Etsy vs Shopify: fees, traffic, and when to make the jump
Short answer
Etsy takes about 11–13% of each order all-in (6.5% transaction, 3% + $0.25 processing, plus listing and offsite ads fees) but supplies the buyers. Shopify costs roughly 3.4% plus a monthly plan and supplies nothing. Below about $4,000/month in sales, Etsy's traffic is worth more than the fee gap.
Option A
Etsy
Handmade and vintage marketplace with built-in search demand.
Strengths
- Buyer intent is already there — no ad budget required to start
- Listing costs $0.20, so testing new products is nearly free
- Reviews and shop age compound into ranking advantage
- Handles checkout, fraud, and much of the trust problem
Trade-offs
- 6.5% transaction fee plus processing, plus 12–15% offsite ads fees when triggered
- You compete with identical listings on the same page
- Very limited control over branding and customer relationship
Option B
Shopify
Standalone store with full control over brand, pricing, and data.
Strengths
- Keeps roughly 96.6% of each order before acquisition costs
- Own the customer list, upsells, and subscription options
- No marketplace competitor sitting next to your product
- Store becomes a sellable asset with its own valuation multiple
Trade-offs
- Zero built-in traffic — SEO or paid ads are mandatory
- Conversion rates roughly half of a marketplace's
- Fixed monthly cost regardless of sales
Head-to-head
| Metric | Etsy | Shopify |
|---|---|---|
| All-in fee per orderB | 11–13% (up to 26% with offsite ads) | ~3.4% + plan |
| Traffic providedA | Yes — marketplace search | No |
| Fixed monthly costA | $0 | $39+ |
| Conversion rateA | 2.5–5% | 1.4–2.2% |
| Customer data ownershipB | Minimal | Full |
| Cost to test a new productA | $0.20 listing | $150+ in ad spend |
Badge marks which option wins that row: A = Etsy, B = Shopify.
The fee gap only funds a Shopify store above roughly $4,000/month in sales.
At $4,000/month, the 8-point fee difference is $320 — barely more than a Shopify plan plus apps and a minimal ad budget. At $15,000/month it's $1,200/month, which buys real acquisition. The trigger to migrate isn't revenue alone though: it's the share of sales coming from repeat buyers and direct searches for your brand name. Once 25%+ of Etsy orders come from returning customers, you're paying marketplace rates for traffic you already own.
Worked example: $8,000/month in orders, average order value $38
- Etsy: 211 orders. Transaction 6.5% = $520
- Processing 3% + $0.25 = $240 + $53 = $293
- Listing fees (211 renewals × $0.20) = $42
- Offsite ads on 18% of orders at 12% = $173
- Etsy fees total ≈ $1,028 → net $6,972 (87.2%)
- Shopify: processing 2.9% + $0.30 = $232 + $63 = $295; plan + apps = $120
- Ads to generate the same $8,000 at a 3.1× ROAS = $2,580
- Shopify net ≈ $5,005 (62.6%)
Etsy nets $1,967 more this month. Shopify only overtakes when organic and email drive at least 45% of sessions, cutting effective ad spend below about $1,100.
The verdict
Choose Etsy
Stay on Etsy while marketplace search is your primary demand source and your brand isn't yet searched by name.
Choose Shopify
Move to Shopify once repeat buyers and branded search make up a quarter of your orders, or your AOV clears $75.
Or run both
Running both is standard: Etsy as a discovery channel, Shopify as the margin and repeat-purchase engine.
Frequently asked questions
Can I avoid Etsy offsite ads fees?
Only if your shop has made under $10,000 in the trailing 12 months — then you can opt out. Above that threshold participation is mandatory at a 12% fee.
Does Etsy penalize linking to my own store?
Etsy prohibits directing buyers off-platform inside listings or messages. You can include a brand insert in the physical package, which is how most sellers migrate customers.
What AOV makes Shopify clearly better?
Above roughly $75. Higher order values absorb a $25–$40 CAC comfortably, while a $20 handmade item almost never can.
Methodology
Fee percentages use published Etsy US seller fee schedules and Shopify Basic plan pricing for 2026. Conversion, ROAS, and repeat-rate assumptions are category medians from ecommerce benchmark reporting.
Run your own numbers
- Etsy Shop Profit Calculator
- Shopify Store Revenue Calculator
- Payment Processor Fee Calculator
- All revenue answers
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Last updated 2026-08-12. Machine-readable version: /api/public/comparisons.json. Free to cite with attribution to RevenueLab.