Ideal for building and scaling your own online store with full control.
Best for handmade, vintage, and unique items with an established marketplace.
Features
Customizable store design, integrated payment processing, marketing tools, and SEO features.
Built-in marketplace, simple storefront setup, payment processing, and community features.
Pricing
Starts at $25/month for the Basic Plan.
No monthly fee, but charges listing fees ($0.20/item) and transaction fees.
Templates
Offers a wide range of customizable themes and templates.
Pre-designed templates with limited customization options.
Location of Data Centers
U.S., Europe, and Asia-based data centers for global reach.
U.S.-based data centers, but primarily focused on the U.S. and global marketplace.
Being an online seller is the trending and easiest way of generating extra income. You can either sell your products through your e-commerce website or make use of online marketplaces for the same.
Should I sell through my website or use a marketplace?
Many people choose to sell through their e-commerce store because these stores give them full control over how the website looks and how product variants appear.
Many people also use marketplaces as they can easily sell their products by setting up an online store without having to build and maintain a complete website.
Shopify is a great platform for building an e-commerce website, and Etsy is a popular marketplace for selling products online.
Through this blog, let us compare Shopify and Etsy and check which is the better option. This comparison will also help us determine whether one can replace the other.
Shopify vs Etsy Comparison 2025: The Ultimate Comparison
What Is Shopify?
Shopify is a great online platform that helps you build your own eCommerce website. It is one of the best e-commerce building platforms in India.
Founded by Tobias Lütke and Scott Lake in 2004, Shopify is now one of the largest e-commerce platforms worldwide.
Shopify offers a wide range of tools to help you launch and run your business online. It helps you find your customers, keep track of your sales, and manage your daily business.
Shopify is a great place to start your business as it helps you run and grow it. It has a great App Store and helps you build your business through many marketplaces.
Shopify also offers expert help if you need guidance on launching and running your business.
What can you sell on Shopify?
You can easily sell all types of products on Shopify. Shopify lets you sell both physical and digital products.
This is a great feature, as digital products are also very popular, and a single platform for selling both is preferable to everyone.
Etsy is an online marketplace that allows seller to sell their products online. Founded in the year 2005 by Haim Schoppik and Chris Maguire,
Etsy is used by over 1.75 million sellers worldwide. It is also used by over 33 million buyers across the globe.
Etsy helps you sell your products directly to customers through its marketplace, so customers don’t need to visit your store first to complete the transaction.
Etsy helps you reach your potential customers and promote your product. It is also a very useful tool when we talk about the ease of selling and the user-friendliness of an online selling tool.
What can you sell on Etsy?
Through Etsy, many people from different parts of the world purchase a variety of products. As Etsy is a marketplace, the types of products that can be sold on Etsy are very limited.
You can easily sell handmade and crafted products to your customers. You can even sell Vintage products that are at least 20 years old on Etsy.
Comparing the features of Shopify and Etsy will help us gain a better understanding of the features provided by each platform. Let us have a look at the different features Shopify and Etsy provide.
Shopify Features:
1. Ease of use: Shopify has a more structured approach to building and maintaining your website. It has separate dashboards for the editing interface and the general dashboard.
It has a very simple website that offers great visuals and makes navigation much easier. It uses simple language to help the customer better understand.
2. Templates: Shopify has 10 free-themed templates with two or three variants for each template.
You can also choose a premium theme from more than 50 options, but you will have to pay additional charges to use them. All these themes are very professional and contemporary in terms of their design.
3. Customization: While using Shopify for customization, you require knowledge of coding. You can easily click the edit HTML/CSS option and start coding to meet your customization needs.
4. Products: Shopify allows you to make use of 3 product options and 100 variations. Additional products and variations can be added using Shopify apps. You also need to download specific apps to sell digital products on Shopify.
5. Multiple currencies: Shopify has a multi-currency payment functionality option that helps you to sell your products according to various currencies.
Some templates have inbuilt multi-currency features that enable you to sell the product according to the local currency, and they also have various multi-currency applications that help you sell in local currency and also enable the user to check the price in a different currency.
6. Payment Gateways: Shopify has over 100 payment gateways, but currently does not include Square. It enables users to customize their pages and include charity donations.
You might have to pay additional fees if you choose a payment gateway other than Shopify Gateway.
7. POS: Shopify POS is available in many countries all over the globe. POS is a key feature of Shopify, as it offers dedicated POS reporting, POS hardware store, and POS support.
8. Shipping: Shopify helps you to use the dropshipping feature easily and connects you to various dropshipping companies throughout the world.
It also allows various flexible shipping options for its users. Its dropshipping feature lets you place the order with your supplier, who can then ship the product to the customer.
9. Abandoned Cart Recovery: Shopify’s abandoned cart recovery function allows you to send a single notification through email to your customers regarding the product in the cart, usually with some additional discounts to ensure a complete transaction.
10. Tax: Users using Shopify Plus plans can make use of the Avalara tax application, which easily calculates all your taxes and automates the entire tax filing process.
Shopify offers a better, more automated approach to tax calculation, freeing up your time by handling all the calculations and giving it an edge over Squarespace.
11. Inventory Management: Shopify has a great inventory management system that enables users to manage the inventory easily, even for large businesses.
You can easily upload single or multiple products using the tools, manage stock, and generate revenue reports for your sales.
12. SEO: Shopify has the feature of adding metadata and editing titles. It also helps customize your URL and attach alt text to your images.
13. Analytics: Shopify has a great feature to track the performance of your product, monitor who visits your store, and get insights on the stock analysis.
You can easily integrate with Google Analytics and get more data for a comprehensive website analysis.
1. Ease of Use: Etsy is also very easy to use and follows a very straightforward approach to set things up. You do not need to be a coder or programmer to start using Etsy. All you need is to create your store, add products, and start selling.
2. Themes and Design: Etsy has its own design and theme layout. Once you start using Etsy, the store will automatically adjust to the design and layout Etsy offers. You do not have to worry, as all the designs offered on Etsy are very simple and classic, making it easy for users to navigate your website.
3. Customization: Etsy doesn’t have a very flexible customization approach. It has very limited options for customizing your store.
Using Etsy’s customizations is very easy for small businesses. Still, if you have a large business and want to make your website highly attractive through various customization options, Etsy does not offer enough scope to do so.
4. Domain name: Etsy can not be used on your own domain as it is a marketplace. You can add your store to it easily. If you wish to use Etsy on your domain, you need to integrate with the Etsy Pattern Builder tool to achieve this.
5. Fees: Etsy does not charge any monthly fees, but it charges some listing fees along with transaction fees. This does not create a problem for small-scale businesses, but big businesses do not prefer it.
6. Payment options: Etsy accepts payment through all the major Payment options used widely all around the world.
Payment processing through Etsy also costs you some money, but the payment processing companies, like the credit card companies, generally provide this. It uses PayPal to process payments.
7. Attracting Customers: Etsy is very helpful in attracting potential customers to your product.
People can find your product directly on Etsy without first locating your store and then finding it. This simple technique helps customers find your product easily.
8. Help and Support: Etsy offers great help and support for all its users. You can easily find answers to your questions in the help center.
9. Forum: Etsy also has its community forum and groups where you can easily discuss and troubleshoot all your problems. If you are unable to find the answers you need, you can contact their support team, which is always ready to help.
Pricing plays an important role when choosing any platform for our use. Knowing the pricing plans for the platforms and comparing their features is a must to ensure the money we invest is well spent.
Let us look at the pricing plans for Shopify and Etsy and see how much each costs.
Shopify Pricing:
Shopify offers flexible pricing options to cater to businesses of all sizes, from startups to large enterprises.
1. Basic Shopify – $25/Month
Best for small businesses starting online.
Key Features:
Online store and sales channels.
Free SSL certificate for secure transactions.
Discount codes to incentivize customers.
2 staff accounts for managing operations.
24/7 customer support.
2. Shopify Plan – $65/Month
Ideal for growing businesses with increasing sales.
Key Features:
Everything in Basic Shopify.
Professional reports for data insights.
Gift cards to drive customer loyalty.
Up to 5 staff accounts for team collaboration.
3. Advanced Shopify – $399/Month
Designed for scaling businesses needing advanced tools.
Key Features:
Everything in the Shopify Plan.
Advanced report builder for customized analytics.
Real-time shipping rate calculations.
Up to 15 staff accounts for large teams.
4. Shopify Lite – $9/Month
Best for businesses that want to integrate Shopify tools into an existing website or social media.
Key Features:
Includes “Buy Button” to add e-commerce functionality.
No standalone online store.
5. Shopify Plus – Starting at $2,300/Month
Tailored for enterprise-level businesses with high sales volumes.
Key Features:
Advanced customization options for branding.
Dedicated account management and support.
High-volume sales capacity with faster checkout options.
Let us have a look at the various pricing plans offered by Etsy. Etsy has two plans for all its users.
1. Etsy Standard Plan: Through this plan, you do not have to pay any monthly charges to use Etsy.
It charges $0.20 as listing fees for your products for 4 months or until the product is sold.
You also have to pay a 5% transaction fee to use PayPal. This fee is charged for each transaction as a processing fee for using PayPal.
You also have to pay 15% fees for off-site Ads if you want to use the Ads feature offered by Etsy to help your customers reach your product and enhance your sales. This feature is optional for many customers and depends on the number of products you sell.
2. Etsy Plus Plan: This plan will cost you an additional fee of $10 per month. This plan offers additional features beyond those in the standard Etsy Plan.
This plan helps you to customize your store by providing additional tools.
It helps you to inform your customers when your items are back in stock.
You can save up to 50% on a custom address made for your store for a year.
You get 15 listing credits for your product.
You also get $5 bonus credits for advertising your products.
Key Considerations for Choosing Between Shopify and Etsy
1. If you’re selling handmade, vintage, or unique items, Etsy might be more suitable. For a broader range of products, Shopify is more flexible.
2. Shopify is better for scaling a business, while Etsy is ideal for hobbyists or small-scale sellers.
3. Shopify offers more control over your store’s design and customer experience.
4. Shopify requires you to take charge of your marketing and SEO, while Etsy provides a built-in audience but with less control over branding and visibility.
5. Consider the different fee structures. Etsy’s fees are per-listing and transaction-based, while Shopify requires a monthly subscription plus additional costs for apps and themes.
Ultimately, the choice between Shopify and Etsy depends on your specific products, business goals, and preferences in terms of control, marketing, and costs.
Some businesses even choose to use both platforms to maximize their reach and capitalize on the unique advantages of each.
Shopify vs Etsy: Payment Options
Shopify offers more flexibility and control over payment options, catering to a wider range of business needs and customer preferences.
Etsy, meanwhile, provides a more streamlined and unified payment process, which can be simpler for sellers but offers less customization and choice.
Your decision between the two will depend on your specific business needs, your target market, and how much control you want over the payment process.
The Biggest Difference Between Shopify and Etsy
The biggest difference is that Shopify offers you a platform to create an independent online store with greater control and customization. Still, it requires more effort in marketing and customer acquisition.
Etsy, on the other hand, is a marketplace that provides ease of entry and a built-in audience, but with more limitations on what can be sold and how your shop is presented.
Your choice between Shopify and Etsy should be based on your business goals, the nature of your products, and your willingness to invest in marketing and brand development.
Shopify vs Etsy: Who Should Use Them?
Based on the features offered by Shopify and Etsy, here are some recommendations for users. Please have a look at them and determine whether you are the correct user and which tool is best for you.
Who Choose Shopify?
Shopify is an ideal solution for anyone who is looking to set up their online store from scratch. This is also used by big businesses to bring their business and establish their online presence.
Shopify is also suitable for emerging businesses who want to establish their e-commerce store and become online sellers.
Shopify is easy to use, secure, and highly reliable platform. It has all the tools required to increase your sales and make your business successful.
It is a widely used tool by people all around the world and is highly appreciated for the success of the business through it.
Shopify is a great tool for anyone who wants to build their website and start their e-commerce business.
Anyone who wishes to start selling online and make money through their website has a wider range of audience, and likes to be creative with their website is an ideal user of Shopify.
Who Choose Etsy?
Etsy is used by millions of people across the globe as their favorite selling marketplace. It helps you reach a wide range of potential customers easily.
If you are a beginner who wishes to start selling online without a website, you can easily choose to start selling your products on Etsy.
Etsy is usually preferred by small businesses. It’s easy and simple design works great with small-scale businesses and new enterprises.
So, Etsy is a great tool for beginners who wish to start selling their products online through this huge marketplace.
Shopify vs Etsy: Pros and Cons
Shopify
Pros:
It provides a wide range of themes and flexibility.
It provides more apps and integrations.
It is good for both big and small businesses.
It can be said to be the best e-commerce platform.
You can easily sell unlimited products with unlimited variations.
It also offers multi-channel selling across various social media platforms.
Cons:
You have to use third-party applications to sell digital products.
It is a bit costlier than other platforms.
It charges transaction fees if you do not use Shopify Payments.
Etsy
Pros:
It is a very user-friendly platform and easy to use for new users.
It helps you attract more customers to your products and, hence, brings more traffic to your business.
The cost of using Etsy is also very low compared to other similar tools
Cons:
There are some restrictions on the type of products that can be added to Etsy.
You have to pay a very high transaction fee, up to 5% of the product cost.
FAQs
How can I create my shop on Etsy?
Creating a shop is very easy, you just have to create your Etsy account, set your shop, set your currency, add products and you are ready to sell your products.
How do I get paid on Etsy?
Payments on Etsy are usually carried out through PayPal accounts. It is usually advised to use your PayPal business account for the same.
Can I use my domain name with Shopify?
Yes, you can use your domain name with Shopify and you can also buy a new domain name from Shopify.
Can I use Shopify for free?
Yes, you can use Shopify for free. Shopify offers a 14 days free trial which can easily be started without any payment
Do I need a credit or debit card to create my store on Etsy?
No, you do not need a credit or debit card. To become a verified seller on Etsy you need to have either a credit card or a registered papal account to start selling.
We have looked at the features, pricing, and pros and cons of Shopify and Etsy. I hope this blog has helped you gain a clear understanding of both platforms and that you can now make your decision.
Selling on a marketplace and on a website both have their advantages. When you sell on your website, you can customize it to improve performance.
Selling your product on a well-established marketplace is better for those who do not wish to invest time in managing a full website.
So, we can say that though Shopify and Etsy are unique in their own ways, neither can replace the other. You can easily decide which tool to use for selling online based on your requirements.
Hi, I’m Anikesh Singh, and I’ve spent more than 8 years mastering WordPress, page builders, and plugins. Now, I’m sharing my know-how through Education and WordPress tutorials on SchemaNinja.com. With experience at Yourstory, Bloggerideas, and Tweak Your Biz, I love offering practical tips to build awesome websites since 2018. When I’m not writing, I’m traveling or buried in a book. Catch my latest insights on LinkedIn or Twitter!