Things sure have changed!
These days, anyone can set up an online storefront and sell products around the world.
You just need to choose an ecommerce platforms to handle all of the hard work for you.
Etsy and Shopify are two of the most popular. But they are also very different.
When comparing Shopify vs Etsy, one will stand out as the right choice for you. Which one depends on your needs.
We’re going to help you figure it all out below. First, a quick summary.
Etsy Vs Shopify: Key Takeaways
- Etsy is much simpler. You just list your product(s) and begin selling. But Etsy only allows hancrafter products (with some exceptions)
- Shopify gives you much more control over the look of your store. It is more complicated, but allows you to create a complete online shop.
- Bottom line: if you only sell handmade items and do not care about branding, Etsy makes sense. Otherwise, Shopify is the way to go.
Contents
Shopify Overview
Shopify is an e-commerce platform or software that lets you sell goods or services online. If you have an online store, Shopify can act as the engine that powers that store.
Shopify was started by two Canadian snowboarding enthusiasts: Scott Lake and Tobias Lutke.
The duo already had a website for selling snowboarding gear called Snowdevil. This soon turned into an e-commerce platform, which they called Jaded Pixel, before it became Shopify.
The benefit of Shopify is that you do not need a fancy degree, in-depth web development skills, or a million dollars to get started. You don’t have to be super-creative either.
I had none of those things (money, design or development skills, or creativity) when I started my first store and that is the main reason I went with Shopify.
Even better, you can continue building your online store and adding new features, as your business grows. It is great seeing the progress you make. Being a global platform, Shopify also lets you go global with your store.
Etsy Overview
Etsy is also an online platform that empowers creative people to channel their passion into their life’s work. On Etsy, artists, designers, and craftsmen can find meaningful work selling their goods in both global and local markets.
It lets thoughtful consumers find those goods and also build meaningful relationships with the people who make them.
Etsy was launched in 2005. It was specifically created to enable artists to sell their handmade wares online.
These days, you can also sell some wholesale products, but with certain strict guidelines. The platform offers you ready-made pages for you to list your products and start selling hassle-free.
Differences Between Shopify And Etsy
The main differences between Shopify and Etsy are what will determine which solution is right for you. Let’s take a look at those differences.
Pricing Options And Fees
Shopify lets you start for free. Later, you can choose subscription plans from $39 to $399 a month. They also have some starter plans for as low as $5 a month.
An Etsy Plus subscription costs $10 per month.
Shopify charges a few of 2.9% + 30 cents per transaction. These fees decrease with higher plans. For example, if you pay more to get on their Advanced Plan, the fees drop to 2.4 % + 30 cents.
These are the fees you pay if you use Shopify Payments as your payment processor. If you use a third-party payment processor, you will incur an additional fee.
Why would anyone use a third-party processor? Many don’t have a choice. Shopify can be pretty strict with their in-house payment processing. Many stores are not able to get in, especially ones located outside the US or Canada.
Etsy charges a fee of 6.5 % based on the final price of the goods sold. Etsy’s transaction fees are slightly higher in the long run than Shopify’s. But Shopify’s subscription costs are higher than Etsy’s, since Etsy does not charge any.
Customization Options
Shopify has many different templates for you to choose from. This can help you customize and personalize your brand. Most storefront templates do cost some money, but there are several free ones included with your subscription. I used one of the free ones for years.
Etsy has limited customization options, since it manages your storefront layout for you. This makes things easier, but it means you can’t stand out through your design and branding.
Ease Of Use
Etsy is much easier to learn and set up. Shopify has a steeper learning curve, due to its many customization options.
In the past, Etsy mostly used to be a platform for selling handmade items. More recently, they opened it up to allow certain wholesale items, but there are several limitations and you need to read their guidelines carefully.
Etsy is easier for beginners, because you do not need to worry about building a website or a product page. All you need to do is manage the product descriptions and images.
Shopify requires you to set up your own storefront, which will definitely take more time. That said, most people can build their website using Shopify in a couple of days, thanks to the templates they provide.
I found the most painful part to be the product pages themselves. Writing product descriptions for each product, uploading photos of the products, etc. is what took up the majority of my time when setting up my store.
Ease Of Getting Customers
Etsy already has a customer base (with a built-in marketplace), so attracting customers isn’t your responsibility here. With Shopify, you need to drive traffic to your store. This is not easy. In fact, it is the primary reason stores fail.
You are going to need to spend a lot of time and/or money on marketing efforts to get people to your Shopify store, like running paid advertising on Google or Facebook (I found Google shopping ads to be the most profitable or SEO or social media campaigns.
Support
Shopify has excellent customer support and you can contact them 24/7 via chat, phone, or email. Etsy also advertises that you can contact them through these methods, but that is not completely true. For most concerns, you can only email them.
Similarities Between Shopify And Etsy
Naturally, there are also a lot of similarities between Shopify and Etsy. Let’s take a look.
E-Commerce Platforms
Both Shopify and Etsy are e-commerce platforms. The difference is that they have different markets and target audiences. But both allow you to create and manage trustworthy online marketplaces, whether you are an individual or a business.
Payments And Fees
Both platforms charge transaction fees and processing fees. They also have subscription plans. Shoppers can easily make payments using credit cards, PayPal, and other payment gateways and wallets.
Can Be Used On Various Devices
You can access both Shopify and Etsy on a computer, smartphone, tablet,, mobile device, etc. Both sites are mobile-ready and you can use them from anywhere around the globe (apart from regimes that restrict access to the internet, of course).
Easy To Track And Organize
Both sites make it easy to track your product inventory. You can easily manage your stock, your product variations, and more.
Security
Both sites make payments secure through multilevel encryption. They lay immense emphasis on securing customer data and transactions. This makes these platforms reliable and trustworthy.
Integration With Each Other And Other Apps
You can easily link Shopify to your Etsy store. Similarly, you can use the Etsy marketplace Integration app on Shopify and add your Etsy listings. Furthermore, both marketplaces make it easy to integrate with third-party apps to add analytics, shipping options, etc.
Community And Support
Etsy and Shopify both have online communities and support resources. Users can connect with other users for assistance, share experiences, and access helpful guides and documentation.
Global Reach
Both places offer a global reach. They enable you to buy and sell internationally using local currencies. You also have the option to ship globally and use multiple currencies.
Advantages Of Shopify
Shopify lets you sell all kinds of (legal) products. Etsy has some limitations in this aspect. Shopify also grants you complete control over your listings. You have the freedom to design your website and product pages according to your preferences.
Shopify is known for its user-friendly design interface. It also offers a multitude of templates and provides you with numerous options to tailor your store to your liking.
Shopify’s transaction fees are usually lower than those of Etsy, where you need to pay listing, transaction, and payment processing fees.
Who Should Use Shopify?
If you want to set up your own online store where you can sell any products you want (legal, of course), then go for Shopify. Even if you are selling your own homemade products, Shopify is the better choice if you want to create a brand.
Advantages Of Etsy
Etsy is a creative platform that allows you to sell handmade products. You can also sell other wholesale products but they have some strict guidelines.
Etsy does not charge subscription fees. It also already has a built-in audience and marketplace, so you need not invest separately in SEO and marketing.
This makes it great when it comes to getting the exposure needed for your brand,especially when you are new. It also makes Etsy easier to use. With Shopify, you need time and knowledge to build a website.
Who Should Use Etsy ?
If you make or sell homemade goods, antiques, or handmade things and you are new to selling, and maybe you do not have a lot of money or tools, Etsy could be a good choice for you.
It is a great place to sell your products and start your business without a lot of hassle. If you aren’t too tech-savvy and do not have the time to set up and market your website, then go for Etsy.
Selling On Shopify Vs Etsy: Final Thoughts
Both Shopify and Etsy allow you to sell products online without having any design or programming skills. The platforms make it easy to set up your own online storefront.
But there are major differences between Shopify vs Etsy that will determine which platform is right for you. Etsy is ideal for anyone selling handcrafted items, but not looking to create a brand or keep customer information. You sell your items on their platform and pay them a fee in return.
With Shopify, you set up your own store. You can make it look however you want. Many of the world’s biggest online stores run on Shopify. It is what I used for all of my stores, too.
It does take more work to set up your store, and you need to drive traffic to your store yourself, but it is a real store. On Etsy, you create a space on their site to sell your goods. With Shopify, you create your own site to sell your goods.
Leave a Reply