Shopify Vs Etsy – Which Platform is The Best For You?

If you are trying to choose between Shopify vs Etsy for your online business, you should weigh many factors and this article can help you with it.

When it comes to eCommerce platforms, both Shopify and Etsy have great reputations. Both platforms have been around since the early 2000s, which means they are both industry leaders in eCommerce.

However, these two platforms are quite a different right from the start. Etsy can be better described as a marketplace for handmade and artisanal products.

Shopify on the other hand is a SaaS platform that allows you to build your own online store with no coding requirements.

This is just a superficial distinction between the platforms. Even so, it seems like Etsy’s target market is very narrow, doesn’t it?

If we are to go by Google Trends for Shopify vs Etsy, Etsy has way more search volume compared to Shopify, which points to Etsy having a certain advantage over Shopify because it is a marketplace!

This search volume consists more of buyers looking for unique handmade products and vintage items. Shopify’s search traffic consists more of sellers who are looking to create their own store and kick-start their online business.

Further in this article, we will compare the two platforms ‌based on their features, pricing, ease of use, and much more.

By the end of this article, you will be able to make the choice for yourself on which of these two platforms is better suited for your business needs.

Shopify vs Etsy: An Overview

Here is a quick comparison between Shopify and Etsy:

Shopify vs Etsy: Pros and Cons

Shopify

Etsy

Shopify vs Etsy: Introduction

As mentioned above, on a basic level, Etsy is a marketplace while Shopify is an eCommerce platform. But what does that mean?

Introducing Shopify

Shopify ‌is a well-established eCommerce platform that enables entrepreneurs to build their own online storefronts and start their own businesses.

You can sell any kind of product in your store, which includes physical products, digital products, and services.

However, unlike Etsy, there is no readymade traffic to Shopify that you can access and start selling your products immediately.

Building an online store is rather a long-term process where you have to use the right marketing and promotion strategies to bring in traffic.

However, once the ball starts rolling, you will have customers returning specifically to your store and for your products. You do not have to compete with a million other sellers to attract customers to your store.

Shopify allows you to design and customize your online store to reflect your brand. You can create an impact on your customers with a fully functional and professional store that is in league with established brands.

Introducing Etsy

Well, Etsy is a marketplace built to encourage and empower creatives and artisans to sell their products online.

It was launched in 2005, and since then it has garnered over 2M+ sellers, selling handmade products, arts and crafts, and vintage products on the platform.

It also attracts a whopping 350M+ monthly traffic on the platform. Of this traffic, over 60M are buyers on the platform, 40% being returning customers.

Now, these numbers are enticing enough for a seller to choose Etsy over any other platform.

However, Etsy is a niche marketplace that encourages only handmade and artsy products. If you aren’t selling this kind of product, then Etsy is simply not for you!

Etsy Pattern

Etsy recently launched its version of an eCommerce SaaS platform called Etsy Pattern in the year 2017. Etsy Pattern, though very young compared to Shopify, holds a lot of potentials.

Pattern by Etsy more than makes up for a lot of factors mentioned in Etsy’s cons section. You can set up your own online store, quickly and easily, without any technical expertise.

The platform has 10 free themes as of now. The themes are well-designed, clean, and responsive. You can customize your store with your brand elements like store name, logo, colors, tagline, etc.

Unlike Etsy, you can sell anything in your online store using Etsy Pattern. You will have complete ownership of your shop and customer data. You are solely responsible to drive traffic to your store.

However, you can sync the products between the Etsy marketplace and your store on the Etsy Pattern, making it easy for you to sell on both channels from one place.

The subscription plan on Pattern by Etsy starts from $15 per month, and there is a 30-day free trial on all plans.

Though Etsy Pattern offers a platform that is very similar to Shopify, it still cannot be an alternative to Shopify. The eCommerce features and blogging features on the Etsy Pattern need a lot of improvement.

Shopify vs Etsy – Key Differences for 2022

Now that we have gotten to know these two platforms a little better, let us now get into the crux of things and figure out how these platforms compare to each other on a feature-to-feature basis.

1. Themes and Design

Multiple studies have shown that design plays a major role in retaining traffic. You can run paid ads to bring in traffic to your online store. But if they do not like what they see, then there is no point in the expenditure!

Between Shopify vs Etsy, Shopify visibly offers better control over the aesthetics of your online store. No two stores on Shopify will look alike, which is not the case with Etsy.

Let us take a deeper look at the design flexibility offered by the two platforms.

Shopify – Themes and design

Shopify has a huge library of nearly 70 themes out of which 10 are free of cost. The paid themes can range anywhere between $140 and $180.

The themes are all very intuitive, eCommerce focused and mobile responsive. The design is sleek and modern.

You can customize the themes to your heart’s content to arrive at an online store that looks completely unique and well-designed. You can move around the design elements like text, logo, categories, etc., and rearrange them as much as you like.

Shopify also allows you to switch themes at any time, which is an added advantage. So when you are customizing your store, if you feel like the site is not looking as you want it to, then you can try a different theme!

This way, Shopify helps you to build a truly unique online store that exudes your brand.

However, it is also important to note that Shopify is not an open source platform and hence the customization is limited to elements of the chosen theme. You can not edit the theme on a code level.

For a simple, quick, and aesthetically pleasing storefront, the themes and design flexibility offered by Shopify is more than enough!

Etsy – Themes and design

Before we go into things, we will make it clear right away that the Etsy marketplace is for artisans who are looking for a place to sell their handicrafts and unique products.

You can start selling in a matter of an hour, that is how quick it is to get started with Etsy. That automatically means that there are no fluffs and frills when it comes to selling on Etsy.

Etsy follows a clean and attractive design that helps display your products in the very best light. However, there is no option for customization whatsoever.

All stores on Etsy look alike except for a few obvious changes, like the store name, logo, products, product description, and other relevant content.

It is ok for selling a few products when you are initially starting out. However, in the longer run, this will pose a lot of problems as you will not establish yourself as a brand.

Even if you choose to sell on Pattern by Etsy, you still have access to only 10 website themes. The customization is largely limited, so the stores are bound to look alike on this platform too.

Our Verdict for Best Themes and Design: Shopify

2. Ease of Use

A lot of people are still intimidated to take their business online because not everyone has the technical expertise to build and manage a website.

The main purpose of eCommerce platforms is to make it easier for people to create an online store and manage their business efficiently. So, let’s find out which platform is easier to use between Shopify and Etsy.

Is Shopify easy to use?

Shopify is branded as a ‘no coding required’ eCommerce platform where you can create an online store and manage your business with no technical expertise.

The onboarding process on Shopify is pretty simple and guided throughout. Considering that you have to build an online storefront from scratch, it is definitely time-consuming.

It starts with signing up on Shopify, then you will be prompted to fill in some essential details. Then you have to choose the subscription plan and your store is created!

You will be redirected to a dashboard where you will see a list of tasks like customizing your store, adding products, connecting a domain, etc.

From selecting and customizing your store theme to mapping your domains, everything is guided through a step-by-step process. It is almost like filling out a form and anyone can handle these tasks.

If you want minute-level customization of your store on Shopify, that is proven to be hard and confusing. Though Shopify uses a clean and user-friendly interface, many sellers have found the editor very hard to use.

You need to constantly switch between the front end to make aesthetic changes and the back end to edit your product display. Having some basic developer skills is almost a must in such a case!

Shopify also has an extensive library of online resources and video tutorials to help at every step of the process of starting, customizing, running, and managing your business on the platform.

Is Etsy easy to use?

Etsy is relatively very easy and quick to get started with. All you have to do is to sign up on Etsy if you do not already have an account.

Then you can click on “Sell on Etsy” to enter your store name, check its availability, enter your store description, and upload a logo. Your store is created on Etsy!

Now all you have to do is to list your products, price them appropriately and start selling.

The onboarding process is as stripped down and simple as possible. There are some factors that are done best when you take time to strategize, like the product copy, description, images, pricing, etc.

Managing your store is also very easy and you can carry your business on the go as the Sell on Etsy app is available on both Android and iOS. As for Etsy’s online resources and video tutorials, they are available but are pretty old and outdated.

Your store on Etsy is not a standalone store like Shopify, hence it will look more Etsy-like rather than represent your brand.

If you are looking to build an online store, then you can choose to subscribe to Pattern by Etsy. The onboarding process on Pattern by Etsy is also very simple and step-by-step.

You will start by choosing your country, currency, and language. Following this, you will be asked to enter your store name, Add products, set up payments and billing, and secure your store.

Our Verdict for Best Ease of Use: Etsy

3. Scalability

Starting an online business is never about a short-term goal. Even if you are starting your business as a side hustle, you want to keep it running consistently and providing a constant stream of income.

So it is important to choose a platform that offers a lot of room to grow your business and scale it.

Growing your business on Shopify

As we have mentioned before, Shopify is surely not for sellers who consider their business as a side hustle. If you are not fully invested in your business, then you should not choose Shopify.

That said, if running your business is your full-time job, then Shopify has all the ammunition needed to grow your business into a brand!

It has 5 plans starting from $9 per month so that you can start small and grow your business steadily.

As the business grows and revenue starts pouring in, you can upgrade to the next plan and manage your business effectively.

Though Shopify is based on monthly subscriptions, it gives you a lot of value for your money. You can build your own store with a custom domain and URL. You can make your store look aesthetic and well-designed.

There is also a range of over 3000 apps and plugins to help increase the functionality of your store and run it efficiently.

With Shopify, you can easily bring traffic to your store, interact with them, convert them into paying customers and create a sense of community.

Growing your business on Etsy

Etsy is a really well-established marketplace that attracts consistent traffic on a daily basis. When you choose to sell on Etsy, you automatically have access to this huge traffic without having to spend time or money on marketing strategies.

This seems very enticing at first, but a marketplace will always think of how it can make a profit rather than think from a seller’s perspective.

Your store on Etsy will not be your own. You cannot sell just anything on Etsy. It has to be handmade products or vintage products.

You can set up your store free of cost on Etsy, but you will have to pay a myriad of fees and charges with every sale that you make.

And the only option to scale up your business is to choose the Etsy plus subscription plan, which allows you to create your domain, customize your store to an extent, and access some eCommerce tools.

However, from growing your business point of view, these additional features are simply not enough.

If you are thinking about Patterns by Etsy, then it is surely a far better choice to start a business when compared to Etsy or Etsy plus.

You can build your own standalone store, and sell any product, there is no limit to listings, you can get a custom domain, and many more useful features are available.

However, Patterns by Etsy is still very young in itself. Hence, the chance to grow or scale your business on the platform is very limited.

Our Verdict for Best Scalability: Shopify

4. eCommerce Features

Simply put, both Shopify and Etsy are eCommerce platforms that enable sellers to list their products and sell them online. However, if you are planning to start an online business, it is not an easy task.

The platform that you choose should have the right set of eCommerce features in order to make things easier for you.

eCommerce Features on Shopify

Shopify is an eCommerce platform built for sellers that are very serious about running their business online.

It has the most powerful and potential set of eCommerce features that are equipped to help you build your online store, customize it, manage your business, market your business, build a brand, and much more.

Shopify ticks all the major boxes in terms of eCommerce features and tools. If there is no built-in solution or feature, you can always find a suitable app in the Shopify app store to add the required features.

Here is a list of eCommerce features on Shopify:

• Selling on multiple channels
• Custom domain
• Free SSL certificate
• Abandoned cart recovery
• Store analytics and reports
• Robust inventory management
• Shopify Point of Sale (POS)
• Discount codes and gift cards
• Multi-language websites
• Third-party calculated shipping rates

Having a custom domain helps with improving recognition and building trust among your customers. You do not have to worry about hosting or security issues on Shopify.

Apart from these, Shopify has over 90 well-designed themes, a robust app store, and integrates with over 100 payment gateways.

eCommerce Features on Etsy

Etsy is a marketplace that enables sellers to list and sell their products quickly and easily.

Though the platform has a steady flow of traffic, you cannot really count any part of that traffic as your own.

For this major reason, Etsy is more suited for sellers who run a business for a passive income and not as the primary source of income.

There is also a limitation on what kind of products you can list on your Etsy store, which is very limiting when it comes to starting and running a business.

That said, Etsy has more basic eCommerce features that are good enough to set up your store quickly, list your products, price them, and start selling.

You can use the Etsy app to manage your store and orders on the go. It also has some decent marketing tools that allow you to promote your store across social media platforms.

To list out the eCommerce features offered by Etsy:

• Quick setup of the store
• Readymade traffic
• Banner templates
• Email alert templates
• Credits for advertising
• In-house payment processor
• Built-in marketing tools

As you can see, Etsy’s eCommerce-specific features are quite basic. Since it is a marketplace, there are no options for inventory management.

Our Verdict for Best eCommerce Features: Shopify

5. SEO Features

SEO is the best way to get your business noticed by both people and search engines. With the right SEO strategy, you can drive traffic to your online store and convert them into customers.

Shopify – SEO features

Unlike Etsy, Shopify allows you to build a standalone store that you have complete control and ownership over. However, this also means that you will be responsible for driving traffic to your store through SEO, promotions, and marketing campaigns.

Shopify understands that as a standalone store, a precise and relevant domain name can make a huge difference. It makes your store look professional and credible.

When you sign-up for a free trial on Shopify, your store ID will look something like this: ‘www.businessname.myshopify.com’

Once you have subscribed to one of their paid plans, you will be able to register an official domain.

Shopify is a very SEO-friendly platform that allows you to customize your title tag, meta description, ALT tags, etc. It also auto-generates a sitemap based on your category pages, product pages, etc.

Do not worry if all these terms seem unheard of to you. Shopify has all the apps and guides you need to get started with eCommerce SEO on the platform.

These will guide you through the basic SEO optimization of your online store so that you can drive traffic to your online store more efficiently.

Apart from this, you can also run paid advertisements on Google to promote your online store and bring in traffic immediately. When you have a standalone store, you can direct traffic to it using Google Adwords.

Etsy – SEO features

Etsy does not provide a custom domain to stores. You will not have an ideal store URL as it is a marketplace. Your store URL on Etsy will look like this: ‘ww.etsy.com/shop/businessname’

Considering that the basic importance of SEO is in driving traffic to your online store, Etsy aces the SEO game.

It ranks on top for a lot of high-volume relevant keywords like “buy handmade products online”, “handmade products online”, “sell handmade products online”, etc.

People do not even need not be searching for your store to find and buy your products. If your store has the products that they are looking for, Etsy will automatically display them in the search results.

In simple words, if you choose to sell on Etsy, there is already a lot of traffic on the site that you can cater to without bothering about SEO.

However, it is still highly advisable to follow some simple SEO practices to optimize your store.

Starting with what you name your store, you can add the right keywords in the product name and description. You can also use the right set of tags to get your products noticed on the platform.

You can promote your online store organically through social media platforms, WhatsApp groups, seller communities, etc.

Etsy also offers paid promotions through Etsy ads which work similarly to Google ads. If you want to boost sales of your product, you can pay Etsy to list your products on top of search results for relevant keywords.

Our Verdict for Best SEO Features: Shopify

6. Payment Options

Integrating payment gateways to your online store is a must if you want to seamlessly receive payments from your customers and fulfill orders.

You should be able to offer multiple payment options to your customers in the form of banks, UPI, wallet integrations, pay later services, etc.

Payment options on Shopify

Shopify has integrated with over 100 payment gateways around the world. These payment options include all major gateways like Google pay, Apple pay, Paypal, Stripe, and more.

It charges a transaction fee while using these payment options. The transaction fee ranges from 0.5% to 2% on each transaction.

The payment gateway that you want to integrate into your online store on Shopify may have its own pricing, so make sure to gather all the information.

Shopify also has an in-house payment processor called Shopify Payments that reduces all the hassle of integrating a third-party payment processor.

Shopify payments make it easy for you to track your transactions and receive payments.

Shopify payments do not charge any transaction fees. It only charges card processing fees, which range from 2.4% +$0.30 per transaction to 2.9% +$0.30 per transaction.

However, access to any of these payment options is possible only after you choose a subscription plan for your business.

Payment options on Etsy

Unlike Shopify, Etsy does not charge any subscription charges in order for you to access its payment options. You can choose the free plan to start your business and still process payments seamlessly.

Etsy offers only 10 payment options which are very limited compared to Shopify, however, they are more than enough to receive and track payments all over the world.

It has a robust in-house payment option called Etsy payments, which includes Etsy gift cards, Etsy credit, Etsy coupons, and more.

Etsy payments can accept payments from all credit and debit cards, Paypal, Google pay, etc., and some country-specific payment methods are also available.

Apart from a $0.20 listing fee, Etsy charges transaction fees of 5% on every transaction plus a payment processing fee of 3% +$0.25 per transaction.

These charges may seem a little excessive, but, one good thing is that you do not have to pay anything unless you make a sale.

You may not feel the heat of these additional charges when you are just starting out. However, as your business grows, and you start making more money, paying a huge chunk of it to Etsy will be a huge problem.

Our Verdict for Best Payment Options: Shopify

7. Help & Support

Having a robust customer support system is a necessity these days because not everyone has the required developer skills or technical expertise.

Even the sellers with coding and design skills might face some issues or hurdles that need support and hand-holding from a customer support team.

Among Shopify vs Etsy, who has the best help and support team? Let’s find out!

The customer support offered by Shopify

Shopify has a very diverse and active help and supports the team. They offer 24/7 support through phone and live chat.

They also offer customer support through email and social media. Their community forum is also quite active and helpful.

Their help center is very comprehensive with answers to queries of all sorts. From onboarding-related material to payment processing and marketing, you will find detailed information in the help center.

If you are not interested in reading through the help center articles, you can head over to their video tutorials, which are very informative and up-to-date!

Apart from all this, Shopify also offers advanced specialist support which is dedicated to the large enterprises that have subscribed to the Shopify Enterprise plan.

Overall, Shopify’s help and support are fully equipped to provide immediate attention to issues faced by sellers, be it day or night.

The customer support offered by Etsy

Etsy does not offer as diverse help and support as Shopify does, but it is not very poor either.

Etsy’s help center is quite comprehensive and has a clean layout. There is also a search function that you can use to search for exactly what you need help with.

The platform also has a very active community with whom you can connect on the forum. You can ask questions as well as help other sellers with their queries.

If your problem is not solved through these options, then you can choose to mail your queries to Etsy email support or schedule a call back from Etsy.

As for the quality of support offered by the platform, in recent times, there have been a lot of reports and backlash among the sellers over the poor support offered by Etsy.

As a platform, Etsy is quite simple and straightforward. From creating your store to listing your products and selling them, you can manage it all with ease.

However, as mentioned above, having a good help and support team is an absolute necessity for all businesses.

Our Verdict for Best Help & Support: Shopify

8. Pricing

Pricing is one of the major deciding factors when you are choosing an eCommerce platform. If you are serious about running an online business, you cannot afford to make any wrong investments.

So, between Shopify and Etsy, let’s see which platform goes easy on your pockets while adding value for your money.

How much does it cost to use Shopify?

Shopify has a range of pricing plans to choose from based on your business needs. Here is a quick overview of the Shopify pricing plans:

Shopify Lite:

This is the cheapest and most basic plan of Shopify for those sellers who have an existing website or plan to sell on social media.

It follows a 30-day billing cycle charging $9 per month, plus transaction charges of 2.7% on each transaction.

You can access some really helpful features like an overview dashboard, finance reports, issuing gift cards, splitting bills, emailing carts, and more. However, you cannot build an online store under this plan.

Shopify Basic:

This plan is best suited for startups and small businesses. You can build an online store and manage your business.

The subscription cost is $29 per month along with a transaction fee of 2.9% + 30 cents per online transaction and 2.7% per in-person transaction.

All the important eCommerce features like a dashboard, basic reports, order management, etc. are available. You can add up to 2 staff accounts and the inventory locations are limited to 4.

Shopify Standard:

If you are an eCommerce business that is constantly growing and scaling, you can pick this plan.

The subscription cost is $79, plus transaction fees of 2.6% + 30 cents per online transaction and 2.5% per in-person transaction.

The features included under this plan add on to the ones from the basic plan, and a little more. You can add 5 staff accounts and manage inventory across 5 locations. You can also automate some manual tasks, build workflows, etc.

Shopify Advanced:

This is the most expensive package that comes with a lot of advanced features that work best for medium to large businesses.

The subscription price is $299 with additional transaction fees of 2.4% + 30 cents per online transaction and 2.4% per in-person transaction.

In this plan, you can create up to 15 staff accounts and manage inventory across 8 locations. You can also access a few advanced features like calculated shipping rates, tax calculations, custom pricing, etc.

Additional costs:

If you think that your expenses on Shopify will end at the subscription cost and the transaction fee, then you are wrong. There are some additional costs involved that you should be aware of.

• Custom domain: repeats on an annual basis
• Paid themes: one-time price ranging between $100-$180
• Premium apps: some apps and integrations cost up to $70
• Shopify POS pro: for advanced POS, an additional $89 per month

So, those are all the subscription plans and additional costs you may incur to run your business on Shopify. Apart from these, there is also the option of Shopify plus for enterprises. The prices start at $2000 per month, but it varies based on the quote.

How much does it cost to use Etsy?

At first look, Etsy may seem like a cheaper platform to run your eCommerce business because it has a free plan. However, there are a lot of other charges involved on the platform.

Here is the Etsy pricing table for an overview:

Etsy Standard:

Etsy standard is the default plan for anyone who creates a seller account on Etsy. It comes with some basic tools to list your products, price them, and start selling on the marketplace.

Etsy Plus:

Since on the free plan, you can list only 10 products without incurring additional listing fees, you can choose to upgrade to Etsy plus, which is a subscription bundle.

It costs $10 per month but the additional charges still apply. You will receive a credit for listing up to 15 products along with a $5 credit in Etsy ads on monthly basis.

Additional costs:

• Listing fees: Etsy charges a listing fee of $0.20 for every listing. This has to be renewed every 4 months.
• Transaction fees: A 6.5% of every completed sale will be charged. This is charged on the entire purchase price, which includes shipping and gift wrapping.
• Payment processing fees: Etsy charges a payment processing fee on the total sales price, which includes tax and shipping. The charge is 3% + $0.25.
• Currency conversion fee: If you convert currency, then you pay an additional 2.5% of the total sales price.
• Shipping fees: If you are charging customers for shipping, then Etsy collects 5% of the shipping charges.
• Promotion fees: If you want to promote your store or products on Etsy, you can pay for Etsy ads to display your products on top of search results.

Etsy Pattern:

Pattern by Etsy, also known as Etsy Pattern, allows you to build your own online store to sell your products. This will be a standalone store that you can connect to a custom domain and brand according to your business.

To use this platform, you will need to subscribe to Etsy Pattern at $15 per month. The first month on the platform is completely free.

When using Etsy Pattern, you do not need to pay transaction fees or listing fees. However, there are costs associated with registering a custom domain, domain privacy, etc.

Our Verdict for Best Pricing: Shopify

Summary

Shopify and Etsy are very different from each other from the very start. We have delved into the differences much deeper through this article to see which platform comes out as a winner.

As you can see from this table, Shopify sure does have a lot of great features and sales tools that a business needs to run smoothly and grow. Etsy, on the other hand, has all the basic features that are suited for running a business as a side hustle.

We cannot conclude altogether that one platform is better than the other! You can use this information to analyze your business needs and decide which platform best suits your needs.

That said, you can choose Etsy if you want:

• To get started for free of cost
• An easy-to-use platform
• Access to readymade traffic

On the other hand, Choose Shopify if you want:

• To build your own online store
• Manage your business efficiently
• To build your own brand

Further Reading

Before you go on to decide between these two platforms, we would like to introduce you to Dukaan. It is an eCommerce platform that enables sellers to create their own digital storefronts without any coding skills. It will take a matter of minutes to build your own store and start selling!

Start your 7-day free trial on Dukaan today!