Shopify or Etsy? Which is the Best for Your Business

So, you’ve got products people love, but don’t know where to actually sell them?

Do you join a busy marketplace like Etsy, where millions of shoppers are already hunting for unique finds?

Or do you carve out your own corner of the internet with a Shopify store that’s 100% yours, from the logo down to the checkout page?

Both options have their perks (and pitfalls). The good news? You don’t have to figure it out alone.

In this guide, we’ll unpack how Etsy and Shopify really work, the hidden costs to watch for, and how smart sellers often use both to reach more customers and build a lasting brand.

Let’s figure out which path fits your products and your goals.

Understanding the Basics: How Shopify and Etsy Work

Etsy is an online marketplace, think of it like a giant virtual shopping mall just for handmade goods, vintage items, and craft supplies. You set up a shop inside Etsy’s mall, follow their rules, and tap into the millions of shoppers already browsing.

Shopify, on the other hand, is not a marketplace; it’s a tool for building your own online store. You pay Shopify to power your website, shopping cart, and payments. It’s like renting a shop space on your own, you choose how it looks and own the customer experience end-to-end.

Who Should Sell on Etsy? Ideal Businesses and Products

Etsy is like the world’s biggest craft fair, where shoppers come specifically to find things they won’t see in big-box stores. If your products have a handmade, artistic, or vintage charm, Etsy is one of the easiest ways to get them in front of buyers who already love unique finds.

For makers, artists, and collectors, Etsy removes a ton of the headaches that come with starting an online business.

You don’t need to build a website, pay for ads right away, or worry about complicated tech setups. You just open your shop, list your items, and tap into millions of people browsing for gifts, decor, jewelry, and craft supplies.

It’s especially great if you’re testing a new idea, selling part-time, or turning a hobby into extra income. Many small brands even use Etsy as their launchpad before they expand to their own online store later.

Who Should Use Shopify? When a Standalone Store Makes Sense

Shopify is perfect if you’re ready to take your business to the next level and want complete control over how your store looks, feels, and grows. Unlike Etsy’s shared marketplace, Shopify gives you a dedicated website, brand, domain name, and rules.

If you have a growing product line, want to run special promotions, sell digital downloads, or even launch a subscription box, Shopify handles it all under one roof.

It’s also ideal to sell on multiple channels, like Instagram, Facebook, Amazon, or a physical store, and keep your inventory in sync automatically.

In short, Shopify makes sense when you want to build a real brand, not just sell a few products. It does mean more responsibility, you’ll handle your own marketing and customer traffic, but the payoff is worth it.

Etsy vs Shopify: Quick Comparison

Shopify vs Etsy Fees: What Does It Really Cost to Sell Online?

Fees are essential to consider as they will directly impact your profit margin. So, it’s smart to know before signing up.

Here are the pricing details, Shopify vs Etsy:

Etsy:

• Listing fee: $0.20 USD per product listing (valid for 4 months or until sold).
• Transaction fee: 6.5% of the item price plus the shipping cost you charge the buyer.
• Payment processing fee: varies by country, for the US, it’s generally 3% + $0.25 USD per order.

Shopify:

• Monthly subscription: Basic plan is $39 USD/month. (Higher tiers cost more, with extra features)
• No listing fees: You can list unlimited products.
• Payment processing: Shopify Payments (US): 2.9% + 30¢ USD per online transaction.
• If you use an external payment gateway instead of Shopify Payments, Shopify also charges an extra fee (e.g., 2% on the Basic plan).

So, what does this mean for you?

• Etsy is cheaper if you’re selling a few items here and there, a hobby shop or a side gig.
• Shopify becomes cheaper per sale as your volume grows, plus you get more control over discounts, upsells, and bundling to boost profits.

Example: How Fees Add Up on Sales

To make this more real, let’s say your shop earns $10,000 in revenue with an average order value of $100, that’s 100 orders. You also have 500 active listings in your store.

Below is a breakdown of what you'd actually pay in fees on both platforms based on this setup.

It includes listing costs, transaction fees, payment processing charges, and (for Shopify) the monthly subscription.

So What’s the Difference?

• Etsy takes ~10.75% of your revenue in fees.
• Shopify takes ~3.6%, including payment processing and subscription.

Brand Control and Customization: How Much Freedom Do You Get?

When it comes to standing out online, your brand is everything, your vibe, colors, tone, and shopping experience.

So, how much freedom do you actually have on Etsy and Shopify?

On Etsy, your shop is like a booth at a craft fail, you can decorate it a bit, add a logo, a banner, your story but that’s about it.

Every shop on Etsy looks and feels pretty similar, because the whole site has one unified style. Plus, shoppers always see Etsy’s branding alongside yours. So, while it’s quick to set up, your ability to craft a truly unique brand is limited.

Shopify, on the other hand, gives you the keys to your own building. You choose the colors, fonts, layout, and even extra features. Want a fancy homepage slideshow? Custom product pages? A blog? Email sign-ups and loyalty programs? It’s all possible and it’s all yours.

Of course, this freedom comes with responsibility. You’ll need to design your store (or hire help), write your own copy, and make sure it reflects your brand personality.

But for businesses serious about looking professional and memorable, Shopify’s creative control is a clear winner.

Managing Orders and Inventory: Which Is Simpler?

When you’re just starting, handling a handful of orders and keeping tabs on stock is pretty straightforward. A simple dashboard does the job, you pack, ship, update quantities, and get back to creating.

But as your shop grows, those “quick updates” can become daily headaches like overselling, stockouts, and the dreaded spreadsheet chaos. That’s when having a smarter system makes all the difference.

Shopify’s built-in tools do a good job of tracking products, variants, and multiple sales channels. Etsy keeps things simple for smaller shops but can feel limited once you have lots of ready-to-ship stock or bundles to manage.

This is where tools like Sumtracker come in handy. Sumtracker connects to your Shopify store and helps you stay on top of inventory, even if you’re selling on Etsy at the same time.

It keeps quantities in sync, manages bundles and components, and gives you clear insights so you’re never guessing what’s in stock or what needs reordering.

In short, if you’re running a small, made-to-order shop, you won’t need much more than what Etsy or Shopify offer. But once you have shelves to manage and multiple products flying out the door, adding a tool like Sumtracker can save you hours (and your sanity).

Can You Use Both Shopify and Etsy Together?

Yes, and many sellers do! Here’s how it works and why it’s smart:

• Reach more people: Etsy brings you a huge audience of shoppers looking for unique, handmade products, which is great for getting discovered by new customers.
• Build your own brand: Shopify acts as your main store where fans can browse your full collection, buy directly from you, and feel connected to your brand without distractions.
• Offer exclusive perks: Some sellers offer special products, bundles, or discounts only on their Shopify site, giving customers a reason to shop there instead of just on Etsy.
• Stay organized: You don’t have to manage everything twice. Handy apps help sync your product listings, stock levels, and orders between Shopify and Etsy automatically.
• Grow at your own pace: Many makers start on Etsy alone, then add Shopify once they’re ready to expand. You don’t have to choose one and stick with it forever.

Conclusion

So, which one’s right for you, Shopify or Etsy?

It comes down to how you like to run your business and where you see it going.

Etsy is perfect if you want an easy way to reach millions of shoppers looking for handmade or vintage finds, with minimal setup. It’s a low-risk launchpad for testing ideas and building your first customer base.

On the other hand, Shopify is where you build your brand on your own terms. It gives you more freedom, control, and tools to scale as your business grows. Yes, it takes more effort to bring in traffic, but you own every customer relationship you build.

And remember, you don’t have to choose just one. Many sellers use Etsy to get discovered and Shopify to create a home for loyal fans, with tools like Sumtracker keeping inventory synced and headaches low.

In the end, the best platform is the one that fits your products, your time, and your ambitions today and helps you grow tomorrow.

FAQs

1. Is it better to start with Etsy or Shopify?

If you’re just starting out and want quick exposure, Etsy is easier because it has a built-in audience. Shopify works better if you’re ready to build your own brand and drive your own traffic.

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

Yes! Many sellers list products on Etsy to reach new customers and use Shopify as their main online store. Tools like Sumtracker can keep inventory synced between both.

3. Which is cheaper for beginners, Etsy or Shopify?

Etsy has lower upfront costs since there’s no monthly fee, but listing and transaction fees can add up. Shopify has a fixed monthly fee, but it can be more cost-effective as you grow.

4. How do I keep inventory updated on both Etsy and Shopify?

You can use inventory management tools like Sumtracker to sync stock levels, so you don’t accidentally oversell on either platform.

5. Why do some sellers move from Etsy to Shopify?

Many sellers outgrow Etsy’s fees and rules and want more control over their store’s look, customer experience, and profit margins, which Shopify provides.

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