If you’re building a web-based store, Shopify and Etsy are two greatest brands that you simply’ll encounter. However a frequent question which i get is – Shopify or Etsy? What’s the main difference and how do you choose what to begin with?
The main difference is rather straightforward.
Etsy is really a industry for hand crafted, vintage and artisanal products (here’s my help guide to establishing Etsy).
Shopify is really a located ecommerce platform. An ecommerce platform enables you to setup and run a web-based store by yourself domain when they take proper care of the technical parts & customer care (here’s my Shopify review).
Quite simply, Etsy is really a marketplace where one can come with an account. Shopify is software that creates a store for you personally.
When they had physical world equivalents, Etsy will be a local player’s market enabling you to generate a stall.
Shopify will be a shopping mall owner allowing you to build your own store at the own address.
However that still doesn’t tackle the issue behind the issue – so let’s consider the greatest variations & factors so that you can decide between Shopify or Etsy (or both!).
These variations will reveal Shopify versus. Etsy particularly – but they may also be relevant to what other to Shopify, whether or not this’s WooCommerce, BigCommerce varieties.
Bear in mind that all of these are variations/factors – they’re not pros & cons. All things have a tradeoff that could be a bad or good factor for you personally based on your objectives, sources and priorities.
Disclosure – I receive referral charges from companies pointed out on this website. All data and opinion is dependant on my experience like a having to pay customer or consultant to some having to pay customer.
Variations Between Shopify & Etsy
Domain & Setup
Around the web has altered previously twenty five years, the URL (also known as website name) continues to be the foundation. Wherever your product or service are – there is a URL.
If you’re on Shopify, you receive a temporary URL at signup formatted as – yoursite.myshopify.com
However, it’s intended to be temporary. Shopify assists you to setup your personal custom domain and URL structure (no matter where you purchased it from). You can’t have only yourstore.com however, you also see whether you’ve yourstore.com/footwear/question-shoe or yourstore.com/footwear/question-shoe.
With Shopify, you might also need to really setup your store. They’ve default settings, however, you can personalize everything.
 
With Etsy’s primary service, you receive an etsy.com/shop/YourStore domain. You don’t have your personal domain or URL structure. It’s decidedly an Etsy Shop.
Quite simply, customers begin to see the difference as “this is Nate’s Etsy shop” versus. “this is Nate’s website.”
Etsy comes with reasonably limited service known as Patterns that enables you to definitely connect a custom domain. However, you may still find the URL structure and setup limitations – which really segues into the newest difference.
Branding & Design
On Shopify, you have the effect of establishing your personal design. Shopify includes a large assortment of free and premium “themes” that you could select and install having a click. If you prefer a custom web design – it can be done do. Shopify’s styles generate HTML/CSS so that you can have design you are able to envision.
There’s really no such factor like a “Shopify site” since Shopify enables you to definitely implement any design as opposed to a standardized design.
On Etsy, you’ve got a global Etsy shop design. You may choose your colors and type products to some degree, but all personalization is at Etsy’s parameters. There’s some room to build up your personal branding using the emblem, layout, etc – however, all within Etsy’s tight parameters. It goes using the Patterns product too. You are able to personalize – within limitations.
If a person is browsing Etsy plus they find your shop, it will likely be apparent that they’re still on Etsy – not really a separate website.
To reiterate – this difference is not a professional or disadvantage for either. There are plenty of benefits to customizing a precise page on Etsy. Customers understand the look and don’t need to “learn” your site. Etsy are able to afford to review how people browse and purchase – and implement individuals changes globally so you have more sales.
Around the switch side, there is also “stuck” building another person’s brand (also known as Etsy’s) instead of your personal. You don’t obtain the lengthy-term advantages of independence.
Later, we’ll take a look at using Etsy with Shopify, but let’s continue searching at variations to think about when beginning out.
Charges & Prices
With Shopify, you have to pay a charge monthly beginning at $29/mo. The charge includes hosting and support. The plans are tiered out according to tk-info.
You don’t pay transaction charges to Shopify outdoors of charge card processing charges.
With Etsy, a free account & storefront have the freedom. You have to pay $.20 to list out products for purchase and pay a 3.5% transaction fee per purchase plus charge card charges. Adding a Patterns site w/ a custom domain adds a $15/mo fee.
Take a look at Shopify’s Prices Page here.
Take a look at Etsy’s Register page here.
If you’re just getting began – Etsy’s free tag makes lots of sense. But because you increase sales, the transaction charges can reduce into profitability. Actually, based on your plan & income, Shopify can really be less expensive than Etsy.
In either case, Etsy is structured just like a marketplace whereas Shopify is structured like something that you’re having to pay for each month.
Traffic Sources
With Shopify, you have the effect of driving visitors to your website. You need to develop a highly effective ecommerce marketing strategy and execute onto it. Shopify provides an array of features and apps which make execution simpler than you are on some platforms (ie, very Search engine optimization-friendly structure, e-mail marketing apps, etc). But Shopify doesn’t positively get visitors and send them you to your website.
With Etsy, they advertise and produce in people to industry additionally to the visitors that you simply bring straight to your Etsy shop. Actually, many purchasers start their explore Etsy to have an Etsy shop. They’re pre-offered on purchasing from an Etsy shop – you can simply have what they need.
Returning to the physical world example – an Etsy shop is sort of a stall in a player’s market. Sure, some customers may be coming to talk to your stall. But many customers arrived at the player’s market because they already know that and trust the maqui berry farmers market as an excellent place – and study your stall consequently.
Whereas having a stand-alone store, you need to get out there and advertise your store and produce individuals to your store to look. The owner may take proper care of the parking area, plumbing, electricity, security, and outside signs – they also aren’t spending their cash marketing your store.
Rules & Limitations
With Shopify, marketing essentially anything you want, susceptible to the local laws and regulations and Shopify’s tos (ie, no illegal substances, content or objects). Marketing your personal stuff as well as list complementary manufactured products. It’s your store that you could run according to your company goals.
With Etsy, you’re susceptible to their marketplace rules, which presently limit products to hand crafted, vintage and artisanal goods. If you wish to mix-sell or up-sell complementary manufactured products – you’re at a complete loss.
And such as the design limitations, you’re restricted to the way you list and offer your product or service. Etsy includes a specific process for listing products. There’s no altering or opting out.
Inventory & Payment Processing
With Shopify, you’ve got a full inventory management system that syncs together with your customers and orders. Shopify also offers their very own payment processing service and point-of-purchase service, so that you can sync your offline sales together with your inventory on Shopify.
Etsy, again, is really a marketplace, not really a platform. You list products for purchase (and pay per listing) but you need to maintain inventory records elsewhere. You will find third party apps that may tie Etsy sales to inventory however the management is going to be using the third party application – not built-into Etsy.
Using Etsy with Shopify
For those who have a couple of products to market and wish to simply get began free of charge – Etsy is generally a great start. But as you have seen in the variations/factors, most shops will need to intend to change because they grow.
But here’s the factor – it doesn’t need to be an either/or choice between Shopify and Etsy. Actually, a typical growth path for stores goes such as this –
- List a few products on Etsy
- As sales increase, create a web-based store on Shopify
- Maintain inventory and drive repeat customers on Shopify
- Maintain Etsy like a marketing funnel with simply best selling products listed
- Use a third party application to mix list and sync inventory
If your perception by doing this – Etsy is only a marketing funnel which will make sales as opposed to a funnel that drives sales aimed at your website. It’s within the same class as Amazon . com, eBay yet others.
So within the finish, Shopify versus. Etsy isn’t an option to create. Rather, it’s a method to consider your priority based on what phase your company is in.
Next Steps
For those who have a couple of products and simply need to obtain a couple of sales to check the waters – then begin with Etsy.
If you wish to commence with your personal store that you simply own and control then checkout Shopify’s free trial offer here.
But bear in mind it’s not necessarily either/or – it’s about priorities.
Related Sources
- How You Can Sell & Succeed on Etsy
- Shopify Review w/ Pros & Cons versus. Alternatives.
- Building an ecommerce website with WordPress & WooCommerce.
- Buzzfeed style quiz on selecting the very best ecommerce platform.
- Building an Ecommerce Marketing Strategy.
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