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Etsy fees eating my profit - should I switch to Shopify?

Started by HandmadeSeller_PDX · Dec 29, 2025 · 7 replies
For informational purposes only. Not legal advice.
HS
HandmadeSeller_PDXOP

I'm doing about $8,000/month on Etsy selling handmade jewelry. When I calculate all the fees, I'm paying over 20% to Etsy:

  • Transaction fee: 6.5%
  • Payment processing: 3% + $0.25
  • Listing fees: $0.20 each
  • Offsite Ads: 12-15% when triggered

That's $1,600-1,800/month in fees alone! Shopify is $29/month plus payment processing. Is that actually cheaper?

SE
ShopifyExpert_Ecom

Let me break down the math for $8K monthly revenue:

Etsy total costs:

  • 6.5% transaction: $520
  • 3% + $0.25 processing: ~$240
  • Listing fees: ~$20
  • Offsite Ads (assume 30% of sales): $288-360
  • Total: $1,068-1,140 (13-14% without Offsite Ads, 20%+ with)

Shopify total costs:

  • $29 monthly plan
  • 2.9% + $0.30 payment processing: ~$232
  • Total: $261 (3.3% of revenue)

Shopify saves you $800-900/month BUT you lose Etsy's built-in traffic. You'll need to drive your own traffic via ads/SEO.

Use an Etsy fee calculator to model your exact costs including Offsite Ads impact.

HS
HandmadeSeller_PDXOP

So Shopify is WAY cheaper on fees but I'd need to spend money on ads to get traffic? How much should I budget for ads?

DM
DigitalMarketing_Pro

Typical e-commerce ad spend is 10-15% of revenue for customer acquisition. On $8K/month, that's $800-1,200 in ad spend.

But here's the key: those are YOUR customers. On Etsy, you don't own the customer relationship. On Shopify, you build an email list and can remarket forever.

Hybrid approach many sellers use:

  • Keep Etsy for discovery and new customers
  • Move repeat customers to Shopify (offer discount for direct purchase)
  • Best of both worlds
ES
EtsySeller_10Years

I switched from Etsy to Shopify at $10K/month. First 3 months were rough - sales dropped 40% because I underestimated how much traffic Etsy drove.

Built it back up over 6 months through:

  • Google Ads
  • Instagram/Facebook ads
  • SEO optimization
  • Email marketing to old Etsy customers

Now doing $15K/month on Shopify with way better margins. But it took work and ad spend to get there.

HS
HandmadeSeller_PDXOP

DECISION: Going with the hybrid approach. Keeping Etsy for new customer acquisition but launching Shopify for repeat customers with a "VIP discount" (really just removing Etsy's fees).

Will track which channel is more profitable over next quarter. Thanks for all the advice!

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