shopify also offers analytics to track your marketing performance and customer behavior.
Summing up, Shopify has quite great support to boost your marketing efforts, and with the right strategy, you’re going to score big. However, the workload is huge, and we think someone with a higher expertise in marketing would be a match for selling on Shopify.
Etsy
- Traffic
Sellers don’t have to put so much effort into driving initial traffic, and they enjoy a massive built-in traffic source from Etsy. As a matter of fact, Etsy had up to 97+ million active buyers in 2023 and is predicted to rise this year, and 500+ million monthly visitors (reported by Yaguara). Surely, any seller would want this traffic amount.
That’s the benefit of selling on Etsy vs Shopify, but how you stand out from millions of other sellers is a whole different story. This is where your effort comes in the most.
Some pro tips for Etsy SEO to drive traffic: Optimize your keywords, make use of all 13 tags, write compelling titles, and generate backlinks to your Etsy shop.
- Marketing efforts
Marketing efforts on Etsy are much marketplace-focusing. In other words, you will promote your listings within the marketplace. This is quite similar to eBay, Amazon, and many other marketplaces because you will focus on the selling part more.
When choosing Etsy over Shopify, you will also have limited control over marketing. Yet, you can still leverage Etsy ads (onsite and offsite) to promote your products and make sales from them.
In our opinion, Shopify would win if you are looking to build a strong brand with complete control over your marketing effort overall. However, you need a strong skillset and the right strategy to make it work. If you are just an individual seller who looks to earn a passive income online, Etsy is your ultimate choice.
Design flexibility
There should be no denying that design flexibility is not a strength for both Shopify vs Etsy. However, there are significant differences between the two to look at. And that Shopify still has more in stock to make your web design more attractive.
Shopify
With Shopify, you will get access to 200+ themes, including 13 free themes and over 189 paid ones. All of these themes can be found on the Shopify themes store, with continuous updates of new themes available. Once you have selected a theme, you can customize the content section on the home page.
Moreover, all Shopify themes are made SEO and mobile-friendly, which is very important to improve user experience. You can swiftly switch between themes anytime you like, however, some themes require content reformatting. Shopify allows its users to develop Shopify themes manually or hire a Shopify Expert to complete the task.
Shopify themes serve many business types, so you can choose the most suitable for your website, ranging prices for paid themes from $170 to $350. Some of the most-used free Shopify themes you can choose are Dawn, Craft, and Studio.
Etsy
In contrast, your store will follow Etsy’s layout and design. The lack of design interference is sometimes a good way to get rid of worries. You can rest assured that Etsy will always apply the best it can give to make your store clean, responsive, and attractive.
You don’t have any room for customization on Etsy. All you can do is fill in your store name, upload logo and product images, adding descriptions. By the way, to get it done fast, use a logo maker if you don’t have a logo yet.
Verdict: Very clear that, with these few options on Etsy, it’s hard to make your store the center of attention in terms of design. Meanwhile, you can pick a free or paid theme from Shopify with many advanced features to sell online.
Integrations and add-ons
Let’s come to another aspect, comparing Shopify vs Etsy – integrations and add-ons. In this part, you can guess the result already – Shopify is the winner! Now, we’ll explain in further detail.
Shopify has diverse integrations that could help you thrive your online business. From inventory management to multichannel selling integrations, Shopify has it all. Speaking of which, you may have heard of some popular integrations and add-ons by Shopify:
- LitCommerce for multichannel selling
- ShipBob and ShipStation for fulfillment
- PageFly for page building
- Google Analytics and Shopify Analytics for analyzing and reporting
- Helpdesk for customer supporting
- BOGOS for promotions and free gift with purchase.
And so many more!
What about Etsy? To the best of our knowledge, Etsy has quite limited integrations and add-ons compared to Shopify. Nonetheless, there are still some add-ons you can use for Etsy and boost your sales to their highest potential.
Some integrations and add-ons on Etsy we can recommend are:
- EtsyHunt and Erank for Etsy SEO
- POD services
- ShipStation and ShipBob for fulfillment
- Hootsuite and Later for social media managing
Shopify wins. Comparing Shopify vs Etsy, regarding integrations and add-ons, Shopify is much more of a powerhouse over Etsy, and there is no turning back on this!
Help and support
People at Shopify are enthusiastic about helping sellers to have their problems solved quickly. For upper plans, you can even access support from your own support team. Shopify offers help on different channels to select the best option for you. Specifically, it offers:
- 24/7 phone support
- Social media support
- 24/7 live chat support
- Community forum
- Email support
- Help Center
- Video tutorials
- Advanced specialist support
With Etsy, the options are less diverse. You can find answers to your problems in the Help Center, where information is displayed very cleanly and clearly. Etsy has an active forum where you can join discussions and receive great advice from other users. Email or direct phone contact is also on the list you can rely on for support.
Shopify clearly wins the round thanks to its dedicated support system. Yet, selling on Etsy means you can always seek for situations that are similar to yours or ask the community directly. What do you think about seller support from Shopify and Etsy?
Shopify vs Etsy: Final Comparison
Selling on Shopify vs Etsy – have you decided where to kick off your business after our detailed comparison yet?
If you are still considering factors, we’ll let you take your time. Meanwhile, let us sum up the whole comparison for you right below:
- Shopify is great for business owners, especially if you have a strong skillset and perhaps a team to handle all the workload. Moreover, Shopify would be greater than Etsy if you are looking to gain more control and scale up your business. This eCommerce platform is going to provide you with everything necessary to enhance your online presence.
Etsy is the better choice if you are an individual seller with artisans and creative products. You won’t have to worry about driving initial traffic, and you’ll be selling to the right audience who crave uniqueness. Just keep in mind that choosing Etsy over Shopify means you have less control, and you have to follow the marketplace’s rules strictly.
Integrate Shopify with Etsy using LitCommerce
Integrate Shopify with Etsy using LitCommerce and join thousands of successful sellers. Take your leap today and kick off the multichannel journey!
Shopify vs Etsy: FAQs
Using both Shopify vs Etsy for your business is literally the definition of synergy. This is super effective when you want to diversify your presence on the internet. Combining the use of Shopify vs Etsy helps you reach more audiences and make the most of the famous marketplace. By using the Etsy Marketplace Integration app, you can integrate the Etsy marketplace with your current Shopify store within 4 simple steps: Generally, publishing products on your Shopify store is done by manually importing products or using CSV files. However, this process might take time and cause unwanted errors especially when you sell on various marketplaces. As a result, LitCommerce app allows you to publish products from Etsy on your Shopify store within a few minutes and requires no technical skills. For detailed info, please follow our guidelines. Shopify wins if you want to build a functional store with strong brand recognition. It is also the case if you are going to sell products that are not really creative and unique goods. On the other hand, Etsy is a great choice if you just want to focus on the selling part, sell to its built-in vast audience, and earn from your artisans and handmade products. Many sellers looking to switch from Etsy to Shopify due to many reasons. Some want to scale their business up, others want to gain more control over their brand and marketing freedom. If you find yourself in similar situations, consider switching from Etsy to Shopify. If not, you can still leverage the power of the world-leading marketplace for creative and unique goods.
The Bottom Line: Did Shopify or Etsy Win?
Finally, we have delivered everything you need to know about Shopify vs Etsy. We bet that, by this moment, you have figured out that choosing a winner for Etsy or Shopify is not the fixed goal by looking at how they function. Shopify is a dedicated eCommerce platform that provides you the ability to flourish business with your own brand. While Etsy allows you to keep it simple selling online, focusing on the product’s distinctive.
If you’re interested in multichannel selling, check out LitCommerce to prepare for your first step! The tool allows you to import products from your eCommerce website, then list and sell products on the world’s largest online marketplaces such as Amazon, Etsy, and eBay,… and make the management work more efficient and simple than ever before.
In case you need more info, please leave us a message. You can also visit the Retailer Blog for more and more helpful information. Happy selling!
