Last Updated on March 12, 2025 by Himanshu Rawat

If you’re new to selling online, you might be overwhelmed by the variety of eCommerce platforms available. Two of the most popular options are Shopify and Etsy, each offering unique features and benefits that can significantly impact your business, depending on your goals. Understanding the differences between these platforms will help you make an informed decision on which one is the best fit for your online store.

In this post, we’ll compare Shopify and Etsy in detail, exploring their strengths and weaknesses to guide your decision-making process

What is Shopify?

Shopify is an e-commerce platform that allows users to sell products both online and in person. It provides all the necessary tools to set up and manage an online store, process payments, and market products effectively. Whether you’re an entrepreneur, a retailer, or a global brand, Shopify is designed to meet the needs of businesses at every level.

Shopify supports over 4.8 million online stores globally. Its versatility has made it the preferred choice for a wide range of businesses across industries, with notable brands like Gymshark and ColourPop Cosmetics (Fashion & Apparel), Brooklinen (Home & Living), Glossier (Health & Beauty), and many others relying on its robust features.

What is Etsy?

Etsy is an online marketplace focused on handmade, vintage, and unique products. It allows individuals and small businesses to sell items such as jewelry, clothing, home decor, and art. 

With a built-in global audience of millions, Etsy is particularly popular for niche and creative products. Sellers can easily set up a shop and reach customers who value one-of-a-kind, artisanal goods. Etsy has become a popular online marketplace. In the fourth quarter of 2024, Etsy’s marketplace connected 8 million sellers with 96 million buyers. Etsy is known for its vast collection of unique and artistic products.

Shopify Vs Etsy: Overview

Compare Shopify and Etsy to find the right eCommerce platform for your business. Explore key differences in pricing, features, and support to make an informed decision.

1. Pricing and Features:

Shopify’s plans range from $29 to $299 annually, but the first three months are just $1 per month. The plans offer great features, including big shipping discounts and global selling options.

While Etsy is free to start selling on, there are extra fees that add up. These include a $0.20 listing fee per item, a 6.5% transaction fee, and processing fees.

2. Setup Made Simple

Shopify is user-friendly and easy to set up. After signing up, you’ll follow a detailed guide that walks you through each step of the process. 

Etsy offers a simple, six-step setup for new users, guiding you through naming your store and uploading your first item.

3. Sales Features:

Shopify excels in sales features, offering robust tools for multichannel selling, product management, and more.

Etsy has fewer sales tools, but you can use the Etsy Seller app to manage your shop on the go and utilize its advertising tools to promote your business.

4. Promotional Tools

Since you’ll be building your customer base from the ground up, Shopify offers a variety of marketing tools to assist you. Key features include Shopify Email for engaging campaigns and e-commerce SEO tools to boost visibility.

Etsy gives you access to a large audience, but its marketing tools are limited. However, you can create and share professional social media posts directly from your Shop Manager.

5. Customer Support:

Opt for Shopify for excellent support. You can use its AI-driven live chat or explore the extensive Shopify Help Center for assistance.

Etsy’s Help Center offers detailed resources for your shop, but there are no direct contact options. You’ll need to submit a help request for assistance.

Looking for a quick comparison? Here’s a concise summary of both platforms and their main differences.

Pros and Cons of Selling on Shopify

Here are some key pros and cons of using Shopify, which will help you weigh the benefits and drawbacks of this popular e-commerce platform, so you can make a more informed decision about whether it’s the right fit for your business needs.

The Pros and Cons of Selling on Etsy

Etsy is a popular marketplace known for its focus on handmade, vintage, and unique products. While it offers great opportunities for sellers, it’s important to consider both the advantages and disadvantages before diving in. Here’s a breakdown of the pros and cons of selling on Etsy to help you decide if it’s the right platform for your business.

Detailed Pricing Comparison: Shopify vs. Etsy

1. Shopify Pricing

Subscription Fees:

• Basic Shopify: $39/month (or $29/month with an annual plan)
• Shopify: $105/month
• Advanced Shopify: $399/month
• Shopify Plus: Starting at $2,300/month for enterprise solutions.

Transaction Fees:

• Basic Shopify: 2.9% + $0.30 per transaction (online) and 2.7% (in-person)
• Shopify: 2.7% + $0.30 per transaction (online) and 2.7% (in-person)
• Advanced Shopify: 2.5% + $0.30 per transaction (online) and 2.5% (in-person).
• Additional Fee for Third-Party Payment Processors: 2% on the Basic plan, reducing as you upgrade plans.
• Listing Fees: None

2. Etsy Pricing

Subscription Fees:

• Etsy Standard: Free to open a shop
• Etsy Plus: $10/month for additional features like customization tools and ad credits.

Transaction Fees:

• Listing Fee: $0.20 per listing (renewable every four months)
• Transaction Fee: 6.5% of the sale price
• Payment Processing Fee: 3% + $0.25 per transaction.

Total Fees: Approximately 9.5% to 10% of the sale price without ads, potentially up to 20% to 25% including other costs like taxes and currency conversion

Choosing the Right Platform: Etsy or Shopify?

Choosing between Etsy and Shopify depends on your business needs and goals. Here’s a breakdown to help you decide:

Choose Shopify:

• Scalability and Inventory Management: Ideal for growing businesses with expanding inventory, as it offers robust tools for managing and scaling stock.
• Marketing Features: Provides built-in marketing features like email campaigns and multichannel integration, supporting online growth.
• Customization and Design: Offers full creative control with customizable templates, allowing you to tailor your store to your brand.
• Payment Options: Provides a wide variety of payment options for customers, enhancing flexibility.

Choose Etsy:

• Niche Products: Specializes in handmade, vintage, or craft items, making it perfect for sellers in these niches.
• Instant Audience: Offers instant access to a broad audience interested in unique items, reducing the need for extensive marketing efforts.
• Smaller Stores: Suitable for smaller stores with moderate inventory, providing a straightforward platform for selling.

Key Differences:

• Target Audience: Shopify is versatile and can target any audience, while Etsy is focused on buyers interested in handmade or vintage items.
• Customization: Shopify offers more customization options compared to Etsy’s structured marketplace format.
• Fees: Shopify charges subscription fees and lower transaction fees, especially with Shopify Payments. Etsy charges listing fees, transaction fees, and payment processing fees.

Summary

Shopify is ideal for businesses looking for full control over design, scalability, and marketing tools, making it perfect for growth. Etsy, on the other hand, is a great choice for smaller businesses focusing on handmade, vintage, or unique items, offering access to a large, built-in customer base with minimal marketing effort. The right platform depends on your business size, goals, and product type.

Shopify vs Etsy FAQs

1. Which platform is better for beginners, Shopify or Etsy?

Etsy is often easier for beginners due to its simple setup and built-in customer base. Shopify offers more control and customization but requires more effort to drive traffic to your store.

2. Can I sell the same products on both Shopify and Etsy?

Yes, you can sell the same products on both platforms. Many sellers use Etsy to reach a larger audience while managing a more customized store on Shopify.

3. Which platform offers better customization options for my store?

Shopify offers more customization options, allowing you to design your store with customizable themes and more flexibility. Etsy has limited design options, focusing more on ease of use.

4. Which platform is better for scaling my business?

Shopify is better suited for scaling as it offers powerful tools for managing inventory, handling large volumes of sales, and integrating with multiple sales channels. Etsy is ideal for smaller businesses and doesn’t offer the same level of scalability.

5. Which platform is better for marketing my products?

Shopify provides robust marketing tools, including email campaigns, SEO features, and multichannel selling options to help grow your business. Etsy offers some basic advertising tools, but its main strength lies in its built-in marketplace audience, requiring less marketing effort on your part.