Starting an online store is a head-scratcher. These days, with so many options out there, there are two quick ways. One option is to build your own store with Shopify, or the second option is to sell on the Etsy marketplace. Both work and both can make money, but they work differently.
Shopify lets you build a standalone store. You own the website and control everything. On the other hand, Etsy is a marketplace like a shopping mall where you rent a booth/store. You sell alongside millions of other sellers.
The article Shopify vs Etsy shows you which platform fits your business. We have covered costs, features, benefits, growth potential, and much more. By the end, you will know exactly which one to choose based on your selling requirements. Let’s begin, shall we?
Shopify vs. Etsy At a Glance
Here is a quick overview of how both platforms compare. The core difference is ownership and control.
Feature/Aspect
Shopify
Etsy
Setup Time
Hours
Minutes
Monthly Cost
$29 – $2,300+
$0 + per-sale fees
Transaction Fees
2.9% + $0.30
6.5% + $0.20 per listing
Listing Fees
None
$0.20 per item
Branding
Full control
Limited
Domain
Custom domain
etsy.com/shop/yourname
Product Limit
Unlimited
Unlimited
Customization
Extensive
Limited
SEO for Google
Strong tools
Moderate
Built-in Audience
No
Yes
Payment Gateway
Multiple options
Etsy Payments only
To sum up, on Shopify, you own a dedicated store. Other than that, you own your domain and your customer data, so you control the full buying experience. On Etsy, you rent a stall within a marketplace, sharing space, audience, and search results with other sellers.
“Building an Etsy store gives you instant exposure, but also places your brand next to many direct competitors in the same category. “
– Sarah Waggoner
Difference Between A Standalone Store and A Marketplace
What is a standalone store? It starts with building your independent website. Think of it like opening your own physical shop on a street. And this street is the internet.
Here, you control everything like the branding, design, customer data, and policies. But you are also responsible for bringing all your own traffic through marketing, SEO, social media, advertising, and more.
With a standalone store built on Shopify, there is more upfront work. But you own the customer relationship and are not competing directly with thousands of sellers on the same platform.
Whereas on a marketplace like Etsy, you are renting space in someone else’s mall. Etsy already has millions of shoppers browsing daily, so you get immediate access to that traffic. It is easy to get started with lower upfront costs, and customers already trust the Etsy brand.
However, you must follow the rules of Etsy, pay their fees, and compete directly with many other sellers on the platform. Your shop looks like everyone else. It is an Etsy shop, and Etsy owns the customer relationship.
The choice ultimately depends on your goals. Etsy is fantastic for testing products or running a side business with built-in customers. Shopify makes more sense when you are ready to build a genuine brand, scale up, and have complete control over your business’s future.
Many successful sellers actually start on Etsy to test their products, then migrate to Shopify once they have built momentum. It is also okay to leverage expert guidance directly from a Shopify development company if you have a strong vision and a budget for your brand.
Shopify vs Etsy: Pricing Structure and Fees
Comparing Shopify and Etsy is important to determine which platform offers better affordability and has long-term value.
Shopify Plans in 2026
Shopify works on a subscription model and charges a monthly fee. You pay $1/month for the first 3 months, and then the following plans apply:
The Basic plan starts at $29 USD/month when billed yearly ($39 USD for the monthly payment option). This is best for single store owners, creators, and solopreneurs.
The Grow package starts at $79 USD/month when billed yearly ($105 USD for the monthly payment option). This plan is made for small teams, MSMEs, and growing businesses with regular sales.
The Advanced plan starts at $299 USD/month when billed yearly ($399 USD for the monthly payment option). The package is designed for mid-sized teams managing higher-order volumes, multiple staff, and global sales. It is a head start for businesses before entering the Plus plan.
The Shopify Plus plan has a $2300 USD/month fee with a 3-year term commitment. This plan charges $399 for the first month and is made for big businesses and companies with large inventories.
On top of that, there are other costs.
Payment processing fees are 2.9% + $0.30 per transaction
Shipping label fees (if you use Shopify)
App costs (if you add extras)
A working example: A store with $5,000 in monthly sales costs roughly $75–$200/month, depending on your plan and payment methods.
If you do not use Shopify Payments (Shopify’s built-in payment processor), extra transaction fees may apply, which can reduce profit on every sale.
Etsy Fees for 2026
Unlike Shopify, Etsy does not have specific packages. Opening an Etsy shop is free, and there is no mandatory monthly subscription on the standard plan.
Listing Fee: $0.20 USD per item, valid for 4 months; renewed for another $0.20 if the item sells or expires.
Transaction Fee: 6.5% of the total sale price (item price + shipping + gift wrapping).
Payment Processing Fee: Varies by country, but in the US, it is typically 3% + $0.25 USD per transaction.
Offsite Ads: 12% fees (for sellers earning over $10k/year) or 15% (under $10k/year) fee on sales generated from ads Etsy runs on other sites.
Etsy Ads: Costs vary for promoting listings within Etsy search results.
Currency Conversion: A 2.5% conversion fee applies if the listing is in a different currency than your payment account.
Confusing, right? Basically, Etsy has no monthly subscription. Instead, they take a cut of every sale. For many sellers, this means 20%-25% of each sale can go to various Etsy fees once everything is covered.
A working example: A $100 sale on Etsy costs roughly $16-$24 in fees.
When Does Shopify Become Cheaper Than Etsy?
At very low order volume, Etsy is cheaper because you avoid a monthly subscription.
As more orders come in, listing and percentage‑based fees can exceed the fixed Shopify plan plus payment processing fees, especially for higher‑priced products. If you sell many units each month or have a high average order value, Shopify usually becomes more cost‑effective in the long run.
For occasional sales or side projects with a small catalog, the Etsy pay‑per‑sale model can be a budget-friendly option.
But if you sell five items at $50 each ($250/month):
Shopify: $29/month + minimal fees = $35/month.
Etsy: $39/month.
Etsy wins at low volume.
Basically, the more you sell, the bigger advantage you get from Shopify.
What It Is Like to Start a Store on Shopify or Etsy?
Both platforms aim to simplify selling but take different routes. There are many aspects one should keep in mind before starting an online store. The most important factors are:
1. Ease of Use and Store Setup
Creating an Etsy shop takes 10–15 minutes. You make a seller account, add product photos, write descriptions, set prices, fill in basic info, add images, and list products. Your shop goes live immediately. The template is already built, and there is no design work needed.
Shopify needs more setup time, but gives more control.
You pick a theme, customize pages with a drag‑and‑drop editor, configure payments, shipping, and taxes, and then launch your store. Non‑technical people can still manage Shopify thanks to its visual editor and guided onboarding.
However, there is a mild learning curve compared with Etsy, which feels like listing items on an existing marketplace rather than building a whole website.
2. Design, Branding, and Customization
The look and feel of your store matters. It tells your customers who you are.
Branding Control
On Etsy, every shop looks similar. It is the Etsy logo, layout, fonts, and style that get shown when your customers come to your store. You add photos and a description, but you cannot change the design.
On Shopify, you choose your colors, fonts, layout, and logo. You can get it built with a designer to make something custom as well.
Domain Options
Custom domains matter when you grow into a big brand. An Etsy store URL looks like etsy.com/shop/yourname. Whereas a Shopify store looks like yourname.com.
For instance, a brand named “Virginia Wynne Designs” has stores on both Shopify and Etsy. This is how their URLs look on Shopify and Etsy.
Shopify looks more professional and gives total creative freedom to shape the customer experience from homepage to checkout. You can also hire Shopify developers for design, development, and other marketplace management needs.
3. eCommerce Features and Sales Tools
Both platforms are focused on selling products fast. But they come with different features. Let’s see which one should be preferred over the other based on these categories.
Inventory Management
Shopify lets you list unlimited products and organize them by type, brand, or collection.
Etsy also offers unlimited products, but the inventory organization is simpler.
If you sell hundreds of products with different variations, all Shopify inventory tools are more powerful.
App Ecosystems
The Shopify App Store has thousands of apps. Email marketing, shipping, analytics, loyalty programs, and more can be integrated.
Etsy integrates with fewer third-party tools. You can sync inventory to other channels, but the integrations are limited.
If you want to automate your business for the long term, Shopify is recommended for this category as well.
Payment Processing
Both platforms handle payments easily, but in different ways.
Shopify Payments is fast and integrates with any payment processing partner easily. Other gateways (Stripe, Square) also work.
Etsy Payments is Etsy’s only option. It works fine, but you cannot diversify.
We would give this one to Etsy. We know it lacks integration, but its own payment gateway is very secure.
Sales Tools
Shopify comes with discount codes, upsells, and email campaigns.
Etsy offers basic discounts but has limited marketing tools within the platform.
If you want to run promotions and build customer loyalty, Shopify comes with more options.
Basically, Shopify functions as a complete eCommerce operating system. Shopify also supports unlimited products on most plans, which is best for brands with larger catalogs or multiple product lines.
4. Marketing and Ranking for Better Selling
How do customers find you? That is the real question.
Internal SEO on Etsy
When someone searches “handmade bouquets” on Etsy, they see results in the Etsy search engine.
The visibility of your store depends on:
Product tags
Product descriptions
Shop rating and reviews
Sales history
You do not need external marketing. Etsy customers are already looking to buy. This is great for beginners because you get traffic without running ads.
SEO for Spotify
Shopify stores appear on Google, Bing, and other search engines, just like a normal website, not in the Shopify search engine.
To rank on Google, check out our blog on the top Shopify SEO tips to increase online visibility.
This process is harder. It takes months to rank, but the payoff is enormous.
Customer Retention
On Shopify, you can collect email addresses, build a mailing list, and control customer relationships.
On Etsy, customers buy on the Etsy platform. You cannot email them directly, and Etsy owns the relationship.
A mailing list is invaluable. You can promote new products, run sales, and build loyalty. If long-term customer relationships matter to you, Shopify is recommended.
Here, Shopify wins decisively!
5. International Selling
Shopify is built with growth in mind. Because starting small is fine with Etsy, but what happens when you grow?
As you move from side hustle to full‑time brand, you can upgrade plans, add apps, and connect third‑party services on the same platform. Features like multi‑currency support, localized stores, and advanced analytics help you scale.
This is why many sellers start on Etsy, then move to Shopify. Larger brands also use Shopify Plus for enterprise-standard features and automation. Etsy can handle higher-order volumes but remains a marketplace at its core.
The migration is possible but requires work. You export your data, rebuild your shop, and migrate customers. As you cannot fully customize anything the way you can on a standalone store. And once you want deep branding, advanced marketing, or custom workflows, Etsy begins to feel restrictive. At the end of the day, Etsy caps your growth as it is a marketplace, not your brand.
Shopify lets you sell globally in 135+ countries with multiple languages and currencies.
6. Customer Support and Security
You rely on a marketplace or a platform that hosts your whole store when you are running a business.
Shopify Support
Shopify offers 24/7 email and live chat support. Serious issues get serious attention as Shopify is a legit and highly secure platform.
Shopify also provides SSL certificates (security), fraud protection, and PCI compliance automatically.
Etsy Support
Etsy has a help center and seller community. Real support is slower.
Security is handled by Etsy, so you do not worry about it. But you are dependent on the Etsy infrastructure.
Payment Security
Both platforms protect payment data. The Shopify Shop Pay and Etsy Payments both use encryption and fraud detection.
The difference is minimal here, but both are secure.
Downtime Risk
If Etsy goes down, you cannot sell. If Shopify goes down, you cannot sell either.
But the Shopify infrastructure is more robust. Etsy has had outages that disrupted sellers. Both platforms take support and security seriously, but offer different experiences.
Etsy vs Shopify: Which Seller Platform is Right for You?
Use your business model, budget, and goals to choose between them.
Choose Etsy if: You sell handmade, vintage, or craft items that fit Etsy’s core audience. You want to start fast with minimal setup and no monthly platform fee. You are testing a product idea or running a small side hustle.
Choose Shopify if: You want to build a recognizable brand under your own domain. You plan to scale to high revenue, multiple channels, or international markets. You need advanced features, apps, and control over design, data, and customer experience.
In simple terms, Etsy is best for quick validation and niche handmade products, while Shopify is worth it for long‑term brand building and growth.
You do not have to choose any one platform forever. You can use both. Start with Etsy and then move to Shopify.
You can run Etsy and Shopify together as well. Etsy continues to bring marketplace traffic, while Shopify becomes your central hub for brand storytelling, email marketing, and repeat customers.
When your catalog and audience grow, you can migrate products from Etsy to Shopify using import tools or apps. Over time, your Shopify store can take the lead role, with Etsy acting as an additional sales channel rather than your main platform.
Which platform is actually best? It depends on your business needs. But if you ask us, Shopify is the better choice if you want a scalable, brand‑focused eCommerce setup.
If you are not in a hurry, beginners can start with Etsy. Use the first 6–12 months to validate products and the eCommerce business model. If it works, move to Shopify.
For growing sellers and entrepreneurs, you have already proven demand. Etsy fees will eat your margins, and you will definitely want more control over time. Build a Shopify store and keep selling on Etsy while you establish your own presence. Gradually shift your focus.
The honest answer is that Etsy and Shopify aren’t competitors. They are just different solutions. Etsy is made for sellers who want quick access to buyers, and Shopify is for people who want to own their business.
In 2026, successful sellers often use both. They start on Etsy, create their own store on Shopify, and never look back.
FAQs
Q1. Is it cheaper to sell on Etsy or Shopify?
For sales below $1,000/month, Etsy is cheaper. For amounts above $1,000/month, the Shopify subscription model and lower percentage fees make it the better choice. The exact selection point depends on your average order value and sales frequency.
Q2. Do I need a business license for either?
Legally, yes. Most jurisdictions require a business license for any sales activity, even small ones. Both Etsy and Shopify support registered businesses. Check your local regulations.
Q3. Which is better for digital products?
You can build anything on Shopify. Etsy is made for physical goods. Shopify handles digital delivery, licensing, and customer satisfaction better. If you sell printables, ebooks, templates, or software, Shopify is clearly a better choice.
Q4. What does the Reddit community say about Etsy vs Shopify?
Redditors discussing Shopify vs. Etsy have strong opinions. Etsy sellers love the built-in audience but hate rising fees. Shopify users praise the control but acknowledge the learning curve and marketing effort required.
