Shopify vs Etsy: Where Should You Sell Your Goods?  

A couple of weeks ago, I hosted a Q&A for an Entrepreneurship class at a local college. Well, actually, my daughter’s classmates had some questions about digital marketing that the professor couldn’t answer. So, of course, my kiddo raised her hand and volunteered me to come in and answer them. 

I didn’t know exactly what to expect when I agreed to it — I had no presentation worked out and no idea what type of businesses her classmates were thinking of starting (industry makes a huge difference in what digital marketing channels and tactics a business should use). 

Anyway, when I arrived, I found a small group of eager learners, half of whom were pursuing various eCommerce businesses. Imagine that! We chatted for about an hour on a variety of marketing topics, and one subject stood out: Shopify vs Etsy. 

One student wanted to know whether they should choose Etsy or Shopify. While my answer wasn’t exactly straightforward, I gave the best advice I could based on what I know. For all you craftspeople out there trying to decide between these two platforms, I’m going to break down what I told them. 

First, we’ll look at the differences between the platforms, how they can be used together, and why you might choose one over the other. Then, I’ll share a trick you can implement if you’re not ready for a standalone Shopify website but you’ll want one soon. 

Now, let’s get the ball rolling so you can pick the right sales channel for your needs! 

The Key Difference Between Shopify & Etsy

You probably have an idea what Shopify and Etsy are. Both are beginner-friendly and small-business-friendly. They cater to self-starters. And, you’ve been seeing both of their names everywhere. But, there’s something that makes them fundamentally different.  

Let’s look at the core differentiator between the sales channels:  

• Etsy is a marketplace with a built-in audience for handmade, and vintage goods and craft supplies. With Etsy, you can add your products to a pre-existing website that already has a large audience. 
• Meanwhile, Shopify is an eCommerce platform for independent online stores in a variety of niches. With Shopify, you can add your goods to your own, branded website (if you’re a newbie, this means you will have to build your audience from scratch).  

This distinction alone is enough for some people to decide if they want to choose one sales channel over the other. If you have no existing audience, you might lean toward going with Etsy….But, I have a different recommendation: Choose both. 

Before you say you can’t afford both or don’t have time for two marketplaces, keep reading — Here in a minute, I’ll share some ideas you might like. 

But first, know that your offer is only a good candidate for Etsy if it falls under their product guidelines. 

Here’s what you CAN sell on Etsy:

• Handmade items crafted by you, the seller 
• Vintage items that are at least 20 years old
• Craft supplies and tools (this includes digital goods like fonts and graphics)
• Customizable items that are made by the seller or manufactured with their design

And, here’s what you CAN’T sell on Etsy:

• Mass-produced or manufactured items that you did not make or design
• Items that violate Etsy’s policies, including prohibited items such as weapons, drugs, or illegal items
• Copyrighted or trademarked items without proper authorization
• Digital items that are not tangible or downloadable products
• Services, such as consulting or freelance work

If your offer falls outside these guidelines, then Shopify might be a better choice after all. Though, Shopify has its own set of restrictions — i.e. no firearms or firearm parts…stuff like that. 

Now, let’s look at a couple of scenarios where you might be better off starting on one platform over another. 

Note: If you sign up with Shopify today, you’ll get a 14-day free trial, your first month will cost only $1, and the platform will give you $50 in-app store credits. 

Is it Better to Start on Shopify or Etsy? 

If you’re launching your business as we speak, you can decide where to begin by taking a quick look at your situation. I think that the most important factors to consider are price, time investment, and inventory. Let me elaborate on each a bit. 

First, let’s look at pricing for Etsy and Shopify. 

Etsy charges a listing fee for each item you list on the platform, and additional fees apply for features like promoted listings or Etsy Plus membership. They also deduct a transaction fee of 5% of the item’s price, along with a 3% + $0.25 payment processing fee for each sale. These costs should be factored into your pricing strategy.

Shopify offers different subscription plans with varying costs. The basic plan starts at $29 per month, while more advanced plans with additional features range from $79 to $299 per month. Additionally, Shopify charges transaction fees (ranging from 0.5% to 2%, depending on the plan) if you use external payment gateways. 

However, if you use Shopify Payments as your payment processor, you can avoid these additional transaction fees. Customizations, themes, and apps on Shopify may have additional costs, but these vary based on your specific needs.

The monthly costs for each platform will vary by inventory size and the number of sales you make. 

Next, let’s think about inventory limits with each platform. 

Etsy imposes a limit of 999 active listings per shop. If you plan to have a relatively small inventory or want to focus on a specific niche, this limit may not be a major concern. Nonetheless, there is no policy against running multiple stores at one time. 

Unlike Etsy, Shopify does not have inventory limits. You can add an unlimited number of products to your store, making it suitable for businesses with large inventories or those anticipating significant growth over time. Keep in mind, enterprise businesses may be better suited to Shopify Plus, which works a bit differently than Shopify’s other plans. 

Finally, consider the required time investment between sales channels. 

Setting up a shop on Etsy is relatively straightforward and requires minimal technical knowledge. The platform provides pre-designed templates and tools that enable you to create a store quickly. However, keep in mind that Etsy’s limited customization options may result in a less unique branding experience.

Building a store on Shopify typically requires a bit more time and effort because it has more customization options. Shopify allows you to create a fully personalized online store with your chosen design, layout, and branding elements — This level of customization sometimes necessitates some technical expertise or the assistance of a designer/developer.

Consider your inventory size, growth plans, budget, and desired level of customization when evaluating the costs and benefits of each platform. If you have a large inventory or anticipate significant growth, Shopify’s lack of inventory limits could be advantageous. However, if you prefer a simpler setup process and have a smaller inventory, Etsy’s fee structure might be more cost-effective.

Remember, you can operate on both Etsy and Shopify simultaneously, leveraging the strengths of each platform. I recommend you cross-promote your offer to broaden your reach and tap into different customer segments. 

Let me share some tips on how to best do this, based on which platform you start with. 

What to Do if You Start With Etsy

If you want to start on Etsy, then transition your Etsy catalog to Shopify whenever you’re ready, I recommend you use a custom domain (www.mystore.com). 

Setting up a custom domain and pointing it at your Etsy store before launching your Shopify store offers benefits such as brand consistency, a smooth transition for customers, retention of SEO benefits, and streamlined marketing efforts.

To start an Etsy store and transition to Shopify while using a custom domain, follow these steps:

1. Start by setting up your Etsy store.
   1. Log in to your Etsy account and navigate to the Sell on Etsy page. 
   2. Click Get Started, then click Let’s do this. 
   3. Move through the signup process. 

4. Create and upload your branding (you can create a free logo with Hatchful or Canva).
5. List your products. 

2. Purchase a custom domain from a registrar (Namecheap is a generally easy registrar to work with). 
3. Point the custom domain to your Etsy store by configuring the DNS settings. 
4. Launch your Etsy store and promote it using the custom domain — the custom domain is the one you’ll use when you share a link to your store (not individual products) on social media and in your marketing materials. 
5. Start selling! 

Now, you’ll be able to launch a business on Etsy without the hassle of updating all of your marketing materials in the future. Take some time to get acquainted with the Etsy platform and build your business. Have fun with it, and remember to collect customer contact info for future use. 

6. Whenever you’re ready, sign up with Shopify and set up your new store. You will be able to automatically import your Etsy data. 

7. Connect your custom domain to your Shopify store.
8. Continue building your business on both platforms! 

By following these steps, you can launch on a major marketplace, then smoothly transition from Etsy to Shopify with brand consistency using a custom domain.

Remember to carefully manage the transition and inform your existing customers about the move via email and social media.

Now, if you want to start with Shopify instead, let’s look at what you can do. 

What to Do if You Start With Shopify 

To start a Shopify store and connect it with Etsy, follow these steps: 

1. Sign up for Shopify and create your store.
2. Customize your store’s appearance and settings.
3. Install an Etsy app from the Shopify App Store.

4. Connect your Shopify store with your Etsy shop using the Etsy app.
5. Sync your products between Shopify and Etsy.
6. List your Shopify products on Etsy using the Etsy app. 
7. Manage orders and inventory from your Shopify dashboard.
8. Coordinate fulfillment and shipping using your preferred methods.

By following these steps, you can easily start a Shopify store and connect it with your existing Etsy shop, allowing you to manage both platforms efficiently.

Keep in mind that you can connect a Shopify store to multiple marketplaces including Amazon and eBay. 

The Best Online Marketplaces to List Handmade Goods in the U.S. 

Now, Shopify and Etsy, as you probably already know, aren’t your only options. In general, you can get even more reach when you list your products on multiple marketplaces simultaneously. I wouldn’t recommend you use all of them in the beginning because it can be very easy to get overwhelmed. 

Plus, you might find that a listing on a couple of sales channels generates plenty of business to keep you busy. Still, I think you should know all of your options. So, let’s take a look at some other platforms where you can sell handmade goods online. 

Here’s how some of the most popular online sales channels for handmade and vintage goods stack up, side-by-side:

As you can see, there’s quite a bit of potential to sell your goods on multiple marketplaces. 

If you were to list your offer on all of the marketplaces above, you could potentially get millions of eyeballs on your offer. Be mindful to adjust your pricing to account for listing and transaction fees (Amazon Handmade’s 15% is quite steep, but may be worthwhile since it has the highest traffic volume). 

I didn’t include the global traffic volume for Shopify in the table above because Shopify stores are standalone websites, not part of a larger marketplace. However, there’s something I should note — Google seems to recognize Shopify stores right away, which isn’t my experience with other content management platforms. 

While I can’t say for sure, I assume this is because each Shopify site originates on a subdomain of myshopify.com. So, Shopify may give you an SEO kickstart right out of the gate. But, this is just my experience and I can’t guarantee you’ll have the same outcomes. 

Note, sellers outside the U.S. might consider other global marketplaces like Shopee. And, artists might have good luck selling through a print-on-demand marketplace like Redbubble or Society6 as well. 

Bottom line: Research your options and list your inventory on multiple marketplaces to maximize reach. 

Frequently Asked Questions

Conclusion: Use Shopify and Etsy Together — Just Be Strategic About it!

In the debate between Shopify and Etsy for selling handmade goods, it’s clear that both platforms offer unique advantages. Starting on Etsy provides access to a ready-made marketplace, while Shopify offers customization and control. 

However, instead of choosing one over the other, a smart approach is to use them together. Begin on Etsy to tap into its community, then transition to Shopify for more flexibility and scalability. Or start with Shopify and use apps to sync your inventory to multiple marketplaces seamlessly. 

Consider exploring additional marketplaces like Amazon Handmade and eBay. Ultimately, success depends on tailoring your strategy to your starting point and long-term goals. With the right approach, you can thrive by leveraging the strengths of both platforms in the handmade goods market.

Sign up with Shopify today for a 14-day free trial, and start building your online store.

One last thing before we part company; If building a business from the ground up seems like too much of a daunting task (and you can get your paws on some startup capital), consider buying an existing eCommerce business!

Keep an eye on our bi-weekly round-up where we showcase some of the top online business listings currently up for grabs.