Etsy vs Shopify 2021 (Your Own Website)

hey this is will so in this video i'm going to tell you what is better etsy versus shopify or any other e-commerce solution i watched some of the videos on this topic and i have a bunch of information that none of the other videos are covering and it's kind of mind-blowing to be honest because all of that information is super super important when you need to make this decision so make sure to watch the whole video i'm sure you're going to get a ton a ton of value so let's jump straight into it the first misconception that i hear all the time is that etsy is a completely free platform and shopify costs a lot of money so obviously let's just go with etsy however if you look at etsy fees they actually have a lot of different fees and they do add up quite a bit so first of all ez has five percent transaction fee which is quite a lot and this is not card processing fee that all the other e-commerce platforms have etsy has that as well but this is on top of that another five percent then you have 20 cents per every listing so when someone purchases your listing and you want to relist it you need to pay 20 cents or when the listing expires you again need to pay 20 cents to re-list it again then this is not applicable to everyone but if you're based outside the united states and you're charging a different currency then you're also going to have 2.5 currency conversion fee and if you're selling more than 10 000 a month within the 12 month period then you have also compulsory off-site ad fees which are between 12 and 15 and i'm going to discuss all of these things in detail just now so to make this comparison very very simple let's take an example let's say in total we are generating ten thousand dollars in sales so if we take the ten thousand dollars and we multiply that by 0.05 the five percent uh transaction fees that etsy has that means that we're going to pay 500 dollars just for the transaction fees from 10 000 of generated revenue and that is quite a lot of fees the next fee you have is your product fee and obviously this varies a lot depending on how much your product actually costs it might be let's say just one dollar then if you're paying 20 cents for one dollar product that means that you're paying one-fifth off your product just for the listing fees but let's say on average let's say your product is going to be twenty dollars so if you are generating ten thousand dollars in sales that means that you're going to make 500 sales of the 20 product so then if we multiply the 500 sales by the 20 cents that it costs for us to put up a listing that means you're paying another 100 just for the listing fees now let's talk about the offsite fees because this is pretty interesting so you can find on etsy website where basically they explain everything to you how the off-site fees work but there are a couple important things here to note and i think etsy is pretty sneaky when it comes to the offside fees so first of all if you are generating less than ten thousand dollars within the 365 days then you can choose whether you want to be part of the off-site ads or not but if you're generating 10 000 or over that then it is compulsory to be part of this and if you look here you can see you need to pay 15 of the revenue generated from the off-site ads if you're making less than ten thousand dollars and if you're making more than ten thousand dollars then you will be needing to pay twelve percent fee the part that is a little bit sneaky with etsy is that if someone clicks on an offsite ad that etsy has placed your product in and they don't purchase right away they still have a 30-day cookie meaning if they come back later let's see two weeks later they might come across your instagram and they might come on your store from your instagram and they might purchase a product etsy is going to take fees for that even though you actually drove deaf traffic but just because the user before clicked on an ad that had your product etsy is now going to collect fees for that and that honestly is pretty annoying if you're actually going to do marketing for yourself so it really depends how much your offsite ad fees are going to be however on average etsy has said that around 10 of your store revenue is going to come from their offsite ads so again if you take the thousand dollar revenue as example and we multiply that by zero point one we get one thousand dollars as revenue generated from the offsite ads for your store so then we need to pay 12 from that 1000 to etsy so we multiply that by 0.12 that means that we're going to pay 120 for the offsite ads on average if we're generating 10 000 dollars in revenue so as you can see there are actually a lot of fees when it comes to etsy even though it might seem that it is a free platform so again if we're generating 10 000 in total as our revenue then in fees we have five hundred dollars transaction fees one hundred dollar dollars listing fees and 120 dollars offsite ads so in total we will need to pay 720 dollars for all of the different etsy fees if you're just generating 10 000 in revenue which is really a lot of money so if you compare that to shopify you can have a shopify store for 29 a month or you can go to with other platforms such as woocommerce and have a store for as low as four dollars a month and obviously it's not as simple as that because what you need to take into consideration is how long is it actually going to take you to generate the ten thousand dollars because you're most likely well if you're just starting out unless you're taking my course or you're really lucky most likely honestly you're not going to start right away from the bad generating 10 000 in revenue so it's probably not going to be just one month of using shopify or some other e-commerce solution but even if let's say we take 12 months that means that we need to generate 833 dollars per month which is i think very possible for everyone that still means that if we divide the 720 dollars by 12 months that's still 60 dollars per month so that's still double of what you would pay to have a shopify store so hope these fees are a lot more clear now because a lot of people seem to be confused about it and i didn't see anyone else explaining it so smash the thumbs up button if this helped you out also i do have some freebies on my website so make sure to check out all of the links down below in the description and i have recently started posting very useful unique business content on my instagram account so again link down below definitely check it out another huge huge thing when it comes to etsy and other e-commerce solutions is email marketing so with etsy you can't really do any email marketing technically you can do some abandoned carts but even that is limited by etsy of what exactly you can do however you don't really get any data from etsy so you can't really see what products have been purchased what has been the total overall value of the card and so on and so forth so you can't really customize the things that you would usually do if you have your own store if you run your own e-commerce store then it is very very simple to set up a bunch of different email sequences and you can easily have your abandoned cards you can have upsellings cross-sellings you can really create a whole email automation that is going to automatically without you needing to do anything they're going to be sending out emails you can send out emails almost every single day and generate a ton of additional revenue as an e-commerce store you can actually generate 30 of your revenue one-third just from email marketing so just because you're using etsy and you can't do that you're basically leaving one third of potential revenue on the table okay i know so far i talked a lot of bad things about etsy but there is a reason why a lot of people love etsy and i have etsy stars as well so there is definitely the good side as well and that mainly is leveraging audience so etsy has its own audience and they have a lot of people coming to etsy so if you manage to rank your listings then you really don't need to do anything you are going to get sales on autopilot and that creates that truly passive income that is everyone's dream of course it isn't that simple you do need to still put in quite a bit of work beforehand but really if you manage to rank you are going to get sales without you needing to do any marketing whereas if you have your own store you're not going to have any audience so you will definitely need to do your own marketing another super important thing to consider is whether you actually want to build out a brand or not because if you are doing your own marketing and you're trying to get more sales if you're driving the traffic to etsy you're not just driving the traffic to yourself you are driving traffic to your competitors because you have other competing listings right there on the same page so really when you are doing marketing and you're putting in all that effort to drive traffic you are driving traffic to your store but you are more than that driving traffic to etsy so you're helping out etsy to be built and you're not really building your own brand think about it if you ask someone where they got this specific item from if they bought it from etsy most likely they're not going to tell you oh yeah i bought it from this and that store on etsy usually they just say oh yeah i bought that from etsy whereas if you have your own store they're going to say yes i bought it from this specific store also very important thing to consider is that you don't own your customers so when you have your own store once someone purchases you have their email address you can contact them you can retarget them so on and so forth whereas you can't really do that with etsy and what is really really scary if something changes within etsy algorithm your whole business can change overnight your listings that used to make a lot of money overnight can make no money at all if the algorithm changes and they stop ranking and even worse than that because you have a store that is on someone's else platform if etsy decides for whatever reason that they want to ban your store and you would be surprised how often this happens for no apparent reason etsy just shuts down stores if that happens to you then your whole business just evaporates overnight and you can't really do anything about it to be honest as he supports is really not that great a few other important things to consider if you are going to do some sort of marketing so if you're choosing etsy first of all you're not going to really be able to run ads technically you could run ads to your listings but you can't really install a pixel so you can't see all the important metrics so it would really be a waste of money to do that a lot of money within ads are made from retargeting people for grouping people in different groups perhaps people who have already purchased from you people who purchase a lot people who purchase uh just very small items you want to show different ads to all of these different kind of people based on their interest spending habits so on and so forth and you need to have your ad pixels installed in order to have all of this information and you can do that on your own store but on etsy unfortunately you're not really able to do that another thing especially if you're selling digital products you might want to have an affiliate program where basically you have affiliates promoting your product other people recommending it and then you're giving just some cuts from your revenue to those people if they drove traffic that purchase and again you can do that on your own store but on etsy you cannot also when it comes to influencer marketing another very very popular marketing method technically you can do that with etsy as well the influencers could drive people to your essy store but again just because you have all of the competition on the same page it wouldn't really make sense cost wise because you're not going to have high enough conversions for your products to pay those influencers so basically all of the marketing things that you need to really scale and make a lot of money all of those things you have with your own e-commerce store and you don't unfortunately have with etsy so the final verdict even though i said so many bad things about etsy as he still can be a great way to make money first of all it is very very simple and very very easy to set up and you can actually make good money there's a lot of stars that are making five even six figures a month so you can definitely generate a good amount of revenue you do have to take into consideration that there is a little bit of a risk because technically etsy owns your store and they can always change the algorithm so do keep that in mind if you want to build out a real business you don't want to have these type of risks i did explain how etsy has quite a lot of fees but at the same time you do have to take into consideration that you are getting all of this audience for free from etsy so you do have to kind of weigh the two things of how much are you going to spend on your marketing versus how much you're going to pay in fees for etsy so i would say if you want to build out a brand and you really want to scale it to you six figures or seven figures then you definitely need to start your own store and especially if you are planning to do your own marketing if you are interested in these type of things which you probably are if you're watching this video then you definitely want to start your own store and by the way i'm going to leave some video recommendations how to start a store and some different discounts i have so check out all of the links down below in the description but in general i would say as my advice would be start your own store because you can just generate a lot more revenue and build out a brand but also you can start an etsy store as well because it doesn't take that much time so technically you can really do both but honestly i wouldn't advise to do just as he store and not do your own store unless you really just don't have the time to do that so hope you found this video useful as i mentioned i have special discounts and i have tutorials of how you can set up your stores and all of that kind of good stuff so check out all of the links down below in the description if you found this video useful make sure to smash that thumbs up button subscribe to my youtube channel put on those notifications so you see next time i upload a video like this stay awesome and i'll see you soon

Channel: Vil Vas - Nomad Grind

Views: 1,043

Keywords: Etsy vs Shopify, Etsy vs Shopify 2021, etsy vs shopify fees, etsy vs shopify for beginners, etsy or shopify, etsy or shopify for beginners, Etsy vs Website, Etsy vs own website, selling on etsy vs own website, etsy vs your own website, etsy vs personal website, etsy shop vs own website, etsy vs making a website, etsy or own website, which is better etsy or shopify, should you sell on etsy or shopify, should i use etsy or shopify, etsy digital products, etsy pros and cons

Id: sLcnzHRCzkI

Length: 16min 56sec (1016 seconds)

Published: Wed Jul 14 2021