Shopify Vs. Etsy 2024: Which Is The Best Selling Platform?

But you need to know which one is the one for you. Shopify Vs. Etsy- which is better for business owners who want an easy-to-use system with many features and eCommerce tools?

This blog post will compare Shopify vs. Etsy to help you decide which platform is better to use for your business to make money in a creative way.

We’ll cover fees, payment processing, product management, and marketing.

By the end of this article, you should know which platform is a better fit for your needs- and know why we have a Shopify store and an Etsy shop!

Shopify Vs. Etsy: Overview

Shopify Overview

Shopify is an online eCommerce platform that is popular among small businesses. It enables these businesses to create online stores and sell their products.

I use Shopify to sell products online for my small business and have found it to be a very user-friendly platform.

The Shopify platform is simple to use, and you can quickly and simply set up your store with it to make money on Shopify.

You can modify your store to match your brand, with several templates to select from.

Additionally, Shopify always provides excellent customer support whenever I need it.

Etsy Overview

Etsy is a popular marketplace for starting stores. It’s perfect for entrepreneurs with a low start-up cost.

I started our Etsy printables store several years ago, which has been a great experience. Here’s what we have found about using Etsy:

You can set up your Etsy shop and sell your products within minutes. Etsy also offers a wide range of support and resources to help you get started.

There are forums where you can ask questions and get advice from other entrepreneurs. You can also find helpful articles on the Etsy blog.

And if you need more help, you can always contact Etsy support. With all of these resources, it’s no wonder that Etsy is such a popular choice for starting an online business.

Features

Both Shopify and Etsy offer several features. Here are some key features to look at when comparing Shopify vs. Etsy.

Shopify

Shopify is an online marketplace offering many features to help small-business owners build and manage their digital storefronts with the online store builder.

There are over 90 professionally designed templates to choose from to build and also customize your online store.

When building your online store, you will need to use a custom domain name that you can transfer to your own website for your store. You can also buy a custom domain through Shopify.

Shopify also offers store management features. Some of the features you can use in your business online include:

Saving the customer’s personal information as well as billing information
One-click order fulfillment
Connecting to dropshipping apps with third-party apps
Access robust performance analytics

Accessing customers’ information helps us issue refunds and provide links to our online sales of digital products.

Not only does Shopify have exceptional customer management and marketing capabilities.

It’s also equipped with features that make it easy to connect with your social media profiles and blog and offer discounts and gift cards to customers.

The Shopify app store offers another option for companies wanting to connect their e-commerce business with third-party applications.

It can help sellers optimize their processes, whether it’s upselling, inventory management, search engine optimization strategies, product reviews, or other things.

Etsy

The Etsy platform was designed as a space where people who make things could sell their handmade items, craft supplies, and vintage items when they first came out.

The Etsy marketplace is fantastic for people who aren’t ready to put in the time to set up and build a website on a web host. It is easy to start an Etsy store.

You can also use Etsy in addition to your website online shop, your own Shopify store, or a shop hosted on another e-commerce site.

The most significant feature of Etsy is being able to market to its vast customer base. The built-in marketing tools it offers help you boost your Etsy listings.

There is also the Etsy Seller Handbook which can answer almost any question that you may have about selling on Etsy.

You can use the Etsy app to manage Etsy listings and purchases, communicate with buyers, purchase and print postage through the Etsy dashboard, or use the mobile app.

Plans & Fees

Pricing and fees are two of the first things you want to consider when deciding between Shopify vs. Etsy.

Let’s examine how the Shopify vs. Etsy pricing and fees differ.

Shopify

One advantage Shopify pricing has is that there’s no per-listing fee. You can sell unlimited products on the online marketplace without worrying about extra costs like transaction fees as you scale.

Shopify also has a flat monthly fee so that you can budget accordingly.

However, keep in mind that Shopify does charge credit card rates of between 0.5% – 2% on the sale price for each sale, but there are no transaction fees if you use Shopify Payments!

When you set up a shop on Shopify, you’ll have the choice between three different pricing plans – Basic, Shopify, and Advanced.

Each has features and benefits, so choosing the right plan for your business is essential.

Basic – $29 a month
Shopify – $79 a month
Advanced – $299 a month

If you’re new to Shopify, don’t worry! Shopify offers a 14-day free trial, so you can try out the Shopify store and see if it’s right for you.

In addition, Shopify charges a higher rate for online credit cards to cover the heightened security risks of digital processing data.

The credit card rates you pay for each online transaction depend on the Shopify plan you choose:

Basic Shopify plan: 2.9% + $0.30
Shopify plan: 2.6%+ $0.30
Advanced Shopify plan: 2.4% + $0.30

Shopify also offers a first-party POS system called Shopify POS. Shopify POS makes it possible for merchants to sell their products in person.

There are also transaction fees for in-person credit/debit card rates:

Basic Shopify plan: 2.7% 
Shopify plan: 2.5%
Advanced Shopify plan: 2.4%

Etsy

Starting an Etsy shop is great for the budget-conscious crafter.

But selling an abundance of products or having high volume sales, the transaction fees and other Etsy fees could end up costing more.

Etsy offers a free standard and a paid plan called Etsy Plus.

The Etsy Standard plan is excellent if you’re starting. It offers basic tools to help you set up your shop and start selling your crafts.

The Etsy Plus plan may be better if you want to scale your business, and it’s only $10 per month. With the paid plan, you’ll be able to customize your shop’s appearance and add customizable menus. 

Here are some Etsy fees that you’ll see in an online store:

Transaction fees – 6.5%
Listing fee – $0.20
Payment processing fees – 3% + $0.25

Etsy also offers a way to customize your shop to your brand with Etsy Pattern. You’ll have access to several tools through Pattern that may help you attract new consumers while also improving your brand.

Etsy Pattern

Etsy Pattern is a new eCommerce platform that compliments your Etsy shop.

It’s basically another website shop to use in conjunction with your shop rather than having to create your own website.

The Etsy Pattern features are free to test and use to design a custom website. If you publish your completed website, you’ll start a 30-day trial period.

After your free trial period, you will see a $15 charge on your Payment account each month for Etsy Pattern, plus any applicable taxes. 

Payment Options

When comparing Shopify vs. Etsy, it’s important to consider the fees you pay to accept payments in your own store can reduce the amount of money you make.

Shopify

Shopify Payments is another helpful feature for your online store.

It’s powered through Stripe, or you can also use it with one of over 100 third-party payment processors on the Shopify App Store.

With Shopify Payments, you can accept all major credit and debit card payments.

There is a small fee to accept major credit cards such as Visa, MasterCard, and American Express, which we listed above under the pricing and fees.

But Shopify payments and payment processing fees are pretty similar to other eCommerce platforms, so it’s consistent.

Etsy

With Etsy Payments, you can accept all the major payments, including Apple Pay and Google Pay, but you must use Etsy Payments to take the payment.

They don’t allow third-party payment processors to be integrated.

Each transaction that uses Etsy Payments incurs payment processing costs for the seller. It’s in addition to the 6.5% transaction fee.

The payment processing fees are fixed and a percentage of the item’s total selling price, determined by the country.

The fees are calculated from the item’s total sale price, including any delivery expenses and any sales taxes owed.

Product Offerings/Items For Sale

Shopify and Etsy marketplace are great platforms for selling products, but they have different specialties to look at when comparing Etsy with Shopify.

At the same time, Etsy is better for the eCommerce business that wants to take advantage of the enormous customer base of Etsy.

Shopify

Shopify is an e-commerce platform that helps businesses of all sizes create and manage their online stores with their eCommerce tools.

Your imagination only limits the products and items you can sell on Shopify. You can sell physical goods, digital products, services, and more.

Etsy

Etsy is an excellent platform for selling unique items you won’t find in a traditional brick-and-mortar store.

Etsy is the perfect place to sell your products if you’re a creative business owner. You can sell handmade goods, vintage items, art, and craft supplies.

Customer Reach/Marketing

You’ve built a beautiful shop/store on Shopify or Etsy. How do you get people to it? How do you ensure that as many people see your products as possible?

The answer, of course, is marketing. Marketing is the way to reach your customers to drive sales to your own online store.

There are a lot of ways to market your shop/store, both online and offline using their marketing and advertising tools.

Shopify

Shopify stores are standalone websites, so your marketing efforts limit the number of potential customers who can find your store.

You’ll need to drive traffic to your store through SEO, social media, advertising, and other marketing channels.

There are many ways to reach customers for your Shopify store:

SEO: Optimize your store’s title tags, meta descriptions, and header tags to improve your search engine ranking. Add keywords to your store’s name, and create keyword-rich content on your pages.
Social media: Share links to your products on social media networks like Facebook, Twitter, Instagram, and Pinterest. Use hashtags to reach a wider audience.
Advertising: Place ads targeting potential customers on websites, magazines, and newspapers.
Email marketing: Send emails promoting your products to potential customers. Include a link to your store in the email.
Affiliate marketing: Find other websites and blogs that sell products similar to yours, and offer to pay them a commission for each sale they generate.
Referral program: Offer discounts or other incentives to customers who refer new customers to your store.

Etsy

Etsy has a vast customer base with over 96 million active buyers. You’ll still need to do some marketing to drive traffic to your Etsy store, but you’ll have a head start thanks to the built-in customer base.

You must have great product photos, an engaging listing, and good customer service to stand out from the crowd. You can also use Etsy’s marketing tools to promote your products, including the ability to create custom banners and listings.

Etsy also offers a paid advertising program called “Promoted Listings,” which allows you to place your listings at the top of search results.

There are more ways to reach customers for your Etsy shop:

Social media: Share links to your products on social media networks like Facebook, Twitter, Instagram, and Pinterest. Use hashtags to reach a wider audience.
Advertising: Websites, magazines, and newspapers are excellent places to advertise and let people know about your shop.
Email marketing: Email marketing can be used to promote your products. Remember to include a link to your Etsy shop in the email.
Etsy Ads: Take advantage of Etsy’s paid advertising program to place your listings at the top of search results.
Etsy teams: Join or create a team of Etsy sellers to collaborate and promote each other’s products.

Shipping

When it comes to shipping, Shopify vs. Etsy have different strengths. Let’s take a look at the differences between Shopify and Etsy.

Shopify

Shopify Shipping can make it easy and affordable to ship your products. With Shopify Shipping, you can connect to major shipping carriers, print labels, and track your shipments from one central location.

With your Shopify monthly subscription, you don’t have to pay extra for Shopify Shipping. No third-party app installation is necessary; it’s already integrated into Shopify.

Shopify Shipping gives you discounts with Shopify’s partner carriers.

It has teamed up with major carriers USPS, UPS, DHL, and Canada Post to provide customers and merchants with a high-quality shipping service that won’t take up all your time and money.

In addition, you can use the Shopify Shipping rates calculator to compare prices of specific items from Shopify’s partner carriers. This will allow you to decide to impact your business positively.

You may adjust your shipping cost: flat rate, weight-based, price-based, and general.

Etsy

Processing orders and taking packages to the shipper can take time. As an Etsy shipper, you must create a shipping strategy to save time.

Etsy provides several tools to help you process orders quickly and efficiently. When you open your shop, you can add listings and create shipping profiles.

With shipping profiles, you may apply the same shipping options to numerous listings, saving time when adding items to your shop. 

You can also set competitive shipping prices on Etsy. You’ll need to consider the cost of shipping, the weight and size of your product, and packaging materials.

You may want to offer free shipping to encourage buyers to purchase from your shop. 

When creating your shipping strategy, it’s crucial to think about how you can automate parts of the process. This will save you time in the long run.

Dropshipping Shops

Maybe you want to open a shop for a side job but don’t want to actually have the products and fulfill orders yourself. You could open a dropshipping shop.

Dropshipping is a type of business where you sell products but don’t have them in stock.

When someone orders from your shop, you simply order the product from a supplier and have it shipped directly to the customer’s door.

Shopify

Shopify is a great platform to use for dropshipping. When you set up your shop, you’ll need to install an app called Dsers.

Dsers partners with AliExpress to quickly get the products in your shop to your customers.

When a customer orders a product, Dsers will automatically order it from the supplier and have it shipped directly to the customer’s door.

Etsy

Given the limitations on what you can sell on Etsy, it’s not surprising that it isn’t a platform that makes dropshipping particularly easy.

Etsy is known for handmade and unique items, but there is some wiggle room for Etsy dropshipping.

You can’t get other firms to fulfill items sold on Etsy if you haven’t designed them. But you can combine sites like Printful and Printify with Etsy.

They are dropshipping services that manufacture and send products to your consumers based on images and art supplied by you.

Store Analytics

Both Shopify and Etsy offer comprehensive analytics that can help you understand your store’s performance.

Shopify

Shopify offers a wide range of analytics, which can be divided into three categories:

Sales and Traffic: This includes conversion rate, average order value, and traffic sources. You can also see a breakdown of your sales by product type, location, or customer segment.
Marketing: This category includes data on your marketing efforts, such as email opens and click-through rates, social media followers, and website visits.
Organization and People: This section provides insights into your team’s performance, such as customer support response time and the number of orders per employee.

Etsy

Etsy offers a wide variety of reports that allow you to track different aspects of your business. These reports can be filtered by date range, product listing, or shop owner.

Some of the most important reports include:

Transactions: This report shows you all the transactions that have taken place in your shop, including the date, payment method, shipping address, item details, transaction fees, and more. You can also see a breakdown of your sales by month or week.
Orders: This report shows you the orders placed in your shop, including the date, buyer information, shipping information, and more. You can also see a breakdown of your orders by month or week.
Creators: This report shows how many items have been created by each team member. You can also see a breakdown of creators by month or week.

Shop SEO

How does Shopify vs. Etsy SEO stack up? Both offer comprehensive analytics that can help you understand your store’s performance.

Shopify

Because Shopify was created with online selling in mind, it has some features that make it a better solution for SEO than Etsy.

Shopify allows you to create custom URLs for your products and pages for your online business. This is important because it helps Google index your pages more quickly and accurately.

You can also add metadata, including titles, descriptions, and keywords, to help improve your rank in search results.

Shopify also offers built-in SSL certification, which helps keep your site secure and gives you a slight ranking boost.

And because Shopify is a hosted platform for your online business, you don’t need to worry about optimizing your site for search engines – Shopify takes care of that for you.

Etsy

Although Etsy doesn’t offer the same level of customization as Shopify, it does have some features that can help improve your ranking in search results.

Etsy allows you to add keywords and metadata to your product listings. You can also add tags to your listings to help people find them through search engines.

Etsy also offers built-in SSL certification, which helps keep your site secure and gives you a slight ranking boost.

However, because Etsy is an open platform, there is more competition for keywords than there is on Shopify. This can make it more difficult to rank higher in search results.

Customer Support

Shopify and Etsy offer excellent customer services. You can contact customer support by phone, email, or live chat.

Shopify

Shopify offers 24/7 customer support via phone, email, and chat. In addition, a large online community of Shopify users is happy to help fellow entrepreneurs.

Shopify also has a comprehensive knowledge base that covers everything from setting up your store to marketing your products.

Etsy

Etsy offers customer service via phone, email, and live chat. They also have a comprehensive knowledge base that can help you with various issues.

However, their customer service can sometimes be a bit slow to respond.

Shopify And Etsy Integration

Integrating Shopify and Etsy can be a great way to get the best of both worlds and increase your monthly passive income. Here are some of the benefits of integrating these platforms:

Increased exposure: Integrating Shopify and Etsy will expose your products to two larger audiences. This can help you to reach more customers and grow your business.
Greater choice in products: With Shopify and Etsy integrated, you can access a broader range of products. This can help you to find the perfect products for your store and expand your product range.
Easier management: The integrated platform will make managing your products, orders, and customers easier. This can help you to save time and improve your productivity.

Overall, integrating Shopify and Etsy can be a great way to boost your business. Considering this option, weigh the pros and cons to see if it’s the right move for you.

Shopify: Pros & Cons

Pros

Set up is done by Shopify- no need for programming or design knowledge
You get a standalone shop
Many templates and themes to choose from- more customizable
Built-in shopping cart- POS is the best
Payment processing is lower
24/7 customer support

Cons

More expensive than some other eCommerce platforms
Transaction fees for online and in-person sales
Users need to know your site to find it, or you need to use more SEO to rank on Google

Etsy: Pros & Cons

Pros

Great online marketing
Millions of users
Fees aren’t as high- the standard shop has no monthly fee, just listing fees

Cons

Not as good for dropshipping businesses- there are more product restrictions
Listing fees and transaction fees can add up; they can total more than the monthly fees on other platforms
Not as customizable; you can’t change the layout much- it’s not a full-functioning website like Shopify

Final Verdict: Shopify Vs. Etsy

Shopify and Etsy have advantages and disadvantages regarding SEO, customer support, and price. So, which platform, Shopify vs. Etsy, is right for you?

If you need customization options and are comfortable optimizing your site for search engines, then Shopify is probably the better choice.

But if you’re looking for a more user-friendly platform with excellent customer service, then Etsy is the better option.

If you’re still unsure which platform to use, Shopify vs. Etsy, we recommend trying out both Shopify and Etsy and seeing which works better for you.

We’ve used Shopify and Etsy to sell our products, and we’ve found that both platforms have their strengths and weaknesses.

Our choice has been to use Shopify as our primary shop. We need the extra customization options that Shopify offers, and we’re comfortable with optimizing our site for search engines ourselves.

We also use Etsy, but we use it more as an additional income stream rather than our primary store.

How To Start A Shopify Store

To start a Shopify store, you’ll need to create an account. Once you have created an account, you can begin setting up your store.

Shopify will walk you through the process, asking questions about your business and products. You’ll also need to choose a payment processor and set your shipping rates.

Once your store is set up, you’ll need to add products and design your storefront. You can add products by uploading them manually or by importing them from a supplier.

You can also add products by creating product variations or adding multiple products at once.

Designing your storefront is easy with Shopify – you can choose from various templates or create your own custom design.

You can add images, videos, and text to make your storefront stand out.

Processing payments and tracking orders are simple with Shopify – you can use any popular payment processor, such as PayPal or Stripe, and Shopify will track all your orders.

How To Start An Etsy Shop

Opening an Etsy store is a great way to start your own side hustle business. It’s easy to set up, and you can start selling products immediately.

But before you open your store, there are a few things you need to do first.

The first step is to create an account on Etsy. You can do this by going to Etsy and clicking on the “Register” link at the top of the page.

Once you have created an account, you need to set up your shop. This includes adding information about your shop, such as its name, location, and what type of products you sell.

You also need to add some photos of your products and create a listing policy.

The next step is to create listings for your products. This involves adding information about each product, such as its title, description, price, and photos.

You also need to decide which categories your product belongs in and choose the appropriate tags.

To get people interested in your Etsy store, you must promote it online and offline. Online, you can promote it through social media, your blog, or your own website.

Offline, you can promote it through word-of-mouth, flyers, or business cards.

Final Thoughts

So, which is the best platform for you – Shopify vs. Etsy?

The answer to that question depends on your needs, how much you want to pay in transaction fees and other fees, and what you hope to get from your online store to make money.

If you want more flexibility and control over your store’s design, features, and operations, then Shopify is a better choice to sell online.

Unlike Etsy, Shopify doesn’t have listing fees and has more store plans- and using Shopify payments can cut down on transaction fees which is a biggie.

But if you don’t mind giving up some of that control in exchange for a more straightforward setup and lower costs, then Etsy might be a better option.

Ultimately, the decision comes down to what you need as an entrepreneur to make money when it comes to Shopify vs. Etsy. Thanks for reading!