What to choose between Shopify and Etsy?

​​If you've arrived here seeking a Shopify vs. Etsy comparison, you're probably a budding entrepreneur offering something quintessentially creative.

In general, the first platform that comes to mind when it comes to selling crafts is Etsy. This is especially true if you're looking to offer funny print designs, knitwear, handmade figurines, or anything else artsy. On the other hand, Shopify functions as an online shopping cart and builds a custom website for you to host your customers' purchasing experiences.

The services and tools offered by these two options and how their features compare are likely to be of interest to you if you want to start selling online but your budget limits you to using a single platform (at least initially). In light of this, let's start this comparison right away: What to choose between Shopify and Etsy?

Brief overview about Shopify and Etsy

1. Etsy

The storefronts of various online retailers are housed on the online marketplace Etsy. All sellers have one thing in common: they all sell artsy and crafty goods, which adds to the fierce competition in the Etsy market. Etsy is a marketplace for small- and large-scale independent vendors. As a result, entry-level shopfronts are frequently ideal for new sellers with small inventories of unique goods. With over 33 million buyers worldwide, they currently have over 1.7 million sellers.

In addition to allowing users to list items on its marketplace, Etsy also provides its own eCommerce system called Pattern by Etsy. This platform allows you to build your own website and sell products directly from it.

Shopify offers a range of options, whether you want to jump in and develop a truly distinctive shopping experience or you just need to quickly launch a small online store. This includes fully hosted, cloud-based solutions that let you use templates that can be customized for your online store, sell in various online and physical locations, integrate payment processing, provide the highest-converting checkout on the internet, and more.

2. Shopify

Over 1.7 million businesses worldwide use Shopify, an easy-to-use online store builder. For processing payments in physical locations, it includes a Point Of Sale (POS) application. Retailers can use it to create a multi-channel experience that showcases their brand. These tools allow users to personalize online interactions for their clients and increase the Return on Investment (ROI) on marketing investments. The technology also contributes to overall cost reduction by automating tasks like transaction processing, inventory management, and customer relationship management.

Etsy should be your first stop if you're a new seller with a limited selection of handcrafted and distinctive items. If you're making your own products, it's likely that your initial stock will be small and each item will be distinctive. Etsy is perfect if you only occasionally sell handmade goods there. It is easy to use and undoubtedly satisfies all the needs of a small, imaginative company.

Pros and Cons of Shopify vs. Etsy

1. Pros and Cons of Etsy

Pros

• Etsy provides great exposure: Etsy, as an online marketplace, has a built-in consumer base. You can count on Etsy's popularity to direct visitors your way.
• Etsy is simple to use: Create an account, submit your products, photos, and product information, and immediately begin selling.
• Etsy is cost effective: While you must pay listing and transaction costs, there is no additional monthly fee associated with Etsy's regular plan (more on that in a bit). Thus, for anyone interested in dabbling in the realm of online retailing, Etsy is a safe place to start.

Cons

• Etsy lacks creative control: You are unable to customize the appearance of your storefront or your branding. Additionally, you have less influence over the shopper's purchasing process, and there are fewer resources accessible to assist you in growing your following.
• Etsy has restrictions on the products: Etsy has strict guidelines about what may and cannot be sold. Obviously, they specialize in specialty things and handcrafted, vintage, and one-of-a-kind stuff. As a result, you would be unable to branch out and offer goods outside of this remit.
• Etsy charges transaction fees: This equates to a 5% commission on each item you sell, plus a $0.20 listing charge. These might take a large bite out of your income as you increase your sales volume.

2. Pros and Cons of Shopify

Pros

• Shopify is easy to use: Shopify enables you to sell products or services with little configuration. It has an intuitive drag-and-drop editor that lets you customize the design of your online store's homepage without requiring any coding knowledge.
• Shopify's robust eCommerce toolset is one of the best on the market: This features an accessible inventory management system for tracking, synchronizing, and monitoring your orders and stock levels.
• Shopify is mobile-friendly: Shopify includes a mobile-friendly design that enables buyers to shop on their mobile devices. Shopify's mobile responsive themes assist in attracting more customers from the palm of their hands.
• Shopify is a highly scalable platform: It is designed for all store kinds, from small enterprises to large brands. You have complete control over your branding, can upgrade to access additional features, and install additional plugins.
• Shopify offers an infinite number of items to sell: There are no restrictions on what or how much you can sell, from real things to services to digital stuff.

Cons

• Shopify does not assist you with gaining awareness: Customers must either search for you or you must reach them through other means (Facebook ads, Google ads, email marketing, etc. ), which means that if you lack an established customer base, you may not get immediate traffic.
• Apps and plugins can significantly increase the monthly cost: For small-scale merchants, the platform's costs may soon exceed their budget.
• Shopify’s transaction fees are relatively high: While the majority of shopping carts have completely eliminated transaction fees over the years, Shopify has preserved its 0.5% to 2.0% fees.

Shopify vs. Etsy Comparison

1. Shopify vs. Etsy: Pricing and Payment Options

Etsy Pricing

Each month, there is no fee for the basic Etsy plan. It does, however, charge $0.20 for each product listing. The cost of publishing your listing for a number of months is covered by this fee (or until the item is sold). Similar to what you would pay for a table at an art market, this fee is charged.

Each item sold on Etsy is subject to a 5% transaction fee as well as an additional 3% + $0.25 for payment processing. Your income from more expensive goods may be significantly reduced as a result. Even though the cost of payment processing is typical in the eCommerce industry, Etsy's costs are a little bit higher.

Sell once more on a more modest scale. Your profits should not be significantly impacted by Etsy's transaction fees, which can easily be offset by the cost of hosting your own web store with a monthly subscription. In the end, Etsy only charges you when you make a sale, so you don't incur any financial risk if you're unsure about the demand for your products.

For $10 a month, Etsy Plus gives users access to more features.

Shopify Pricing

Shopify has a higher initial investment but gives significantly more customization and flexibility. This is really beneficial when it comes to scaling your firm. Three distinct pricing tiers are available, as well as a 14-day free trial:

• Basic Shopify - $29 per month: This plan includes an eCommerce website and blog, as well as the ability to list an unlimited number of products, register two staff accounts, and access to 24/7 support and multichannel selling.
• Shopify - $79 per month: Upgrade to five staff accounts, gift cards, professional reports, better credit card rates, and point-of-sale extras.
• Advanced Shopify - $299 per month: This plan includes 15 staff accounts, an advanced report builder, third-party shipping prices, and discounted credit card rates.

Shopify payments don't charge transaction fees, simply a card processing fee of 2.9% + $0.30 per transaction on the Basic Shopify account. This price is reduced if you upgrade to the Shopify 2.6% + 30¢ or Advanced Shopify 2.4 percent + 30¢ plan.

Thank you for reading