Etsy vs. Shopify: Which One Is Best for Your Handmade Business?
May 12, 2025
If you're a maker or small business owner selling custom products, you've probably wondered: should I stick with Etsy or build my own website on Shopify? Both platforms are incredibly popular—but they offer two totally different experiences.
Whether you're just starting out or thinking about scaling your brand, this post will walk you through the key differences between Etsy and Shopify—so you can feel confident in your next move.
Let’s start with what each platform actually is.
Etsy: The Community Marketplace
Etsy is like a giant online craft fair. It’s a curated marketplace built for handmade, vintage, and custom goods. You can sign up quickly, list your products in minutes, and start tapping into an audience of 90+ million buyers who are already looking for unique items.
Shopify: Your Own Branded Website
Shopify is like renting your own retail space on the internet. You build your site from scratch (with helpful templates), set your branding, and take full control of how your business looks and operates. There’s no shared marketplace—you bring the customers in.
| Feature | Etsy | Shopify |
|---|---|---|
| Platform Type | Marketplace for handmade/vintage items | Custom online storefront |
| Audience Access | Built-in traffic (90M+ buyers) | You drive your own traffic |
| Monthly Cost | Free to start; 20¢ per listing | Starts at $39/month |
| Transaction Fees | 6.5% + 3% payment processing | 0%–2% depending on payment provider |
| Customization | Minimal | High – full control over branding & layout |
| Marketing Tools | Limited – some Etsy ads and coupons | Robust – email, SEO, apps, abandoned cart |
| Customer Data | Limited access | Full ownership |
| Best For... | Getting started & discovering new customers | Scaling, building a brand, customer retention |
🧠 Pro Tip: If you’re starting to scale and want full control over your customer experience, Shopify may offer better long-term growth
Fees in Detail
Let’s break this down with a real-world example: Imagine you sell a $40 product.
On Etsy:
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$0.20 listing fee
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6.5% transaction fee = $2.60
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3% + $0.25 payment processing = $1.45
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You keep: $35.75 (before material/shipping costs)
On Shopify:
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Monthly fee: $39
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Transaction fee (Shopify Payments): $1.45 (2.9% + $0.30)
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You keep: $38.55 (before material/shipping costs)
Over time, Etsy fees add up. If you're selling at higher volumes, Shopify often becomes more profitable—even with the monthly fee.
Marketing & Visibility Breakdown
Here’s where many makers get stuck: marketing.
Etsy:
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✅ Search engine built in
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❌ You rely on Etsy to show your listings
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❌ Can’t retarget your customers easily
Shopify:
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✅ You own your customer list
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✅ Can use email, Pinterest, SEO, and Instagram ads
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❌ No built-in traffic—you need a strategy
If marketing overwhelms you, start on Etsy. If you’re already building an audience (or using tools like My Social Companion!), Shopify gives you more power.
What It’s Like to Sell on Etsy
Selling on Etsy feels like renting a booth at a busy artisan market. It’s simple, it’s searchable, and there’s already foot traffic.
But the downside? You’re surrounded by similar sellers, and Etsy controls the rules. Fee increases, search algorithm changes, and customer data restrictions can make it hard to scale or feel like your own.
What It’s Like to Sell on Shopify
With Shopify, you’re in the driver’s seat. You can build a site that feels like you, design the shopping experience, and own your customer relationships. Want to send abandoned cart emails? Done. Want to sell wholesale later? No problem.
Of course, it’s more work upfront—and you’ll need a marketing plan to drive traffic—but many sellers say it’s worth it for the flexibility and growth potential.
Should You Use Both?
Many smart makers use both platforms strategically.
👉 Etsy for discovery and new customer traffic
👉 Shopify for brand control, email lists, and repeat business
Think of Etsy as your open house, and Shopify as your forever home.
| Platform | Pros | Cons |
|---|---|---|
| Etsy |
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| Shopify |
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Storytime: One Seller’s Path
"When I first started selling personalized ornaments, I launched on Etsy because it felt easy. But once I had over 100 orders in a month, the fees really added up—and I had no way to connect with past customers. That’s when I moved to Shopify, and it completely changed how I run my business.
Even if you don’t have a personal story to share, a hypothetical example can build trust and increase time-on-page."
Ultimately, your choice comes down to how you want to run your business:
✅ Want low maintenance and fast setup? Start with Etsy.
🚀 Ready to build a brand and scale long-term? Shopify is your best bet.
💡 Want both? Use Etsy as a traffic funnel and point people to your own site for more.
Still not sure which path to take? That’s okay. You can start where you are—and evolve as your business grows.