Comparison between Shopify & Etsy
Tons of small business growing up because of e-commerce. E-commerce is trading in products or service using computer network.
The heart and soul of ONLINE MARKET is our global community. The creative entrepreneurs who use market place like etsy or shopify to sell what they make or curate, the shoppers looking for things they can’t find anywhere else, the manufacturers who partner with shopify or etsy sellers to help them grow.
May be etsy & shopify vision is revolution in non-technical market using technology. May be they want to connect small business with them using technology. Now a day’s small retailer suffer because of online market, but etsy & shopify both are good for them.
The true origin of the word “Etsy” is a mystery known only to company founders. Etsy is a marketplace where people around the world connect, both online & offline, to make, sell & buy unique goods. Working at etsy means you can directly connect the lives of millions of people. Working with etsy community is also a lot of fun. Etsy sellers range from Hobbyists to professional merchants.
Etsy mission is to re-imagine e-commerce in ways that build a more fulfilling & lasting world. Etsy wants to create better world through platform, members, employees, and communities what etsy serve.
There are some pros mentioned here why selling on etsy could be a good choice
- User friendly – To list an item is pretty. Choose header, price & keywords, upload image and write description.
- Community – Number of people around the world using etsy. There are always people to ask if you get stuck, friends to meet and an audience to tell your opinion too.
- International – There are several seller and buyers from all over the world.
- Interactive – With built in social button, its great way to get feedback on items even when no-one buys. This also encourages people to stay on page longer leading to higher conversion rate.
- Sell digital product – Some online venues don’t allow the selling of digital or downloadable products but etsy does. This is fantastic as it allows you to sell the same creation multiple times.
- Repeat buyers: Graphical data represent increase in repeat buyer rate in 2011 it was 70% and in 2014 it increased upto 78%.
Graph 1 : Graphical analysis represent increased in repeat buyer rate from 2011 to 2014 (70% – 74%) but there is a downfall in first time purchases.
Whether we like it or not there is no such thing as perfect. These are the things you need to watch out for etsy.
- Costs – Etsy can be more affordable way for many to set up business. The basic fees are 20 cents per item listed and 3.5% of the selling price. when an item sells. I also feel etsy fees are economical.
- No UI customization – User is not able to customize shop and listings.
- it’s swamped – Its popularity is also downfall. It’s also easy to get lost in the crowd and highly competitive. There is definitely more sellers than buyers on etsy.
- Etsy has some typical privacy policies, so they can suddenly close the store, and if you have large customer base you will suddenly loose all hard work.
- Active Seller downfall – Although only 32.3 percent of sellers who had sold an item in 2011 were still actively selling in 2014.
Graph 2 : Graph represent active seller ratio between 2011 to 2014, but in 2012 active seller ratio decrease around 48%. Next year same situation occur in active seller ratio. In 2014 its very down.
Shopify provides a fascinating look at a company who found traction among a very passionate and idealistic group of people.
Building business on the side is not easy. You are planning to tackle website then you can choose shopify.
Today, Shopify empowers over 175,000 online retailers including general electric, Amnesty international, Cross fit, Tesla motors, Encyclopedia Britannica, GitHub & more. Shopify’s Merchants had 300 million unique monthly visitors to their shop that year, with half of them coming through mobile device.
Shopify help emerging small business get off the ground and grow into successful companies.
In shopify three plans included:
- Basic Shopify: $29/month
- Shopify: $79/month
- Advanced Shopify: $179/month
- Shopify Lite – $9 / Month View the Shopify Lite plan
- Shopify Plus – Learn more about Shopify Plus
Shopify mission is simple:
Make commerce better. This platform want to help emerging small businesses get off the ground and grow into successful companies by creating great technology and by making it accessible to people that previously wouldn’t be able to afford it.
Here’s what we found to be pros of using shopify (not just in comparison to etsy) as an overall ecommerce solution.
- Fastest & secure:
You need to be screaming fast and you need it to be super securing.
Great customer support:
Customer support is one of my top reasons to go with shopify. They have huge database of FAQs, email/chat support and phone support-with a real knowledgeable person on the other side shopify partner, shopify experts.
- The Shopify App Store:
This is one of the most useful elements of Shopify, and a feature that etsy is nowhere near to competing with. Shopify has an App store full of Shopify-made and third party apps that you can get, either for free, a one-off charge or a monthly fee, to add functionality to store.
From that list, here are some of the most popular apps we’ve encountered while working with Shopify:
- Beetailer – Easily sell products on facebook page with a pinterest like user interface.
- Mailchimp – Send out targeted email campaigns to customers signed up to mailing list.
- KISSmetrics – Analyse shop’s analytics to make better business decisions.
- Yotpo reviews – Add customer reviews to product pages. Yotpo automatically follows up with customers to ask for a review and you can customise the email.
- Flits – Convert Your Customer Account Page To Classic Look
4. Seamless compatibility with POS system :
Using Shopify POS, you can seamlessly integrate everything between online and offline shops. If, for example, your last red coat is bought in your shop, it will also show as out of stock on online shop. This saves you a lot of time, stress, and customer complaints.
5. Native app features for android & ios:
we can use the Mobile Buy SDK(software development kit) to integrate Shopify checkout into our mobile application. This will enable you to sell any of physical products through the app and track sales info in Shopify admin.
6. Revenue analysis:
Merchant solution & subscription solution growth ratio is to high. Merchant solution growth ratio is 22% to 222% increase and subscription solution growth ratio is 15% to 70% increase.
Graph 3 : Shopify presents fantastic growth rates both in gross merchandise value (GMV). As mentioned above, subscription solution annual revenues grows at 70% year-over-year and merchant solutions revenue grows even faster at 222% year-over-year.
GMV( gross merchandise value ) is increasing during 2012 to 2015.
Graph 4 : Graphical data analysis reflect in 2014, almost $4B worth of goods were sold using shopify’s services, which is a 423% increase from 2012. In 2015, I expect shopify to generate more than $8B in GMV( gross merchandise value ), which will reflect 130% growth from 2014.
8. Responsive admin panel:
Admin can manage admin panel from mobile also.
- No real time shipping.
- You are dependent on third party for core upgrades.
- Poor multi-currency support – It supports multiple currencies in front end for display purposes only but at checkout is not feasible in multiple currencies. So would be which is by default selected by store owner.
- Checkout page is not customizable(only css can be modified) due to security reason. Except it is customizable in case of shopify plus plan.
Both are really good platform but in some cases like as seller traffic growth ratio, revenues analysis growth ratio, GMV growth ratio shopify is better option.
There are no doubts here: Shopify offers its users a much more good features compare to etsy base on features, shopify expert, shopify partner, shopify developer, shopify designer, shopify support.
- Why should people go with shopify?
As per analysis mostly shop owner think about transaction fee, and etsy transaction fee is very high because of this reason people should go with shopify.
- Shop owner will be charged a listing fee of $0.20 USD for each item that you list for sale on Etsy’s website or mobile apps. Its very high compare to shopify.
Disclaimer: This analysis is based data collected from internet, if any person has concern over content, please share your view, we will take corrective action.