Shopify vs Etsy: Which One Would Suit My eCommerce Business More?

Thanks to platforms like Shopify and Etsy, getting your products seen by a wider audience has never been easier. But, how do you decide between the two? Which one would benefit your burgeoning career better? Here, we examine the pros and cons of both Shopify and Etsy, to help you determine which platform you should choose.

Shopify

Shopify is a cloud-based software shopping cart where you can develop an online store, promote, sell and ship your own products. For a monthly fee, you are given access to an admin panel where you can enter store data, add products and process orders.

Pros

• Easy to use: The Shopify software is incredibly user-friendly. There are set templates that you can choose as your store and once you’ve chosen your template, it’s easy to add products, create discounts and process orders.
• Low start-up cost: Shopify has a relatively low-cost monthly fee, making it an affordable option for a start-up. The basic plan costs $29/month (£23/month).
• Delivery to suit: With Shopify you get to choose the parcel delivery methods that suit you and your products.
• Lots of support options: With Shopify you can access their technical support 24/7. Users can call, live chat or email. There are also self-help options too.

Cons

• Limited functionality: Shopify’s templates are pre-loaded, meaning if your business has some specialist requirements, you may need to purchase additional add-ons. This can end up being costly.
• Transaction fees: Shopify charges between 0.5% and 2.0% on each transaction (depending on your pricing plan).
• Slower customer support: In the past, Shopify was known for its responsive customer support, however, with increasing user numbers, Shopify’s support team has experienced increased strains.

Etsy

Etsy is an online marketplace focused on vintage and handmade products that are difficult to find anywhere else. Think of Etsy as a cross between eBay and a cool craft-fair. With shops selling everything from jewellery and clothing, to art and children’s toys.

Pros

• Large audience: Etsy boasts more than 39 million active users. Because of the specific nature of Etsy e.g. handmade and vintage, users are visiting the site because they are looking for products of this nature.
• Easy to set up and maintain: A basic Etsy shop is free and takes only a matter of minutes. They even have a handy step-by-step guide, as well as a Seller Handbook to answer any questions, including information about legal, delivery costs, and taxes.
• Built-in analytics: Etsy tracks metrics and allows shop owners to monitor product sales, page traffic, visits as well as revenue for each item. This enables businesses to grow.

Cons

• Only sell handmade or vintage: Etsy is strict on what you can and can’t sell. You must fit into one of the categories: craft supplies, handmade or vintage goods (older than 20 years).
• Listing and transaction fees: Etsy charges $0.20 (£0.15) to list an item and takes five percent of your sale (including shipping and gift-wrapping fees) as a transaction fee.
• Saturated market: As Etsy continues to increase in popularity, the number of sellers offering similar types of goods also increases. Unless you sell extremely unique items, you’ll be competing with thousands of others.

As more and more people are looking at becoming self-employed and follow their passion, it’s always worth doing your research to ensure your dreams can become a reality. However, there’s no denying that people are shopping more and more online; you simply have to choose a platform that best represents what you do.