The internet is buzzing with talk about the best ecommerce platforms, and if you’re a new seller, you’ve probably heard endless debates about Etsy versus, well, just about everything else. You might have even stumbled across claims that “Etsy is dead.” These conversations can create a lot of anxiety when you’re just starting and trying to choose the best platform to build your online business.
Don’t worry! I’ve been in your shoes. I’ve personally built a seven-figure-a-year Etsy brand selling handmade products, and I’ve also grown multiple six-figure Shopify stores. What I’ve learned from this experience is that there’s no single right answer. The key is understanding how each platform’s business engine works and choosing the one that best aligns with YOUR goals and current stage in your journey.
Decoding the Shopify Engine: Your Ecommerce Website
Shopify is a powerful platform that allows you to create your own independent ecommerce website. Think of it like building a house: Shopify provides the tools and materials, and you get to design and customize it exactly the way you want.
What is Shopify?
In simple terms, Shopify is an ecommerce website builder. If you’re familiar with iPhones, think of Shopify as the iPhone of ecommerce, complete with its own “App Store.” This App Store is filled with thousands of apps and plugins that provide additional features and functionality to customize your store. Whether you want to sell physical products, digital goods, or even services, Shopify makes the process streamlined and accessible.
Pros of Owning Your Shopify Website
One of the biggest advantages of using Shopify is that you have complete ownership of your customer data. This means that when someone makes a purchase from your Shopify store, you collect their email address, shipping information, and other valuable data that you can use to build stronger relationships and encourage repeat business.
This is in stark contrast to selling on a marketplace platform like Etsy, where you’re essentially “renting” customers. Etsy controls the customer data and doesn’t readily share it with sellers, making it more challenging to foster long-term customer loyalty.
In addition to data ownership, Shopify gives you the power to build a strong, recognizable brand. You have complete control over your website’s design, branding, and messaging. You can choose from a wide range of professional-looking themes and customize them to match your brand aesthetic. You can also integrate your own logo, color schemes, and fonts to create a unique and cohesive brand experience for your customers.
The Traffic Challenge: Driving Customers to Your Shopify Store
Unlike Etsy, which has millions of shoppers actively browsing its marketplace, owning your own Shopify website means you need to generate traffic externally. You need to get people to actually find your website and discover your products.
Two Primary Strategies for Driving Traffic to Shopify:
- 1. Organic Content (The Long Game):
This strategy involves creating compelling and engaging content on platforms like Instagram, TikTok, and YouTube, with the goal of attracting potential customers to your website.
Think of it like creating YouTube videos: You put a lot of time and effort into producing high-quality content, but only a few videos might actually go viral and attract a significant audience. The same applies to organic content for your Shopify store. It takes consistent effort, experimentation, and a bit of luck to find content that resonates with your target market and drives traffic.
One of the best ways to find inspiration for organic content is by analyzing what’s working for your competitors. See which of their videos are going viral and pay attention to the types of content, sounds, angles, and lighting they’re using. You can also use these insights to identify potential trends and niches within your industry.
- 2. Paid Advertising (Media Buying):
This strategy involves paying platforms like Facebook, Instagram, TikTok, or YouTube to display your ads to a targeted audience. While media buying can be a very effective way to drive traffic, it also typically comes with a higher cost-per-acquisition (CPA) than platforms like Etsy or Amazon. This is because the traffic you get from paid ads is often “colder,” meaning that people haven’t specifically chosen to shop for your products yet.
While video ads are currently performing very well, some product niches might still benefit from static image ads. The key is to experiment with different ad formats and targeting options to find what works best for your specific products and audience.
Financial Considerations: The Cost of Running a Shopify Store
Running a Shopify store requires consistent financial investment. You’ll need to pay a monthly subscription fee, ranging from $29 to $39 per month, for a basic ecommerce plan, even if you’re not making any sales yet. On top of the subscription fee, you’ll also be charged payment processing fees, typically around 2.9% + $0.30 per transaction.
This can make Shopify a bit more challenging for beginners with limited budgets, unless you’re able to achieve early viral success with your organic content. However, if you’re already making consistent sales and have a steady revenue stream, the monthly subscription fee can become more manageable.
Navigating the Etsy Engine: Ecommerce for Beginners
Etsy is known for its low barrier to entry, making it a popular choice for new ecommerce entrepreneurs. Setting up an Etsy shop is relatively straightforward and much cheaper to start than building your own Shopify website.
Etsy: Ecommerce for Beginners
If Shopify is like building a house from scratch, then Etsy is like moving into a fully furnished apartment. It provides a ready-made platform with built-in traffic and a customer base already interested in handmade and unique products. This makes Etsy a great “training ground” for new sellers to learn the fundamentals of ecommerce without having to invest heavily upfront.
Benefits of Starting with Etsy:
- Lower Costs: You can create a basic Etsy account for free. You only pay listing fees ($0.20 per listing) when you upload new products and transaction fees (6.5% of the sale price + payment processing fees) when you actually make a sale. This is significantly cheaper than Shopify’s monthly subscription model, especially when you’re starting out and have low sales volume.
- Learning Curve: Etsy’s simpler interface and straightforward selling process make it easier for beginners to get comfortable with handling transactions, managing orders, fulfilling products, and providing customer service. This valuable experience helps you learn the ropes of ecommerce without the added pressure of managing a website and driving your own traffic.
- Transferable Skills: Many of the skills you develop while selling on Etsy, such as product photography, writing compelling descriptions, and understanding your target audience, directly apply to running a successful Shopify store later on. You’ll gain valuable insights into product development, marketing strategies, and customer preferences that you can leverage when you’re ready to expand to your own platform.
Understanding Etsy Fees: Pricing Your Products for Profitability
While Etsy’s fees are often a point of contention for sellers, it’s important to understand that they are relatively low compared to other platforms, especially when you factor in wholesale marketplaces.
One of the most common pitfalls for new Etsy sellers is failing to price their products properly to account for all costs and fees. This can lead to extremely low profit margins, making it difficult to sustain your business in the long run.
Pricing Strategy is Crucial:
Here’s a simple breakdown of how to calculate your prices for profitability:
Handmade Products:
- Calculate Total Costs: Add up all your costs, including materials, labor (your time!), packaging, and any other expenses.
- Determine Wholesale Price: Multiply your total costs by 2.2. This is the price you would charge wholesalers if you were selling in bulk.
- Set Retail Price: Multiply your wholesale price by 2. This is the price you will charge individual customers on Etsy.
Print-on-Demand Products:
Pricing print-on-demand products is a bit different since you’re paying for the convenience of having someone else handle production, inventory, and fulfillment. However, the basic principle of factoring in all your costs still applies.
- Calculate Base Cost: Add up the production cost of the product (from your print-on-demand provider) plus your Etsy listing fee ($0.20).
- Factor in Profit Margin: Determine the profit margin you want to achieve, taking into account Etsy transaction fees (6.5% + payment processing) and your desired take-home profit.
- Set Retail Price: Add your desired profit margin to the base cost.
Remember that not all print-on-demand products will yield the same profit margin. Products like stickers and mugs typically have lower profit margins due to lower base prices, while items like canvas prints, apparel, and home decor often have higher margins. Consider this when choosing your product offerings to maximize your profitability.
Addressing the Concerns About Selling on Etsy:
- 1. Lack of Control: One of the biggest anxieties for Etsy sellers is the lack of control over their shop. Etsy has the power to suspend or even permanently close shops that violate their policies or terms of service. They also have the right to change their algorithms, which can significantly impact a shop’s visibility and sales.
- While this is a valid concern, it’s important to understand that this is the reality of selling on ANY marketplace platform. Amazon, eBay, and other marketplaces have similar policies and procedures in place. If you follow Etsy’s guidelines, create original products, and provide excellent customer service, you can significantly reduce the risk of facing these issues.
- 2. Scalability Limits: Another concern for some sellers is Etsy’s limited scalability. There’s a cap on how much you can spend on Etsy Ads ($1,000 per day). This can become a limiting factor for high-volume sellers who want to significantly scale their businesses.
- One strategy to overcome this limitation on Etsy is to diversify your product offerings. Instead of focusing on a single product line, create several distinct collections, each targeting different customer segments and keywords. This allows you to tap into new markets within Etsy’s marketplace and potentially reach a wider audience.
Who Should Choose Etsy?
If you’re a brand new seller with no existing audience or experience, Etsy is an excellent place to start. It provides a low-risk, low-cost platform to test your product ideas, learn the fundamentals of ecommerce, and validate your business model before investing heavily in your own website.
My Approach: From Etsy Validation to Shopify Empire
My personal approach to building ecommerce brands involves starting on Etsy to gain initial traction and validate my product ideas. Once my Etsy shop is running efficiently and generating consistent sales, I transition to Shopify, leveraging the data and insights I’ve gained from my Etsy experience.
Why Not Start with Both Etsy and Shopify at the Same Time?
While it’s tempting to dive into both platforms simultaneously, I don’t recommend this approach for new sellers. Managing both an Etsy shop and your own Shopify website requires juggling two very distinct business models, each with its own set of strategies, requirements, and challenges. It’s like trying to learn two different languages at the same time—it can be overwhelming and hinder your progress in both.
It’s much more effective to focus on mastering one platform first and then expand to the other once you’ve established a solid foundation. Think of it as building a bridge: Etsy serves as the initial bridge to help you cross the river into the world of ecommerce, and then Shopify becomes the platform to build your own, more sustainable empire on the other side.
Building Long-Term Success with Etsy and Shopify
Here’s a breakdown of how to leverage both platforms to achieve long-term ecommerce success:
- The Etsy-to-Shopify Bridge: Etsy’s low-cost platform allows you to experiment with different products and designs, identify your bestsellers, and gain valuable insights into your target audience. This data becomes incredibly valuable when you transition to Shopify. You can use it to inform your product selection, create targeted marketing campaigns, and develop a brand that resonates with your ideal customers.
- Creating a Content Engine for Shopify: Once you’re generating consistent revenue on Etsy, you can start reinvesting those earnings into building a content engine for your Shopify store. Focus on producing high-quality video content around your best-selling Etsy products, showcasing their features, benefits, and uses. Share this content on platforms like Instagram, TikTok, and YouTube to attract new customers to your Shopify website.
- From Etsy Shop to Household Brand: Shopify gives you the tools to build a truly recognizable brand. You’ll have complete control over your website’s design, messaging, and customer experience. You can build your email list, foster stronger customer relationships, and develop a brand identity that extends beyond the confines of a marketplace platform.
Which Platform Will Ignite Your Ecommerce Success?
The ultimate decision of whether to start with Etsy or Shopify comes down to your individual needs, goals, and current resources. There’s no one-size-fits-all answer, and both platforms can be incredibly powerful tools for building successful ecommerce businesses.
Etsy: The Ideal Launching Pad for…
- Brand New Sellers: If you’re completely new to ecommerce and have no existing audience or sales history, Etsy provides a low-risk, low-cost way to test the waters.
- Sellers with Limited Budgets: Etsy’s transaction-based fee structure makes it more budget-friendly for beginners, as you only pay fees when you make a sale.
- Product Idea Validation: Etsy is a great platform to experiment with different product ideas, refine your designs, and see what resonates with your target market.
Shopify: The Foundation for Building Your Ecommerce Empire…
- Established Sellers: If you’re already generating consistent sales and have a loyal customer base, you might be ready to level up your business with Shopify.
- Brand Builders: Shopify gives you complete control over your brand, allowing you to create a unique and recognizable identity.
- Long-Term Visionaries: If you’re thinking long-term and want to build a sustainable business that you fully own and control, Shopify is the better choice.
Dispelling Etsy Myths and Negativity:
It’s essential to approach the Etsy vs. Shopify decision with a clear and informed perspective. While there’s a lot of negativity surrounding Etsy online, much of it stems from misunderstandings or experiences unique to specific individuals.
Remember These Key Points:
- Fees are Relative: Etsy fees are competitive compared to other platforms. Focus on pricing your products strategically to ensure profitability.
- Suspensions Happen Everywhere: Shop suspensions are a reality on ALL marketplaces, including Amazon and eBay. Following Etsy’s policies minimizes your risk.
- Success on Etsy is Possible: Thousands of legitimate sellers are thriving on Etsy. Don’t let negativity overshadow the potential for success.
FAQs About Etsy and Shopify
Q: Can I start selling on both Etsy and Shopify simultaneously?
A: Yes, it’s definitely possible to run both an Etsy shop and a Shopify store. However, be prepared to manage two separate business models, which can be challenging for beginners. It’s usually recommended to focus on mastering one platform first and then expand to the other once you have a solid foundation.
Q: Are Etsy fees really that high?
A: Etsy fees are actually quite competitive compared to other platforms, especially when you factor in the cost of running your own website or selling on wholesale marketplaces. The fees themselves are not usually the biggest factor determining profitability. Your pricing strategy and product selection play a much bigger role.
Q: Why do some Etsy shops get suspended?
A: Etsy, like all marketplaces, has policies and guidelines that sellers must adhere to. Shops can be suspended for various reasons, such as copyright infringement, trademark violations, selling prohibited items, or engaging in unethical business practices. Following Etsy’s rules and maintaining good communication with their support team can help you avoid these issues.
Q: Is it really that hard to drive traffic to my own Shopify website?
A: Building an audience and driving traffic to your own website takes consistent effort and a strategic approach. It’s not as simple as setting up a shop and waiting for customers to find you. However, Shopify provides various tools and integrations to support your marketing efforts, including SEO optimization, email marketing, social media marketing, and paid advertising.
Conclusion:
The beauty of running your own business is that YOU get to choose the path that best aligns with your vision and goals. Whether you start with Etsy, Shopify, or even a combination of both, success ultimately comes down to your dedication, effort, and willingness to learn and adapt.
Don’t be afraid to experiment, learn from your mistakes, and build a business that you’re truly passionate about.
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