Differences Between Shopify and Etsy

Differences Between Shopify and Etsy

Two of the more popular e-commerce platforms today are Etsy and Shopify. A common question asked by novice online retailers is ‘what are the differences between these two platforms?’ If you are one of them, it is important to learn the answer to that question as it can help you determine which platform is better suited for your online business.

The following are some of the basic differences between Shopify and Etsy:

Shopify is hosted e-commerce platform while Etsy is an online marketplace

The most obvious difference between the two online platforms is their nature– Etsy is a marketplace while Shopify is a hosted e-commerce platform. In Etsy, you set up your account, upload photos of your products, add descriptions and sell these to customers. In Shopify, you set up your own online store.

Product selection in Shopify and Etsy

You can’t sell anything on Etsy as it is a marketplace for vintage items, handmade goods and supplies. There are strict guidelines on the products that can be sold on the platform.

On the other hand, Shopify has no restrictions on the kind of products that you want to sell. If you have other products to sell apart from handmade or vintage supplies, then go to Shopify instead of Etsy.

Pricing in Etsy and Shopify

There is no membership or account opening fee in Etsy. Instead, the platform charges 3.5% transaction fee plus $0.25 on every purchase. On the other hand, the lowest fee that Shopify charges is $29 for its basic plan.

In short, Shopify is more expensive although it is also possible that you can incur higher costs on Etsy especially when you get more orders.

Type of visitors in Shopify and Etsy

There are many online stores hosted on Shopify. The competition can be tough so it is important to have a solid marketing plan in order to generate traffic and make more sales. On the other hand, there’s a focused market for Etsy users– artists and crafters.

In short, Etsy and Shopify have their own strengths and weaknesses. It is up to you to determine which online platform is more suited for your online business.