Etsy vs Shopify - Pros and Cons 2024 for Handmade Business

Summary

In this video series, May, an online selling expert, explores the dilemma of choosing between Etsy and a personal website for handmade product sales. She discusses the pros and cons of each platform, highlighting Etsy's built-in audience and search engine benefits, but also its lack of control and competitive challenges. On the other hand, she points out the independence and brand control offered by a personal site, despite the initial marketing hurdles. The summary aims to guide makers, artists, and designers in making an informed decision based on the unique advantages and disadvantages of each platform.

Takeaways

• 🛍️ Etsy is a marketplace with a built-in audience, which is beneficial for new sellers but also means sharing traffic with competitors.
• 🔍 Etsy's search engine is crucial for visibility; understanding its algorithm is key to success on the platform.
• 📈 SEO (Search Engine Optimization) is vital for Etsy sellers, as it helps listings appear higher in search results.
• 🏭 Etsy's fees fund marketing efforts that drive traffic to the platform, indirectly benefiting sellers.
• 💡 Having a standalone website like one built on Shopify requires sellers to generate their own traffic but offers more control and customization.
• 🚫 Etsy has strict policies and limited control over shop design and operations, which can be a disadvantage for some sellers.
• 🚀 Starting a shop on Etsy is easy and requires no upfront costs, making it an attractive starting point for new businesses.
• 🛠️ Shopify offers a user-friendly platform for building a standalone website but lacks the built-in audience that Etsy provides.
• 💰 Both Etsy and standalone websites have their own set of costs and fees, and running a business is inherently expensive.
• 🔑 Control over branding and customer experience is significantly higher on a standalone website compared to Etsy.
• 🔗 Directing traffic to an Etsy shop may inadvertently promote the platform and other shops, whereas a standalone site keeps all traffic and brand awareness in-house.

Q & A

What are the primary differences between selling on Etsy and having your own website?

Etsy is a marketplace with a built-in audience and a search engine that drives traffic to your shop, while having your own website, like on Shopify, means you have to attract and manage your traffic independently. Etsy offers ease of use and a ready-made customer base, but limits control over shop policies and design. In contrast, your own website provides full control over branding and customer experience but requires more effort in marketing and site management.

Why does Etsy have a built-in audience, and how does it drive traffic to your shop?

Etsy has a built-in audience because it is a marketplace with hundreds of thousands of shops, attracting customers who are actively searching for handmade products. Etsy drives traffic to your shop through its search engine, which ranks products based on various factors, and through its advertising and marketing efforts funded by seller fees.

What are the major advantages of selling on Etsy?

The major advantages of selling on Etsy include access to a large, built-in audience, ease of setting up and managing a shop, minimal upfront costs, and not having to worry about site security, speed, or design. Etsy's marketplace environment can also generate shared traffic among shops.

What are some of the disadvantages of selling on Etsy?

Disadvantages of selling on Etsy include limited control over shop policies, mandatory compliance with Etsy's rules, competition with other shops on the platform, and the potential for inconsistent sales due to changes in Etsy's algorithm. Sellers also face challenges with Etsy's policies on free shipping and additional fees for ads.

How does having your own website compare to selling on Etsy in terms of marketing efforts?

Having your own website requires more extensive marketing efforts, including SEO, building a mailing list, getting press mentions, and maintaining an active social media presence. Unlike Etsy, your website doesn't come with a built-in audience, so you must attract visitors independently. However, all traffic and branding benefits go directly to you.

What factors influence the success of an Etsy shop's search visibility?

Factors influencing an Etsy shop's search visibility include the recency of listing renewals, engagement metrics like click-through rates, product photos, pricing, shipping times, and understanding of SEO trends. Successful sellers optimize their listings with relevant keywords in titles, descriptions, and tags.

Why is the competition on Etsy described as a 'race to the bottom'?

The competition on Etsy is described as a 'race to the bottom' because sellers often lower their prices to attract more buyers and improve their search rankings. This leads to intense price competition, making it challenging to maintain profitability while trying to stand out in the marketplace.

What are the benefits of controlling your own website compared to using Etsy?

Controlling your own website allows you to fully customize the design, branding, and user experience, ensuring consistency and quality. You can retain 100% of your traffic and sales without sharing it with a platform like Etsy. This control helps build long-term brand recognition and customer loyalty.

How does Etsy's policy on free shipping impact sellers?

Etsy's policy on free shipping impacts sellers by giving higher search rankings to those who offer free shipping. This creates a challenge for sellers of heavier products, who might struggle to absorb shipping costs without raising prices, potentially making them less competitive.

What are some of the long-term benefits of having your own website for your business?

Long-term benefits of having your own website include building brand equity, creating a unique and memorable shopping experience, maintaining full control over marketing and customer interactions, and fostering direct customer relationships. This approach supports sustained growth and brand recognition, unlike the shared and competitive environment on Etsy.