Don’t worry if you’re a beginner, a small business owner, or an artist confused about picking the right E-Commerce platform between Shopify and Etsy. We will cover everything for you so that it can make a huge difference in your sales and profits.
The debate between Shopify and Etsy continues as the platforms grow, but sellers must choose the right platform to maximize their profits. This guide will break down the differences, fees, and suitability for different types of sellers on Shopify and Etsy.
Differences in Business Model, Ownership, and Customization
Before choosing between Shopify and Etsy to start your business, thoroughly researching its features, costs, limitations, and long-term viability should be the priority. It will save you time, money, and potential headaches.
More importantly, aligning the platform’s capabilities with your business model will help maximize revenue and long-term success. So, let’s start gathering the information you need to decide whether to use Shopify or Etsy.
Business Model
Shopify is a standalone e-commerce platform where store owners build their online storefronts. On the other hand, Etsy is a global online marketplace that provides an existing customer base but limits branding opportunities.
Ownership
With Shopify, sellers own their websites and fully control branding and customer interactions. Etsy owns the marketplace and dictates policies that sellers must follow.
Customization
Shopify allows extensive customization with themes, apps, and integrations. Etsy provides a standardized seller shop layout with limited customization options.
Shopify Overview: Features and Benefits
In 2025, Shopify continues to dominate the e-commerce landscape, with over 4.4 million live stores relying on its platform to power their businesses. Shopify is a robust e-commerce platform designed for scalability and growth. It offers advanced tools for businesses wanting complete online store control.
Shopify integrates with Facebook, Instagram, Amazon, and Pinterest, enabling seamless multichannel selling. The platform’s App Store provides thousands of integrations, including dropshipping integrations, marketing tools, analytics tools, and fulfillment apps like Printful and Shipstation. Shopify Plus helps large businesses with advanced features and allows high-volume merchants to customize and grow easily.
Etsy Overview: Features and Benefits
Etsy is a well-established marketplace focused on handmade, vintage, and craft-related products. It provides a built-in audience but comes with more seller limitations. According to its impact report, in 2024, Etsy had 96.3 million active buyers. Etsy Ads allow sellers to promote their listings within the marketplace, and Etsy Pattern offers a customizable website builder.
However, Etsy users must adhere to strict product restrictions and Etsy-style fees, which can impact profitability. In 2020, Etsy sellers generated $4 billion in income, highlighting the platform’s earning potential despite its limitations.
Shopify vs Etsy: Storefront and Customization Options
Whether you need complete creative control or a quick and easy setup, Shopify and Etsy offer different levels of customization. Let’s find out what is best for your business needs.
Shopify
Shopify gives you complete control over your online store design with powerful customization tools. You can design a unique storefront that matches your brand using flexible templates, theme customization, and an easy-to-use theme editor with the store builder.
Advanced Shopify plans offer even more options, including customizable storefronts, SEO tools, and checkout optimization to boost conversions. You can also modify your URL structure and fine-tune your store for better search engine rankings.
However, while Shopify offers flexibility, it can come with a learning curve for beginners unfamiliar with web design. Additionally, its pricing can add up, especially when opting for advanced plans and apps, which may concern smaller businesses looking to minimize costs.
Etsy
Etsy offers a fast and simple way to start selling your products online. With its built-in audience, you can easily reach buyers without investing in marketing. The platform’s easy-to-use, standardized seller shop design lets you focus on what you do best – creating great products – while Etsy handles the rest. Perfect for makers and artists, Etsy provides a stress-free setup and connects you with customers already looking for unique items.
Etsy does have its downsides. Customization options are limited, and seller shops must follow strict marketplace rules and design restrictions, offering fewer branding opportunities. While it’s easy to reach buyers, you have less control over your store’s look and feel compared to platforms like Shopify.
Shopify vs. Etsy Fees: Breakdown of Costs
One of the biggest concerns store owners have is the cost. Let’s compare Shopify vs Etsy fees side by side:
| Fee Type | Shopify | Etsy |
| Monthly Fee | Starts at $39/month | Free (Etsy Standard) or $10/month (Etsy Plus) |
| Listing Fee | None | $0.20 per item |
| Transaction Fee | 2.9% + 30¢ per sale (Shopify Payments) | 6.5% per sale |
| Payment Processing Fee | Varies by payment gateway | 3% + 25¢ (Etsy Payments) |
| Additional Fees | Apps, themes, and optional add-ons | Advertising and promotional costs |
Security and Payment Processing
Both Shopify and Etsy provide payment processing solutions with varying levels of security, flexibility, and fees. Understand these differences and choose the best platform for your needs.
Shopify
Shopify makes payments easy and secure with Shopify Payments, which works smoothly with Google Pay, Apple Pay, and PayPal. SSL certificates keep your transactions safe, giving both buyers and sellers peace of mind.
Shopify also has fraud protection to keep transactions secure. For bigger businesses, Shopify Plus offers B2B transactions and connects to Fulfillment by Amazon (FBA) to simplify shipping and fulfillment.
Etsy
Etsy Payments lets you accept payments in one simple system, including credit cards, PayPal, and more. However, Etsy has higher payment processing fees than Shopify. Like Shopify, Etsy offers buyer protection to keep customers safe. Plus, Etsy has fraud analysis systems to prevent fraudulent transactions.
Marketing and Search Engine Optimization (SEO)
Effective marketing and SEO strategies can make or break your E-Commerce success. Shopify and Etsy offer marketing tools, but differ in customization and reach. Let’s understand which one is suitable for you:
Shopify
Shopify gives you powerful tools to improve your search engine rankings on Google and Bing. You can easily manage your search engine settings, edit meta descriptions, and customize search queries to boost your visibility. Shopify offers advanced marketing options like CPC ads and content marketing to help you grow your store.
You can track your performance and optimize your store’s ranking with integrations like Google Search Console and detailed SEO analytics. Shopify lets you modify your robots.txt file to ensure search engines properly crawl your store.
Etsy
Etsy offers strong visibility within its marketplace, helping shoppers find your products. However, SEO customization on Etsy is more limited than on Shopify.
Etsy listings are automatically optimized for search results within the platform, but you don’t have the same control over search engine settings or meta descriptions as you would on Shopify. While Etsy makes it easy to reach customers, your SEO options are more restricted compared to other platforms.
Wholesale and Business-to-Business (B2B) Features
Shopify makes it easy for businesses to handle bulk B2B transactions with support for wholesale marketplace integrations. Shopify Plus offers even more features specifically designed for B2B sales, including customized pricing and bulk ordering options. If you want to sell to other businesses, Shopify provides a comprehensive solution that simplifies wholesale transactions.
Etsy previously offered Etsy Wholesale, a feature designed for business-to-business sales, but it has been discontinued. As a result, Etsy is not the best platform for B2B transactions. On the other hand, Shopify continues to provide dedicated wholesale and bulk sales solutions, making it a better choice for B2B sellers.
Conclusion
Deciding between Shopify and Etsy in 2025 depends on your business goals. Etsy is perfect for beginners and niche sellers, and Shopify is ideal for scaling and complete branding control. Make the choice that aligns with your vision and set your business up for long-term growth! You can contact Ekomfy for the best-tailored suggestion for your business.
FAQs
Is Shopify better than Etsy for selling handmade items?
Yes, Shopify is better for sellers who want full control over their store, branding, and pricing. However, Etsy offers a built-in audience, making it easier for handmade sellers to get visibility without spending on marketing.
How do Shopify transaction fees compare to Etsy fees?
Shopify charges a flat transaction fee (2.9% + 30¢ per sale if using Shopify Payments), whereas Etsy takes 6.5% per sale and a $0.20 listing fee per item. For high-volume sellers, Shopify is usually more cost-effective.
Can I sell on both Shopify and Etsy simultaneously?
Yes, many sellers use both platforms to maximize their audience reach. Shopify allows integration with Etsy through third-party apps, making inventory management easier across both platforms.
Does Shopify offer a free plan like Etsy?
No, Shopify does not have a free plan, but it offers a 14-day free trial. Etsy allows sellers to list items for free with its standard plan, but charges per listing and transaction.
What is the best platform for dropshipping, Shopify or Etsy?
Shopify is the better choice for dropshipping because it integrates with apps like Oberlo, Printful, and Spocket, allowing automated fulfillment. On the other hand, Etsy focuses on handmade and vintage items, making dropshipping more challenging.
