By the Dropship Stair team. Last reviewed: November 2026.
Key takeaways
- Etsy vs Shopify is the choice between selling on a marketplace with built-in traffic and running your own branded store on a subscription platform.
- Etsy charges a $0.20 listing fee, a 6.5% transaction fee, and 3% plus $0.25 payment processing on US sales, while Shopify charges a flat monthly plan fee plus card rates.
- Etsy suits handmade, vintage, and craft sellers who want buyers to find them, while Shopify suits sellers who want to build a brand and keep control of the customer relationship.
- Many sellers start on Etsy and add a Shopify store later, which lets them keep marketplace sales while building a brand they own.
Etsy vs Shopify is a choice between a marketplace that brings you buyers and a store you own outright. Etsy charges fees on every sale but brings traffic, while Shopify gives you control for a monthly subscription. The right pick depends on what you sell.
What is the real difference between Etsy and Shopify?
The real difference is ownership. Etsy is a marketplace where you rent a stall inside a busy shopping site, and buyers come to Etsy first. Shopify is software that lets you run your own store, so buyers come to your brand, not to a marketplace.
On Etsy, your shop sits inside Etsy’s site. Buyers search on Etsy, browse its categories, and often buy from several shops in one visit. Your shop gets traffic from Etsy’s search engine, but Etsy sets the rules for how your shop looks, what you can sell, and how buyers reach you. On Shopify, you build a store at your own web address, pick the theme, write the pages, and collect buyer emails for your own marketing. In return, you own the customer relationship from start to finish. If you are weighing the setup work, our Shopify store launch checklist walks through what a new store needs before opening day.
How much does it cost to sell on Etsy vs Shopify?
Etsy costs little to start and takes a cut of every sale, while Shopify costs a flat monthly fee whether you sell or not. On a small number of sales, Etsy is usually cheaper. On a high number of sales, Shopify usually wins, because its fees do not grow with your revenue in the same way.
Etsy’s fees stack up on each order. US sellers pay a $0.20 listing fee per item, good for four months or until the item sells. When an item sells, Etsy takes a 6.5% transaction fee on the item price plus shipping and gift wrap, and Etsy Payments charges 3% plus $0.25 for processing. That adds up to roughly 10% of a typical US order before any advertising. Etsy also runs Offsite Ads, which cost 15% of an attributed order for shops under $10,000 in yearly sales and 12% once a shop passes $10,000 in the trailing 12 months, at which point the program becomes mandatory. Shopify charges a subscription instead. The Basic plan costs $39 per month when paid monthly, or $29 per month when paid yearly. With Shopify Payments, a US online card payment costs 2.9% plus 30 cents. Grow costs $105 per month, or $79 billed yearly, and Advanced costs $399 per month, or $299 billed yearly, with lower card rates on each step up. For a fuller look at the subscription side, see our guide on how much a Shopify store costs.
| Difference | Etsy | Shopify |
|---|---|---|
| What it is | Marketplace with built-in traffic | Software to run your own store |
| Monthly cost | No subscription for standard selling | Basic $39 per month, or $29 billed yearly |
| Fees per sale | $0.20 listing, 6.5% transaction, 3% plus $0.25 processing | Card rate 2.9% plus 30 cents on Basic |
| Traffic source | Etsy search and browsing | Your own marketing, search, and social |
| Brand control | Shop page inside Etsy design | Full control of design and checkout |
| What you can sell | Handmade, vintage, and craft supplies | Almost any legal product |
| Customer data | Limited, Etsy owns the relationship | Yours, including emails for marketing |
Use the table as a quick gut check. If most of the Etsy column sounds like your business, start there. If most of the Shopify column sounds like your business, build your own store.
Where do buyers come from on each platform?
Buyers come to Etsy on their own, while Shopify stores have to earn every visit. Etsy buyers arrive with intent to shop, often searching for a specific handmade or vintage item. That built-in demand is the main reason new sellers pick Etsy first.
Etsy search works like a small search engine. Buyers type what they want, and Etsy ranks listings by relevance, listing quality, and shop history. A new shop can win sales without an audience, as long as its listings match what buyers type. A Shopify store starts with zero traffic. You bring buyers through search engine optimization, social media, email, or paid ads, and each channel takes time to build. The upside is that every visitor is yours alone. Nobody shows a rival product on your product page, and you can guide a buyer from a blog post to a collection to the checkout without leaving your site.
How much control do you get over your brand?
In the Etsy vs Shopify brand question, Shopify gives you far more control than Etsy does. On Shopify you choose the colors, fonts, layout, product pages, and checkout steps, so the whole visit feels like your brand. On Etsy your shop uses Etsy’s layout, and buyers always know they are shopping on Etsy.
A Shopify store can run its own blog, show a brand story on the home page, offer bundles and upsells, and send branded emails after a purchase. An Etsy shop can add a banner, a shop icon, and an about section, but the frame around them stays Etsy’s. Control also means rules. Etsy can change its search ranking, its fee structure, or its policies, and every shop has to adapt. A Shopify store owner answers to Shopify’s terms too, but the store itself, the domain, and the customer list belong to the seller. In short, Etsy trades control for traffic, and Shopify trades traffic for control.
What can you sell on Etsy and Shopify?
Etsy limits what you can sell, while Shopify lets you sell almost any legal product. Etsy only allows handmade items, vintage items that are at least 20 years old, and craft supplies. Mass-produced goods, resold new items, and most dropshipped products are not allowed on Etsy.
That limit is the heart of Etsy’s brand. Buyers trust Etsy because they expect handmade and vintage goods, and sellers who fit that mold get a ready audience. But the rule also blocks a lot of businesses. If you sell factory-made phone cases, bulk wholesale goods, or products shipped straight from a supplier, Etsy is the wrong home for them, and a shop that breaks the handmade rule risks being shut down. This is one of the clearest Etsy vs Shopify differences. Shopify has no product category limit beyond what the law and its payment providers allow. You can sell handmade goods, print on demand, dropshipped products, digital downloads, subscriptions, and services from the same store. That freedom is why dropshippers and private label sellers build on Shopify, though the store has to create its own trust without a marketplace reputation behind it.
How much work is it to run each store?
Etsy is less work to start, and Shopify is more work to start but easier to shape as you grow. Opening an Etsy shop takes an afternoon: add listings, set policies, connect a payment method, and you can sell the same day. Shopify takes longer, because you choose a theme, build pages, set up shipping and taxes, and connect your own marketing tools.
Day-to-day work looks different too. On Etsy, most of your time goes to listings, photos, and answering buyer messages inside Etsy’s system, while Etsy handles the checkout and much of the buyer trust work. On Shopify, you handle more yourself: the store design, the apps, the email marketing, and the traffic. That is more work, but it is work that builds an asset you own. The honest question is not which platform is less work, but which kind of work you would rather do.
Can you sell on Etsy and Shopify at the same time?
Yes, many sellers run both, and in the Etsy vs Shopify decision it is often the smartest path. Etsy brings buyers who are already shopping, and Shopify gives those buyers a branded home to return to. Used together, each platform covers what the other lacks.
A common setup is to start on Etsy, learn what sells, and then open a Shopify store for the best products. The Shopify store can carry the full range, offer bundles Etsy cannot, and collect emails for repeat sales. The Etsy shop keeps running as a discovery channel, and a small note in the package can point happy buyers to the main store for their next order. Just keep the rules straight: anything listed on Etsy still has to be handmade, vintage, or a craft supply. Start with one platform, get it working, and add the second only when the first one earns steady sales. If you are still choosing a platform, compare Shopify with the other main option for an owned store in our Shopify vs WooCommerce for dropshipping guide. And if you want help building the Shopify side, look at the work in our portfolio or reach the team through contact us.
Frequently asked questions
Is Etsy or Shopify better for beginners?
Etsy is better for most beginners who sell handmade or vintage goods, because buyers are already searching there and setup takes an afternoon. Shopify suits beginners who want to build a brand from day one and are ready to learn marketing. Pick Etsy for fast sales, and Shopify for control.
How much does Etsy take from each sale?
Etsy takes about 10% of a typical US order before advertising. The stack is a $0.20 listing fee, a 6.5% transaction fee on the item price plus shipping and gift wrap, and 3% plus $0.25 for payment processing. Offsite Ads can add 15% on attributed orders.
Can I move my Etsy shop to Shopify?
Yes, you can move your products, photos, and descriptions to a Shopify store, and tools exist to import listings in bulk. Your Etsy reviews, search ranking, and buyer history do not move with you, so most sellers keep the Etsy shop open while the Shopify store grows.
Do I need a business license to sell on Etsy or Shopify?
Neither platform asks for a business license just to open a shop, but local rules still apply. You may need a license, a sales tax permit, or a registered business name depending on where you live and what you sell. Check your city and state rules before you scale.
Which platform is better for dropshipping?
Shopify is better for dropshipping, because Etsy does not allow most dropshipped or mass-produced goods. Shopify works with supplier apps, lets you automate orders and tracking, and gives you full control of pricing and branding. Etsy suits handmade sellers only, so dropshippers should build on Shopify.
Etsy vs Shopify is not a contest with one winner. Etsy wins on built-in traffic and fast first sales for handmade and vintage sellers. Shopify wins on brand control, customer ownership, and freedom to sell what you want.
Sources: Etsy Fees and Payments Policy and Etsy seller handbook pages, and Shopify pricing page, all checked in November 2026. Fee and plan figures can change, so check the current pages before you commit.