Comparing Etsy and Shopify: Performance Analysis and Profit Insights

Table of Contents

1. Introduction
2. Overview of Shopify and Etsy
3. Month 1: Performance on Etsy 3.1. Number of listings 3.2. Visits and conversion rate 3.3. Total orders and revenue 3.4. Advertising spend and fees 3.5. Net profit
4. Month 2: Performance on Shopify 4.1. Number of listings 4.2. Visits and conversion rate 4.3. Total orders and revenue 4.4. Advertising spend and fees 4.5. Net profit
5. Comparison of Platforms 5.1. Etsy Pros 5.2. Etsy Cons 5.3. Shopify Pros 5.4. Shopify Cons
6. Experiment with a New Ad Platform
7. Strategies for Increasing Growth 7.1. Improving targeting 7.2. Utilizing Pinterest marketing 7.3. Exploring freelancers for marketing
8. Future Plans and Goals
9. Conclusion

Highlights

• Comparing the performance of a digital shop on Shopify and Etsy
• Analyzing the number of listings, visits, conversion rates, and revenue on both platforms
• Discussing advertising spend, fees, and net profit for each platform
• Exploring the pros and cons of using Etsy and Shopify
• Conducting an experiment with a new ad platform for Shopify
• Providing strategies for increasing growth and reaching revenue goals

Article

Introduction

In this article, we will delve into the experience of running a digital shop on both Shopify and Etsy. We will compare the performance of the two platforms based on important metrics such as the number of listings, visits, conversion rates, and revenue. Additionally, we will discuss advertising spend, fees, and net profit for each platform. By examining these factors, we aim to provide valuable insights to help businesses make informed decisions about which platform best suits their needs.

Overview of Shopify and Etsy

Before we dive into the performance analysis, let's take a moment to understand the basics of Shopify and Etsy. Both platforms offer an avenue for individuals and businesses to sell their products online, but they differ in several ways.

Shopify is a comprehensive e-commerce platform that allows users to create and manage their online stores. It provides a wide range of features and customization options, making it a popular choice for businesses looking for full control and flexibility over their digital shops. Shopify enables users to create unique storefronts, manage orders and inventory, and integrate various payment gateways.

On the other hand, Etsy is a marketplace specifically designed for artisans, crafters, and creative entrepreneurs. It offers a platform where sellers can showcase and sell their handmade, vintage, and unique items. Etsy provides a built-in audience of buyers who are specifically seeking one-of-a-kind products. It is an ideal place for sellers looking to tap into a niche market and benefit from the platform's existing traffic.

Now that we have a basic understanding of Shopify and Etsy, let's proceed to examine the performance of a digital shop on both platforms over the course of two months.

Month 1: Performance on Etsy

In the first month, we focused on establishing a presence on Etsy and optimizing our listings to attract potential customers. Here are the key highlights of our performance on Etsy:

Number of listings: Throughout the first month, we had a total of 29 listings on our Etsy shop. We aimed to provide a diverse range of products to cater to different customer preferences.

Visits and conversion rate: We experienced a significant increase in visits compared to the previous month, with a total of 2,049 visits. Despite a slight decrease in conversion rate to 4.4 percent, the overall performance was satisfactory.

Total orders and revenue: In terms of orders, we received a total of 91 during the month. It is worth noting that this number only includes individual orders and not the ones with multiple products. The total revenue generated amounted to $1,172.66, which reflected a minor decline compared to the previous month.

Advertising spend and fees: To promote our Etsy shop, we allocated a budget of $30 for on-site ad spend. Additionally, we spent $23.70 on off-site ad spend. The revenue generated from these ad spends was $283.78, resulting in a conversion rate of 16.29 percent.

Net profit: After accounting for Etsy fees, our net profit, according to Etsy's calculations, stood at $985.21. However, there was a slight discrepancy between Etsy's reported net profit and our own calculations. The total amount deposited into our bank account was $1,188.60, which included some rollover from the previous month.

Despite the minor decrease in revenue, our performance on Etsy was stable and showed promising potential for growth.

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