Since the pandemic and quarantine have limited people’s freedom of movement and it is now safer and more convenient for people to shop online for daily necessities, you may be considering opening your own online store. As a result, this is a fantastic commercial opportunity for websites.
If you want to run an online store for your small business, you need to know where your customers are. Certainly, you can sell online; the question is whether you need your own domain and website with Shopify or can get by with selling on a platform like Etsy. Here, you can see that Shopify is an e-commerce platform where you can launch your business independently with your own store, while Etsy is a marketplace where you will compete against a large number of sellers.
Now you may be wondering, “OMG, I don’t know which one to choose, I barely know the two.” There are benefits to both Shopify and Etsy, so it’s a good idea to compare the two.
Comparing Shopify and Etsy: The Fundamentals
Before we jump into the comparison of Shopify and Etsy, let’s have an overview and get to know their basics.
Shopify, which began in Canada in 2006, is now a widely used e-commerce platform. Shopify allows you to launch your own e-commerce website with minimal technical expertise.
It has everything you need to run your shop and expand your brand. It also works with analytical reporting tools and dropshipping apps to help you manage your business’s performance and your orders. While you have complete control over your website, you’ll still need an effective marketing plan if you want to bring in customers.
Etsy, headquartered in San Francisco, California, is an American online marketplace for unique, handmade, or vintage goods and art supplies.
It’s not an e-commerce platform like Shopify, but rather a meeting place for buyers and sellers. Since its inception in 2005, the online marketplace Etsy has amassed a massive user base. You’ll need an account in order to create boxes to display products, just like on Amazon or eBay. You’re limited to selling on Etsy’s platform and subject to the company’s policies, but the platform comes with an established clientele.
Etsy dominates the handmade goods sector. Because of the rarity of mass-produced goods, you can be sure that there will be a demand for your handiwork. Etsy is intended for those who make or sell handmade goods or vintage items, and that much must be made clear. Thus, if you aren’t one of these people, Etsy isn’t for you. Then it’s time to look into some viable alternatives to Etsy.
Which Is Better, Shopify or Etsy, for an Online Store or a Market?
Now that you’re familiar with the basics of each platform, let’s learn more about their unique features.
An Overview of Shopify’s Many Features
Shopify, one of the most robust e-commerce platforms for SMBs, is packed with tools that facilitate the creation, administration, and promotion of online shops.
The domain name comes with access to more than 70 pre-made, mobile-responsive templates.
Once your store is live, you can take advantage of Shopify’s robust store management features, such as the ability to save customers’ personal and billing information, integrate with dropshipping apps like, complete orders with a single click, connect to AliExpress or other platforms, access potent performance analytics tools, and much more.
Shopify also includes robust customer relationship management (CRM) and marketing tools, such as search engine optimization (SEO) capabilities, social media account integration, blogging, and the ability to offer discounts and gift cards to customers.
Overview of Etsy’s Key Functions
Etsy is its own platform, aggregating sellers, whereas Shopify lets you build your own standalone store. The site’s original purpose was to provide a venue for individuals to buy and sell works of art, both new and vintage.
TIP: Etsy is not the place to go if you’re in the business of reselling, though, because that’s not what it’s about.
However, because it’s so simple to open an Etsy store and get started selling through Etsy’s in-built metrics, Etsy is a fantastic option for very small businesses or businesses that aren’t ready now to put in the sweat to set up, manage, and accept payments through a fully developed online store.
Through an online dashboard, sellers on Etsy can manage their shop’s inventory, communicate with customers, purchase stamps, and print out mailing labels. Etsy Payments is the sole payment method for Etsy sellers. Credit cards, debit cards, PayPal, Apple Pay, and Google Pay are all welcome at this internal payment processor.
You won’t have to put in as much effort to bring in customers because of Etsy’s large, preexisting customer base (there were nearly 39.45 million buyers in 2018).
Compare and contrast the benefits of Shopify and Etsy.
Now that you know the major features and differences between Shopify and Etsy, let’s take a quick overview of the pros and cons.
• Great for large stores: Shopify’s powerful back-end editor and impressive inventory system make it a great choice for managing and growing large stores.
• Sales on multiple platforms: It sells on Facebook, Instagram, Amazon, and eBay, among other places.
• Great design: You can choose from many free and paid templates, or make your own from scratch if you can’t find the right one.
• There are over 3,000 apps: Shopify has a huge collection of apps and extensions from third parties that can help you take your store to the next level.
• Many ways to pay: Shopify supports more than 100 ways to pay and has its own payment gateway, Shopify Payments.
• More expensive than it looks: Transaction fees and the need for extra apps can add to the monthly costs of running your store.
• Communities that work together: From the beginning, Etsy wanted to focus on the group of sellers. Sellers are happy to give each other advice and share their experiences so that everyone can find their way to success.
• It’s easy to use: all you have to do is make an account, upload your products, pictures, and information about them, and then you can start selling.
Etsy has more than 81.9 million buyers as of 2021, which makes it a great place for entrepreneurs to sell their goods.
• There are rules about what can and can’t be sold on Etsy. Obviously, they tend to like niche items and handmade, vintage, and one-of-a-kind items. So, if you want to sell outside of this range, you might not be able to.
• You can’t control what happens in your store. Often, the platform, not the seller, has the last word on what goes on in the store. If a rule has been broken, the platform can shut down stores right away and without warning if they want to.
How to Make Your Shopify Store Better
If you want to sell things online and are good at making or handcrafting things, Etsy is a good place for you. But with Etsy, you need inventory and stock in case you get more orders or there’s a “emergency.”
You can see now that if you want to start your own business from scratch, dropshipping with a store on Shopify could help you reduce risks and avoid losses. You can still fill an order even if you don’t have any inventory, stock, or even touch the goods.
We’ve already talked about how one of Shopify’s benefits is that it has more than 3,000 apps that users can use to run their store and handle orders. One of the best dropshipping apps for sellers With its Supplier Optimizer, Bulk Order, and many other useful features, it will be a lot easier for a new online seller like you to fulfil orders.
When we compare Shopify to Etsy, it goes without saying that Shopify is the better choice for people who want to start from scratch.
Also, the way to go if you want to grow your Shopify dropshipping business. It’s the best-rated app on Shopify and the official AliExpress dropshipping tool. Thousands of businesses have used it, and its automation features will help you stay ahead of the competition.