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Comparing Shopify vs. Etsy can be tricky as they have some similarities as ecommerce platforms. But while both offer solutions for selling your products online, they cater to different needs.
The main difference between the two website builders is how you market your products. Shopify lets you build your own website for you to market and sell your products, whereas Etsy is an online marketplace where you sell your products alongside others in a shared space.
Which one suits your needs best? To help you out, we’ve analyzed Shopify and Etsy across key areas like pricing, features, marketing, and e-commerce options. By the end, you’ll be well-equipped to choose the online store platform that propels your ecommerce business forward.
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Etsy vs Shopify Compared
To start, let’s look at a general comparison of the two ecommerce platforms, comparing their starting costs, free trials, features, support, and more:
| Shopify (Annually) | Etsy | |
|---|---|---|
| Starting Price | $29/month | Free (Etsy Standard Plan) |
| Free Version | ❌
3-day free trial plus first month for $1 |
✅ |
| Free Domain | Free subdomain only | Free subdomain only |
| E-Commerce Capabilities |
|
|
| Included SEO Tools | ✅ | ✅ |
| Customer Support | 24/7 live chat, phone, and email support | 24/7 live chat, phone, and email support |
| Bandwidth/Storage |
|
|
| Security Features |
|
|
| Money-Back Guarantee | ❌ | ❌ |
Shopify & Etsy: Pricing Compared
Winner: Etsy
Shopify and Etsy approach pricing in very different ways. We’ll explore the intricacies of both platforms’ pricing to help you decide which online marketplace offers the best bang for your buck.
| Shopify | Etsy | |
|---|---|---|
| Free Version | No, but 3-day free trial and $1 for your first month | Etsy Standard Free plan includes:
|
| Basic | $29/month (annually) | |
| Starter | $79/month (annually) | |
| Advanced | $299/month (annually) | $10/month |
| Premium | $2,300/month (annually) |
Let’s tackle the burning question upfront: Is Etsy free? Absolutely! Unlike Shopify, which charges a $29 monthly fee on an annual plan upfront, Etsy offers a tempting complementary plan (the Etsy Standard plan) that allows you to start your own website and dip your toes into the world of online sales for free, which makes Etsy the clear winner here.
However, choosing an ecommerce platform should depend on your specific budget and online storefront needs, and Etsy gets its money in its own way. Keep reading.
Shopify vs. Etsy Transaction Fees: Etsy’s free plan has limited customization, but it’s ideal for beginners, especially those selling handmade goods or things like craft supplies. The transaction fee is 6.5% of the total sale price, and there are listing fees of $0.20 per item.
Upgrading to Etsy Plus for a monthly fee of $10 gets you additional tools and benefits, such as advanced shop customization options and listing credits, but does not change the transaction fee structure. That said, 15 free listing credits each month can help offset the cost of listing new items in your shop. Additionally, it provides $5 in Etsy Ads credits each month.
Shopify offers more control and growth potential, with monthly fee-paid plans ranging from $29 to $2,300. Transaction fees depend on what plan you have. They are as follows:
- Basic: 2.0% transaction fee on orders if using a third-party payment processor.
- Shopify: 1.0% transaction fee on orders if using a third-party payment processor.
- Shopify Advanced: 0.5% payment processing fee on orders if using a third-party payment processor.
However, if you use Shopify Payments, Shopify’s own payment processor, these additional transaction fees are waived on all plans.
In summary, unlike Etsy, you can list unlimited products and potentially pay lower transaction fees on high-volume online sales. This means that Etsy is perfect for starting small with handmade products, offering lower monthly fees but higher per-sale transaction fees.
Shopify is ideal for established businesses or, at least, those with big plans. It provides more control, scalability, and potentially lower transaction fees on high sales volume.
Shopify & Etsy: Ease of Use
Winner: Etsy
Both Shopify and Etsy offer beginner-friendly interfaces, but signing up for Shopify feels a bit more straightforward. Don’t worry, though – they both have step-by-step guides that will get your shop launched in a flash.
Shopify boasts an intuitive product management system, letting you add descriptions and variations and track inventory easily. You can even tweak the code for a truly customized look (perfect for tech-savvy sellers).
But the real star of the show is Shopify’s drag-and-drop editor, which allows anyone to become a design whiz, though this can be overwhelming sometimes.
Our Shopify review uncovered some powerful features on its dashboard, like business insights and tools, that let you track key metrics like sales performance, customer behavior, and marketing effectiveness. Plus, there’s a handy mobile app to manage orders and products and chat with potential customers on the go.
However, this extra muscle comes with a bit more complexity compared to Etsy’s setup. It’s like a toolbox overflowing with options – fantastic, but it might take some tinkering to find the perfect tool for the job.
Shopify requires you to invest time in learning the e-commerce platform and customizing your store, which might be perfect for experienced sellers looking to scale up but not quite ideal for beginners aiming to get their online store up and running quickly. Setting up an Etsy store, on the other hand, is a breeze.
Managing product listings in an Etsy online store is intuitive, with a clean layout for adding photos, descriptions, tags, and categories. This simplicity extends to inventory management, which is basic but sufficient for small-scale operations. Etsy shop sellers can easily track online store stock levels and update listings without navigating complex menus or settings.
Most features and settings are straightforward, making it easy to create and manage listings and personalize your shop’s appearance without becoming overwhelmed by choices.
Shopify vs Etsy: Key Features
Winner: Shopify
When comparing the two platform’s key features, Shopify emerges as a clear winner, especially if you want to scale your small business and take advantage of advanced e-commerce functionalities. Take a look at my detailed comparison below:
What Is Etsy Pattern?
As mentioned, the main difference between Etsy and Shopify is that Etsy lets you sell your products in an online marketplace, whereas Shopify helps you build your own website as a standalone store. But there is an exception to this and it’s called Etsy Pattern.
Etsy Pattern allows Etsy users to create a personalized, standalone website to complement their Etsy online business with customizable website templates. Sellers can add Pattern as an add-on to their existing Etsy shop for an additional monthly $15 fee, allowing them to create a standalone website while integrating seamlessly with their Etsy store.
Once you add Pattern to your Etsy shop, you can access and manage your Pattern website, including customizing its design and settings, through the same Etsy dashboard where you handle all your other Etsy shop activities.
Shopify & Etsy: Integrations
Winner: Shopify
Shopify is like an e-commerce buffet – you get features and integrations to boost your marketing, streamline inventory, and elevate customer service, all under one roof, so there’s no need to cobble together solutions from all over the place.
And while Etsy has fewer integrations compared to Shopify, it still offers valuable tools for enhancing the seller experience. Here’s how they stack up in terms of integration solutions:
Shopify
This ecommerce platform offers over 8,000 apps and integrations covering everything from advanced marketing tools and multi-channel sales to comprehensive inventory management and customer support solutions, ideal for online stores looking to grow.
Integrations like Google Analytics and Facebook Ads can help you refine your marketing and SEO strategies, while options like QuickBooks and Xero streamline your payment and accounting processes – Shopify serves it all on a silver platter. It offers over 100 payment providers.
However, different apps can sometimes conflict with each other, leading to bugs or performance issues, and managing these conflicts can be challenging for someone without technical expertise.
Etsy
Etsy offers several integrated solutions that enhance the seller experience. For instance, you can create social media posts and seamlessly add listings to Facebook and Instagram shops.
This feature is handy if you want to extend your reach through social media. I also found that Etsy supports sellers who want to sell their creations both online and in person through its Etsy Square integration. This integration lets you sync your Etsy shop with Square’s point-of-sale (POS) system.
When comparing the two website builders, I even experimented with integrating Etsy with Shopify using third-party apps, which you might find useful. Etsy Integration by ShoppingFeeder or ShoppingFeeder for Etsy automates this process so you can expand your reach by selling on both Etsy and Shopify simultaneously.
Shopify vs Etsy: Customer Reviews
Customer reviews can provide valuable insights into seller experiences on website-building platforms. But as this example shows, reviews should be read thoroughly and considered in their context.
Both platforms have a Bad rating on Trustpilot, with ratings of 1.5/5, which isn’t great, but there’s more to the story. For example, I noticed many negative reviews about Etsy and Shopify come from buyers who feel scammed by sellers. And while these are valid concerns, they aren’t about the platforms specifically. Sellers generally praise their ease of use, with very few complaints about their functionalities.
Some buyers experienced slower response times from Etsy’s customer service. However, recent reviews suggest this has improved as Etsy expands its support team. Also, from what I found, it seems like Etsy prioritizes protecting sellers, which can be a plus for shops just starting out.
When it comes to Shopify reviews on Trustpilot, some sellers mentioned getting their accounts closed for violating terms and conditions. Also, a few complained about Shopify payment processing fees. From my experience, these issues can often be avoided by simply reading the fine print carefully before signing up.
Shopify seller reviews generally praise the platform’s features. Many sellers highlight the exceptional customer service available through live chat and email. Another common positive is the ease of use when it comes to its website design and the wide range of add-ons and apps available on the Shopify App Store.
So, is Shopify better than Etsy from a user perspective? In general, customer sentiment leans heavily towards Shopify. Many users, some of who’ve been with the platform for a decade, consistently praise its features. All things considered, it’s clear that Shopify is a strong contender in the ecommerce space, with a loyal user base.
Read all Shopify reviews on Trustpilot
Read all Etsy reviews on Trustpilot
What Is The Biggest Difference Between Shopify & Etsy?
After thoroughly comparing Shopify vs. Etsy head-to-head, I can conclude that the most significant factor differentiating the two platforms is the type of seller they target and the way you sell on the platform.
Shopify empowers entrepreneurs with the tools to build a brand and online shop entirely from scratch, while Etsy provides a marketplace as a springboard for passionate creators to get their creations discovered.
Shopify gives you an all-in-one ecommerce solution to let you build and manage your own website as a standalone online store with full customization and control, while Etsy operates as a marketplace where sellers list their products alongside others. So, while it’s perhaps more difficult for you to differentiate yourself as a brand among Etsy’s millions of sellers, you get to benefit from Etsy’s built-in traffic.
You should also consider your buyers and where they look for your kind of products. Etsy is better for specialized, unique items with a craft focus or things like vintage clothing and handmade goods, while Shopify is more versatile and can be used for everything from dropshipping just one product you want to go viral on TikTok to promoting your own specialized line of pet products.
This means that you have less control over branding and store design with Etsy compared to Shopify, but ultimately, it comes down to your preferences, budget, and what you are selling.
Shopify vs Etsy: Which One Wins?
| Shopify | Etsy | |
|---|---|---|
| Price | ❌ | Winner |
| Security | Winner | ❌ |
| Ease of Use | ❌ | Winner |
| Features | Winner | ❌ |
| Integrations | Winner | ❌ |
| Customer Reviews | Winner | ❌ |
After conducting a thorough Shopify vs. Etsy comparison and exploring the key functionalities and pricing of the two platforms, it’s evident that both have aces up their sleeves. However, I also noticed major differences.
From subscription plans that are as different as night and day to feature sets that sometimes feel like they couldn’t be more opposite, Shopify and Etsy take entirely different approaches to building websites and selling online.
So, which platform is right for you? Is Shopify or Etsy better?
If you’re an entrepreneur with your engine revving to go, Shopify might be the better fit. It offers tons of features, customization options, and integrations, but all that power comes at a steeper price, at least if you plan to start small.
Etsy, on the other hand, is more like a cozy craft fair ideal for beginners, especially those selling handmade goods. It’s easy to set up a shop on Etsy’s existing marketplace, and even a free plan is available. However, Etsy keeps you firmly within its ecosystem, limiting your ability to expand your brand beyond its reach.
Ultimately, Shopify emerges as the more powerful contender, especially for those with global ambitions. Yes, it might set you back more initially, but that investment could unlock a treasure trove of benefits, you never know.
With Shopify, you gain all the freedom in the world to craft a one-of-a-kind website, cater to a worldwide audience, and take advantage of a vast arsenal of tools to craft a winning sales strategy. Building your brand exactly how you envisioned it might require a touch more work with Shopify and, yes, a bit more money, but the possibilities are endless.
To provide our readers with accurate and well-informed recommendations, we test the most popular website builders on the market to find the best options for you. Our methodology consists of the following criteria:How We Review And Test Website Builders
How To Choose the Best Website Builder
Choosing the right website builder is no easy task. There are numerous options out there, each with its own strengths and weaknesses. To avoid buyer’s remorse, let’s delve into the key factors that influence your website-building experience:
Before diving headfirst into website builders, take a moment to map out your desired e-commerce journey. What kind of business are you dreaming of? One dazzling product or a vibrant collection? Local sales or a global audience? A cozy corner shop or a brand ready to explode?
Knowing your business goals is the key to unlocking the perfect website builder.
Compare the pricing plans of different website builders. Look at the initial cost and any potential future costs, such as Etsy vs. Shopify payment processing fees, domain registration, hosting, and premium features.
Some builders, like Shopify, offer a free trial, while others, like Etsy, have free-for-life subscriptions. Take advantage of free trials and complimentary subscription plans to test the builder before committing financially.
Remember, not everyone’s a coding whiz, and that’s perfectly alright. If you’re not tech-savvy, user-friendliness should be your top priority.
The perfect website builder should be intuitive and have all vital features within easy reach, so you don’t need a map to navigate basic functionalities
If you plan to sell products online, make sure the builder has robust e-commerce features, such as product management, payment gateways, and inventory tracking. Look beyond just selling – maybe you’ll want a blog to reach a wider audience.
Choose a platform with post-scheduling and social sharing features for a seamless content marketing experience.
Ensure you can easily customize templates to suit your brand’s identity. This includes basic functionalities like changing colors, fonts, and layouts.
If you want greater control over your website design, look for advanced design features. For example, Shopify allows you to create custom CSS and JavaScript and edit HTML.
Things can and will go wrong, and getting answers on the spot helps make the overall experience that much better. Check if customer support is available 24/7, especially if you’re running an e-commerce site where downtime can lead to lost sales.
Evaluate the available support channels like email, live chat, phone support, and community forums.
FAQs
Is it better to start with Etsy or Shopify?
Is Shopify a good alternative to Etsy?
Does Etsy or Shopify cost more?
Is Shopify good for small businesses?
Should I sell on Shopify and Etsy?
References
- The Importance of Inventory Management for Supply Chain Organizations (The University of Tennessee Knoxville)
- Search Engine Optimization (SEO) (University of Puget Sound)
- Advanced Marketing Management (Northwestern Kellogg)
- How to Create a Website From Scratch (Berkeley Boot Camp)
