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Starting an online business means choosing the right platform, and Shopify and Etsy are two of the most popular options. However, they serve very different purposes. Etsy is a marketplace where buyers come to browse, while Shopify lets you build your own standalone store. This comparison covers fees, customisation, audience, and more to help you decide which one fits your business model.
Quick Comparison
| Feature | Shopify | Etsy |
|---|---|---|
| Type | Standalone store builder | Online marketplace |
| Monthly Fee | From $39/mo | Free to list (fees per sale) |
| Transaction Fee | 0% (Shopify Payments) | 6.5% transaction fee |
| Listing Fee | None | $0.20 per listing |
| Customisation | Full control | Limited |
| Built-in Audience | No (drive your own traffic) | Yes (millions of buyers) |
| Custom Domain | Yes | Etsy subdomain |
| Best For | Brand builders | Handmade/vintage sellers |
Fees and Pricing Structure
Etsy charges no monthly subscription for a basic shop but takes a $0.20 listing fee per item plus a 6.5% transaction fee on each sale, plus payment processing fees. These costs add up quickly as your volume grows. Shopify charges a monthly subscription starting at $39 but offers 0% transaction fees when you use Shopify Payments, with competitive credit card processing rates. For sellers doing significant volume, Shopify often works out cheaper despite the monthly fee. Use our Pricing Calculator to estimate your costs on each platform.
Customisation and Branding
Shopify gives you complete control over your store's look and feel. You can choose from thousands of themes, customise layouts, use your own domain, and build a fully branded shopping experience. Etsy, by contrast, limits sellers to a standard shop layout with minimal customisation options. Your products appear alongside competitors, and your branding is secondary to the Etsy marketplace brand. If building a recognisable brand is important to your long-term strategy, Shopify is the clear winner.
Audience and Traffic
Etsy's biggest advantage is its built-in audience. Millions of buyers visit Etsy specifically to discover unique, handmade, and vintage products. New sellers can get sales without spending on advertising. Shopify stores start with zero traffic — you need to drive visitors through SEO, social media, paid ads, or email marketing. This makes Etsy easier for beginners but creates a dependency on the marketplace. Shopify requires more effort upfront but gives you ownership of your customer relationships.
Shipping and Fulfilment
Both platforms offer shipping label printing and calculated shipping rates. Shopify integrates with a wider range of fulfilment services, including its own Shopify Fulfillment Network, and supports advanced shipping rules for complex businesses. Etsy provides simpler shipping tools that work well for individual sellers shipping items themselves. Use our Shipping Calculator to estimate costs for your products on either platform.
Who Should Choose Shopify?
Shopify is the right choice for sellers who want to build a standalone brand, need full customisation, and are prepared to invest in driving their own traffic. It suits businesses that are scaling, selling across multiple channels, or need advanced features like inventory management, discount codes, and detailed analytics.
Who Should Choose Etsy?
Etsy is ideal for makers, artisans, and vintage sellers who want to start selling quickly with minimal upfront investment. If your products fit the handmade, vintage, or craft supply categories and you want access to a built-in audience of millions, Etsy gets you to market fast without the complexity of running your own store.
Related Tools & Further Reading
- Pricing Calculator — calculate your ideal selling price factoring in platform fees
- Shipping Calculator — estimate shipping costs for your products
- Shopify vs WooCommerce — compare Shopify with another popular store platform
Conclusion
Shopify and Etsy are not direct competitors — they solve different problems. Etsy excels as a low-barrier marketplace for niche and handmade sellers who want instant access to buyers. Shopify excels as a full-featured store builder for sellers who want brand control and scalability. Many successful sellers actually use both, starting on Etsy for discovery and building a Shopify store for long-term growth.
Ready to Start Your Store?
Shopify makes it easy to build and scale your e-commerce business
Start Your Free Shopify Trial →14-day free trial • No credit card required