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What You Need to Know About Etsy vs. Shopify

If you're currently selling your handmade goods on Etsy, but you're really wanting to make that big leap to your own website like Shopify, there are a few things to consider before making the switch. Understanding all of the numbers (and the costs) that you'll incur while selling on either Etsy or Shopify is crucial to deciding which platform will be best for your shop.

Etsy versus Shopify

While Etsy is a great place for creatives to start their business due to the low cost of entry and virtually no startup costs, the fees can quickly add up with each sale you make. Although it's currently free to open a store on Etsy, it's important to take into consideration the hefty fees, including:

$.20 per product listing (for four months or until product is sold)
5% transaction fee per order
3% + $.25 payment processing fee per order

Keep in mind, that these fees are also subject to change and have been known to increase as Etsy sees fit, leaving you as the shop owner to pay more to keep your shop open online. In addition to the fees, many creatives also find it hard to stand out among the hundreds of thousands of small shops on Etsy.

Etsy versus Shopify

Despite the high costs, Etsy may be a good place to begin if you're just getting started. It tends to bring in new customers for those with a low startup budget and it allows you to test out your new products at a low risk.

If you've been on Etsy for a while and you're thinking about making the switch to your own website, consider a platform like Shopify. The monthly cost currently starts at $29/month and offers much lower transaction fees of 2% (compared to Etsy's 5%). Owning your own website will also allow you to have more creative freedom and express your shop's unique branding style to stand out amongst competitors.

Before you jump ship from Etsy, however, make sure that you've tested your product and that your idea is profitable. If you've tested your products and you see that they're selling, you might want to consider moving over to a website that is likely to bring in even more sales. Just be sure that your customers are coming from outside of Etsy so that you can maintain a steady cash flow. Promoting your products on Instagram, or Facebook or creating an email list of loyal customers are all great ways to build a customer base outside of Etsy.

Be sure to follow me @shegrows.with.ashleyrose on Instagram for more tips like these!

If you'd like to see the IGTV video version of this topic, you can watch it below:




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