If you’ve looked into selling online, you’ve probably run into the same two names over and over again: Etsy and Shopify. Both are popular, both help entrepreneurs sell products online, and both have their advantages.
But here’s the truth: Etsy and Shopify are built for different purposes. Etsy is a marketplace. Shopify is a platform. And that difference matters if you want to scale beyond a side hustle and build a long-term, brand-driven business.
Let’s break it down.
1. Branding and Ownership
Etsy: You’re Renting Space in Their Marketplace
When you sell on Etsy, your store exists within Etsy’s ecosystem. That means:
- You don’t own your storefront—Etsy does.
- If Etsy decides to take your shop down, you have little recourse.
- Customers often remember they bought something “on Etsy,” not from your brand.
Etsy gives you limited design control. Your shop looks like every other Etsy shop, with minimal room to differentiate.
Shopify: You Own the Experience
When you sell on Shopify, you own:
- Your domain name.
- Your storefront design (fully customizable).
- Your customer data (emails, purchase history, behaviors).
Customers remember your brand name, not Etsy’s. That distinction is critical for long-term growth.
Takeaway: Etsy is great for testing a product idea. Shopify is where you build a brand.
2. Fees and Hidden Costs
One of the biggest misconceptions about Etsy is that it’s “free.” In reality, Etsy’s fees add up quickly.
Etsy Fees
- 6.5% transaction fee
- $0.20 listing fee per product
- 12% off-site ad fee (mandatory if you sell $10K+/yr)
For a seller making $10,000/month:
- Transaction fees = $650
- Listing fees (500 products @ $0.20) = $100
- Off-site ads (10% of sales x 12%) = $120
Total monthly fees: $870
And remember—Etsy controls those ads. Even if a customer finds you months later, Etsy still takes a cut.
Shopify Fees
- $29/month basic plan
- Standard payment processing fee (2.9% + 30¢ per transaction)
Even after processing fees, you’re left with more margin—and more freedom to reinvest in marketing.
Takeaway: Etsy works for beginners, but at scale, Shopify is dramatically more cost-effective.
3. Marketing and Customer Data
Etsy: Limited, Controlled, and Shallow
- Etsy owns the customer data. You don’t get email addresses to retarget.
- Marketing options are minimal—basic cart abandonment emails, limited shop ads.
- No affiliate or ambassador programs.
Shopify: Data-Driven and Scalable
- You own all customer data and can build an email list.
- Full marketing automation: cart recovery, segmentation, upsell/cross-sell.
- Ability to run Facebook, Google, TikTok, and Pinterest ads directly.
- Affiliate and ambassador integrations to scale word-of-mouth growth.
Takeaway: Shopify gives you the marketing firepower you need to grow. Etsy doesn’t.
4. Scalability
Etsy is designed for individuals and small shops selling handmade or vintage items. It’s a great testing ground, but growth has limits:
- You’re competing with thousands of other sellers in the same marketplace.
- You can’t expand into new categories beyond Etsy’s rules.
- You’re always tied to Etsy’s brand and algorithms.
Shopify, on the other hand, is built to scale:
- Flexible enough for one product or 10,000 products.
- Supports wholesale, subscriptions, and international sales.
- Integrates with logistics, CRM, and ERP systems.
Takeaway: Etsy is a side-hustle platform. Shopify is an enterprise-ready growth engine.
5. When to Use Etsy vs Shopify
- Choose Etsy if:
- You’re just starting and want to validate demand.
- Your product is handmade, vintage, or niche-specific.
- You’re comfortable with Etsy’s fees in exchange for immediate traffic.
- Choose Shopify if:
- You want to build a long-term brand.
- You care about owning your domain, data, and design.
- You’re serious about scaling revenue and reinvesting in marketing.
The Bottom Line
Etsy is a useful starting point. But if you want to build a brand that customers remember, scale sales, and own your future—you need Shopify.
At Polished Code, we help businesses move from rented marketplaces to owned platforms that actually scale. Because you don’t just need a storefront. You need a growth engine.
Ready to build a Shopify store designed to convert? Schedule a call with our team and let’s map your transition from Etsy to scalable e-commerce growth.
