Tag Archives: etsy

light blue and yellow color shopping paper bag on colorfull background 152247970

Shopify vs. Etsy: Which Is Better In 2021?

The Internet has exploded since the days of its conception. Before, computers took up an entire room and had to be run with thousands of buttons and dials. Then, we got a dial-up Internet making strange screeching noises through the phone, and then we got discs. Now navigating the internet has become a lot easier, too. The Internet now offers millions of services, including information, educational resources, tests, quizzes, and ecommerce. The days of camping out outside of stores have long since passed. Now anything you want is just one click away!

Navigating has become a lot easier, too. The Internet now offers millions of services, including information, educational resources, tests, quizzes, and shopping. The days of camping out outside of stores have long since passed. Now anything you want is just one click away!

And not only has it never been easier to buy something, but it’s also never been easier to start a business! Nowadays, anyone can create an account for free and start selling their products, no matter how niche they are!

However, if you’re an online seller, you may be overwhelmed by the number of choices you have at your disposal. Most people have narrowed it down to two main platforms: Shopify or Etsy. But how can you decide which one is best for you? 

That’s precisely what we’re going to figure out on this edition of : Shopify vs. Etsy. 

Overview

Before we get into the actual fight, let’s look at our fighters. In one corner, we have a tech giant that has been on the Internet for about as long as Queen Elizabeth II has been alive, Etsy. Etsy is the online equivale; Ent of a flea market: you can sell just about anything, at any price, and people can even get into bidding wars over your products! 

However, the bad part about Etsy is that it’s hard to develop your brand image there. Because Etsy currently doesn’t offer any ways to make your market store stand out, it can be easy to get lost in the sea of painted spoons. Still, millions of people use Etsy every day, and it is widely successful and reliable. 

And in the other corner, we have Shopify, the young buck who’s threatening to take down Etsy! Shopify has a significant advantage in that it is highly customizable. Platforms can easily use it to create their online stores and build a group of reliable customers to keep them afloat during hard times. 

Let the fight begin!

Anyways, now that you have some background on each of our fighters let’s look at their stats. Let’s see who comes out on top in each category!

Round 1: Ease Of Use

This is a hard one to measure up since both platforms are relatively easy to use. The user interface is intuitive, so it doesn’t take a rocket scientist to buy or sell products on each platform. 

However, Shopify has an advantage in the sense that everything on their website is built in. Because it’s so easy to attract customers, all you have to do is create an attractive website and market it throughout all social media platforms. 

Etsy, on the other hand, takes an entirely different approach to online sales. Instead of redesigning your website in the way that you would your physical shop or boutique, you set up a business in an already existing marketplace, sort of like hitching up a tent at a local flea market. 

This means that setting up when you are brand new is easy. But, sticking out and getting customer retention is hard because everyone is competing in the same marketplace with no options to differentiate themselves and stand out. 

Round 2: Domains And URL

Believe it or not, this is an essential part of growing your online business. Your URL is like your store’s address. It’s how people can find you in the ocean of other internet sites and know who you are and where to buy your products. 

Shopify has this covered by allowing buyers to buy their ion domain name so that they can make it something easy to search. Etsy, however, doesn’t allow for this type of customization, so you run the risk of customers having to paste a very long list each time or having to scroll past hundreds of results before they even get to you. 

Round 3: eCommerce Features

Now, this is the thing every online entrepreneur wants to know about: how easy is it to sell on either one of these platforms? Well, Shopify makes it extremely easy to run a business on their platform by giving you tons of valuable tools. For example, creating unique product pages, figuring out check out experiences that can’t be found anywhere else online, and offering a wide range of payment options so that no customer is left out!

On the other hand, Etsy doesn’t offer as many attractive features for sellers, but it does have its own set of assets. It offers entrepreneurs an effortless way to get started since they give access to an existing audience. 

Because pretty much everyone uses Etsy, your store can benefit from that traction as well. Other significant advantages to online sellers include shipping labels, discount codes, and vouchers, which are great for maintaining customer retention, advertising opportunities, email alerts sent directly to customers when products are back in stock, etc. 

The Bottom Line

So, who won the fight? Well, it’s really up to the owner of the online business. Some businesses prefer making their shops as customizable as possible to get traction, and others would prefer to lean into Etsy’s already existing popularity to gain customers. 

Some buyers may prefer Shopify’s web design and various payment options, and others may go for Etsy’s shipping labels and the possibility to make discount codes for customers. All in all, the true winner is always decided by you, the business owner. So, try out these two options and see which one is best for you!

etsy com web site selective focus 179906812

Etsy Listing Fees, Shipping Fees & Other Charges: What Does It Cost to Sell Here?

For artists and designers, Etsy is no less than a blessing. It is the best place for creative people to turn their hobbies into an online business. With Etsy, sellers don’t have to worry about paying any rent, taking care of inventory, or even hiring employees to manage their store. 

Sellers on Etsy can only focus on making creative designs. They don’t need to know how to make a website or market their products to people. Etsy does it all for them. 

However, one problem that many sellers face with Etsy is their complex fee structure. We will break down all the different types of Etsy fees so you can have a clear idea of the cost involved before starting your online store on Etsy. 

The Standard and Plus Plans on Etsy

The standard plan does not cost anything monthly. However, there are additional listing fees, payment processing fees, delivery fees, and many other kinds of fees that you need to pay. 

The plus account would cost sellers $10/month. You get all the advantages of the standard plan along with some additional benefits. 

Some of the additional benefits are:

  • 15 free listings monthly (worth $3)
  • $5 Etsy ads credit
  • Special discounts on custom domains
  • Additional tools for better shop customization

Various Fees that Etsy sellers have to pay

Etsy requires the sellers to pay fees for various purposes. Some of the charges are flat fees, while others are percentage-based. We will talk about all of them so you can estimate the cost of running an Etsy store. 

Listing Fees

The fee for listing each item on Etsy is $0.2. It doesn’t mean that you can sell multiple identical items for just one listing fee of $0.2. For example, if you are selling five identical signboards on Etsy, you would have to pay a listing fee of $1 combined for them.

Transaction Fees

Transaction fees in Etsy are different from what sellers pay for payment processors. Transaction fees of 5% per sale are Etsy’s commission for using their platform. The transaction fees don’t cover wrapping and product customization. 

There is also a shipping transaction fee that sellers need to pay. The charge is 5% of the shipping price. 

You don’t have to pay 5% fees on your sales tax if you are from the USA or Canada. For sellers from other countries, additional charges may be applicable on sales tax. 

Payment Processing Fees

Etsy has payment processors you will use if you belong to one of the 36 eligible countries that support the system. The fee for each Etsy payment processing is 3% of the total payment plus $0.25.

If you are not from one of the 36 eligible countries, you can use PayPal or Square, which typically costs 2.9% plus $0.30 processing for each payment.

Etsy Pattern Fees

If you are looking to create an online store, you should check out Etsy Pattern. It costs $15/month and allows you to list products for free for an unlimited time. 

The pattern store links with your Etsy seller account. You can also try it for free for 30 days to see if it suits your needs.  

Square In-Person Selling Fees

Etsy has teamed up with Square to provide sellers an option to collect in-person payment. It is necessary to own a square card reader to be eligible for this option. 

Everything is like usual, except instead of the 5% transaction fees, you would be paying Square processing fees. For each transaction, the Square processing fee is 2.6% plus $0.10.

Currency Conversion fees

Sellers should set the listings in the same currency as their payout currency. However, if sellers don’t do that, the cost of currency conversion is 2.5% of the total amount. 

You can also avoid this if you are using PayPal as a payment processor.

Etsy Ad Fees

You can choose to market your listings on Etsy using in-house ads. The cost for advertisement follows a pay-per-click system. The PPC is determined depending on the demand of the ad space. Sellers have the option to set a maximum budget for each day. The ads would stop running when that budget is reached.

Offsite Etsy Ads

The Etsy offsite ads are a new feature for all to use. It is mandatory for all sellers, and the only sellers who are given the option to opt-out who made sales less than $10,000 in a year. 

The ads are displayed on platforms like Facebook, Google, Bing, and others. The sale counts if someone clicked on an ad for one of your products and buys products from your online shops. 

The fees for these ads can be between 12% and 15%, depending on your sales. For sellers crossing annual sales of $10,000, the fee is 15%, while sellers who make sales below that have to pay 12% advertising fees.  

How can you start your online store on Etsy?

After knowing all the associated fees and you are still willing to open an online store with Etsy, you will need the following things.

Etsy Account

You would need to create an Etsy account. It can be a standard or a plus account. You can then choose the currency for your shop, the name of the shop, and set up other preferences.

Products

You should have products available to list on your Etsy shop. To make an Etsy listing, you would need product photos, title, and product description. 

Billing Account

You need to verify your billing account to confirm your identity and also allow Etsy to charge your fees automatically. 

Payment Account

You can use Etsy’s payment processor, or you can choose other payment processors like PayPal and Square. It is also possible to use the mail to receive payments as checks from your customers. 

Conclusion

Etsy takes care of the many needs of creative design sellers, but are the fees they charge worth it? Is it better to sell on eBay? Those are answers that you have to find for yourself. We hope that our breakdown of Etsy fees helped you get a clear picture of what you would manage.