Shopify vs Etsy: Which Is Better For Handmade Business Owners
You want to sell your handmade works online, but should you open a shop on Etsy or create your site with Shopify? Or can you do both? Here is the complete analysis of Etsy and Shopify.
Run Etsy & Shopify At The Same Time
In this post, I will share the pros and cons of having a website on Etsy and Shopify. You don't have to choose between the two to start a store; you can have both. Why?
If you have an Etsy store and your online store, you can leverage the marketplace traffic. Some buyers will check the brand's website to learn more about your brand before placing an order.
I suggest offering an exclusive discount on your brand's website or a special deal, such as a 'buy 2 get 3' offer, to your audience. This way, it is more likely that potential buyers will place an order on your brand site rather than on the marketplace. For you, you don't need to pay the transaction cost (higher margin). You can market your brand and products again to your past customers (Etsy does not allow the seller to contact past customers).
Many marketplace sellers include a thank-you card with a coupon code for their shop, but it often fails to work effectively. It is best to encourage the buyers to place an order on your official website.
Start With Etsy - Pros & Cons
Pros
Easier To Reach Potential Customers
If you don't have an audience yet, start with Etsy or other handmade marketplaces, as you can reach millions of potential customers worldwide.
Learn how Etsy SEO works to improve your ranking in search results and attract more customers.
Fast To Setup Your Shop
If you have all the shop content, including product images and information, you can set up and run your shop in just one day.
The Etsy platform is very intuitive, so anyone can learn how to use it in a short period.
Reputation & Credibility
Etsy is the go-to platform for anyone looking for handmade products. Some customers would be more willing to spend money on Etsy than a standalone online shop.
Built-In Marketing Tool
You can easily start displaying ads on the site, as the Etsy team handles the process for you. However, you don't get a complete picture of where your money goes, as Etsy does not provide the seller with complete information.
The competition for ads is also high, as many sellers are spending money on ads as well.
Cons
Not The Best Platform For Small-Business Makers Anymore
Nowadays, you see more and more factory products claiming to be handmade on Etsy. These products are at a much more affordable price, making a big headache for small business makers.
Not Allowed To Market Your Products To Past Buyers
According to Etsy's Terms and Conditions, customer data belongs to Etsy, so sellers are not permitted to market their products to past customers. This is one of the primary reasons why many sellers maintain their online shops.
Based on research, past customers are more willing to buy from the same seller again in the future because they know what to expect. If you cannot market your product with your past customers, you are losing money on the table. Repeating customers is very important for a successful business.
Marketplace Competition Is High
At the bottom of a product page, there's a You may also like section, where Etsy introduces similar products from other sellers.
It encourages potential buyers to shop based on price. If ads primarily drive your traffic, you want visitors to focus on your product, not on those of other sellers. It makes it hard for the sellers.
Limited Branding
One shop design is used for all sellers, so you cannot make many changes to the design.
Without a well-designed website, it is challenging to demonstrate why you are unique and effectively showcase your products or brand.
High Fee
Using Etsy is not free; there are costs associated with it, including listing fees and transaction fees.
You can calculate the cost per product. Would it be more profitable if you set up a Shopify store?
Demanding Customers
When running a store on a marketplace, review is a very important factor. Some buyers are aware of this and make unreasonable requests.
Build Your Online Shop With Shopify
Pros
Full Control Of Your Brand
Having your online shop, you can decide on the layout of each page and how you want your website design to communicate to your potential customers why you are different.
You can decide the customer journey; for example, first, let them know your brand and what you offer before they jump into the product.
Without proper customer journey and brand design, it is easy for customers to decide based solely on price.
No Marketplace Competition
Your store only sells your products; no other sellers are promoted in this section. Site visitors will focus solely on your products and brand, with nothing else diverting their attention.
Lower Fee For Sellers
If you receive regular sales each month, a Shopify subscription may be more cost-effective than your Etsy fees. The marketplace cost may not seem significant per order. Still, when calculated monthly, it will be much higher than you expect.
Complete Marketing Control
With your online store, you can view analytics, such as the product click rate and which products are popular, but not many sellers place an order. Additionally, you can learn about their journey.
For example, while I was running a webshop for a brand, I noticed that one product got a lot of site visitors. I added some text about a particular product, and its sales increased. I also added a related product to another popular product page, which generated additional sales.
If the brand had an Etsy shop, not a Shopify store, I couldn't generate more sales for them using this strategy. That is why I recommend using Shopify.
Maintain Stronger Customer Relationship
If you have a brand website, you can decide how you want to communicate with potential buyers after they leave your site.
You can send them an abandon cart email with some discounts or share some more stories about your brand. This is up to you.
You can even send more brand emails to your past customers. Hence, they become more familiar with what you offer and feel a deeper connection to your brand, which may encourage them to place another order with you.
Cons
Fixed Cost Every Month (But It Saves Marketplace Cost!)
With a Shopify subscription, you have a monthly cost. But it might not be a bad thing!
If you get regular sales via a marketplace, you might spend less money by switching to Shopify. Most people only see the monthly cost but ignore the fact that they are paying Etsy per transaction, not a fixed fee.
Check how much you are paying the marketplace and see if it is higher than a Shopify subscription.
Paid Shopify Theme (Free When Working With Us)
You might need a paid Shopify Theme for the desired design and style. This can add extra cost to your online store setup.
We currently have a special offer where we will build your site using our pre-designed theme, which includes all the necessary functions for a seller.
Do Marketing Yourself
Having an official website means you need to generate traffic through various platforms yourself, such as YouTube, Pinterest, and Instagram.
It might seem like a lot of work, especially at the start, but it is very worthwhile. It is not a one-time cost; it is an investment that will pay back in the months and years to come.
Take my web design business, for example. We conducted extensive work on Pinterest and Google, and we have seen some traffic from these two platforms over the past two months.
Steeper Learning Curve
Due to the flexibility of Shopify sites, it takes more time to learn how to navigate the platform. Fortunately, Shopify has improved significantly, making it beginner-friendly to build a basic e-commerce site.
However, suppose you want your site to resonate with your audience and create a strategy-based customer journey. In that case, you need a Shopify website designer to help you achieve this. If you have a customer base, it is a good investment to hire one.
Takes Time To Build Trust
Have you ever visited a website and thought: is the site legitimate?
That comes to my mind every time I visit a site without proper setup, and it looks unprofessional. That is why a professional ecommerce website is essential for a business, especially if you use social media to generate sales these days.
Think about what are the factors that make a professional website besides just a website. You can also hire me as your Shopify designer, of course.
Conclusion: Shopify Is Perfect For All Makers, And Etsy Is For New Sellers Without Customer Base
Shopify is an excellent platform for both new and established businesses. Shopify offers robust features to scale your business to the next level, and it is compatible with local payment gateways.
If anyone wants to start an e-commerce site, I recommend Shopify. However, suppose you don't have a customer base yet. In that case, you can also begin with Etsy and redirect traffic to your site while building your customer base across different platforms simultaneously.
A successful business does not happen overnight; it takes time to build.
Need Help With Your E-commerce Website?
Let us know your business and we can design your high-converting websites together.
