The dilemma of which eCommerce platform to choose to take your business online has always been a common concern for every business owner. Among the most talked-about eCommerce platforms are Shopify and Etsy.
Both eCommerce giants enable businesses to reach their audience worldwide, and their primary goal is to help admins build thriving online businesses.
Despite sharing this aim, Shopify and Etsy differ in several ways. Shopify is a user-friendly tool that allows business admins to develop an attractive eCommerce store from scratch. In contrast, Etsy functions similarly to eBay, meaning merchants do not need specific technical skills.
So, why compare Shopify with Etsy? Read further to learn what makes them different.
Key Difference Between Shopify and Etsy
When you’re about to launch your online sales through an e-commerce platform, it’s crucial to understand the key distinctions between them and what each one provides to support your success.
Shopify is a comprehensive eCommerce platform that empowers users to create their own online store and establish their brand. It offers a wide range of industry-leading tools for site design, including customizable themes, landing page templates, apps, plugins, and other features to support e-commerce development.
With Shopify, you can easily build and customize your online store, set up your sales processes, and scale your business from the very beginning.
Etsy is a popular online marketplace that allows individual sellers to showcase and sell their unique items directly to buyers. Sellers can take advantage of Etsy’s broad customer reach, search tools, and marketplace features. However, due to the platform’s structure, they have less control over the branding and customization of their individual shop spaces.
Selling Comparison between Shopify and Etsy
|
Feature Points |
Shopify |
Etsy |
| Target Audience | Every business, ranging from small companies and startups to large businesses | Artisans, sellers of handmade products, and crafters. |
| Ownership | Business admins have full ownership, including customers’ information and store data. | Sellers have ownership of the product listings, and Etsy owns the entire marketplace. |
| Domain | Available with name registration and custom domain. | Not available |
| Mobile App | Shopify provides a mobile app that allows you to manage your eCommerce store anytime. | Etsy provides a seller app that manages product listings and orders. |
| Pricing Plans | $39, $79, or $299 for a monthly subscription.
$29, $89, or $399 for annual subscription. |
Free and $10 for a monthly subscription. |
| Additional Costs | When making payments online, there is a fee of 2.9% plus $0.30. For in-person payments, there is a fee of 2.6% plus $0.10. | There is a $0.20 listing fee for each item listed, a 6.5% transaction fee when a transaction occurs, and a $0.25 processing fee for each transaction. |
| Customization | Shopify offers multiple customization options with plugins, apps, and theme templates. | Etsy offers limited customization options. |
| Payment Options | It provides extensive gateway options, including Shopify Payments, PayPal, and more. | Provides Etsy payments and other payment options that vary from country to country. |
| Point of Sale | Provides POS for in-person sales. | It does not provide a POS |
| Worldwide Selling | Supports worldwide selling with multiple currencies, languages, and tax settings | Etsy supports worldwide shipping with multiple currencies and languages. |
| Shipping Discounts | It provides discounts of up to 77% for basic plan users and 88% and more for advanced plan users. | Provides shipping discounts of up to 30%. |
| Customer Base | Business admins need to generate traffic for their store. | Etsy marketplace has its own in-built traffic. |
| Return Policies | Business owners have the authority to create their own return policies. | Etsy has its own guidelines, and sellers can create return policies based on them. |
| SEO and Marketing Tools | Shopify provides advanced marketing and SEO tools, including email marketing and much more. | Etsy provides basic marketing tools. |
| Content marketing (blog) | Shopify has an in-built blogging platform for content marketing. | Etsy does not have any content marketing tools. |
| Analytics | It provides extensive reporting and analytical tools. | It provides basic analytical tools. |
| Customer Support | It provides 24/7 customer support via email, call, and chat. | It provides basic customer support. |
| Abandoned Cart Recovery | It is provided only to high-tier plan users. | It is not provided by Etsy. |
| Third party integrations | Shopify has a huge store for third-party plugins and apps. | Etsy has limited integrations and external services. |
| Dropshipping | Shopify supports dropshipping from apps like Oberlo | Etsy does not support dropshipping directly. |
| Wholesale Selling | It is available through Shopify. | Etsy has limited options with wholesale selling. |
Shopify Vs. Etsy
1. Pricing Plans
Before moving any further, learning the cost of the respective eCommerce platform can help admins evaluate the cost of running a business via that particular platform.
Shopify Pricing Plans
|
Plans |
Monthly Pricing |
Annual Pricing |
|
Basic Plan |
$39 |
$29 |
|
Shopify Plan |
$89 |
$79 |
|
Advanced Plan |
$399 |
$299 |
Transaction Fees
|
Plans |
Credit Card Rates |
In-Person Rates |
|
Basic Plan |
2.9% + $0.30 |
2.7% |
|
Shopify Plan |
2.6% + $0.30 |
2.5% |
|
Advanced Plan |
2.4% + $0.30 |
2.4% |
If merchants are not using Shopify Payments, they must pay an additional fee of 2% for the Basic Plan, 1% for the Shopify Plan, or 0.5% for the Advanced Plan. These fees are charged per transaction for external payment gateways.
Etsy Pricing
- Listing Fees: Each item listed incurs a $0.20 fee, which is renewed every four months or when the item sells.
- Transaction Fees: Etsy charges a transaction fee of 6.5% of the total sale price, including shipping.
- Payment Processing Fees: In the U.S., there is a 3% + $0.25 fee per transaction, with variations in other countries.
- Offsite Ads Fee: If your sales in the past 12 months are under $10,000, a 3% fee is applied; if you exceed $10,000 in sales, the fee increases to 12%.
- Subscription: Etsy Plus, priced at $10 per month, offers additional customization options and credits for listings and ads.
When comparing Etsy and Shopify’s fee structures, it’s important to consider the potential impact on your business. Etsy has a simpler fee structure, but costs can add up with multiple listings and high transaction volumes, especially when factoring in offsite ad fees.
On the other hand, Shopify’s fee structure includes a higher upfront cost with its subscription plans, but it offers more comprehensive features and lower transaction fees through Shopify Payments.
The decision between the two platforms depends on your business model, sales volume, and your preference for platform features versus cost predictability.
2. Website Builder
The setup process for an Etsy store is quick and user-friendly. New sellers are guided through basic steps, including naming their brand, providing details for each item they wish to sell, and outlining shipping and return policies. However, the platform offers limited integrations for easier product management.
Shopify, on the other hand, is an eCommerce platform that provides both self-service and professional assistance for creating online stores. While it offers guidance for store setup, to fully utilize its customization and optimization features, users may require expert help. Shopify also supports seamless integrations with various PIMs (Product Information Management), ERPs, and other business platforms, making it a robust choice for building online businesses.
3. Website Designing and Customisation
Etsy’s product presentation options are confined to standard templates, lacking support for customizable themes, apps, or plugins that would enhance the sales space. This limitation restricts sellers' ability to improve the visual appeal of their offerings to potential buyers.
In contrast, Shopify provides an extensive selection of professional e-store design templates, both free and paid, along with a wide array of feature-rich apps and extensions. This flexibility allows merchants to enhance functionality and personalize their stores to reflect their brand identity.
4. Payment and Data Security
Both Etsy and Shopify prioritize the security of customer transactions. Etsy uses an SSL certificate to ensure that sensitive payment information is encrypted during transmission; however, additional details about specific security measures could be beneficial.
Shopify not only utilizes SSL certificates for secure data encryption but also employs rigorous security monitoring, two-step authentication, and fraud detection systems, all while complying with PCI DSS standards, which enhances the protection of sensitive data.
5. Payment Options
Etsy Payments allows sellers to accept various payment methods, including credit/debit cards, PayPal, and Apple Pay, based on their location. While regional availability may limit options, Etsy is continually expanding its services.
Shopify provides extensive support for payment gateways worldwide. Alongside Shopify Payments, which streamlines transactions and minimizes fees, Shopify supports PayPal, Stripe, and a multitude of other third-party payment processors. This level of flexibility enables merchants to choose the best payment options for their business and customers.
6. Point of Sale
Shopify's Point of Sale (POS) system is a comprehensive solution designed for merchants operating both online and in physical locations. It integrates online and offline sales, simplifies inventory management, and enables in-person payments.
This system supports various payment methods and offers hardware options for a complete retail setup, making it an excellent choice for businesses looking to synchronize their sales channels.
Etsy does not offer a dedicated POS system, meaning sellers who participate in craft fairs or pop-up events must rely on third-party solutions for managing in-person sales, which can complicate inventory management and sales tracking.
7. International Selling
When it comes to international selling, Etsy and Shopify provide different features to assist sellers. Etsy allows merchants to list items in multiple languages and accept various currencies, offering automatic translation and currency conversion for buyers. However, tax settings and compliance with international shipping regulations are the seller’s responsibility.
Shopify delivers comprehensive tools for international selling, including multilingual capabilities, support for multiple currencies, and regional tax settings. It also offers guidance on international shipping and compliance, facilitating global expansion for merchants.
8. Shipping Discounts
Both Etsy and Shopify provide shipping discounts for their users. Etsy’s discounts can reach up to 30%, depending on shipping volume and carrier agreements, helping sellers lower costs for their customers.
Shopify offers even greater shipping discounts, especially for users on higher-tier plans. Basic plan users can save up to 77%, while advanced plan users can enjoy discounts of up to 88%. Shopify partners with major carriers such as USPS, UPS, and DHL to provide these savings, which can be particularly advantageous for high-volume sellers.
9. Customer Support
Etsy offers customer support through its Help Center, email support, and community forums. While phone and live chat support are available during specific hours, they may not be the best option for urgent issues.
In contrast, Shopify provides 24/7 customer support through phone, chat, and email, ensuring that users can receive prompt assistance whenever needed. This level of support is especially beneficial for addressing technical issues and maintaining smooth online operations.
10. Abandoned Cart Recovery
Shopify's higher-tier plans include a valuable feature for abandoned cart recovery, allowing merchants to automatically send follow-up emails to customers who have added items to their cart but haven't completed the purchase. This feature can include incentives such as discounts or reminders to encourage customers to finalize their transactions, effectively recovering lost sales and improving conversion rates.
Etsy, however, does not offer an abandoned cart recovery feature. Consequently, sellers must rely on alternative methods for cart recovery, such as manual follow-ups or external email marketing services, to re-engage customers who have abandoned their carts.
11. Third-Party Integrations
Etsy offers limited integrations with external services, primarily focused on tools that enhance listing, shipping, and marketing functions. While this setup works for many small businesses, those with more complex operations might find it insufficient.
In contrast, Shopify features an extensive app marketplace with thousands of third-party integrations spanning various functionalities, including marketing, sales, customer service, and inventory management. This flexibility enables businesses to customize their stores and scale operations efficiently.
12. Dropshipping
Etsy does not provide direct support for dropshipping, as its sellers are expected to create and ship their products, focusing on handmade or unique items. Individuals interested in dropshipping must find external platforms or methods to implement this business model, which can be complicated and cumbersome.
Shopify, however, offers strong support for dropshipping through numerous dropshipping apps, allowing merchants to easily add products from suppliers to their stores without the need for inventory management. This streamlined process makes it simpler for Shopify users to launch a business with minimal initial investment.
13. Wholesale Options
Etsy offers some options for bulk sales, such as creating bulk listings and providing discounts for larger orders. However, the platform lacks specialized tools for managing wholesale relationships or pricing.
On the other hand, Shopify provides a range of apps and features designed to support wholesale businesses. Merchants can create password-protected wholesale sections, offer tiered pricing, and effectively manage bulk orders, making Shopify a versatile platform for catering to both retail and wholesale customers.
Which is Right for Your Business?
Both Etsy and Shopify are top performers in the world of e-commerce, each excelling in their unique ways.
Etsy is a thriving digital marketplace that caters to small-scale sellers. It offers a specialized inventory of handmade and creative products, allowing sellers to easily showcase their items to a large audience of eager shoppers.
Shopify is an ideal choice for entrepreneurs looking to establish and expand their online businesses. It provides a robust platform for creating customized digital stores and grants full control over operations and design.
Unlike Etsy, Shopify empowers sellers to build independent brands. This means they can take their customer base with them if they choose to transition away from the platform.
If you want to launch a Shopify store, hire our Shopify experts to get an eCommerce store tailored to your business needs.
