Shopify vs. Etsy: Which is right for your business?

 

June 23, 2023

Category: Web Design

shopify vs. etsy: which is right for your business?

e-commerce; noun — commercial transactions conducted electronically on the internet.

 
 
Every Day Collective co site on iMac desktop

It’s no secret taking the leap to extend your retail brand online or diving into e-commerce right from the start can be SO intimidating. From Shopify and Etsy to Drupal, NopCommerce, WooCommerce, and even Squarespace, there are sooo many options and platforms to consider as you’re getting started. 

First, I want to say I know it can be overwhelming but you’ve totally got this — and my team and I are here to help! The first step is to take a look at two top contenders and see how they stack up against each other. So, what’s the better option, Shopify or Etsy? 

Let’s find out!

Is it better to start on shopify or etsy?

Overall, this depends! It depends on your business and your customer base. If you’re selling handmade goods or are offering artisan services — think totally custom, one-off products — then Etsy might be your best bet. Etsy is also a great starting place if you’re new to selling and you don’t have a list of customers already.

With that being said, Shopify is a great place to get your e-commerce business started if you’re a retail seller who has more than one item in stock for each product you’re offering. Think a brick-and-mortar ready to extend their brand online for example! Shopify is also great for these retail sellers that have an established customer base, however, that’s totally not a requirement!

Is shopify less expensive than Etsy?

Now, let’s chat cost. While Etsy is cheaper overall there are other fees that may have a tendency to sneak up on you. As far as subscription fees go, Etsy is either free or $10 a month for the Etsy Plus plan. Shopify’s subscription fees vary based on which plan you need. It’s worth noting almost all of our clients find the base plan ($39/month) to be more than sufficient, however, if you’re a multichannel retailer you might benefit from the Shopify plan ($105/month) which offers more reporting options and more staff accounts. Lastly, the advanced plan offers fully custom reporting and up to 15 staff accounts, but it also comes in at the most expensive plan, $399/month. 

On top of subscription fees, both platforms have other fees as well. For Shopify, these are simply transaction fees for credit card payments (rates go down the higher up you go in subscription plan). For Etsy, you’ll be faced with listing fees, transaction fees per sale, conversion fees, ad fees, and payment processing fees per transaction — so all in all, a lot of extra fees. 

Overall, with Shopify, you get more access to greater features and tools AND a customizable experience (think capturing email leads and building connections with your customers!) whereas with Etsy you’re totally limited with no control over the shopping experience and NO email lead captures, and uh hi, it’s extra fee city over there. 

should I use both Shopify and etsy?

In my opinion, this comes down to personal preference. While you definitely can sell on both Shopify and Etsy, it might not be worth it to keep paying for those additional fees or to pay for both platforms entirely. With that being said, some retailers like to enjoy the benefits of Etsy’s built-in marketplace and search and have seen business growth there. However, it goes without saying I definitely recommend making the leap to Shopify if you’re ready to grow your brand awareness and create a fully branded, cohesive experience for your customers.

When should I move from Etsy to Shopify?

While getting your start on Etsy might be the best route for your business, moving to Shopify in order to scale that business can be CRITICAL. You might be ready to make the move from Etsy to Shopify once your brand has built a substantial following. Other markers you might be ready to make the move are: 

  • If branding is important to you. Hi, if you’re here right now it probably is! Etsy offers super limited opportunities to showcase your branding whereas Shopify can be totally customized to let your brand shinnnnnnne. 

  • You want to scale your business and increase conversions. Let’s face it, Etsy is best for handmade or vintage goods, not anything that’s mass-produced. Plus, Shopify and a lot of the programs it can work with (looking at you Klaviyo) are built specifically to help you increase conversions and grow. 

  • Your target audience exists outside of Etsy. With a Shopify website, you can target specific customers by utilizing SEO and copy within your site. Your Etsy shop isn’t going to have any of those juicy copy opportunities outside of your product listings. 

  • You’re interested in expanding your brand beyond the products you make yourself. I’m talking about wholesale or reselling people, which is actually prohibited on Etsy unless it’s vintage! 

  • You want to have control over your own marketing and customer lists. With Etsy, your audience list is Etsy’s audience list and isn’t something you truly own. Owning your own store on Shopify allows you to collect customer emails and market your business. It puts the ownership in your hands!

  • You’ve surpassed a certain number of sales per month. Remember those fees we talked about earlier!? Those per-listing and per-transaction fees aren’t going to be ideal if you’re selling ALLLLL the things.

in general, is it easier to make money on etsy or shopify?

To keep it simple, despite the fact that Etsy might be less expensive upfront and easier to use from the start, Shopify is most definitely the platform that’s easier to make money on. It’s a true e-commerce platform that you OWN. By owning your customer list, being able to access reporting, having the ability to retarget loyal customers, etc., you’re going to find it easier to scale your business and increase your sales within Shopify instead of Etsy.

Let’s recap

Shopify is best for:

  • A business that sells enough products per month to offset the Shopify monthly fee with its low transaction fees. 

  • Someone who wants to truly customize their website and create a fully cohesive, branded experience for their customers. 

  • A business that’s ready to grow and scale — who isn’t!?

Etsy is best for:

  • A small business that’s selling a relatively small number of products.

  • A business that specializes in handmade or vintage goods. 

  • Someone that isn’t quite ready to commit to a brand identity. 

  • A business just starting out that wants to take advantage of Etsy’s built-in audience and more initial convenience.

Shopify Website Design and Development

Interested in looking at some of our past Shopify website designs? Take a look at a few of our favorite projects below!

  • Every Day Collective Co.a minimal jewelry brand offering set and customizable pieces.

  • Land of Paws — an online pet store with a storefront location in Kansas City. 

  • Joyasol — an ethically-made, sustainable shoe brand.

  • Pink Antlers — an online and Kansas City-based gift shop.


Ready to take the leap and start building your brand presence online? Reach out! We’d love to help you with our Shopify website design services. 


Plus, check out all of our branding and website design services to see if there’s something else you might want to add to your website design package — think website copywriting, a Klaviyo welcome series (seriously look into Klaviyo if you haven’t already e-commerce friends), and more! 

 
 
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