I have spent close to two decades watching people pour money into the wrong tool because they picked a platform before they understood their own business. Shopify vs Etsy is the classic version of this. They look like competitors, but they are built for two genuinely different ways of selling. So instead of hyping one, let me walk you through the real differences using nothing but the actual numbers.
What are Shopify and Etsy, really?
Shopify is an ecommerce software platform that gives you tools to build and run your own online store. It was founded in 2006, the Canadian company now has over 11,000 employees, and it powers sales for more than 1,000,000 businesses of every size. The important bit: you use your own custom domain, like storename.com, and you own the storefront.
Etsy is an online marketplace. Creatives list products across categories like home, jewelry, wedding, clothing, toys, crafts, arts and collectibles, and buyers shop directly on Etsy.com. You do not need a domain or any technical integration to start. That single distinction, your own store versus a spot in someone else's marketplace, drives almost every other difference below.
How do Shopify and Etsy fees compare?
This is where most people make their decision, so let me lay the costs out plainly. Shopify prices like a typical SaaS product: you pay a monthly fee, and there are no product listing fees. Etsy flips that model, charging roughly $0.20 to list a single product, and that listing fee renews after every sale of the same item.
| Cost | Shopify | Etsy |
|---|---|---|
| Monthly plans | $29 Basic, $79 middle tier, $299 Advanced | No required monthly fee; Etsy Plus is optional at $10/month |
| Listing fee | None | About $0.20 per listing, renews after each sale |
| Transaction fee | 2.9% + 30 cents (Basic), 2.6% + 30 cents (middle), 2.4% + 30 cents (Advanced) | 5% per sale |
| Free trial | 14-day free trial | Not applicable |
A couple of things worth knowing. Shopify gives you a 10% discount when you pay upfront for 6 to 12 months of any plan. Etsy also runs offsite ads, paid search and social campaigns featuring seller products, and when a sale is attributed to those ads you pay around 12 to 15%. And if you sell from the US or Canada, Etsy transaction fees do not apply to sales tax, GST or Harmonized Sales Tax, so you may want to build those into your displayed price. If understanding processing costs matters to you here, my guide to payment processing software goes deeper on that side of the math.
Which gives you more control over store design?
Design is not decoration. It is one of the factors proven to influence conversion rate. As Peep Laja of ConversionXL put it, no business sets out to blend in, yet standing out is one of the hardest things entrepreneurs face.
Etsy lets you upload product photos and basic descriptions so you can start selling fast, but you do not control the design elements that move conversions. Shopify gives you free and premium themes built to sell different product types, plus your own domain to differentiate the brand. The honest trade-off: do you want to sell inside a popular but crowded marketplace, or build something that is genuinely yours?
What about marketing tools?
Marketing is usually what decides whether a store makes money, and this is where the two platforms diverge most. Shopify bakes in tools that Etsy simply does not offer, because Etsy is designed to bring buyers to the marketplace on behalf of all its sellers.
- Email: Every Shopify plan includes Shopify Email. You can send up to 2,500 emails free, then it is $1 per 1,000 after that, using ready-made templates and sending from your domain. Etsy has no platform-hosted email marketing.
- On-site chat: Shopify Inbox is real live chat, showing what is in a shopper's cart and letting you offer discount codes in the box. Shopify states that around 70% of Shopify Inbox conversations are with customers making a purchase decision. Etsy only lets buyers message sellers through a listing page.
- Google and Facebook: Shopify connects directly to Google Shopping campaigns and Facebook advertising from your dashboard. Because Etsy stores do not run on a custom domain, you cannot use Google Shopping the same way.
- Integrations: A growing pool of developers build Shopify apps for fulfillment, shipping, conversion optimization, security and abandoned cart recovery. Etsy does not give you that ecosystem.
None of these tools sell for you on their own, though. The strategy behind them is what earns the profit, which is exactly the kind of thing I help clients sort out in my services.
So which platform should you choose?
Let the goal decide, not the branding. If you sell handmade or crafty products and want inbound marketplace traffic with almost no setup, Etsy is the natural starting point, with fixed listing and transaction fees and no developer required. If you want a customizable store on your own domain, lower processing fees and integrated marketing, Shopify fits both beginners and advanced sellers, and the 14-day free trial lets you test it risk-free.
You can also run both. With a $10 domain and $29 for Shopify Basic, starting your own site is not expensive, though building it out may mean hiring a developer. If you are weighing broader website builders too, my Shopify vs Squarespace comparison covers where each of those lands. And if you would rather have a second set of eyes before committing budget, get in touch and we can talk it through.
Frequently asked questions
Is Etsy part of Shopify?
No. They are independent companies operating in the global ecommerce industry. You can, however, integrate Shopify with Etsy if you want to run both. For that you would use automation and integration tools such as Integromat or Zapier to keep listings and data in sync between the two platforms.
Is Shopify good for handmade items?
You can sell anything legal on Shopify, including handmade goods. That said, Etsy positioned itself early to attract buyers of art, handmade items and collectibles. If you want to tap the inbound buyer traffic already searching for those products, Etsy is often the easier place to get started with that specific audience.
How much does Shopify take per sale?
It depends on your plan. Expect 2.9% plus 30 cents on Basic, 2.6% plus 30 cents on the middle tier, and 2.4% plus 30 cents on Advanced for every sale through the platform. If you also use tools like Shopify Inbox and Shopify Email, additional fees may apply based on your usage.
Can you have Etsy and your own website?
Yes. The simple answer is you can run both. Just weigh your resources and target market first. If your buyers rarely shop for the kind of products Etsy is known for, you are better off building your own site. A $10 domain and $29 Shopify plan gets you going, though building it out may involve a developer.
Founder & CEO of RB Creative Digital. Nearly two decades in SEO and digital marketing for mortgage, aviation and AI-first companies, with clients in the UK, US and Romania. His work has been featured on Forbes, Entrepreneur and HuffPost.
LinkedIn · All articles by Radu
Edited and designed by Marius Stefan · Reviewed by Cristina Gabriela
Not sure which platform fits your products?
The right choice depends on what you sell, your budget and your goals, not on which brand is louder. Tell me about your store and I will help you decide before you spend a cent.
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