Shopify Vs. Etsy – Which Is The Right Place To Sell Your Products?

by | May 11, 2021 | Making Money, Selling Online

Although Shopify and Etsy are great places to buy and sell products, they are pretty different from one another. Whether you want to get into e-commerce, create an online store, or start supporting new businesses, Shopify and Etsy both make great options.

However, each e-commerce platform has its own shipping rates, payment processing fees, and tools for new business owners. Below are the main differences between Shopify and Etsy that can help you decide which platform is best for you and your business. 

Shopify vs. Etsy: Marketplace vs. Website 

Etsy is a marketplace that specializes in handmade, vintage, and custom items. Shopify, on the other hand, is an online platform made for individual online stores. More specifically, Shopify offers tools to sellers that want to run an online shop. One of the most significant differences between Shopify vs. Etsy is that individual sellers come on Etsy to sell to buyers on the marketplace. At the same time, business owners join Shopify to create their own website. 

Etsy Marketplace

If you want to shop at or create your own e-commerce site, Shopify is the perfect platform. However, if you want to connect with other small business owners and sell on a marketplace with a loyal customer base, Etsy is a better pick for you. Selling on Etsy will give you a great chance to promote your unique products. Selling on Shopify, however, will help you run your eCommerce store and build your brand.

Shopify Marketplace

Shopify vs. Etsy: Audiences

Another main difference between Shopify vs. Etsy is their audiences. Although both platforms are very popular, you can expect to see very different customers on each of them. 

On Etsy, you can expect to see other small business owners that create their own custom products. On Shopify, you can expect to see sellers that have their own website and run their own business. In fact, many sellers on Shopify do not make their own products. However, since Etsy is a marketplace, many sellers on that e-commerce platform make their own products and run their own shop.

Shopify vs. Etsy: Products

The products being sold on Shopify are more likely to be mass-produced and less likely to be handmade, used, or vintage. The sellers on Etsy take pride in creating a unique brand with unique products. However, each online store on Shopify is more likely to run like a bigger business with the type of product you can likely find at many other e-commerce stores.

Shopify vs. Etsy: Experience as a Buyer and Seller 

While shopping on Etsy, each store on the marketplace is likely to have its own unique flair and personalized items. These are likely to include gifts, home decor items, and antiques. While shopping on Shopify, you’re likely to find items that you can also find on many other websites, including electronics or popular beauty supplies. 

As both a buyer and seller, you’ll be able to tell that Etsy has more of a community feel while Shopify is more straightforward and professional. As a business owner on Etsy, you’ll be able to connect with other business owners and customers easily. 

Shopify vs. Etsy-Buyer

On the other hand, all business owners on Shopify have access to their own website and domain name, giving it less of a community feel than Etsy. As a seller on Shopify, the inventory system is much more complicated than that of Etsy. Shopify also offers many eCommerce tools that can help you build a brand with reliable customer support and even a large team. However, the helpful tools on this eCommerce platform come with Shopify payments.

Shopify vs. Etsy: Pricing

Shopify payments may include a payment processing charge, a transaction fee, or monthly charges to your credit card. However, unlike Etsy, Shopify does not have a listing fee! Shopify also has more options to notify your customer about abandoned cart recovery. That way, customers that leave your Shopify store will get another chance to look at the products.

Shopify Pricing

A few more key differences include the payment processing fee, the 7-day free trial, and the transaction fees. As a small business owner on Etsy, you’ll have to pay a $0.20 listing fee for each product that you promote on the Etsy marketplace. This means that the more products you promote, the more listing fees you can expect to pay.

Etsy Pricing

Instead of paying a listing fee on Shopify, Shopify offers monthly plans and a 7-day free trial so that you can run your site and use Shopify before committing. That being said, the basic Shopify plan is likely going to cost you more than it would to run a store on Etsy. Shopify Lite is just $9 a month, but using Shopify POS or the Shopify app store can result in more Shopify payments from just running your online shop.

Shopify vs. Etsy: Shipping Rates

As a seller on Etsy, you’ll pay 5% of the transaction fee to cover shipping costs. If you want to use Shopify to sell products, the flat shipping rate will usually be around $4 for orders under $50 and approximately $10 for orders above $50. Remember that even with a basic Shopify plan, you are likely to sell products on your Shopify site that are more expensive than those being sold on Etsy. Many sellers on the Etsy marketplace personally pack and ship out their items. However, most people that run a site on Shopify do not ship out their own products.

Shopify vs. Etsy shipping rates

Shopify vs. Etsy: Key Differences to Consider

If you’re still deciding which platform to use, let’s go over the main differences between Shopify and Etsy. Although both Shopify and Etsy are great e-commerce platforms to use, the Etsy marketplace is exactly that: an online marketplace. Shopify, however, is an eCommerce platform that lets you run an individual Shopify store. This store will have its own domain name and, essentially, run as an independent website. In fact, most customers who visit your eCommerce store may not know that you use Shopify.

The customer base on Etsy is more tight-knit compared to those on other selling platforms. If you want customer support from loyal buyers, Etsy is a great platform. However, the customers on Shopify are likely to come across your eCommerce website while searching for your product on the Internet or the app store. This is one of the best eCommerce platforms to use if you want to rank high on Google or scale your business.

Since Etsy is an online marketplace and Shopify is a platform that lets you run your website, they differ significantly in the tools that they offer. Shopify offers many tools that let sellers use Shopify payments, post an advertiser disclosure, or send a customer an email about abandoned cart recovery.

Running an Etsy shop is a very different experience. Selling on Etsy may result in listing fees, a payment processing fee, and a strict ranking of your Etsy shop. However, this online marketplace has low transaction fees and is a great way to connect with customers and sellers.

Ultimately, Etsy and Shopify are both great platforms for buyers and sellers. If you want an eCommerce platform that helps you scale your business and create an online store, Shopify Lite is a great way to test out the platform. On the other hand, if you want to run a small shop and connect with customers on a close-knit marketplace, Etsy is the right marketplace for you and your brand

<span style="font-size:12px;font-weight:500">Author</span><br><a href="https://wealthpursuits.com/author/kevin/" target="_self">Kevin</a>

Author
Kevin

Kevin is an ambitious entrepreneur that is obsessed with all things related to finance. From a young age, Kevin has always been involved with side hustles ranging from online selling to freelance work. Over the years, Kevin graduated from side hustles and started launching multiple online and offline businesses. Kevin is a serial entrepreneur who loves starting new businesses and exploring all things related to business and finance. He is constantly looking for new ways to save money, invest money, and create income streams.

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