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Shopify vs. Etsy: Costs and features compared
We compare two popular e-commerce platforms to see which offers a better deal for online sellers.
Shopify and Etsy are two of the biggest names in e-commerce. Create your own online store and sell on multiple platforms with Shopify, or sell your handmade goods, vintage items or craft supplies with Etsy’s online marketplace.
To find out which platform is best for you, compare price, features and how easy it is to manage and set up.
How does it work?
|Shopify is a cloud-based e-commerce platform where you can build and customize your own online store. It offers a suite of tools to create an online store and sell across social media channels and online marketplaces.|
It offers five pricing plans, ranging from basic plans that let you sell on Facebook, to enterprise-grade plans for large companies. Each Shopify account is also backed by 24/7 support.
|Etsy is an online marketplace to sell handmade goods, vintage items and craft supplies. To start selling, you’ll need to sign up for a free account and set up your shop on the Etsy platform.|
Promote your listings with a Google Shopping ad campaign and use a range of free marketing tools to promote your shop and attract buyers.
Which has lower fees?
There’s no monthly subscription, but its other fees are:
|Listing fee||$0.20||Paid regardless of whether the item sells. After four months, you’re required to pay the fee to list it again.|
|Transaction fee||5%||Sale price includes shipping. Payments made in a different currency than your payment account is converted at the mid-market rate with no margin or fees added.|
|Etsy Payments processing fee||3% + $0.25||Each sale comes with a commission that goes to Etsy Payment processing.|
|Currency conversion fee||2.5% of sale price||Fee for listing your items in a foreign currency.|
Shopify’s monthly fees vary based on the pricing plan you select:
|Basic Shopify||Shopify||Advanced Shopify|
|Credit card rates||2.9% + $0.30 online; 2.7% in person||2.6% + $0.30 online; 2.5% in person||2.4% + $0.30 online; 2.4% in person|
|Transaction fees||None for Shopify Payments; 2% for third-party processors||None for Shopify Payments; 1% for third-party processors||None for Shopify Payments; 0.5% for third-party processors|
Shopify costs more up-front, but Etsy’s transaction and processing fees are higher.
Which has better tools?
|Sell at auction||with a third-party app|
|Customizable store design|
|Inventory and order management|
|Create discount coupons|
|Abandoned checkout recovery|
|Paid advertising tools|
Shopify has more tools to help you attract buyers and grow your online store.
Which is easier to use?
|When you set up an online store with Shopify, compare the available pricing plans and choose the one that meets your business needs. While the sign-up process is simple, select a theme for your shop from a wide range of themes or customize your own.|
Shopify can handle payments through its payments system or a third-party provider. Buyers can use credit card, bank transfer, PayPal, Apple Pay and more.
|Etsy doesn’t offer anywhere near the same level of customization options as Shopify. As a result, it’s quick and easy to open an account and set up shop. It asks for basic personal details, your country and currency, and requires you to fill out a profile.|
To create a listing, add a title, description and some product images, then add pricing and shipping details. Payment is usually handled through the Etsy Payments system, allowing buyers to pay by credit or debit card, PayPal, Apple Pay and more.
Setting up and managing a shop is quicker and easier on Etsy than it is through Shopify.
While they both have their good points, Shopify and Etsy are designed to meet different online selling needs.
Shopify is a great choice for creating your own e-commerce store and sell through a wide range of online channels. But if you’re searching for a global online marketplace where you can find buyers looking for homemade and vintage goods, Etsy may be the better option.
Rather than choosing between the two, you may even decide that your business can benefit from selling on both platforms. Compare a variety of e-commerce platforms before deciding on the best way to sell online.
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