Shopify vs. Etsy vs. Squarespace: A Complete Comparison Among 3 Ecommerce Platforms

Key Takeaways

• Shopify is great for small to medium businesses and solopreneurs who want a reliable solution for online sales.
• Etsy is an online platform for businesses selling handmade items or vintage goods. 
• Squarespace is best for creatives like artists and photographers who want their websites to look visually stunning.

Shopify vs. Etsy vs. Squarespace: Key Differences

Shopify vs. Etsy vs. Squarespace each share different focuses, strengths, and targeted audiences. With Shopify, they focus on small-to-medium businesses, offering these audiences robust features and supporting apps to promote eCommerce operations of all sizes.

With Squarespace, the platform targets users by concentrating on the beauty of their store’s display. Squarespace mainly emphasizes web design and the freedom of customization.

Regarding Etsy, the brand focuses on individuals aiming to sell unique or handmade items, especially vintage stuff. Etsy helps keep business meaningful but straightforward and assists business owners in drawing customer attention.

Shopify vs. Etsy vs. Squarespace: Pros & Cons

Shopify

Pros

• Customization options: Shopify allows users to customize a store’s design and layout with a drag-to-drop feature. 
• Scalability: Shopify can support different types and sizes of businesses, especially small-to-medium businesses or solo entrepreneurs.
• App Variety: More than 8,000 apps are available on Shopify App Store to support online merchants.
• Multiple support channels: Shopify provides support through various channels like live chat, phone, email, tutorials, etc.
• Multiple payment gateways: Shopify partners with various payment gateways and provides many payment options like credit cards, gift cards, cash, banking transfer, etc.

Cons

• Transaction Fees: All other payment gateways require transaction fees except for Shopify Payments.
• Limited pre-made themes: Shopify’s theme library is less diverse than its competitors, like Etsy (Etsy has a collection of 5,000+ themes, while Shopify provides less than 150 themes).

Etsy

Pros

• Dedicated marketplace: Etsy allows access to a sizable and devoted audience interested in handmade, artisan, and antique products.
• Established brand and reputation: Etsy has established a strong brand presence as a go-to source for distinctive, handcrafted goods.
• Simplified setup: It’s easy to set up an Etsy shop, making it an excellent option for newcomers or people who want to start selling online immediately.

Cons

• Limited Customization: Etsy shops have limited customization, making it harder to stand out or create a strong brand presence.
• Competition: Given the nature of the marketplace, sellers can face significant competition on Etsy.
• High transaction fees: up to 6.5% 

Squarespace

Pros

• Affordable plans
• 14-day free trial
• Free transaction fees for some plans
• User-friendly experience drag-and-drop interface
• No coding themes requirement
• Unlimited bandwidth
• 30 minutes of video storage
• SEO optimization and blog pages
• Chat and email support

Cons

• Limited support materials: only available in 6 languages.
• Lack of supporting apps & integrations: only 32 extensions in total (much less than 8,000 apps on the Shopify App Store)
• No own gateways and under 10 payment gateways
• POS’s limited payment acceptance in the US
• Only two options for dropshipping

Shopify vs. Etsy vs. Squarespace: Detailed Comparison

Pricing 

Shopify

Starting at $5, users can sign up for one of the Shopify pricing plans: Starter, Basic, Shopify, Advanced, and Shopify Plus.

Squarespace

Starting at $23, users can sign up for one of the following pricing plans:

• Personal: $23 per month
• Business: $33 per month
• Commerce (Basic): $36 per month
• Commerce (Advanced): $65 per month

Etsy

Starting at $0, users can sign up for one of the following pricing plans:

• Etsy Standard: $0
• Etsy Plus: $10 per month

The Verdict

Shopify is the winner in terms of subscription fees. Shopify owns the most pricing plan choices (5 plans in total), while Etsy owns the smallest number of options, with only 2 available.

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Transaction fees and credit card processing fees

Shopify

Online credit card rates: 

• Basic plan: 2.9% + 30¢ USD per transaction
• Standard plan: 2.6% + 30¢ USD per transaction
• Advanced plan: 2.4% + 30¢ USD per transaction
• Plus plan: 2.15% + 30¢ USD per transaction

In-person credit/debit card rates:

• Basic plan: 2.7% + 0¢ USD per transaction
• Standard plan: 2.5% + 0¢ USD per transaction
• Advanced plan: 2.4% + 0¢ USD per transaction
• Plus plan: 2.4% + 0¢ USD per transaction

Third-party transaction fees are waived if Shopify Payments are not used: 

• Basic plan: 2.0% USD per transaction
• Standard plan: 1% USD per transaction
• Advanced plan: 0.5% USD per transaction

Squarespace

• Website Business: 3% final order total per transaction
• Commerce Basic: 0% final order total per transaction
• Commerce Advanced: 0% final order total per transaction

Etsy

• Transaction fee: 6.5% 
• Payment processing fees: at least 3% + 25¢

The Verdict

Overall, Squarespace is the winner in terms of transaction fees. Specifically, Etsy charges the highest amount of transaction fees (6.5%), while Squarespace shares the lowest price for transaction fees (depending on the exact circumstances).

Free trials and special deals

Shopify

• 3 days free trial 
• $1/ month for the first 3-month deal 
• 25% off if billed annually

Squarespace

• 14 days free trial 
• 25% off if billed annually

Etsy

• None

The Verdict

Squarespace offers the most appealing free-trial option, which can last up to 14 days, while Etsy does not have a free trial or special deals for users. Shopify and Squarespace share a similar deal of 25% billed annually, helping users save a fortune once they pay the bill yearly.

Store design

Shopify

Shopify’s store design makes it easy for new or experienced users to start. They do not need to be expert coders for Shopify, as the drag-and-drop functionality allows users to customize their theme and layout freely. The collection of responsive themes (up to 146 themes for now) that Shopify distributes ensures consistent store display across different devices. 

Furthermore, the platform also provides several helpful designing functions, such as unlimited bandwidth, product listings, storage area, high-resolution videos, images, etc., to assist users in producing beautiful, quality store visuals without technical expertise. 

For instance, the product listings function allows users to create a series of similar products, which can help attract clients to view the entire collection of items quickly.

One particular thing is that users can incorporate customizable code for sophisticated design aspects into their design layout. Refer to the customizable code area and add the customer code to utilize this function on the Shopify app.

Squarespace

Similar to Shopify, Squarespace also offers a drag-and-drop feature to simplify the design process for users. This feature enables users to drag or drop any design features they prefer into the store’s layout within just a few clicks. This empowers users of all levels, even the newbies without technical or coding skills, to easily customize their store. 

The platform offers over 100 premade templates on health & beauty, fashion, food, entertainment, events, home & decor, etc., to help users quickly choose the appropriate templates with their business model. This amount of pre-made themes is slightly less than those available on the Shopify Theme market. 

Etsy

Etsy is straightforward; you can add listings to an online marketplace. However, unlike the above brands, Etsy does not offer themes for your stores. Users can only edit images and banners on your storefront without customizing them based on personal preferences. 

Another limitation of Etsy compared with Shopify or Squarespace is that the platform does not allow customized code functionality, which means that users can’t add outside custom codes to their store’s design.

The Verdict

Shopify is the clear winner in this store design game, with the dominant design features provided to users. Shopify delivers the highest number of pre-made themes (146), ensuring the store’s design is responsive among different devices.

Ecommerce features

Payment processors

Shopify

Shopify distributes many payment gateways, including Shopify Payments – its in-house payment gateway option, and more than 100 integrated payment providers worldwide. 

Squarespace

Unlike Shopify, Squarespace does not have its own payment gateway. Instead, they collaborate with less than 10 other payment providers to support clients with the payment process. If you want to conduct payments on their platform, there are only two options: PayPal and Stripe. 

Etsy

Users can pay through the Etsy Payments service or other licensed providers like Worldpay, PayPal, or Adyen. Depending on the nation you are in, different providers and processing times will apply to your payment.

The Verdict

This is a clear win for Shopify regarding the number of payment methods the platform provides. Moreover, Google Pay is another outstanding feature of Shopify compared with Etsy or Squarespace.

Point of sale

Shopify

Shopify POS is among the top POS services worldwide for all Shopify plans, business sizes, and types. The POS enables stores to synchronize data among online and offline stores smoothly. 

Moreover, the system offers flexible payment options to support users, including cards, cash, contactless payment, mobile wallet, and gift cards. Shopify POS has a mobile version for smartphone users, empowering businesses to implement transactions on the go and enhancing customers’ shopping experiences.

Squarespace

Squarespace POS only accepts payments through credit cards, mobile payments, and cash. Another thing to bear in mind is that Squarespace POS is available in the U.S.

Etsy

So far, Etsy has yet to provide point-of-sale services.

The Verdict

With POS comparison, Shopify POS surpasses the two components in all aspects. The two main advantages of Shopify POS are more payment methods and no limitations or restrictions on any particular country.

Dropshipping

Shopify

Regarding dropshipping functionality, Shopify is partnering with nearly 500 supporting apps to streamline your dropshipping operations. Some leading dropshipping providers with Shopify include DSers-AliExpress Dropshipping, Spocket, Syncee, and AppScenic. You may extend your product choices and develop your business without limitations with Shopify’s infinite dropshipping options.

Squarespace

Not having as many dropshipping partners as Shopify, Squarespace offers only two main options: Printful and Spocket. Moreover, users should remember that Squarespace may not provide direct support if these dropshipping extensions encounter issues. If you face any problems, you must contact the apps for quick help and information.

Etsy

Since the list of products you can sell on Etsy is limited (handmade, vintage, and craft supplies), no fixed platform can facilitate Etsy drop shipping easily. You can only get other companies to complete/ fulfill things ordered on Etsy if only you design them. Printful and Printify are dropshipping businesses that produce and distribute goods to your clients based on photos and artwork you submit so that you may use them in combination with Etsy.

The Verdict

Shopify is still the winner in this competition as it offers more extensive eCommerce functions than Squarespace and Etsy and more support for partner collaboration.

Apps and integrations

Shopify

As per the latest update in late July 2023, Shopify has more than 8,000 apps available on Shopify App Store. With such many apps like that, clients can seek out services that can enhance their business delivery & service quality. 

Squarespace

Squarespace, less popular than Shopify, only offers 32 apps or extensions. These tools help users improve what their websites can do.

Etsy

Etsy store has a limited number of selections available. Some available integration options include social media integration, direct checkout, and integrated shipping labels.

The Verdict

Shopify outplayed the two remaining opponents in the total number of apps and integrations, with over 8,000 apps available on the Shopify App Store. The variety of alternatives on the Shopify App Store distinguishes it. It strengthens its position as the best option for companies looking for a wide range of tools to improve their online presence.

Marketing tools

Shopify

Shopify hosts a series of different marketing tools, such as cart abandonment recovery, which helps remind customers who leave items in their carts without finishing the purchase. 

Moreover, Shopify distributes 10,000 free emails monthly to support businesses in boosting their email marketing campaigns. 

The platform also provides SEO optimization tools to help keep your store ranking well in the search engines, enhance visibility, and attract potential customers. 

Additionally, Shopify facilitates the construction of blog sites and social media accounts, enabling you to disseminate helpful information, interact with your audience, and build a solid online presence for your business.

For clients who want to diversify their sales channels, Shopify presents different partners like Facebook, Google Shop, Amazon, Messenger, Buy Button, etc.

Squarespace

Like Shopify, Squarespace provides SEO optimization tools (keyword research On-page optimization) that help your website rank higher in search results and gain more attention online. 

Additionally, Squarespace allows you to create customized blog pages, giving you a platform to offer exciting material and establish a strong connection with your audience.

Etsy

Etsy only lists essential SEO tools like keywords, tags, and category optimization. Etsy has built-in social media sharing tools to help you share your products/ services on different social networks. Paid advertising is another Etsy marketing function that can help you approach more customer segments.

The Verdict

When comparing the 3 brands, Shopify is the best choice for practical marketing tools, offering users a comprehensive set of functions that serve as an all-in-one marketing solution. The list of marketing tools that Shopify has is also more diverse and customizable, allowing users to choose the appropriate ones freely.

Contrarily, Squarespace focuses only on blog pages and SEO optimization, making it the perfect choice for companies prioritizing search engine exposure and content exchange. Shopify is the best option for companies looking to efficiently maximize their marketing efforts thanks to its vast marketing toolbox and substantial email limit.

Customer support

Shopify

• Provides email, live chat, and phone help around the clock.
• Supplies resources in 21 different languages.
• Distributes a few video lessons and photos.

Squarespace

• Chat and email support are available
• Support material in 6 languages

Etsy

• No live chat function
• Forums for seller communities
• Phone and email support is available

The Verdict

Shopify is the best option for customer support, with more support channels, including phone, email, and live chat. Additionally, Shopify offers support materials in 21 nations, while Squarespace only accounts for six. The tutorial area of Shopify is more highly valued than other competitors, with lots of tutorial videos, instruction blogs, tips, and tricks.

Scalability

Shopify

Shopify is designed to support the primary customer segment, small-to-medium businesses (from small startups to individual entrepreneurs). With Shopify, business owners can manage enormous volumes of traffic and have access to an infinite number of product listings and bandwidth.

Squarespace

Squarespace is proud to have years of experience in serving high-traffic sites. Different small businesses refer to Squarespace service to boost their volume in the marketplace.

Etsy

Etsy might not be the best option for online stores with a vast product selection. This is due to constraints on Etsy’s customization choices for the shop and restrictions on the maximum number per product. Although Etsy does not impose a cap on the number of product listings, creating a profitable and growing business, there is still possible.

The Verdict

Regarding scalability, the Shopify option is a clear victory. The platform offers clients more diversified choices in pricing plans, which helps clients easily choose the method that suits their business model. The Shopify platform’s scalability level is more accessible than the other two brands.

Shopify vs. Etsy vs. Squarespace: Who Should Use

Shopify is a better option for:

• Individual online retailers, enterprises, and entrepreneurs seeking all-in-one eCommerce solutions.
• Businesses with extensive inventories and in need of advanced inventory management features.
• Store owners who require multiple transfer/ payment options and emphasize international sales.
• Businesses that value scalability through different pricing plans, with more advanced functionality in the later development process of the brand.
• Businesses that aim to deploy POS to boost direct sales.

Squarespace is a better option for:

• Businesses that focus on the beauty and profession of the website: companies/ brands in the fields of creativity, photography, art, and design.
• Small-to-medium businesses that seek a friendly, easy-to-use website builder (drag-to-drop function).
• Businesses that emphasize the importance of SEO optimization.

Etsy is a better option for:

• Small businesses or individuals with a limited budget and standard ecommerce needs (starting with the free plan)
• Businesses that focus on handmade products, boutiques, and vintage goods.

Bottom Line

When comparing Shopify vs. Etsy vs. Squarespace, it is apparent from thorough comparisons that Shopify comes out on top by a wide margin. Shopify is the best option in several categories, including price, transaction costs, free trial length, web design, and eCommerce functionality. 

While Shopify offers more affordable options than Etsy and Squarespace, they lack the breadth of services that Shopify offers. Due to their distinguishing characteristics, such as their target market and development route, Etsy and Squarespace may attract customers easier.

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Shopify vs. Etsy vs. Squarespace: FAQs