Etsy vs. Shopify: Deciding the Best Platform for Your Online Business*
Etsy offers a significant benefit to sellers through its built-in customer base, providing immediate exposure to millions of potential buyers who are specifically looking for handmade, vintage, and unique items. This can be particularly advantageous for new sellers or those looking to reach a niche market without the need for extensive marketing efforts. On the other hand, Shopify offers more freedom and control, allowing sellers to build and customize their own online stores. This includes the ability to set their own policies, branding, and customer experience, making it a great option for businesses looking to expand beyond marketplace constraints and establish their own brand identity.
Etsy Fees (2024):
Listing Fees: Etsy charges a $0.20 fee per item listed. If you sell multiple quantities of the same item, each sale requires a renewed listing at $0.20
Transaction Fees: A 6.5% transaction fee is applied to the sale price (including shipping and gift wrapping)
Payment Processing Fees: For US transactions, Etsy charges 3% + $0.25 per transaction. This rate can vary depending on the seller's location.
Offsite Ads Fee: Etsy charges a 12% or 15% fee for sales made through offsite ads, depending on your annual sales volume
For a typical sale, including listing, transaction, and payment processing fees, if you were to sell an item priced at $100 with $10 shipping, you would incur around $6.50 (transaction fees) + $3.45 (payment processing fees) + $0.20 (listing fee), totaling approximately $10.15 in fees before considering any additional services or ads.
Shopify Fees:
Shopify's fees structure differs significantly from Etsy's as it primarily operates on a monthly subscription basis, with several tiers offering various features. However, typical costs would include:
Subscription Fees: Ranging from $29 to $299 per month, depending on the plan
Transaction Fees: If you use Shopify Payments, there are no transaction fees. However, if you use any other payment gateway, Shopify charges additional fees up to 2% depending on your plan
Payment Processing Fees: Similar to Etsy, Shopify also charges for payment processing, which can vary but typically around 2.9% + 30¢ per transaction for the Basic Shopify plan.
*I recently was asked by a customer which online platform is better for selling: Etsy or Shopify. This is what I came up with, based on research to the best of my ability. These numbers may have changed since this post.
