Shopify vs. Etsy: Differences, pros and cons in 2024

Shopify and Etsy are both large online platforms enabling online sellers to set up a shop and manage online sales. However, the platforms do come with distinct differences, making them better for different types of businesses. Shopify might be better for blogging, while Etsy might be better for marketing and search engine optimization (SEO).

Here’s a closer look at Shopify vs. Etsy to help you understand which makes the most sense for your business needs.

Shopify vs. Etsy: Quick overview

Shopify and Etsy are sales platforms for online businesses, but they work in very different ways. At a high level, the main difference is that Shopify helps you build a standalone store on your own website, and Etsy helps you sell your products on its large marketplace.

If you’re confident in your ability to build your own website and drive traffic to your store or don’t want to mingle your listings with other sellers, Shopify is a better choice. Etsy could be the best option if you’re looking for a place to list your products and don’t care as much about controlling every aspect of your sales website.

Pricing and value

Verdict: Tie

Because the offerings at Shopify and Etsy are so different, you shouldn’t let the monthly cost alone tell you which is a better value. If you want to sell many products through your own website, you’ll likely prefer Shopify despite the potentially higher cost. 

If you’re trying to sell crafts or handmade goods to a wider audience, Etsy may be better, even if you have to pay listing fees for each individual item.

Shopify pricing and value

With Shopify, you control much more of your website and customer experience and can host the website on your own .com (or other domain) website address. Most small businesses will pay $39 per month or $105 per month, plus transaction fees, to host their website with Shopify. With these plans, you can add unlimited products and tap into many additional features to manage an online or offline store.

Etsy pricing and value

At Etsy, you pay per item listed, plus higher transaction fees, but you may end up spending far less than Shopify if you only sell a few items. However, you’ll also have much less autonomy over your online storefront. 

You can pay additional advertising fees to boost your listings on the Etsy website or other websites. A premium Etsy Plus subscription for $10 per month includes a package of 15 listing credits and $5 per month in ad credits.

Web editor

Verdict: Shopify

With Shopify, you can build and control your entire website. Shopify doesn’t give you the flexibility of building your own site with a content management system (CMS) like WordPress with WooCommerce. Still, it gives you much more flexibility than an Etsy storefront, which matches the standard Etsy design.

Shopify web editor

Shopify includes a customizable web-based website builder. You can add products, edit images, text and pricing, as well as add additional pages or sections to your website with few limits.

You’re able to start with a template and customize it to your needs without any coding knowledge. Shopify enables you to register .com, .org, .net and other popular domain names with a fully integrated experience, saving you from many of the technical steps of setting up a website.

Etsy web editor

On Etsy, your digital storefront is called an Etsy Shop. Etsy Shops all fit within the Etsy marketplace and look somewhat similar. Shop owners can set their own store banner and logo, as well as a shop announcement, which is a welcome message at the top of the shop page. Etsy Shops all live at Etsy.com.

Etsy has a standalone tool to convert your store into a website called Pattern, but we’re focused on the Etsy Shop Manager for this review.

E-commerce functionality

Verdict: Tie

Shopify and Etsy include tools to help you easily make online sales. These include order tracking and payment processing features built into your store’s management dashboard. Both platforms have partnerships with shippers to get you discounts when fulfilling sales.

Shopify e-commerce functionality

Shopify is built entirely around e-commerce, so its features in this regard are extensive and include:

• Shopify Checkout: The checkout system is an integrated payment processing and shopping cart tool designed to maximize conversions.
• Shopify Shipping: With an integrated shipping tool, you can create shipments, print shipping labels and track orders to ensure an efficient shipping process.
• Shopify POS: Take your sales offline with Shopify POS, an in-person payment processing terminal attached to your store’s inventory.
• Shopify Fulfillment Network: If you don’t want to ship orders yourself, you can hand products off to Shopify for automatic fulfillment whenever an order arrives.

Etsy e-commerce functionality

When using Etsy, all sellers use a standardized sales system across the Etsy marketplace. Etsy manages payments and gives you tools to fulfill orders. With the Etsy marketplace, you’ll have a simpler and more streamlined sales experience that includes:

• Online and mobile store management: Manage your store and products from your favorite web browser on your computer or the Etsy Seller app on mobile.
• Integrated shipping: When you make a sale, shipping tools help you easily select shipping and print your labels.

Blogging

Verdict: Shopify

With a standalone Shopify website, you get blogging tools built in. At Etsy, you will have to upgrade to an Etsy Pattern website to get blogging features.

Shopify blogging

Blogs are a core aspect of content marketing, and Shopify has blogging features built into the platform. You can add a blog section in a few clicks and create blog posts using an intuitive editor. Shopify blogs match the store’s theme automatically.

Etsy blogging

Etsy Shop storefronts don’t include a blogging feature. Selling with Etsy gives sellers an experience a lot more like Amazon. However, you can add a blog if you create a website based on your Etsy Shop using Pattern, Etsy’s website builder, though this will require a separate paid subscription.

Marketing and SEO

Verdict: Etsy

Shopify gives you tools to grow your website reach with search engine optimization (SEO) and marketing tools, but Etsy comes with a recognized brand and strong SEO.

Shopify marketing and SEO

When you start a Shopify store at yourbrandname.com, or whatever domain you choose, you’re completely responsible for generating your own traffic and brand recognition. Shopify includes powerful SEO and marketing tools to help boost your audience, but the business is independently responsible for bringing in website visitors.

Etsy marketing and SEO

When you use the Etsy marketplace, potential customers constantly search and browse the site. According to SEMRush, Etsy is a top-200 website worldwide, bringing in more than 600 million monthly visitors. With millions of people already visiting Etsy, business owners only need to make their products stand out and easy to find to generate sales.

Performance and security

Verdict: Tie

Shopify and Etsy both employ industry-standard security features and high-performance websites.

Shopify performance and security

Shopify, as a leading e-commerce platform, places a high priority on security to protect both merchants and customers. It employs robust measures such as PCI compliance, SSL certificates and regular security assessments to ensure data integrity and confidentiality. 

Additionally, Shopify provides users with security tools like fraud analysis, two-factor authentication and the ability to set staff permissions, further safeguarding the business and customer information.

In terms of website performance, Shopify excels with its optimized infrastructure designed for speed and reliability. The platform utilizes a content delivery network (CDN) powered by Cloudflare to ensure quick loading times globally, enhancing the user experience and potentially boosting sales.

Etsy performance and security

Etsy does a good job of providing all buyers and sellers with industry-leading security standards. It includes measures such as SSL encryption to protect sensitive information during transactions. Etsy offers two-factor authentication to make your account as secure as possible.

Etsy optimizes the marketplace for you, so you don’t have to worry about website speed and performance.

Mobile app

Verdict: Tie

Shopify and Etsy provide mobile apps to help businesses manage their online presence and listings.

Shopify mobile app

The Shopify mobile app is an impressive tool, offering the ability to create your entire online store from your phone. It includes features to track sales, payments, fulfillment and update your website. Shopify mobile is available for Android and iOS devices.

Etsy mobile app

Etsy offers mobile apps for buyers and sellers. The Etsy Seller app for Android and iOS helps sellers message buyers, manage orders, track shipments and update listings on the go.

Final verdict

Winner: Tie

Shopify and Etsy are both excellent e-commerce sales platforms. Both include everything you need to list products, prepare shipments and track orders. The best choice comes down to how you want to run your online store.

Shopify is a better offering if you want more control over your storefront and prefer your own unique domain name. If you want an easy-to-use marketplace where you can list products and don’t have to worry about other details, Etsy is the better option. When you understand how you want your business to look and operate, you can zero in on the best e-commerce platform for your unique needs.

Who is Shopify best for?

Shopify is best for businesses looking for full control over their website address and branding. It comes with robust tools for growing businesses and could work for large online stores with a high sales volume.

Who is Etsy best for?

Etsy is best for boutique sellers who don’t want the cost or hassle of managing a full website. With Etsy, you add your products, and Etsy handles the rest of your online presence.

Frequently asked questions (FAQs)

Is Etsy or Shopify better?

Etsy is better for small sellers who don’t want to manage their own websites. Shopify is better for businesses looking to sell on their own websites with customized branding.

Is Shopify cheaper than Etsy?

Shopify is less expensive per transaction but requires higher monthly fees for most businesses. For businesses with high sales volumes, Shopify may be cheaper.

Can you sell on Shopify and Etsy?

Businesses are not limited to using Shopify or Etsy – you can use both. Savvy business owners may want to manage their own Shopify store while listing products on Etsy for additional exposure.