Shopify vs Etsy Profit Margin: Which Platform Keeps More Money?
A real fee comparison — not marketing. Which platform leaves more profit in your pocket after every fee, and for which type of seller.
Platform fees change. Verify current rates at shopify.com and etsy.com. This guide is educational only.
Calculator
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The short answer
On a $40 product with a $12 cost: Etsy leaves roughly $14–17 profit after all fees (35–43% margin). Shopify leaves $22–24 — but only if you have traffic. If you need to spend $8 in ads per sale on Shopify, the platforms are nearly equal.
The real question is not “which platform charges less” — it’s “which platform is cheaper to get a buyer, including all marketing costs.”
Fee comparison: $40 product, $12 cost
| Fee | Etsy | Shopify (Basic) |
|---|---|---|
| Transaction fee | $2.60 (6.5%) | $0 (Shopify Payments) |
| Payment processing | $1.45 (3% + $0.25) | $1.46 (2.9% + $0.30) |
| Listing fee | $0.20 | $0 |
| Platform plan | ~$0.40 (approx) | $1.30 (÷ 30 orders/mo) |
| Etsy Ads (optional) | $1.00–$3.00 | — |
| Shipping (passed to buyer) | $0 or variable | $0 or variable |
| Total fees | $4.65–$7.65 | $2.76 |
| Profit (after COGS + fees) | $15.35–$18.35 | $24.24 |
| Net margin | 38–46% | 60.6% |
Assumes Shopify Basic at $39/month, 30 orders/month. Etsy Ads included at $2/sale.
The traffic cost changes everything
Shopify’s fee advantage disappears if you pay for traffic. Here is what happens at different ad costs per sale:
| Ad spend / sale | Shopify net profit | Etsy net profit (no ads) |
|---|---|---|
| $0 (organic / repeat) | $24.24 | $17.35 |
| $3 | $21.24 | $17.35 |
| $6 | $18.24 | $17.35 |
| $8 | $16.24 | $17.35 |
| $10 | $14.24 | $17.35 |
At $8 in ad spend per sale, Etsy (with no ads) is more profitable than Shopify. The crossover point is your breakeven on ad spend. Calculate it before choosing.
When Etsy wins
- You are just starting and have no existing audience
- Your product is handmade, vintage, or niche — high Etsy search intent
- Your average order is under $25 (Shopify plan cost per order hurts more at low volume)
- You sell fewer than 10 orders per month (not worth the Shopify plan cost)
- You do not want to manage your own website, hosting, or SEO
When Shopify wins
- You have an existing audience (email list, social following, repeat buyers)
- Your average order is over $50 — fees matter less, control matters more
- You want to build a brand that owns the customer relationship
- You sell at volume (100+ orders/month) — per-unit plan cost becomes trivial
- You run paid ads with consistent ROAS — owning the funnel improves economics
Run the numbers with your actual product
Use the Etsy Profit Calculator and Shopify Profit Calculator with the same product cost, selling price, shipping, and ad spend to see which platform produces better margin for your specific scenario.
Formula
The math behind the result
How it works
A clean flow from input to answer
- 1Use the same product cost and selling price in both the Etsy and Shopify calculators.
- 2Add realistic shipping and ad spend for each platform.
- 3Compare the resulting net margin to see which platform leaves more profit.
FAQ
Common questions
Is Shopify or Etsy more profitable?
It depends on your product price and ad spend. For products under $30, Etsy fees can be brutal. For products over $50 with repeat buyers, Shopify often wins. Run both calculators with your actual numbers.
What fees does Etsy charge per sale?
Etsy charges a 6.5% transaction fee, 3% + $0.25 payment processing, $0.20 listing fee per item, and optional Etsy Ads. On a $30 sale, you lose roughly $3.15 before shipping.
What fees does Shopify charge per sale?
Shopify Basic charges 2.9% + $0.30 per transaction via Shopify Payments. There's also a $39/month plan fee. No transaction fee if you use Shopify Payments.
Does Etsy provide traffic or do I need to advertise?
Etsy has organic marketplace traffic — buyers searching Etsy find your products. Shopify does not. You pay for all traffic via Meta ads, Google, SEO, or email. This cost must be in your margin calculation.
Can I sell on both Shopify and Etsy at the same time?
Yes. Many sellers use Etsy for discovery and traffic, then convert repeat buyers to their Shopify store. This reduces Etsy fee exposure over time.
Which platform is better for handmade products?
Etsy for discoverability. Buyers on Etsy are actively looking for handmade, vintage, and unique items. Once you have a following, moving volume through your own Shopify store improves margin.