Channel Analysis

Etsy vs. Shopify vs. Your Own Website: Channel Economics and Fee Breakdown

Etsy charges 6.5% in transaction fees but brings the customers. Shopify charges 2.9% + $0.30 per transaction but you own the data. Your own website is free but you pay for traffic and customer acquisition. This isn't a simple choice. This guide breaks down the real economics of each channel so you can decide which platforms to prioritize based on your business model.

The Platform Economics Reality

Two jewelry makers with identical products. Maker A sells on Etsy (traffic included, takes high fees). Maker B sells on Shopify (she pays for traffic, keeps the margin). After 12 months, Maker A has processed $60,000 in sales but netted less than Maker B who only processed $45,000. Fees matter more than you think.

Complete Fee Breakdown

Etsy: Marketplace + Traffic Included

Fee Type	Cost	Notes
Listing Fee	$0.20 per listing	Renewable every 4 months
Transaction Fee	6.5% of sale price	Biggest cost (most important)
Payment Processing	3% + $0.20	If you use Etsy Payments
Optional: Etsy Ads	0-20% of revenue	You control the spend
Total on $1,000 sale	$96.20 + ads	9.6%+ of revenue

Etsy Value Proposition: They bring the customers. Organic search is strong. You pay premium fees for a built-in customer base.

Shopify: Control + Lower Fees, but You Drive Traffic

Fee Type	Cost	Notes
Platform Fee	$39/mo (Basic)	Lowest tier. Scales to $299+
Transaction Fee	0% with Shopify Payments	Big saving vs. Etsy
Payment Processing	2.9% + $0.30	Shopify Payments rate
Optional: Shopify Ads	0-20% of revenue	You control the spend
Total on $1,000/mo sales	$39 + $29.30 + ads	~3.1%+ of revenue

Shopify Value Proposition: Lower fees. You own your customer data. But YOU must drive the traffic through ads, content, social, or email.

Your Own Website: Lowest Fees, Highest Complexity

Fee Type	Cost	Notes
Domain	$12/year	Low cost, ongoing
Hosting	$0-100/mo	Depends on volume and platform
SSL Certificate	$0-100/year	Often free with hosting
Payment Gateway	2.9% + $0.30	Stripe or similar
Ads / Traffic Acquisition	$500-5000+/mo	YOU must drive all traffic
Your Setup/Maintenance Time	$2,000-10,000 upfront	Or hire developers
Total (Year 1)	$7,000-20,000+	Plus all traffic costs

Your Own Site Value Proposition: Lowest marketplace fees. You own everything. But you're responsible for traffic, security, compliance, and ongoing maintenance.

Real-World Comparison: $10,000/Month Sales

Scenario: $10,000 in monthly sales across all platforms

Etsy (All $10k on Etsy)

• Transaction fees (6.5%): $650
• Payment processing (3% + $0.30): $300.30
• Etsy ads (avg 10%): $1,000
• Listing fees (negligible): ~$50/year ($4/mo)
• Total cost: $1,954/month (19.5%)

Shopify (All $10k on Shopify)

• Platform fee (Basic): $39
• Payment processing (2.9% + $0.30): $290.30
• Google/Facebook ads (you drive traffic): $2,000-5,000
• Total cost: $2,329-5,329/month (23-53%)
* Without ads, just platform: $329/month (3.3%)

Your Own Website (All $10k direct)

• Hosting + domain + SSL: $50-100
• Payment processing (2.9% + $0.30): $290.30
• Ads / Traffic acquisition: $3,000-8,000
• Total cost: $3,340-8,390/month (33-84%)
* Without ads, just infrastructure: $340/month (3.4%)

Key insight:

Etsy looks expensive because they include traffic. But if you move to Shopify/your site WITHOUT replacing that traffic, you'll spend way more on ads than you saved on fees.

Which Channel for Your Business?

Choose Etsy If:

• You're just starting (need built-in traffic)
• You don't have a marketing budget
• You want to focus on making, not marketing
• Your products are highly discoverable (trending niches)
• You prefer percentage-based fees over fixed costs

Choose Shopify If:

• You already have a customer base or marketing channel
• You have a marketing budget ($500+/mo for ads)
• You want to own customer data and emails
• You're scaling beyond $5,000/month
• You want full control over brand and customer experience

Choose Your Own Site If:

• You're already scaling ($10,000+/month)
• You have sophisticated traffic sources
• You need complete technical control
• You have technical expertise or a developer
• Margin optimization is critical (high-volume, low-margin products)

The Honest Answer: Multi-Channel

Most successful makers use Etsy for discovery (they bring traffic) + Shopify for control (you own relationships) + Email for direct connection. Read about the math of multi-channel selling to understand when this pays off.

The Hidden Factor: Customer Data Ownership

Here's what the fee comparison doesn't show: Customer relationships are worth money.

Etsy:

You get an order. You have the customer's email. But Etsy "owns" the relationship. If Etsy changes their algorithm or raises fees, you have limited control.

Shopify:

You get an order AND the customer's email and full history. You can email them repeat offers. You own the relationship. This is worth 20-30% of the customer lifetime value.

Your Own Site:

Full data ownership + brand control. But you must handle compliance, payment processing, and security yourself.

This is why many successful makers start on Etsy (for traffic), transition to Shopify (to own data), and eventually build an email list (for repeat business). Each channel serves a different strategic purpose.

E-Commerce Platform Resources

Explore official documentation and guides from each platform to understand their latest fees, features, and support:

View All Articles

Explore E-commerce Strategy

View All Multi-Channel Articles →

Optimize Across All Channels

TrueCraft connects Etsy, Shopify, and your own site into one dashboard. See which channel is most profitable, sync inventory automatically, and make smarter platform decisions.

Start Free