Starting an online business with handmade goods or digital products can make you wonder whether to choose Shopify or Etsy. Etsy connects you to a massive marketplace of 82 million active buyers. Shopify stands out with one of the best-converting checkouts in the industry that boosts sales by 15% on average.
These platforms cater to different needs with distinct pricing models. You won’t pay monthly fees on Etsy, but expect a 6.5% transaction fee plus other costs. Shopify charges $29 monthly with lower transaction fees. The good news? You don’t need to pick just one platform. Many sellers start testing their products on Etsy’s marketplace and later move to a custom Shopify store. Some successful sellers maintain stores on both platforms.
This piece will show you which platform aligns better with your business goals. We break down the fees, features, and product types that succeed on each platform. You’ll know exactly whether Shopify or Etsy makes the perfect launchpad to begin your online selling experience.
Table of Contents
Understanding Etsy vs Shopify Basics
Etsy has grown into a global marketplace that brings creative entrepreneurs together with buyers looking for one-of-a-kind items. The platform now hosts over 5.6 million active sellers who serve 90 million active buyers. You’ll find handmade goods, vintage items, and craft supplies as their main focus.
What is Etsy?
The platform works as a marketplace where artisans can showcase their products together. Sellers focus on three main areas: handmade items, vintage goods (at least 20 years old), and craft supplies. You don’t need a business license to start selling on Etsy. The platform takes care of most technical details, which lets creators put their energy into making products.
What is Shopify?
Shopify gives merchants everything they need to build and run their own online stores. The platform has grown to 5.6 million active stores spread across more than 175 countries. Store owners get access to a full set of business tools that include inventory control, multiple payment options, and marketing resources. This makes Shopify a great fit for businesses that want to grow bigger.
Key Platform Differences
These platforms offer unique benefits that work better for different types of sellers:
Marketplace vs Independent Store: Etsy comes with built-in traffic in its ready-made marketplace, while Shopify lets merchants create their own branded stores.
There’s another reason these platforms stand apart:
Customer Relationship: Etsy owns the customer relationships, which limits your marketing options. Shopify store owners can collect customer data and build their email lists.
Product Restrictions: Etsy has strict rules about what you can sell, focusing on handmade, vintage, and craft supplies. Shopify lets you sell almost any legal product without restrictions.
Smart sellers often use both platforms together. They test their products on Etsy’s marketplace before moving to their own Shopify store. This helps them confirm their product ideas with Etsy’s existing customer base. Many businesses keep stores on both platforms, using Etsy’s large audience while building their brand through Shopify.
Getting Started: Setup Process
Etsy and Shopify each have their own distinct ways to help you set up an online store. These platforms provide structured processes that match their unique selling environments.
Etsy Shop Setup Steps
An Etsy shop setup follows a straightforward six-step onboarding process. New sellers are guided through key setup tasks that start with creating an account and naming their shop. Sellers must then verify their identity by submitting a government ID and a clear selfie.
You can start selling quickly since you don’t need a business license right away. Most sellers can set up their shop and list their first product in just a few hours. The platform needs you to enable two-factor authentication and set up your payment priorities through Etsy Payments.
Shopify Store Launch Guide
Shopify begins with a 3-day free trial that lets new merchants try out the platform’s features without spending money upfront. The platform gives you a detailed setup guide based on your business type and selling background.
The platform comes with these key setup elements:
Store customization through free and premium themes
Integration of payment gateways and shipping options
Setup of tax calculations and inventory tracking
Configuration of customer service channels
Shopify’s AI-powered features are a standout benefit. These include Shopify Magic for creating product descriptions and the newly added Shopify Sidekick that helps with setup. Even beginners can handle complex store setup tasks with this automated help.
Many sellers test their products on Etsy’s marketplace before moving to a Shopify store. This lets entrepreneurs verify their product ideas using Etsy’s existing customer base while building their own brand. Both platforms work together too – sellers can link their Etsy shop with Shopify during setup to manage multiple sales channels from one dashboard.
Selling on Etsy vs Shopify: Cost Breakdown
A clear understanding of online selling platform costs helps new sellers make smart decisions about their business trip.
Etsy Fees Explained
The platform lets you pay as you sell without monthly subscriptions. Sellers typically face three main types of fees. A listing fee of $0.20 applies to each product you post, whatever your sales numbers. Etsy takes a 6.5% transaction fee from the total order amount that includes shipping and gift wrapping costs. You’ll also pay 3% plus $0.25 per transaction for payment processing.
Shopify Pricing Plans
Shopify bases its pricing on monthly subscriptions with different features. The Basic plan costs $29 per month with annual billing and has simple features like unlimited product listings and shipping label printing. You’ll pay $79 monthly for the standard Shopify plan that comes with extra staff accounts and better shipping discounts. Larger businesses can choose the Advanced plan at $299 monthly that has custom reporting and better checkout capacity.
Payment processing rates vary by plan:
Basic: 2.9% + $0.30 per online transaction
Shopify: 2.6% + $0.30 per online transaction
Advanced: 2.4% + $0.30 per online transaction
Hidden Costs to Think About
Sellers should look beyond simple fees. Etsy charges $0.20 for each additional item sold in multi-quantity listings. International sales come with a 2.5% currency conversion fee.
Shopify merchants often need these extras:
Premium themes ($0-$350)
Marketing expenses ($50-$5000 monthly depending on scale)
Domain name maintenance (approximately $12 annually)
Etsy works better for beginners who test products with lower sales volumes since it doesn’t need monthly commitments. Shopify becomes cheaper as sales grow because it skips listing fees and transaction fees when you use Shopify Payments. This makes Shopify a great choice for sellers who want to scale their operations or keep higher inventory levels.
Product Categories That Work Best
Product selection determines success on both platforms. Each marketplace draws different customers who look for specific items.
Best Products for Etsy
Etsy draws buyers who want unique, handcrafted items and vintage treasures. The platform works best with:
Handmade Products: Jewelry, accessories, and personalized gifts
Vintage Items: Clothing, collectibles (at least 20 years old)
Digital Downloads: Planners, art prints, and craft patterns
Wedding Essentials: Custom invitations, decorations, and gifts
Craft Supplies: Beads, tools, and creative materials
The platform’s built-in audience gives immediate exposure to these categories. Sellers face tough competition within the marketplace. Mass-produced items have certain restrictions because of Etsy’s focus on handmade and vintage products.
Ideal Products for Shopify
Shopify lets you sell a wider range of items with more flexibility. The platform excels at hosting stores that sell:
Physical goods, digital products, event tickets, and consultation services thrive on Shopify. Businesses that want to scale and build brand recognition choose Shopify. They get full control over store features and marketing strategies.
Many sellers test their products on Etsy’s marketplace before moving to Shopify. This helps verify product ideas with Etsy’s existing customer base while building an independent brand. Some merchants stay on both platforms. They use Etsy’s built-in traffic while growing their branded store on Shopify.
New sellers should choose based on their product type and business goals. Etsy works best for artisans and small-scale sellers who want a ready-to-use solution with built-in traffic. Shopify serves entrepreneurs better when they need scalability and complete control over their brand identity.
Traffic and Marketing
Marketing success looks different on Etsy and Shopify. Each platform gives sellers unique ways to reach potential customers.
Etsy’s Built-in Audience
Etsy gives sellers instant access to a marketplace with 90 million active buyers. The platform spent nearly $600 million in 2021 to attract shoppers. This investment helps sellers directly because Etsy covers over 40% of their off-site advertising costs.
Etsy’s traffic comes from:
Organic search rankings in Google
Platform-wide marketing campaigns
Shared traffic among shops
Built-in marketplace visibility
Successful Etsy sellers can focus on search engine optimization within the platform instead of extensive marketing. The marketplace ranks well in Google search results and naturally brings traffic to product listings.
Shopify Marketing Tools
Shopify takes a different path by providing detailed marketing resources. The platform helps beginners establish their presence with various tools:
Email Marketing: Shopify Email lets you create professional campaigns, with the first 10,000 emails free
Social Media Integration: Direct connections to Facebook, Instagram, and TikTok for advertising
SEO Features: Built-in tools to improve search visibility and product descriptions
Shopify’s marketing approach needs more hands-on work. Recent studies show that main traffic sources include organic search, direct traffic, social clicks, email marketing, and referral traffic. The platform supports these channels through specialized features and integrations.
Beginners testing new products should start on Etsy to tap into its built-in audience. After proving product demand, sellers can move to Shopify for better marketing control and brand development. Many merchants stay on both platforms, using Etsy’s marketplace reach while building their brand through Shopify’s strong marketing tools.
Success on Shopify depends heavily on your marketing efforts, as 21% of business owners say low site traffic is their biggest challenge. Shopify helps by providing analytics tools that track various metrics, so sellers can see which marketing channels work best for their products.
Platform Features for Beginners
Each platform comes with its own set of tools and resources that cater to new online sellers. Your comfort with technology and customization needs will guide your choice between the two.
Etsy’s Beginner Tools
Sellers without technical expertise will find Etsy’s easy-to-use platform a perfect fit. The ‘Sell on Etsy’ mobile app lets you manage your business anywhere, with tools to control inventory and process orders. Etsy Stats, the platform’s analytics dashboard, shows you key metrics about your store’s visits, orders, and conversion rates.
New sellers get access to:
Simple shop customization options
Easy product listing interface
Built-in marketing tools
Mobile-first management capabilities
Clear analytics dashboard
Shopify’s Learning Resources
Shopify has built an impressive educational support system. Shopify Academy gives merchants detailed resources through video tutorials and in-depth guides. New store owners can follow step-by-step instructions that cover every part of their online store.
The platform added AI-powered tools like Shopify Magic, which helps you write product descriptions and improve site images. This feature has become a great way to get help for beginners who struggle with content creation. The setup guide adapts to your business type and past selling experience.
Support Systems Compared
The platforms take different approaches to customer support. Shopify gives you access to:
24/7 live chat support
Phone and email support for higher-tier plans
AI chatbot for quick answers
Community forums
Shopify’s help center arranges topics in a way that makes finding specific information quick and easy. A global community of experts stands ready to help with technical issues.
Etsy keeps its support structure simple yet effective for most beginners. The platform maintains a current help center, though it limits contact options. Sellers submit help requests through the help center instead of getting immediate support.
Both platforms give new sellers testing products unique benefits. Etsy lets you enter the market quickly with simple analytics. Shopify’s resilient learning resources and support system work better for long-term growth plans. Many sellers start with Etsy’s easy-to-use platform to test products, then move to Shopify’s more detailed platform as their business grows.
Comparison Table
|
Feature |
Etsy |
Shopify |
|---|---|---|
|
Best For Beginners | ||
|
Setup Process |
You can set up within hours without a business license |
A 14-day free trial comes with AI-powered setup assistance |
|
Technical Knowledge Required |
Simple to use with an accessible interface |
You need to learn more features |
|
Original Costs |
You only pay when you sell |
Begins at $29/month |
|
Built-in Traffic |
Yes, you get access to 90M active buyers |
You need your own marketing strategy |
|
Product Categories | ||
|
Ideal Products |
– Handmade items |
– Any legal product |
|
Product Restrictions |
Clear guidelines focus on handmade/vintage items |
Sell any legal product |
|
Costs | ||
|
Transaction Fees |
6.5% + 3% payment processing + $0.25 |
2.9% + $0.30 (Basic plan) |
|
Listing Fees |
Each listing costs $0.20 |
No fees to list products |
|
Platform Strategy | ||
|
Testing Products |
Perfect to test products with ready audience |
Better when you have proven products |
|
Brand Control |
Your brand shares space in Etsy marketplace |
You control everything about your store |
|
Cross-Platform Option |
Run stores on both platforms as you build your brand | |
|
Growth Path |
Start with Etsy and move to Shopify as you grow |
Conclusion
New sellers often wonder whether to choose Etsy or Shopify when starting their online business. Etsy provides a simple way to start selling online through its established marketplace. The platform works best for creators who make handmade items, sell vintage goods, or offer digital downloads. New sellers can reach Etsy’s 90 million active buyers without building their own traffic.
Shopify gives sellers who want to build their own brand complete control over store design and marketing. The platform supports all product types, from physical items to digital services, without Etsy’s marketplace restrictions.
Many successful sellers have found a winning strategy. They test their products on Etsy and then switch to Shopify after proving their market. This approach combines Etsy’s existing customer base for market validation with Shopify’s strong tools to grow operations. You can learn how to create your Shopify store in this piece to begin your e-commerce experience.
Both platforms serve different purposes. Etsy helps sellers test and validate their market quickly. Shopify provides essential tools to build and grow your brand. Your choice should align with your products, technical skills, and business objectives.
FAQs
Q1. Which platform is easier for beginners to start selling on? Etsy is generally easier for beginners to start selling quickly. It offers a user-friendly interface, quick setup process, and access to a built-in audience of millions of buyers. Shopify, while more complex, provides comprehensive tools and resources for those looking to build a scalable business.
Q2. How do the costs compare between Etsy and Shopify? Etsy operates on a pay-as-you-sell model with no monthly fee, charging listing and transaction fees. Shopify has monthly subscription plans starting at $29, with lower transaction fees. Etsy may be more cost-effective for low-volume sellers, while Shopify becomes more economical as sales increase.
Q3. What types of products work best on each platform? Etsy is ideal for handmade items, vintage goods, and craft supplies. Shopify accommodates a wider range of products, including physical goods, digital products, and services. Etsy has stricter product guidelines, while Shopify allows selling almost any legal product.
Q4. How do marketing and traffic generation differ between the two platforms? Etsy provides immediate access to its marketplace of 90 million active buyers and invests in platform-wide marketing. Shopify requires more active marketing efforts from sellers but offers comprehensive tools for email marketing, social media integration, and SEO to help drive traffic to your store.
Q5. Can I use both Etsy and Shopify for my business? Yes, many successful sellers use both platforms. A common strategy is to start on Etsy to test products and leverage its built-in audience, then transition to Shopify for greater brand control and scalability. Some merchants maintain a presence on both platforms to maximize their reach and sales potential.