Tag: start an etsy shop

Shopify vs Etsy.

A lot of people wanting to sell online are not sure whether they should open a Shopify store, an Etsy store or both. The truth is, they are very different setups. Below is my advice, mainly from a marketing point of view.

What Etsy Is

Etsy is a marketplace where you can quickly and easily set up a store. Think of Etsy like a shopping mall and you are one of the stores in the mall. Most shopping malls actively promote themselves and bring in customers, who might stumble upon your store. Therefore, they do some of the marketing for you.

There is no monthly fee. You pay a 5% sales commission as well as some other costs, such as re-listing fees, payment processing fees and Etsy ads (offsite ads are mandatory, onsite ads are optional). Your customers pay Etsy, and Etsy pays you.  You can sell your handmade products, or products you designed but are produced by a third party. You cannot resell items unless they are vintage.

What Shopify Is

Shopify helps you build and maintain an online store. Picture yourself physically building a store on a street (where Shopify is your contractor) and nothing else is around it. If you set up a Shopify store, you are operating independently. Shopify is not providing a front end marketplace of shoppers who might find your store. You have to promote it yourself and bring your own traffic, and this can be challenging.

On the most basic plan, you will be charged a monthly fee of $29US, as well as other costs such as payment processing fees when you make a sale. Your customers pay you directly and Shopify bills you your monthly charges. You can sell any type of product or service, including drop shipping and wholesale products.

A Big Change That Will Now Help Your Shopify Store

Now, there is a BRAND NEW benefit to opening a Shopify store. Google just announced a partnership with Shopify, whereby a Shopify seller can now publish all of their store’s inventory into Google Shopping for free, plus they have simplified the process. Publishing your products to Google Shopping can be quite cumbersome and requires a lot of bandwidth. However, Google is now removing these issues so a Shopify store can publish everything with just one click, and, again, for free.

Keep in mind, “free” means your products will show up in Google Shopping, but several pages in, and you won’t be charged. If you want your products to show up on the first page of search results, or in targeted local searches, then you have to pay to boost them.

My Recommendation Shopify vs Etsy

In the past, I didn’t often recommend Shopify to my smaller clients just starting out, because you have to sink a lot more time and money into marketing and promoting your store. However, this significant change to Google Shopping could make a difference in your Shopify store getting found by shoppers.

As for Etsy, I still think it is a good deal in that it is cost-effective, the setup is fast, and, with a bit of work, you can have a fairly successful shop right out of the gate. If you can manage to have a Shopify store and a Etsy store, I do recommend having both. Quite simply, the more places you sell, the better. Here are some more online selling sites.

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