Etsy vs Shopify: Which Platform Is Better for Your Online Business?

Starting an online business often begins with a single question—where should you sell your products? Two names frequently stand out: Etsy and Shopify. Both platforms offer unique advantages, and both attract millions of sellers worldwide. Choosing between the two requires a clear understanding of what each platform offers and how it fits your business model.

Written by

Redaction Team
April 10, 2025
Digital Marketing, Shopify

Etsy: A Marketplace for Handmade and Vintage Products

Etsy is a marketplace that attracts millions of buyers looking specifically for handmade, vintage, or craft supplies. It’s known for its built-in traffic, niche audience, and ease of use, which makes it ideal for beginners looking to start selling online without building a full website.

Etsy Shop Setup and Features

Creating an Etsy shop is relatively straightforward. Sellers can quickly upload Etsy listings, add descriptions, and set prices. Etsy also provides an intuitive dashboard for managing sales, communicating with buyers, and analyzing shop performance. Unlike building your own site, there’s no need for coding or design skills.

One of Etsy’s key strengths is its search engine. Etsy SEO plays a crucial role in your shop’s visibility. Optimized titles, tags, and descriptions can help your Etsy listings rank higher in Etsy search results. If you master these tools, you’re more likely to attract the right Etsy customers.

Costs and Fees on Etsy

Though starting is easy, Etsy takes a cut of your revenue. Sellers need to pay a listing fee of $0.20 per item and a transaction fee of 6.5% per sale. There are also fees for Etsy payments, Etsy offsite ads, and optional upgrades like Etsy Plus.

If you’re concerned about increasing Etsy seller fees, this is something to watch. The more you sell, the more you’ll pay in fees. These costs can add up quickly, particularly for business owners with high-volume Etsy sales.

Etsy’s Audience and Limitations

One of the platform’s biggest advantages is that Etsy attracts buyers who are actively looking for handmade products and unique items. That kind of niche traffic is difficult to build from scratch.

However, Etsy is a marketplace, which means you’re one of many sellers competing in the same space. Branding is limited—your shop looks like every other Etsy store. Unlike Etsy, platforms like Shopify allow full customization and ownership over your branding and customer experience.

Shopify: A Complete Ecommerce Platform for Growing Brands

Shopify is a platform built specifically for ecommerce. It enables entrepreneurs to create a fully customized online store and manage every aspect of their business selling products—from inventory to marketing.

Building Your Shopify Store

When you use Shopify, you start by choosing a theme, customizing it to reflect your brand, and uploading your products. You can add unlimited items, optimize for mobile, and even integrate powerful marketing tools.

Your Shopify store is completely yours. There’s no competition from other sellers on the same domain, and you have full control over your design, navigation, and SEO strategy. Many successful entrepreneurs find that Shopify is great for building a long-term business.

With Shopify Editions, the platform regularly rolls out new features for businesses to scale efficiently. It also supports multiple sales channels—including social media, marketplaces, and POS systems—which can dramatically expand your reach.

Shopify Pricing and Fees

Unlike Etsy, Shopify has a monthly subscription fee. Pricing starts at $39/month for the Basic plan, and can scale depending on your needs. While this upfront cost may seem steep compared to Etsy, it offers lower transaction fees, especially if you use Shopify Payments.

Shopify’s pricing model is more predictable. There are no listing fees, and sellers don’t need to worry about extra charges for every product added. This makes it easier to calculate profits using a Shopify calculator or similar tools.

Shopify Offers More Freedom for Brand-Building

Shopify offers unmatched flexibility for sellers who want to build a branded experience. You can run an online store that looks and feels unique—no more being restricted to a standard Etsy website layout.

The platform is ideal for those planning to grow a recognizable brand, launch email campaigns, use advanced SEO techniques, or integrate third-party apps. Business owners can install tools to improve customer loyalty, automate tasks, or run flash sales.

If you’re planning to sell on Shopify, it’s particularly beneficial for businesses with a broad range of products you sell, a need for scalable infrastructure, or a desire to stand out from competitors.

Comparing Etsy vs Shopify: Pros and Cons

Etsy Pros

Low startup barrier
Built-in buyer traffic
Great for testing products
Strong niche market for handmade and vintage items

Etsy Cons

Etsy takes higher transaction fees
Limited branding options
Competition within the Etsy marketplace
Reliance on Etsy’s search algorithm and policy changes

Shopify Pros

Fully customizable online store
No listing fee for products
Scalable with apps, automation, and integrations
Better suited for branding and marketing

Shopify Cons

Shopify has a monthly fee
Requires more effort to generate traffic
Slight learning curve for beginners

Is Selling on Etsy Worth It in 2025?

For hobbyists and creators of handmade products, selling on Etsy may still be a great place to start. The question of whether Etsy is worth it in 2025 depends on your goals. If you want to test a product or tap into an existing audience quickly, Etsy provides that gateway.

However, Etsy charges may eat into your profits. And with increasing Etsy seller fees, many are beginning to question the platform’s long-term viability. Add to that the need for visibility in a crowded Etsy search, and some sellers may feel restricted.

Why Many Sellers Migrate from Etsy to Shopify

As sellers grow, many decide to migrate from Etsy to Shopify. The reasons vary—some seek better control over their business selling, others want to avoid high fees or build a strong brand identity.

Platforms like Shopify offer freedom that Etsy alternatives cannot match. You’re not just setting up shop; you’re building an asset. Your store on Shopify becomes a long-term investment where every click and email sign-up belongs to you—not a third-party marketplace.

Final Thoughts: Etsy vs Shopify—Which One Wins?

The Shopify vs Etsy debate isn’t about which is better overall, but rather which is better for you.

If you’re just starting out, want low-risk exposure, and have a few handmade items to list, use Etsy. It’s easy to run an Etsy business, test product-market fit, and learn about customer preferences.

If you’re ready to grow your business, scale up, and create a lasting brand, it’s time to use Shopify. It offers unmatched flexibility, strong SEO tools, and control over your store’s direction. Whether you’re launching a new Shopify store or already a Shopify partner, the tools are there to help you succeed.

Ultimately, combining both can be a powerful strategy. Run your Etsy shop to capture a niche audience, while using a Shopify store to grow your brand presence. Together, Shopify and Etsy can complement each other—and help you sell online like a pro.

Looking to make the switch? Evaluate the products, goals, and brand vision you have, then choose the platform that truly aligns with your long-term success.