Thinking of trying a new reselling platform?
Etsy and Shopify are great marketplaces to consider, especially if you make your products or have your own brand.
In this article, we’ll explore the ins and outs of Etsy and Shopify.
Main Takeaways:
- Diverse Products: Sell handmade items on Etsy; sell anything on Shopify.
- Audience Reach: Etsy has a large built-in audience; Shopify lets you build your own.
- Fees: Etsy charges listing and transaction fees; Shopify requires a monthly subscription with lower transaction fees.
- Shipping: Both platforms offer flexible shipping options.
- Quick Cross-listing: Cross-list to both Etsy and Shopify in seconds with Vendoo.
What is Etsy?
Etsy is a popular selling marketplace with approximately 96.3 million active buyers worldwide. With a constantly increasing number of sellers and shoppers, Etsy's marketplace yields billions of dollars annually. The platform has a global audience and is a great place to buy and sell handmade goods, vintage items, and craft supplies. Etsy’s mission is “to keep human connection at the heart of commerce.” Etsy truly epitomizes the sentiment and love of shopping small.
For everything that you need to know about Etsy, check out the article How to Sell on Etsy: The Guide to Setup, Initial Steps, & Growth
What is Shopify?
Shopify is a leading e-commerce platform with over 500 million annual buyers, holding a 23% market share of e-commerce in the United States. Shopify allows users to create and design their e-commerce website and storefront to feature and market their products.
Shopify offers a unique selling experience, unlike any other marketplace. It is essentially a tool for creating an e-commerce website. Buyers don’t “shop on Shopify;” they shop on websites powered by Shopify.
👀Did you know that Nike is powered by Shopify? That’s the selling experience that Shopify provides.
For more information about Shopify, check out the article What You Need to Know to Start Selling on Shopify.
Shopify vs. Etsy: 2024 Comparison
Choosing between Shopify and Etsy can be challenging, as each platform offers unique advantages. In this section, we’ll compare Shopify and Etsy in 2024 across key factors like pricing, ease of use, and customization to help you decide which is the best fit for your business.
Why choose just one? Crosslist to both in seconds with Vendoo!
Pricing and Fees
Let’s compare selling fees on Etsy and Shopify:
What are Etsy Fees?
Etsy has a bit of a complicated fee structure:
Etsy has competitive selling fees, but many factors contribute to them. As a very rough estimate, consider them to be around 10%.
- Listing Fees: Etsy’s listing fee is $0.20 per listing (which automatically renews and charges every four months by default, but you can disable that).
- Transaction Fees: Transaction fees are the charges applied by Etsy for each completed sale on the marketplace. Currently, Etsy charges a transaction fee of 5% on the sale price of each item. Remember that the sale price includes the cost of the item and applicable shipping, handling, and gift wrapping charges- 5% of that total.
- Payment Processing Fees: The standard payment processing fee is 3% plus $0.25 of the total sale price per order (for US transactions). These fees may vary depending on the payment method used by the buyer or the seller's location.
- Currency Conversion Fees: Currency conversion fees apply when a seller lists items in a different currency than the buyer's. These fees are incurred when Etsy converts the payment into the seller’s currency, allowing the funds to be deposited into their account. The currency conversion fee typically amounts to 2.5% of the total sale price.
- Promotional Etsy Ad Fees: There is also an optional 15% off-site add fee. If you choose to opt in to an Etsy Ads Campaign, a 15% fee applies only when you make a sale as a direct result of the off-site ad.
Note that if your Etsy shop made $10,000 USD or more in the past 365 days, you'll be required to participate in Etsy Ads for the lifetime of your shop, and you'll get a discounted advertising fee. If your Etsy shop made less than $10,000 USD in the past 365 days, Offsite Ads are optional. Learn more about Etsy Ad requirements here.
With so many factors, Etsy fees can be very difficult to ascertain, but they’re still moderately competitive in comparison to other peer-to-peer marketplaces.
What are Shopify Fees?
Shopify does not have standard fees. Shopify seller fees vary and depend entirely upon what you are selling, how you sell it, and which Shopify plan you have. Of course, you pay for your subscription plan and pay upon transactions.
Shopify Subscription Fees:
There are various Shopify Subscriptions that all provide for different selling fees:
Shopify subscriptions and pricing as of August 2024. Click here to learn more about Shopify plans.
Currently, Shopify Basic costs $29 per month, with a fee of 2.9% + 30¢ per transaction. While the subscription costs go up from there, the transaction fees decrease with higher subscriptions.
Thus, Shopify fees are, at most, around 3%, making them very competitive with other peer-to-peer marketplaces.
Store Setup
Let’s compare how to set up an account on Etsy and Shopify:
How Do You Set Up a Store on Etsy?
Setting up a store on Etsy is straightforward and user-friendly, making it a great choice for beginners or small businesses.
The process involves creating an Etsy account, selecting your shop name, and choosing your shop preferences, such as language, country, and currency. Next, you’ll need to add product listings by uploading photos, writing descriptions, and setting prices. Etsy provides a simple interface that guides you through each step, with tips and prompts to help you optimize your listings.
Once your items are listed, you can customize your shop’s appearance and add policies, such as shipping details and return policies. Overall, the setup process is designed to be quick and easy, allowing sellers to get started with minimal hassle.
How Do You Set Up a Store on Shopify?
Shopify offers a 14-day free trial, allowing you to explore and start selling without immediately committing to a monthly plan.
The setup process on Shopify requires a bit more administrative work, such as entering business details and choosing a subscription plan. However, Shopify makes this process as smooth as possible with clear, step-by-step instructions, video tutorials, and live support. Users can learn more about creating a Shopify account and selecting the right plan through Shopify’s extensive resources.
It’s important to note that a Shopify Store subscription is required to start selling, but the platform’s flexibility and extensive features make it a powerful tool for businesses looking to scale.
Audience and Reach
Let’s compare Etsy's and Shopify's audiences and reach. Both have global audiences!
How Many Users Does Etsy Have?
Etsy reports approximately 97.3 million active users worldwide. With a constantly increasing number of sellers and shoppers, Etsy yields billions of dollars annually.
Etsy's primary audience consists of buyers looking to “shop small” for unique, handmade, vintage, and artisanal products. The platform is known for attracting customers who appreciate creativity, craftsmanship, and personalized items. This makes Etsy an ideal marketplace for artists, crafters, and small business owners who specialize in one-of-a-kind goods.
How Many Users Does Shopify Have?
Shopify is a leading e-commerce platform with over two million merchants, holding a 23% market share of e-commerce in the United States. Shopify allows users to create and design their own website and storefront to feature and market their products.
Note that the audience size of Shopify lends proof to it’s viability as a selling forum, but does not in any way suggest the potential amount of eyes on your listings. Shopify is a platform to host your own e-commerce website; the traffic that you yield there will be up to your marketing efforts.
Shopify can support businesses of all sizes, from small startups to large enterprises. Shopify's flexibility allows sellers to create highly customized online stores tailored to any niche or market. While Etsy brings buyers to the marketplace, Shopify relies on sellers to drive traffic to their stores through marketing efforts such as social media, SEO, and paid advertising. This means Shopify is best suited for sellers who are ready to invest in building and promoting their brand.
User Experience
The user experience on both Etsy and Shopify plays a crucial role in determining how easily sellers can manage their stores and how smoothly buyers can navigate and make purchases.
How to Use Etsy?
Etsy's user interface is designed with simplicity and ease of use in mind, both for sellers and buyers. Etsy offers a clean, intuitive layout that allows sellers to quickly list items, manage orders, and track performance. The Etsy Shop manager serves as a dashboard for sellers to manage their orders and shop.
Buyers can easily browse categories, search for specific items, and complete purchases with ease. Etsy also provides useful features like automated shipping labels and a built-in messaging system, which streamline the selling process.
Overall, Etsy's user experience is geared toward making it easy for small business owners and hobbyists to manage their shops without needing extensive technical skills.
How Do You Buy and Sell on Shopify?
Shopify's user interface is more complex but offers greater flexibility and customization options. The platform provides a robust dashboard where sellers can manage all aspects of their website, including layout and design, marketing and analytics, payments, inventory and orders, and shipping.
Shopify's design is user-friendly, but it may require a learning curve for those unfamiliar with website management.
Buyers on Shopify benefit from a seamless shopping experience, with fast-loading pages, customizable checkout processes, and various payment options. Sellers can also enhance their stores with apps and plugins to improve functionality and user experience.
When comparing the ease of navigation and use on Etsy and Shopify, Etsy comes out on top for simplicity and user-friendliness. Its straightforward interface is perfect for sellers who want a simple setup and management experience. Shopify, while slightly more complex, offers unparalleled customization and control, making it ideal for sellers who are serious about scaling their business and providing a tailored shopping experience.
Listing Process
The listing process on Etsy and Shopify is fairly similar. Both are a bit more complex than your standards marketplaces like Poshmark due to the level of control and customizaiton they provide to sellers.
How Do You List an Item on Etsy?
Listing items on Etsy is very straightforward: You can upload 10 photos and one video, type a description, and select a few drop-down boxes based on the category of your item (which may or may not include specifics such as size, material, colors, occasion, personalization details, etc.)
On each Etsy form, you will enter the handling time and shipping information for the item, and also select whether to have it auto-renew or to manually do so yourself. You can also enter hashtags for the item based on style for exposure and searchability.
💡Tip: SEO (search engine optimization) is hugely important on Etsy. To learn how to maximize your descriptions, check out A Reseller’s Guide to Keywords and SEO.
How Do You List an Item on Shopify?
When listing on Shopify directly, the listing form is similar to what you can expect on most reselling marketplaces, allowing for photographs and video media, a description, and several drop-downs about your item. Because you are in control of your own website, most fields are not required, and you can make what you want of the listing fields.
💡Tip: Make the most of your Shopify listings by enhancing your titles and descriptions for SEO. Remember that Shopify does not provide a built-in audience, so you can benefit from all the organic exposure you can yield with optimized listings.
Remember, you can quickly cross-list your items to both Etsy and Shopify with Vendoo! Sign up for the free trial.
Payment Methods
Both Etsy and Shopify offer a wide range of payment methods to accommodate buyers worldwide. Here are the accepted payment methods on both marketplaces:
Which Payment Methods Are Accepted On Etsy?
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Credit and debit cards (Visa, Mastercard, American Express, Discover)
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PayPal
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Apple Pay
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Google Pay
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Etsy Gift Cards
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Klarna (for installment payments in select countries)
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iDEAL (Netherlands)
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Sofort (Germany)
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Bank transfer (via SEPA in Europe)
Which Payment Methods are Accepted On Shopify?
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Shopify Payments (which supports major credit and debit cards like Visa, Mastercard, American Express)
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PayPal
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Apple Pay
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Google Pay
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Amazon Pay
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Klarna (for installment payments)
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Cryptocurrency payments (through third-party providers like BitPay)
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Various local payment gateways (depending on your region)
Both Etsy and Shopify offer a broad range of payment options, making it easy for buyers to complete purchases.
Marketing and SEO
Effective promotion is key to boosting sales on any platform. In this section, we'll explore the promotional tools offered by Etsy and Shopify to help you reach more customers and grow your business.
Etsy Marketing
Etsy provides various promotional tools including Etsy Ads campaigns, offsite ads, and coupons and sales. Etsy Ads promote your listings in Etsy search results. In your Etsy Shop Manager, you can set your ad budget and select the listings to advertise.
For a wider reach, you might consider offsite ads, which promote Etsy listings throughout the web, including major search engines and social media platforms. Etsy offers off-site ad services with no upfront cost: you only pay the advertising fee when you make a sale.
Etsy also allows you to offer coupons and sales to encourage purchases! Learn more about Etsy coupons and sales here.
Shopify Marketing
Remember, Shopify does not have a built-in audience. There is not a newsfeed or search field to find listings. Selling on Shopify is similar to selling on your own website, and you will be required to do your own marketing and bring customers to your store.
However, Shopify provides many tools and resources to help drive traffic and sales. It has tools to help you improve your content marketing and search engine optimization (SEO) and the ability to create and run advertisement campaigns. The tools available depend upon your subscription, inventory, and volume. Learn more here.
Customization & Flexibility
Customizing your online store is essential for creating a strong brand identity and providing a unique shopping experience. Both Etsy and Shopify offer different levels of customization, catering to various needs and business goals. Here’s how you can customize your storefront on each platform.
How Do You Customize Your Etsy Storefront?
Etsy offers limited customization options for storefronts, focusing primarily on simplicity and ease of use. Sellers can personalize their shop by adding a banner, profile picture, shop logo, and an “About” section where they can share their story or brand message.
Additionally, sellers can customize their shop’s policies, FAQ section, and the order in which their products appear. However, the overall layout and design of an Etsy shop are standardized across the platform, meaning that while you can add personal touches, the scope for extensive branding and unique design is limited.
💡Tip: Another level of customization is shipping, payment, and return profiles, where you can create your own “rules” to apply to listings.
How Do You Customize Your Shopify Website?
Shopify provides a high level of customization, allowing sellers to create a fully branded and personalized online store. In fact, you wouldn’t be able to tell that you were shopping on a Shopify-hosted website due to the level of personalization possible.
Sellers can choose from a wide range of free and premium themes, each with different layouts and design options. These themes can be further customized using Shopify’s drag-and-drop editor, allowing you to modify colors, fonts, and the overall layout of your store. For those with coding knowledge, Shopify also offers access to HTML and CSS for even deeper customization. This flexibility makes Shopify ideal for sellers who want to create a unique shopping experience that aligns closely with their brand identity.
Customer Support and Resources
When running an online store, having access to reliable customer support and helpful resources is crucial for resolving issues quickly and effectively. Both Etsy and Shopify offer various support options to assist sellers, but the extent and quality of these resources can differ.
Etsy Customer Support
Etsy provides a range of customer support options to help sellers with any challenges they may encounter. Support is available through a help center filled with articles and guides covering common topics such as account management, listing products, and handling orders.
Sellers can also reach out to Etsy’s support team via email or live chat for more personalized assistance. Additionally, Etsy has a community forum where sellers can connect, ask questions, and share advice. While Etsy's support is generally responsive, it may take some time to get direct help, especially during peak periods.
💡Tip: Another great resource is Etsy Seller Facebook Groups. Find them by searching “Etsy” under “Groups” on the Facebook App.
Shopify Customer Support
Shopify offers comprehensive customer support designed to assist sellers at every stage of their business journey. Support is available 24/7 through multiple channels, including live chat, email, and phone. Shopify also provides an extensive help center with detailed articles, tutorials, and video guides covering everything from setting up your store to advanced marketing strategies.
For more complex issues, Shopify offers access to a community forum and a network of Shopify Experts—professionals who can provide specialized assistance. The availability and responsiveness of Shopify’s support are often praised, making it a valuable resource for sellers who need consistent and immediate help.
Shipping
How To Ship on Etsy?
Etsy puts the seller in control of all things shipping, including handling time, cost, geographical limitations, taxes, and shipping carriers, including FedEx, USPS, and UPS. For users in the United States, you can pay for and print automatically generated USPS labels right from Etsy if you opt to ship with Etsy.
On Etsy, you can create shipping profiles with your shipping preferences. In these, you can determine whether you will charge shipping (at a flat rate or calculated based on size and destination), or offer free shipping (and pay for it yourself). You will also determine whether to use labels provided by Etsy or ship on your own with a service such as Pirate Ship.
💡Tip: I almost always use Pirate Ship as their rates are usually much better than Etsy’s.
How Does Shipping Work on Shopify?
The seller is in total control of how you would like to ship with Shopify. You can choose to ship on your own (by creating your own label yourself or with a third-party company), and you can also take advantage of the shipping discounts available.
Shopify works directly with multiple carriers, each offering multiple mail classes to make the process as simple as possible. The platform also allows for third-party shipping services and dropshipping. Of all marketplaces, Shopify probably provides for the most control and shipping options for sellers.
Returns
Does Etsy Offer Returns?
On Etsy, you establish your own shop policies regarding returns and refunds, including if you accept them, the return time period, and who is responsible for the return shipping cost.
An Etsy buyer is unable to open a case on Etsy until they have first reached out to the seller directly and allowed 48 hours for the seller to respond. Thus, you must stay on top of your inbox. If you are unable to resolve the issue favorably with the buyer, the case will be escalated to Etsy support.
Etsy support generally does not allow for returns unless there is non-delivery or the item is not as described. Be sure to retain proof of shipment and photographs of the item to protect yourself as a seller in these instances.
Also remember that when buyers pay with Paypal, they also receive Paypal protection which often extends beyond what is offered by Etsy.
As a seller, you’re highly encouraged to work with disgruntled buyers to make them happy with their experience.
How Do Returns Work on Shopify?
On Shopify, you establish your own store policies regarding returns and refunds. If a buyer is not happy with their purchase, they do not have an official customer service to file a claim with; instead, they must contact you, and you are responsible for the transaction as the merchant. Of course, Shopify provides sellers with all of the tools to handle disputes, returns, and exchanges.
Be mindful that that providing your own customer service means that you are also indepdendetly responsible and personally liable for any charge-backs or legal disputes that might arise. It might be beneficial to mutually-resolve disputes so they do not escalate to that level.
Apps and Integrations
Integrating third-party tools and apps into your online store can significantly enhance its functionality and streamline operations. Both Etsy and Shopify offer various apps and integrations, but they differ in the range and capabilities available.
Etsy Integrations
Etsy has a more limited selection of apps and integrations compared to Shopify. The platform does offer some tools to help sellers with tasks such as social media marketing, inventory management, and order fulfillment.
Popular integrations include Etsy's connection with social media platforms like Facebook and Instagram for promoting products, as well as tools like Printful for print-on-demand services. Additionally, Etsy integrates with platforms like Google Shopping to extend the reach of your listings. However, the overall selection is relatively narrow, and Etsy's ecosystem is more focused on providing built-in features rather than extensive third-party app support.
💡Tip: PirateShip offers an Etsy integration, so you don’t have to copy-and-paste buyer information when preparing shipping labels.
Shopify Integrations
Shopify offers a vast ecosystem of apps and integrations, with over 6,000 apps available in its App Store. These apps cover a wide range of functions, including marketing, sales, shipping, inventory management, customer service, and more. Shopify’s integrations allow sellers to connect their stores with various third-party services, such as Mailchimp for email marketing, QuickBooks for accounting, and HubSpot for CRM. Additionally, Shopify supports direct integrations with social media platforms, marketplaces like Amazon and eBay, and various payment gateways. The flexibility and breadth of Shopify’s app ecosystem make it an incredibly powerful tool for scaling businesses and tailoring the platform to meet specific needs.Shopify’s extensive app store allows sellers to customize and expand their store’s functionality in virtually any way they need, making it suitable for businesses of all sizes and industries.
Shopify vs. Etsy: Pros and Cons
In this section, we’ll break down the strengths and weaknesses of Shopify and Etsy to help you determine which platform is the best fit for your business. By understanding the pros and cons of each, you can make a more informed decision based on your specific needs and goals.
Shopify: Pros and Cons
Let’s explore some of the pros and cons of selling on Shopify:
Advantages:
- Customization and Flexibility: Shopify allows sellers to create a unique and fully-branded online store. With access to thousands of themes and apps, sellers can tailor their storefront to meet specific needs and preferences.
- Scalability: Shopify is designed to grow with your business, making it a great choice for sellers planning to expand.
- Comprehensive E-commerce Tools: Shopify provides a wide range of built-in tools and features, such as advanced analytics, SEO optimization, and marketing automation, which help sellers manage and grow their businesses effectively.
- 24/7 Customer Support: Shopify’s around-the-clock customer support ensures that help is always available, making it easier for sellers to resolve issues and keep their stores running smoothly.
- Wide Range of Integrations: Shopify integrates with a vast array of third-party apps and services, giving sellers the flexibility to connect with tools that enhance their business operations.
Disadvantages:
- Cost: Shopify can be more expensive than other platforms, especially as you add more apps and features. Monthly subscription fees, transaction fees (if not using Shopify Payments), and the cost of premium themes and apps can add up quickly.
- Steeper Learning Curve: While Shopify offers powerful features, it may require more time and effort to learn and set up, particularly for sellers who are new to e-commerce.
- No Built-in Audience: Unlike Etsy, Shopify does not have a built-in customer base. Sellers are responsible for driving their own traffic through marketing and advertising, which can be challenging and require additional investment.
Etsy: Pros and Cons
Let’s explore some of the pros and cons of selling on Etsy:
Advantages:
- Built-in Audience: Etsy provides immediate access to a large, global targeted audience of buyers who are specifically looking for handmade, vintage, and unique products. This built-in customer base can lead to quicker sales without extensive marketing efforts.
- Ease of Use: Etsy is user-friendly and easy to set up, making it ideal for small businesses, hobbyists, and those new to selling online. The platform guides sellers through the process, allowing them to start selling quickly with minimal technical skills.
- Community and Support: Etsy has a supportive community and plenty of resources, including forums, help articles, and guides, which can be valuable for sellers navigating the platform.
Disadvantages:
- Higher Competition: Because Etsy caters to a specific niche, sellers may face significant competition from others offering similar products. Standing out in a crowded marketplace can be challenging.
- Fee Structure: While Etsy’s fees are lower upfront, they can add up with transaction fees, listing fees, and optional offsite ads. These costs may become significant for sellers with higher sales volumes.
- Platform Restrictions: Etsy’s policies and guidelines are more restrictive, particularly around what can be sold (handmade, vintage, or craft supplies), which may limit some sellers who want to offer a broader range of products.
Etsy Store vs. Shopify Store: Which Is Best for You?
Etsy and Shopify are both excellent platforms to grow and scale your reselling business, each offering unique advantages. While neither is inherently better than the other, the best choice for your online store depends on your inventory and the specific needs and goals of your business.
Consider what matters most to your business—whether it's the ease of reaching a built-in audience on Etsy or the extensive customization and scalability offered by Shopify. Taking the time to evaluate the features, costs, and potential for growth on each platform is crucial in determining which one aligns best with your business strategy.
But why limit yourself to just one marketplace? To maximize your reach and sales potential, use both Etsy and Shopify. By leveraging the strengths of each, you can tap into diverse audiences and create more opportunities for your business.
Ready to expand your reselling business across multiple platforms? Sign up for Vendoo, the #1 crosslisting software for resellers.
Maximize Your Reach with Vendoo
In this article, we explored the key differences and benefits of selling on Shopify and Etsy.
Both platforms can be valuable depending on your business type and selling categories. Shopify is great for businesses that need extensive customization and are ready to invest in marketing, while Etsy provides immediate access to a niche market, making it easier to get started with minimal effort.
To truly maximize your reach, consider using Vendoo to crosslist your items on both Shopify and Etsy. Vendoo simplifies the selling process by allowing you to manage your listings in one place, saving you time and helping you reach a wider audience. By leveraging the strengths of both platforms, you can enhance your reselling business, boost sales, and grow your brand more efficiently.
👀 Did you know that Vendoo offers crosslisting to 11 marketplaces: Poshmark, eBay, Mercari, Depop, Etsy, Facebook Marketplace, Kidizen, Whatnot, Shopify, Grailed, and Vestiaire Collective?
Ready to take your reselling business to the next level? Start for free with Vendoo today and see how easy it is to increase your sales across multiple platforms. Check out our pricing options to find the plan that best suits your needs!
