Shopify and Etsy are both popular e-commerce platforms that allow users to create online stores and sell products. Shopify is a fully-featured e-commerce platform that offers a wide range of tools and features to help businesses of all sizes sell their products online. Check out this Shopify guide and to learn more about Shopify and its out-of-the-box features. Etsy, on the other hand, is a marketplace that specializes in handmade, vintage, and unique items.
In this article we will compare Shopify and Etsy, highlighting the key differences between the two platforms and help merchants decide which one is best suited for their online store. Whether you are a small business owner looking to sell handmade items or a larger business looking for a robust e-commerce solution, this article will provide valuable insights into both platforms.
Shopify Overview
Shopify is an all-in-one e-commerce platform that enables businesses to create an online store and sell products. It provides a user-friendly interface that allows users to manage their online store, track orders, process payments, and handle inventory. Shopify is a cloud-based platform that is easy to use and requires minimal level of technical skills or coding knowledge.
Features and benefits of using Shopify for an online store
1. Easy to use
Shopify is designed to be user-friendly, making it easy for anyone to set up an online store without any technical skills or coding knowledge.
2. Customization options
Shopify offers a wide range of customization options, allowing businesses to create a unique online store that reflects their brand and style. Users can customize the design, layout, and functionality of their store using themes, apps, and integrations.
3. Payment processing
Shopify provides built-in payment processing, making it easy for businesses to accept payments from customers. The platform supports a wide range of payment gateways, including PayPal, Stripe, and Apple Pay.
4. Inventory management
Shopify provides inventory management features that allow businesses to track their stock levels, set up alerts for low stock levels, and manage product variants and SKUs.
5. Shipping options
Shopify provides built-in shipping options, allowing businesses to set up shipping rates, print shipping labels, and track shipments.
6. Analytics and reporting
Shopify provides detailed analytics and reporting, allowing businesses to track their sales, customers, and website traffic. Users can access reports on sales, orders, products, and customers.
7. Third-party integrations
Shopify provides access to a large number of third-party apps and integrations, extending the functionality of the platform. Users can add features such as email marketing, social media integration, and customer service tools to their store.
8. Reliable hosting
Shopify provides reliable and secure hosting for online stores, ensuring that they are always up and running. The platform is hosted on the cloud, providing scalability and flexibility.
9. Customer support
Shopify provides excellent customer support, with 24/7 support via phone, email, or live chat. Users can also access a knowledge base and community forum for support and guidance.
Shopify pricing plans and associated costs
Shopify offers different pricing plans to suit businesses of all sizes and budgets. The plans are as follows:
1. Basic Shopify
The Basic Shopify plan costs $39 per month and provides all the essential features to set up an online store, including unlimited products, 24/7 support, discount codes, and the ability to sell on multiple channels. However, it has limited advanced features such as gift cards and professional reports, and it charges a 2.9% + $30 cents transaction fee for each sale made through the platform.
2. Shopify
The Shopify plan costs $89 per month and provides all the features of the Basic Shopify plan plus additional features such as gift cards, professional reports, and abandoned cart recovery. The transaction fee for this plan is lower at 2.6% + 30 cents.
3. Advanced Shopify
The Advanced Shopify plan costs $399 per month and provides all the features of the Shopify plan plus advanced features such as advanced report builder, third-party calculated shipping rates, and custom checkout. The transaction fee for this plan is even lower at 2.4% + 30 cents.
Shopify also offers a Shopify Plus plan. It is generally higher than the cost for Shopify’s other plans and starts at $2,000 per month and can range up to $40,000 per month.
In addition to the monthly fee, merchants are also charged a transaction fee for each sale made through the platform. The transaction fee ranges from 2.4% to 2.9%, depending on the pricing plan selected. However, businesses can avoid the transaction fees by using Shopify Payments, Shopify’s built-in payment processing system.
Overall, Shopify’s pricing plans are competitive and offer a range of features and benefits to suit different types of businesses. While the monthly fees may seem high for some, the platform’s robust features, reliable hosting, and excellent customer support make it a worthwhile investment for businesses looking to establish a strong online presence.
Businesses that would benefit from using Shopify
Shopify is a versatile e-commerce platform that can benefit businesses of all types and sizes. Here are some examples:
1. Small to medium-sized businesses
Shopify is an excellent platform for small to medium-sized businesses that want to establish an online presence without investing in expensive website development. The platform is user-friendly and provides all the essential features needed to create an online store.
2. Dropshipping businesses
Shopify’s built-in dropshipping functionality makes it an excellent choice for businesses that want to sell products without holding inventory. The platform integrates with many dropshipping apps, allowing businesses to easily import and fulfill orders.
3. Subscription-based businesses
Shopify’s recurring payment feature makes it an ideal choice for businesses that offer subscription-based services or products. The platform allows businesses to set up recurring billing and manage subscriptions from their dashboard.
4. Businesses with multiple sales channels
Shopify provides integration with many social media and online marketplaces, allowing businesses to sell on multiple sales channels. This feature is beneficial for businesses that want to reach a wider audience and increase sales.
5. Businesses with a physical presence
Shopify provides a point-of-sale system that allows businesses to sell products in-person using a mobile device or tablet. This feature is ideal for businesses that have a physical presence, such as a brick-and-mortar store, and want to integrate their online and offline sales channels.
In summary, Shopify’s robust features, ease of use, and flexibility make it an excellent choice for businesses looking to establish a strong online presence and increase sales.
Etsy Overview
Etsy is an online marketplace that specializes in handmade, vintage, and unique items. The platform was launched in 2005 and has grown to become one of the largest online marketplaces for creative and unique products. Sellers on Etsy can create a storefront and list their products, and buyers can search for and purchase products directly from the seller.
Features and benefits of using Etsy for an online store
Some of the features and benefits of using Etsy for an online store include:
1. Large and engaged customer base
Etsy has a large and engaged customer base that is looking for unique and handmade items, making it a great platform to reach a specific niche market.
2. Ease of use
Etsy is user-friendly and easy to set up, making it an excellent choice for small businesses and individuals looking to establish an online presence.
3. Low cost
Etsy has low listing fees and takes a commission of 5% on each sale, making it an affordable platform for small businesses.
4. Built-in marketing tools
Etsy provides built-in marketing tools such as promoted listings and Google Shopping integration, allowing sellers to reach a wider audience and increase sales.
5. Community support
Etsy has a strong community of sellers who can provide support and advice on running an online store.
Etsy pricing plans and associated costs
Etsy does not have a traditional pricing plan with associated costs, as it is a marketplace platform that charges fees on a per-transaction basis. Here are the fees that Etsy charges sellers:
- Listing fee. Etsy charges a $0.20 fee for each item listed on the platform. This fee is charged per item and lasts for four months or until the item is sold.
- Transaction fee. Etsy takes a 6,5% transaction fee on the total sale price, including the cost of shipping and handling. This fee is automatically deducted from the seller’s payment account.
- Payment processing fee. If a seller uses Etsy’s payment processing system, they will be charged a payment processing fee, which varies depending on the seller’s location and currency.
- Advertising fees. Etsy provides advertising tools such as Promoted Listings and Google Shopping integration. Sellers can choose to advertise their listings using these tools, and will be charged a fee for each click or impression.
In addition to these fees, sellers may also incur costs associated with creating and shipping their products, such as materials, labor, and shipping fees.
Overall, the cost of selling on Etsy depends on the number of items listed, the price of the items, and the amount of advertising and promotion done by the seller. However, Etsy’s fees are generally lower than other e-commerce platforms, making it an affordable option for small businesses and individuals looking to sell their products online.
Businesses that would benefit from using Etsy
Etsy is an ideal platform for businesses that sell handmade or vintage goods, as well as craft supplies and unique or custom items. Some examples of businesses that would benefit from using Etsy include:
- Artisans and crafters. If you create handmade items such as jewelry, pottery, or home decor, Etsy is an excellent platform for selling your products. You can showcase your unique style and reach a large audience of buyers who are specifically looking for handmade goods.
- Vintage sellers. Etsy is also a popular destination for buyers looking for vintage items, such as clothing, home decor, and collectibles. If you specialize in finding and selling vintage items, Etsy is a great place to reach a targeted audience of buyers.
- Small-scale manufacturers. While Etsy is primarily known for handmade and vintage goods, it can also be a good platform for small-scale manufacturers who produce unique or custom products. If you create items in small batches, such as personalized gifts or custom clothing, Etsy can be a great place to sell your products.
- DIY suppliers: If you sell craft supplies, such as fabric, yarn, or beads, Etsy is an excellent platform for reaching a community of crafters and hobbyists. Many Etsy buyers are looking for unique or hard-to-find supplies, and you can use Etsy to connect with this audience and build a loyal customer base.
Overall, if your business fits into the categories of handmade, vintage, or unique products, Etsy is a great platform to consider. It can help you reach a broad audience of customers who are interested in buying products that are not typically found in traditional brick-and-mortar stores.
Differences Between Shopify and Etsy
While Shopify and Etsy platforms allow merchants to create an online store and sell products, there are significant differences between the two. Understanding these differences can help you decide which platform is the right choice for your business.
1. Customization and branding
Shopify offers a high level of customization, allowing you to create a unique online store with your own branding and domain name. You have full control over the look and feel of your store, including the design of your homepage, product pages, and checkout process.
Etsy, on the other hand, is primarily a marketplace platform, which means that sellers have limited control over the design of their storefront. While you can personalize your shop with a banner and profile picture, your shop will still have the same overall look and feel as other shops on the platform.
2. Payment processing
Shopify offers its own payment gateway, Shopify Payments, as well as the option to integrate with other payment gateways. This means that you can accept a variety of payment methods, including credit cards, PayPal, and Apple Pay, directly through your Shopify store.
Etsy also offers its own payment processing system, Etsy Payments, which allows you to accept credit card, debit card, and PayPal payments. However, if you choose to use a third-party payment gateway, Etsy will charge an additional fee.
3. Inventory management
Shopify offers robust inventory management features, allowing you to track inventory levels, receive alerts when stock is low, and set up automatic reorder points. You can also organize your products into collections and use Shopify’s built-in barcode scanner to manage your inventory more efficiently.
Etsy’s inventory management tools are more limited. You can set up variations for each product, such as size and color, but you don’t have the same level of control over inventory tracking and alerts.
4. Marketing and SEO
Shopify offers a variety of marketing and SEO tools to help you promote your store and drive traffic to your site. These include customizable meta titles and descriptions, built-in blogging features, and integration with social media platforms.
Etsy also offers some marketing and SEO tools, such as the ability to create promoted listings and use tags to help your products appear in search results. However, these tools are more limited compared to what’s available on Shopify.
5. Customer support
Shopify offers 24/7 customer support through phone, email, and live chat. You can also access an extensive knowledge base and community forum for self-help.
Etsy also provides customer support, but it is more limited. You can contact support by email or through the platform’s messaging system, but there is no phone or live chat support available.
6. Pricing
Shopify has a range of pricing plans, starting at $39 per month for the Basic Shopify plan and going up to $399 per month for the Advanced Shopify plan. Each plan comes with different features and benefits, and transaction fees are reduced if you use Shopify Payments.
Etsy charges a $0.20 listing fee for each product, as well as a 6,5% transaction fee and a payment processing fee for each sale. There are no monthly fees, and you only pay when you make a sale. However, if you choose to use Etsy’s payment processing system, you’ll pay an additional fee.
Which platform is best for you?
Before making a decision between Shopify and Etsy, there are several factors you should consider:
- Type of products. If you sell handmade, vintage, or unique products, Etsy may be the better choice. If you sell a variety of products or have your own branded products, Shopify may be a better fit.
- Target audience. Consider your target audience and where they are more likely to shop. If your audience is primarily on Etsy, it may make more sense to sell on that platform. If your audience is more diverse or you want to expand to a broader market, Shopify may be a better option.
- Budget. Consider the fees associated with each platform, including listing fees, transaction fees, and payment processing fees. If you’re just starting, Etsy may be a better choice since it doesn’t have a monthly fee. However, if you anticipate high sales volume, Shopify’s transaction fees can be lower than Etsy’s.
- Long-term goals. Consider your long-term goals and what features and functionality you may need in the future. Shopify offers more flexibility and customization options, making it a better option for businesses with long-term goals of growth and expansion.
In conclusion, the decision to use Shopify or Etsy ultimately depends on your business’s specific needs and goals. If you are looking for a high level of customization and branding, robust inventory management tools, and a wide range of marketing and SEO features, Shopify is likely the better option for you. However, if you are selling handmade or unique items and want to leverage the power of a marketplace platform, Etsy may be the better choice.
Final Thoughts
In summary, Shopify and Etsy are both excellent e-commerce platforms, each with its own set of features, benefits, pricing, and target audience.
Shopify is a more robust platform that offers greater design customization, payment processing, and marketing features. It is a good fit for businesses that want to build a professional online store, have a larger budget, and sell a wide range of products.
Etsy, on the other hand, is a marketplace platform that offers built-in traffic and a strong community of buyers. It is a good fit for businesses that sell handmade or vintage items, want to tap into a specific niche market, and have a limited budget.
Ultimately, the choice between Shopify and Etsy will depend on the merchant’s needs and goals for their online store. If the reader is looking for more control over the design and functionality of their store, has a larger budget, and wants to sell a wide range of products, Shopify is the better option. If the reader is looking for built-in traffic, a strong community, and wants to sell handmade or vintage items, Etsy is the better option.
Also read: Shopify Store Optimization Tips for Better Performance
