Pricing Strategy

Channel-Specific Pricing: Why Your Shopify Price Should Differ From Etsy

You list a necklace for $85 on both Etsy and Shopify. Etsy takes 9.5% in fees. Shopify takes 3.2%. After fees, Shopify customers are 40% more profitable for the same sale. But your price is identical. This is leaving money on the table—or driving sales where they matter most. This guide teaches you when and how to price differently across channels.

The Opportunity

Same necklace. Identical cost. Different platforms. Etsy: 90.5% of $85 = $77.03 net. Shopify: 96.8% of $85 = $82.18 net. You're getting $5 less per sale on Etsy for the identical work. What if you priced strategically?

The Economics of Channel-Specific Pricing

Scenario 1: Fee-Based Pricing Adjustment

Platform	List Price	Fees %	Your Take	Profit
Etsy (Same Price)	$85	9.5%	$77.03	$45 (42 units/mo = $9,000/year)
Shopify (Same Price)	$85	3.2%	$82.18	$50 (20 units/mo = $10,000/year)
Etsy (Fee-Optimized)	$81	9.5%	$73.30	$43 (might increase volume due to lower price)
Shopify (Premium)	$89	3.2%	$86.13	$56 (premium for brand + control)

The insight: Shopify customers are more valuable (lower fees). You can afford to charge slightly more on Shopify while keeping Etsy competitive. Strategic pricing aligns prices with channel economics.

Scenario 2: Customer Expectation Pricing

Different platforms have different customer expectations. Etsy customers expect "discovered" handmade goods (search-based). Shopify customers expect a "brand" (direct visitor). Instagram customers want aesthetic/social proof.

Etsy Pricing

Price: Competitive. Customers expect to compare and negotiate. Position as the "deal" or "trendy find." Psychology: "I discovered this amazing handmade item."

Shopify Pricing

Price: Premium. Customers are already convinced (they visited your site on purpose). They expect to pay for exclusivity. Psychology: "I'm buying directly from the maker; I support small business."

Instagram Pricing

Price: Aesthetic + influencer premium. Customers following you want what makes them feel connected to your brand. Psychology: "I'm part of this creator's community."

Scenario 3: Competition-Based Pricing

Etsy is hyper-competitive. 10,000 similar necklaces exist. Price is a key differentiator. Shopify (your own site) has zero direct competition. You can charge a premium for uniqueness.

Example: Hand-Dyed Silk Scarves

• Etsy: 500+ similar scarves. Price range $25-60. You list at $42 to be competitive.
• Shopify: Your unique collection. No direct competitors on your site. You price at $55 (premium for brand and data ownership).
• Result: Etsy drives volume (500+ units/year). Shopify drives margin (80 units/year at higher price). Both work differently.

When to Price Differently

DO Price Differently If:

• Fee difference is >3% (Etsy vs. Shopify definitely qualifies)
• Traffic source differs (Etsy = search, Shopify = direct)
• Customer expectations differ significantly
• Volumes are high enough to justify complexity ($2,000+/mo per channel)

DON'T Price Differently If:

• You sell low volumes on multiple channels (<$500/mo each)
• Price differences would be <5% (too subtle, confuses customers)
• You don't have systems to manage multiple price lists
• Your brand relies on consistent, predictable pricing

Practical Implementation

Strategy 1: Tier by Channel

Etsy: $45 (competitive, discovery-based)
Shopify: $54 (premium, 20% markup)
Instagram: $50 (middle ground, community pricing)
This signals to customers: "Etsy is a great deal. Shopify is the premium experience."

Strategy 2: Fee-Pass-Through Model

Calculate the fee difference and pass half to the customer (increase Shopify price 2-3%), keep half as profit improvement. This incentivizes Shopify sales while rewarding customers with a small discount.

Strategy 3: Seasonal/Promotional Differentiation

Use discounts strategically. Etsy: "Etsy offers exclusive discounts" (drive volume). Shopify: "Direct purchase premium" (no discount). This justifies price differences naturally.

Key Considerations

Brand Confusion

If a customer sees your necklace for $42 on Etsy and $89 on Shopify, they'll feel ripped off on one platform. Price differences should be subtle (<10%) or clearly explained.

Cross-Platform Shoppers

Some customers shop multiple platforms. If they price-shop and find you cheaper elsewhere, they'll buy the cheaper version. This is actually fine—it means they're engaged with your brand.

Price Integrity

Your brand should feel consistent. A 5-10% variation by channel feels strategic. A 30% variation feels dishonest. Know your audience.

You might also be interested in these related articles about artisan business management.

Etsy vs. Shopify Economics

Different fees require different strategies.

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