Etsy vs Shopify: which keeps more of each sale?

The short answer

Per order, Shopify takes less. On a $40 order in the US, Etsy's standard fees are $4.25 and Shopify Basic's card fee is $1.46. But Shopify charges a monthly plan, and it doesn't send you any buyers. Etsy does.

So the real question isn't which fees are lower. It's whether the money you save per order on Shopify is more than what it costs you to bring in the same customers yourself.

The same order on both platforms

Take a $35 item with $5 shipping. The item costs $9 to make, the label is $4.50, packaging is $1.20 and you spend $2 on ads per sale. That's $16.70 in costs before any platform fees.

Shopify keeps $2.79 more on this order. Now add the costs that don't show up on a single sale.

Monthly costs change the picture

Etsy has no required monthly fee. Shopify Basic is $39 a month, and most stores add a few paid apps. If you spend $75 a month in total, you need about 27 orders at this size before the $2.79 saving per order covers your subscriptions. With just the $39 plan and no apps, it's about 14 orders.

At 100 orders a month, the gap is clearer:

Shopify saves $204 a month here, or $2.04 per order.

The cost of finding buyers

That $204 is your marketing budget. On Etsy, many orders come from people already searching Etsy, and you pay nothing extra for them beyond the standard fees. On Shopify, every visitor has to come from somewhere: social media, ads, email, search engines or word of mouth.

If it costs you more than about $2.04 in extra advertising to win each Shopify order, Etsy keeps more money. If you already have an audience, such as an email list, an Instagram following or repeat customers, Shopify usually wins.

Don't forget Offsite Ads. If 20 of those 100 Etsy orders came through Offsite Ads at 15%, Etsy would charge another $120 that month, which makes Shopify look better again.

Differences that don't show up in fees

• Repeat customers. On Shopify you own your customer list and can email buyers about new products. A repeat order on your own store costs only the card fee, while a repeat order on Etsy pays the full Etsy fees again.
• Competition on the page. On Etsy, similar products from other shops appear right next to yours, which keeps pressure on prices. Your own store shows only your products.
• Branding and control. Shopify lets you design the whole store, set your own policies and build a brand. Etsy shops look much the same, and Etsy sets the rules.
• Time. Running a store means handling the design, apps, payments and marketing yourself. If that time would otherwise go into making products, count it as a cost.

A simple test for your shop

1. Enter your best-selling product in the calculator and note the profit on Etsy and on Shopify.
2. Multiply the difference by the orders you expect in a month.
3. Subtract your Shopify plan and apps. What's left is your monthly marketing budget.
4. Divide that budget by your monthly orders. If you can win a customer for less than that, Shopify is likely to keep more money.

Which suits you?

• Start on Etsy if you're new, have no audience yet, sell handmade, vintage or craft supplies, and want buyers from day one without a monthly bill.
• Move to or add Shopify if you get steady orders, have your own audience, want control over branding and customer emails, or sell enough that Etsy's 6.5% commission has become a large number.
• Run both if you can manage the stock. Many sellers use Etsy to find new customers and Shopify for repeat buyers, who come back without any marketplace fee.