Shopify vs Etsy Comparison 2023: Which Is Best for Your Business?
Meaghan has provided content and guidance for indie retailers as the editor for a number of retail publications and a speaker at trade shows. She is Fit Small Business’s authority on retail and ecommerce.
Agatha Aviso is a writer of the Reviews Section at Fit Small Business, focusing on order fulfillment and eCommerce platforms. Agatha has a decade’s worth of experience writing online content for small businesses and marketing industries. She also served as a content strategist and digital marketing manager for many entrepreneurs.
This article is part of a larger series on Retail Management.
When it comes to online selling, Shopify is the better choice because it is scalable, flexible, and has better ecommerce tools.
While Shopify and Etsy are both popular online sales channels, Shopify’s ecommerce tools are more advanced and have options for multichannel selling. In contrast, Etsy’s site builder tools are basic, but its advantage is its preexisting audience—it’s the fourth most popular ecommerce site in the US.
We generally recommend the two platforms for the following reasons:
- Shopify: Best for small retail businesses and growing a standalone online store
- Etsy: Best for creative vendors selling handmade, customized, and vintage products
Since our last update:
Effective April 11, 2022, Etsy increased its transaction fee from 5% to 6.5%.
When deciding between Shopify vs Etsy, you’ll need to weigh how much Etsy’s marketplace and built-in customer base are worth to your business and make sure your profit margins can sustain Etsy’s transaction, listing, payment processing, and ad fees.
Shopify vs Etsy at a Glance
 |  | |
Best for | Retail businesses and growing a standalone store | Creative vendors wanting to sell handmade goods easily |
Product restrictions | Unlimited products | Limited to handmade, vintage (20 years), and craft supplies |
Monthly fees | Starts at $5 | ✕ |
Transaction fees | ✕ (if using Shopify Payments) | 6.5% from each sale (item price + shipping fee) |
Point-of-Sale (POS) system (for in-store or offline sales) | ✓ (Shopify POS) | ✓ (Square integration) |
Buy buttons | ✓ | ✕ |
Multichannel selling (Facebook, Instagram, etc.) | ✓ | ✕ |
Subdomain included | ✓ | ✓ |
Standalone store | ✓ | ✕ |
Domain name | ✓ | ✕ |
Marketing tools | Extensive | Average |
Ease of use | Beginner-friendly | Beginner-friendly |
Customer service | 24/7 live chat, email, and phone support | Email, phone support by schedule |
Shopify vs Etsy: Pricing & Payments
| | |
Free Plan | ✕ | ✓ |
Paid Plans | Starts at $5 a month | Starts at $10 a month |
Transaction Fees | ✕ (Shopify Payments) | 6.5% from each sale (item price + shipping fee) |
Listing Fees | ✕ | 20 cents per listing |
Payment Processing Fees | 2.9% + 30 cents | 3% plus 25 cents each sale (US); varies per country |
Point-of-Sale (POS) system (for in-store or offline sales) | ✓ (Shopify POS) | ✓ (Square integration) |
Both platforms are reasonably priced and offer good value for money. Etsy has a forever-free plan but has numerous fees. Even though Shopify doesn’t offer a free plan and has higher upfront costs, Shopify provides more value in the long run with scalable ecommerce tools and lower transaction and processing fees.
Shopify vs Etsy: Sales & Product Features
| | |
Ecommerce Tools | Advanced | Basic |
Apps / Third-party Integrations | ✓; extensive | ✓; limited |
Mobile App | ✓; Shopify App | ✓; Sell on Etsy App |
Marketplace and Multichannel Integrations | ✓ | ✓; limited |
Audience Traffic (existing) | ✕ | ✓, 90.5M active buyers |
Marketing/Promotion Tools | SEO tools, email campaigns, multichannel selling like Facebook and Instagram | Etsy Ads, Offsite Ads |
Etsy’s marketplace gives it an edge as it puts your products in front of millions of active buyers; with Shopify, you’ll have zero audience traffic to start with. However, with scalable ecommerce features and unlimited product listings, Shopify wins this category by a mile. As your business grows, you can seamlessly transition into Shopify’s higher-tiered plans.
It’s important to note, though, that certain sales features (such as those in the Shopify App Store) come with monthly fees. It can quickly add up, so consider which features your store needs before buying.
Shopify Sales & Product Features
Shopify gives you all you need to grow your ecommerce business. You can sell an unlimited number of products even on the basic plan. The abandoned cart recovery feature—which is mostly offered on higher plans with other ecommerce platforms—is also included in the entry-level plan (Basic Shopify at $29/month).
Multichannel selling is a huge advantage for an online store. Shopify allows you to seamlessly sell on different channels and use its platform as a central inventory, order management, and payment platform.
If there’s a specific function or feature your store needs, it’s a near certainty that you’ll find it in Shopify’s app store. It has over a thousand third-party apps you can integrate with your ecommerce store.
Read our Shopify review for a more in-depth look at its sales features. In our Shopify POS review, you can learn more about its point-of-sale (POS) system.
While you don’t have the benefit of having a pre-established audience in Shopify compared to Etsy’s marketplace audience, Shopify has built-in promotional and marketing tools that make it easy to promote your store.
Shopify’s marketing features include SEO, email campaigns, and social media integrations.
You can configure your SEO to rank in Google, promote yourself on social media, and build an email list to attract customers.
Etsy Sales & Product Features
Etsy offers a basic ecommerce toolkit that includes everything you need to manage your Etsy store easily. These features include:
- Sell on Etsy mobile app so that you can manage sales and the store on the go
- Etsy and Offsite Ads
- Create and manage coupons
- Discounted postage labels
You can choose to upgrade to Etsy Plus for $10 a month and get advertising credits, more store customization options, discounts on marketing materials, email alerts for customers when an item is restocked, and a store domain name through Hover.
Even with an upgrade, Etsy’s ecommerce tools are limited and not fit for a scaling business. For example, Etsy doesn’t offer an inventory management tool, so you need to track inventory independently.
Regarding attracting customers, Etsy has the edge because of its 90.5 million active buyers. It also has over 5.2 million active sellers (as of Etsy’s 2020 Global Census). Moreover, you have the right target market if your products are handmade.
However, ensuring that your products stand out from the competition is the challenge. Product quality and uniqueness are needed to ensure you capture Etsy’s vast audience. Read our tips for selling on Etsy to stand out from the competition.
You can also use its advertising tools, such as Etsy Ads and Offsite Ads. With Etsy Ads, your listings are more visible in Etsy searches. With Offsite Ads, Etsy advertises your listings on Google, Facebook, Instagram, Pinterest, and Bing, and when you make a sale from those ads, you pay an advertising fee.
Shopify vs Etsy: Ease of Use
| | |
Setup | Beginner-friendly | Beginner-friendly |
Ecommerce Tools | Extensive | Limited |
Online Knowledgebase | Extensive | Extensive |
Community Forum | ✓; active and helpful members | ✓; active and helpful members |
Live Chat | ✓ | ✕ |
Email | ✓ | ✓ |
Phone Support | 24/7 | By schedule |
Both Shopify and Etsy are straightforward and easy to use. Etsy is quicker to set up, but both platforms are very beginner-friendly.
When it comes to customer support, although Etsy provides an extensive help section and community forum, Shopify offers immediate 24/7 support—something you might need, especially if you are just starting your online store. Most users even commended its team for being professional and competent.
Shopify is a bit more technical because you are setting up a standalone website and in-depth ecommerce tools; however, its user interface is intuitive and beginner-friendly. It takes you through a setup wizard when you first configure your account. Afterward, you see action buttons, a simple navigation menu sidebar, and standout callout links open to detailed instructions on a particular setup.
The setup wizard is displayed when you still need to set up your store. Once done, you can easily navigate your store’s backend through the intuitive sidebar menu.
The setup wizard is displayed when you still need to set up your store. Once done, you can easily navigate your store’s backend through the intuitive sidebar menu.
Even its ecommerce tools—such as inventory, order management, and product listings—are set up in a way that makes it very easy to navigate, track orders, and update product listings and inventory. Read our guide on how to set up a Shopify store.
Shopify also provides helpful beginner guides, and its help page tries to give answers to commonly asked questions with tips and how-to articles before recommending you contact its support team.
Etsy’s setup does not require as much time and effort, so you can expect a working Etsy store in a few hours if you have a product ready to sell. Since you do not have to set up a whole website, the process is more straightforward.
Similar to Shopify, Etsy has a setup wizard that has fewer steps. You are guided as you go through creating your Etsy store.
You must start by opening an Etsy account, choosing a store name, and setting up products, payment, and billing options. Read our guide on how to sell on Etsy to learn more about setting up a store.
While Etsy has a comprehensive help center and active community seller forum, it does not provide 24/7 support. You can schedule a phone call with Etsy’s support staff or send an email if you have any concerns. The turnaround time is usually within 24 hours.
Shopify vs Etsy: Expert Score
Shopify and Etsy are both popular ecommerce platforms with excellent user reviews, with Etsy being considered more of a marketplace than an ecommerce website builder. We have tried and tested dozens of ecommerce platforms and seller marketplaces and found Shopify gives more bang for your buck.
Most of what you need to run an online store—tools to build, operate, and grow your online business—are included across Shopify’s tiers. With Etsy, you think you can save more upfront, but it can be more costly because of its fees and limited sales features.
Shopify vs Etsy Frequently Asked Questions (FAQs)
How are Etsy and Shopify different?
While both are considered selling platforms, Shopify and Etsy are different in building an online store, product and marketing tools, and ease of use. Shopify is a highly-scalable and flexible ecommerce website builder, while Etsy can be considered more of a marketplace where you can sell your handmade goods. You cannot use Etsy for an unlimited variety of products.
Which is cheaper: Shopify or Etsy?
When comparing Shopify fees vs Etsy fees, your ultimate consideration is the number of products you intend to sell. While Shopify has upfront costs like a monthly subscription, there are no product listing fees, and it allows you to sell an unlimited number of products. Etsy has quarterly listing fees from unsold listings, which can add up if you have an extensive product collection.
Which is better for selling artwork: Shopify or Etsy?
Shopify. Unlike Etsy, there are no listing fees when you sell artwork on Shopify. Plus, you can sell more quantities of original artwork in a Shopify store.
Which takes the most of sales: Shopify or Etsy?
Etsy. Shopify doesn’t charge listing or transaction fees (when using Shopify Payments). Credit card processing fees still apply on sales for both platforms, though.
It seems that Shopify wins over Etsy in most aspects. Why should I sell on Etsy?
We recommend Etsy for small-scale sellers that offer homemade goods, vintage products, or craft supplies. Etsy’s audience base is huge—you don’t want to miss out on that.
Bottom Line
Even if Etsy has the edge over Shopify in attracting customers, Shopify wins in almost all aspects. When choosing an ecommerce platform, work with what you have now (e.g., a small budget or limited tech know-how), then scale as your sales grow. On both counts, Shopify can help.
If you have a business that you want to keep small, Etsy is a good option. But if you plan to grow your business, Shopify is the platform that will best serve your needs.
