Shopify vs Etsy fees is an important factor to take consideration when picking the best place to sell your goods online.
In the eCommerce market, Shopify and Etsy are two well-known platforms that allow sellers to sell products to a wide online audiences. Shopify is a cutting-edge platform that includes all of the eCommerce tools needed to start, manage, and grow a business, meanwhile, Etsy is an online marketplace for independent artists and crafters who sell handmade and vintage items.
In this article, we will walk you through the super detailed pricing comparison of Shopify and Etsy to help you choose the right destination for your eCommerce business.
What is Shopify?
Shopify is a SaaS (software as a service) eCommerce platform that comes with everything you need to start selling online. You don’t have to worry about finding a host or dealing with technical issues because all you have to do is go to the main website and register an account.
Shopify provides a 14-day free trial, allowing you to test the platform without having to enter credit card information.
Thanks to its credibility, Shopify is always a viable solution, regardless of your company’s size. Its scalability is one of the factors that contributes to users’ trust and reputation. The eCommerce platform offers greatest satisfaction even for huge stores, owing to an astounding number of add-ons and integrated functions.
What is Etsy?
Etsy would be ideal for people who wish to start small with some best selling items, such as handmade creations, vintage items, and craft supplies. The marketplace will force you to focus your efforts on product development, client retention, and promotions. It does, however, come with the inability to manage your store, expand your brand, and scale it, which we shall explore later in the post.
Fortunately, because of the nature of internet marketplaces, you can sell on both your online store and the Etsy marketplace to effortlessly grow your business. When you integrate your online store with Etsy, it’s easier to handle inventory and orders.
Note: In late 2016, Etsy Pattern, the website platform version of Etsy, was introduced, allowing customers to sell unique things on their own standalone websites. E-sellers have less product restrictions with Etsy Pattern than with the Etsy marketplace. Pattern is free for the first 30 days, after which it costs $15 per month.
Multi-selling Made Easy
Want to minimize manual efforts when selling multi-channel? Try out LitCommerce – The Multichannel Selling Tool! LitCommerce allows store owners to list products on marketplaces and integrates Shopify store with other selling channels.
Shopify Fees vs Etsy Fees: Overview
Looking at the pricing overview, you will recognize that Etsy might cost less than Shopify. However, you can’t utilize the eCommerce features to assist your sales as much as Shopify has.
In case of using Etsy Plus and Pattern, you’ll probably notice that Shopify has fewer fees. Why? Let’s take a look at this example:
Let’s say you sell a $50 item. When it comes to transaction fees, selling Etsy costs you $4.45, while Shopify is just $1.75. Now, let’s say you sell 1 unit of a $50 item 100 times within one month, and you’re not even paying for Etsy Plus and Pattern. Within one month, you earn $5,000 in sales on Etsy, you’d pay a total of $445 in just fees only, whereas, with Shopify, you’d pay $204, including the Basic Shopify subscription.
Shopify vs Etsy Fees: Let’s break down the differences
Both platforms have their own set of benefits, so it’s important to think about which platform would best meet your business’s needs in the end. Or perhaps combining the two platforms can provide more value to your bottom line? We’ll break down the Shopify vs Etsy fees in this article to help you decide which is best for your company.
Shopify subscription plan
When it comes to Shopify vs Etsy fees, Etsy doesn’t offers subscription plans like Shopify except for Etsy Plus and Etsy Pattern. In contrast, Shopify offers 5 different pricing options for store owners to choose from: Shopify Lite, Basic Shopify, Shopify, Advanced Shopify, and Shopify Plus. Each Shopify plan comes with a unique set of features that cater to different business sizes. Only the pricing estimates for the first four plans will be discussed in this section.
1. Shopify Lite Plan
Shopify Lite is the most cost-effective way to sell things. It costs $9 per month, with a 30-day billing cycle. You’ll also have to pay for in-person credit card processing, which starts at 2.4% for each transaction.
By adding a Buy Button to your existing website and social media channels, Shopify Lite allows you to sell in-person with POS lite or sell online via your existing website and social media networks. It grants you access to the Shopify Admin, allowing you to examine reports, send gift cards, and split invoices, among other things.
However, unlike the other Shopify plans, you won’t be able to develop an online store with Shopify Lite.
2. Shopify Basic Plan
The Basic plan is ideal for small or newly-established businesses, with a monthly subscription fee of 29$. It is the cheapest price to help e-merchants get a fully functional eCommerce site.
Shopify’s basic plan includes a standalone website with an eCommerce store and a blog section. You’ll be able to sell an unlimited amount of products and create 2 staff accounts with this plan.
However, this plan doesn’t include some of the advanced features. For example, professional reports, advanced report builder, and third-party calculated shipping prices.
In the end, it is still an excellent place to start your business because you can quickly upgrade as your company grows.
3. Shopify plan
The Shopify plan is ideal for expanding eCommerce businesses searching for a way to improve their operations. This plan will set you back $79 every month, and includes all of the features of Basic Shopify as well as a few extras.
In comparison to the Basic Shopify plan, you will be able to create up to 5 staff accounts with the Shopify plan. This package, in particular, includes professional reports. These figures will undoubtedly provide you with a better understanding of your customers’ shopping behavior. Therefore, it allows you to develop more effective marketing methods to boost conversion rates.
4. Advanced Shopify Plan
As your company grows, you may need to invest in more advanced capabilities to deal with an increase in in-store traffic. When it comes to improving store administration, the Advanced Shopify price plan is the cream of the crop.
This is the most expensive package, with a monthly fee of $299. As a result, you can create up to 15 staff accounts. This package also allows you to use third-party shipping providers to determine Shopify shipping prices during the checkout process. Your customers will be able to choose the carrier with the lowest shipping rates, lowering the total cost of the purchase.
You’ll also get an advanced report builder, which lets you change default reports and create new ones. You can filter these information by dimensions to get the precise data you require and to gain a bird’s eye view of the entire organization.
Shopify’s other fees
1. Domain name
In fact, Shopify provides a free “myshopify.com” domain for all merchants. However, having a unique domain name can establish a strong basis because it will increase the visibility of your products. Therefore, you have a good chance to enhance your brand authority which is really important to grow your business’s reach.
Notably, you can use your existing domain name for your Shopify store if you already have one. You can link or transfer your current domain to Shopify for free. Then, via your Shopify admin, you can manage all domain settings, including making payments to your domain provider. Otherwise, you can purchase a domain name through Shopify for $11 per year. The price will vary depending on the top-level domain (TLD) extension you select.
2. Themes and designs
The appearance of your store plays an essential role in converting leads, which is why you should pick an attractive theme for your website.
Fortunately, Shopify’s website offers a diverse selection of 10 free and 70 paid themes. When determining Shopify pricing, you must consider the cost of a premium theme.
You can have a dazzling theme of many types for eCommerce sites for roughly $100 to $180. It includes every niche from clothing and fashion to electronics, art and photography, and so forth.
If you’re having trouble deciding on a theme, you can pick one of the free Shopify themes for your online store.
3. Add-ons and integrations
Add-ons and integrations are essential components for extending the functionality of your online store. Hence, Shopify’s developers are aware of this situation and responded by creating a large collection of freemium applications that allow you to add more specific functionality to your store.
The majority of premium apps cost between $20 and $29, with some exceeding $70. Some of the most popular Shopify app categories include: Store design, Sales and marketing, Inventory management, Orders and shipping, Customer support, Security, Reporting.
Shopify’s free trial, in particular, still offers a range of apps. Some of them have a 14-day trial period, while others let you use them for free for a month.
4. Transaction fees
Talking about Shopify vs Etsy fees, transaction fees are another type of Shopify fee to consider when you start to use this platform. If you utilize third-party payment providers to process client payments, you have to pay a small charge in each transaction.
Here are the transaction costs depending on the Shopify plans you select:
- Basic Shopify plan: 2,0%
- Shopify plan: 1,0%
- Advanced Shopify plan: 0,5%
You can, however, use Shopify Payments to avoid additional transaction fees. This is a Shopify-developed in-house payment system designed to simplify the payment process.
5. Shopify payments
Another Shopify cost that merchants must consider is the credit card rate, which has a direct impact on your profitability. You must pay a little fee to the payment provider to accept major credit cards like Visa, MasterCard, American Express, and so on. Also, Shopify charges a higher rate for online credit cards than in-person payments, due to the security risks associated with processing digital data.
Online credit card rates per transaction vary according to the Shopify plans you choose, similar to transaction fees:
- Basic Shopify plan: 2,9% + 0,3 USD
- Shopify plan: 2,6%+ 0,3 USD
- Advanced Shopify plan: 2,4% + 0,3 USD
And the rates for Shopify POS per transaction are charged as follows:
- Basic Shopify plan: 2,7%
- Shopify plan: 2,5%
- Advanced Shopify plan: 2,4%
Shopify Plus Pricing
Specifically, Shopify Plus is a good fit for high-growth businesses and large corporations such as Rothy’s, Heinz, and Allbirds.
1. Fees for developing a website
The Shopify Plus plan’s minimum monthly charge for regular setups and integrations is $2000. If your company has a bigger volume, you will have to pay more.
The Shopify Plus plan requires you to contact their experts and negotiate directly to receive the exact pricing for your business.
2. Fees for payment processing
Just like other Shopify plans, the Shopify Plus plan includes credit card rates and other transaction costs.
The interest rates on credit cards differ per country. To find out how much you’ll have to pay for the credit card payment provider, you’ll need to contact Shopify Plus staff.
Shopify Plus gives you the option of using a third-party payment processor to reduce payment processing fees. Nonetheless, you must pay an additional 0.15% transaction fee. If you don’t want to pay this fee, you can use Shopify Payments.
3. Fees for extensions and add-ons
Except for automation and customization add-ons, Shopify Plus will not replace all of your previously installed apps. As a result, major businesses continue to require specialized tools and apps to effectively manage certain operations. Moreover, the more add-ons and extensions you integrate into your online store, the more your monthly expenses will be.
You now have two choices. The first option is to seek assistance from Shopify Plus professionals. They will examine your company and determine which apps should be installed.
Otherwise, you can look into Shopify Plus partners for eCommerce services (Marketing Strategy, Onsite SEO,…) or certified third-party apps (Messaging and Notification, Loyalty & Rewards,…) to learn more.
4. Other fees
You may establish and manage an unlimited number of online stores with Shopify Plus. Each of them can be displayed in a variety of languages and, of course, in a variety of currencies. This means you may make your site more accessible to visitors from all around the world, and you can freely offer different product niches on each store.
The standard setup charges (which are $2000) include the price for your primary store and as many as 9 additional stores. After that, you’ll have to spend $250 for each additional store.
One-time theme purchases are another possible cost to pay attention to. For example, Shopify Plus allows you to add up to 100 themes to your account. Accordingly, you can use a clone of your published theme to test new themes, preview theme upgrades, and keep the seasonal version for special events.
In the comparison of Shopify vs Etsy fees, now you have a clear information about Shopify total costs when creating an online store. However, wit Etsy, you don’t need to pay for a domain name, themes or integration, but other costs like payment processing fees, listing fees, etc. are need to be included. Here are some Etsy detailed costs you should be aware of:
1. Listing fees
Whether your item sells or not, publishing a listing on Etsy costs 20 cents; you must pay a $0.20 listing fee which expires after 4 months. Here’s how Etsy charges your listing:
- A new or renewed listing will cost you $0.20.
- Listings are valid for 4 months, after which you must pay to renew them in order to keep them active.
- You can make free changes to existing listings.
- The fee is the same whether you use auto-renew or manually renew listings.
- With the exception of private listings, listing fees are charged regardless of whether a sale occurs.
- You’ll be charged the initial $0.20 fee and then each time the listing renews after a sale if you list the same item in multiples.
- There is no fee for listing an item on Etsy Pattern. Your Pattern subscription payments cover listings (more on this later).
- You won’t be charged to list an item again if you have already paid to list it and wish to relocate it to your Pattern store.
2. Transaction fees
You’ll be charged a transaction fee every time you sell something on Etsy. This is a percentage of the entire purchase price, which includes shipping and gift wrapping.
- A 5% transaction fee is applied to each completed sale.
- This charge also includes shipping and gift wrapping. Unless your listing fee pricing includes these, this fee will not be added on top of sales tax. The transaction cost is 5% of your listing price plus shipping and gift wrapping.
- If you sell somewhere that requires you to include tax in the listing price, your transaction fee will, by default, contain tax.
- Any customization fees you pay on top of the final transaction fee are also included in the final transaction fee.
3. Payment processing fees
Payment processing costs will apply to sellers who use Etsy Payments. Etsy Payments charges a fee for each transaction it processes.
- The costs differ depending on the location of your bank account.
- When Etsy releases money to your account, you need to pay a fixed deposit fee if your funds are below a specific threshold. Deposit costs are deducted from your Available Funds, and processing fees are charged from the sale amount in your payment account.
- The processing fee is a percentage (%) of the total sales price, including tax and shipping. The daily payout threshold in the United States is $25, and the payment processing charge is 3% + $0.25.
- If you need to convert currencies, you’ll have to pay an additional 2.5% currency conversion fee, except for: transaction fees, offsite ad fees, payment processing fees, deposits fees.
- You will need to pay a certain amount of money when you use Etsy gift cards, credits, or coupons to make a purchase.
4. Etsy subscription fees
You can sign up for Etsy Plus ($10 per month) if you want to expand and establish your business on the marketplace.
Here’s how much an Etsy Plus subscription costs and what you get:
- With their monthly subscription, Etsy Plus sellers receive 15 listing credits and $5 in Etsy ad credits. These will not roll over into the next month.
- You can use and get a discount on a custom domain name for the first year.
- You can have “sold out” ads that help notify customers when you refill.
- In comparison to non-subscription Etsy sites, you’ll have greater personalization options.
- Custom shipping boxes are available at a discount for sellers in the United States, Canada, the United Kingdom, and Europe.
- Moreover, Etsy Plus sellers can now save 30% on business cards at Moo, an Etsy Plus partner store.
- You can find discounts and benefits through Shop Manager -> Settings -> Your Subscriptions -> Discounts and Benefits.
- You can cancel your membership at any time, and either your account after your current billing period ends. Subscription costs will not be returned.
5. Shipping fees
When comparing Shopify vs Etsy fees, Etsy sellers can purchase shipping labels through Etsy and will be paid based on the carrier, shipment origin and destination, and package weight and dimensions. If you charge buyers a separate shipping fee when ordering from your shop, Etsy collects 5% of the total shipping charges.
If the seller chooses to purchase package insurance or signature confirmation, there are additional expenses.
6. Advertisement and Promotion fees
Talking about advertising fees, you can use Etsy Ads for displaying your product advertisements across Etsy. Etsy sellers can create their own Ads campaign and budget. The default daily ad budget on Etsy is just $1. Merchants will be charged whenever an ad is clicked. Etsy will apply this fee to the seller’s payment account the next day which means Etsy ads pay upfront with no guarantee that their ads will pay off.
Etsy also offers an offsite ad campaign, which allows your ads to show on a variety of social media channels as well as search engine results. This includes but is not limited to: Facebook, Google, Pinterest, Instagram and Bing.
7. Etsy Pattern Fees
Notably, e-merchants can construct a unique website distinct from their Etsy shop where they can sell their products using Etsy’s Pattern tool. While linking your inventory with the Etsy store, your store on Pattern will be separated from Etsy.
Pattern is free for the first 30 days, but there is a $15 monthly subscription price after that. Your first month’s bill will be prorated according to the time you signed up for the program. With each month using Pattern, you will need to pay the full subscription amount.
Furthermore, a domain registration fee will be levied to sellers who acquire a name through Etsy’s partner Tucows Inc. Also, this fee is subject to sales tax in appropriate states for U.S. sellers.
Especially Etsy does not charge listing or transaction fees for pattern-only listings. Nonetheless, a seller can decide at any time to make a Pattern listing available in their Etsy shop. Etsy’s usual listing fee will be applied to an item posted on both Etsy.com and Pattern. And Pattern-only listings that are paid for through Etsy payments will incur the payment-processing fee.
Frequently Asked Question (FAQs)
1. Why Etsy sellers are moving to Shopify?
In fact, many Etsy sellers are facing a lot of challenging when selling on this online marketplace. That’s because:
- Growing brand identity on Etsy is much more difficult, compared to Shopify.
- The overall fees on Shopify is cheaper than Etsy.
- With Shopify, merchants can take advantage of many efficient eCommerce features, while Etsy doesn’t provide enough as businesses are growing.
- Etsy sellers need to compete to a large number of competitors on Etsy with the same product niches.
2. How do I avoid fees on Etsy?
We can recommend 3 actions to help you avoid the new 1.5% fees and still remain the competitive sellers on Etsy:
- Increase your products’ pricing to stay profitable.
- Evaluate the shipping method and see where else you can cut costs.
- Put more effort on your marketing and SEO to cut down advertising fees.
For more information, we’ve already breakdown the costs when selling on Etsy and some tips to help you save money.
3. Can I integrate my Shopify store with Etsy?
The answer is definitely yes. You can integrate your Shopify store with Etsy using multichannel selling tools. We highly recommend using LitCommerce to help you save a lot of money as well as manage all data from single dashboard.
This tool is preferable for non-tech sellers, all you need to to is create an account, connect Shopify and Etsy within few clicks and you’re ready to go!
Shopify vs Etsy Fees: Which one gets your money worth?
To conclude, from a pricing point of view, the main advantage of using Etsy over Shopify is that it lets you avoid monthly fees. However, when looking at the disadvantages, the transaction fees are very high compared to Shopify’s. Moreover, because Shopify and Etsy are quite different in terms of their natures, you should highlight the contexts where it makes more sense to use one over the other.
Although this Shopify vs Etsy fees comparison has so far looked at the differences, it’s important to note that you don’t have to stick with one platform to run your business. If you’re interested in multichannel selling, check out LitCommerce to prepare for your first step!
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