Most sellers underestimate how much platform fees can eat into their profits until they hit a growth milestone and realize the math has changed. What starts as a few dollars in fees can quickly become hundreds or thousands lost each month.
The difference between Shopify vs. Etsy fees grows as your sales increase, and missing the optimal time to switch platforms can cost you thousands each year.
In this guide, you will learn how to compare Shopify and Etsy fees at every stage, calculate your personal break-even point, and track the true impact of fees.
Platform fees directly shape your margins and growth as your business scales. Even a small difference in fee percentage can have a major impact.
For example, a 5% fee gap on $10,000 in monthly sales means $500 lost each month, or $6,000 per year. At $50,000 in sales, that same gap becomes $2,500 monthly.
The break-even point is the sales volume where Shopify’s fixed monthly fees become less expensive than Etsy’s variable, percentage-based fees. For most sellers, this threshold sits between $2,500 and $3,000 in monthly sales.
Below this, Etsy’s pay-as-you-go model is often more affordable. Above it, Shopify’s lower per-transaction costs and fixed fees can save you thousands each year.
Many sellers only discover their actual fee impact after reviewing reconciled financials. By then, they may have missed the optimal time to switch B2B ecommerce platforms.
To make the right decision, you need to understand every fee, especially the ones most guides miss.
A true fee comparison means including every cost: subscription, transaction, payment, and hidden extras. Missing a single line item can throw off your math by thousands per year.
But the listed marketplace fees tell only part of the story. Shopify’s true cost often includes operational apps for accounting sync, inventory management, and marketing. These are not optional for most growing businesses.
Etsy’s Offsite Ads can add a significant, mandatory fee once your shop crosses $10,000 in annual sales; this is separate from the standard transaction fee.
Order frequency and average order value (AOV) also affect total fees. For example, 100 orders at $20 each incur more per-transaction fees than 10 orders at $200 each, even if total revenue is the same.
Here is how fees stack up at different sales levels, including all transaction and platform costs:
|
Sales Volume |
Etsy Monthly Fees |
Shopify Monthly Fees |
Monthly Difference |
Annual Difference |
|
$1,000 |
~$95 |
~$68 |
$27 |
$324 |
|
$2,000 |
~$190 |
~$97 |
$93 |
$1,116 |
|
$5,000 |
~$475 |
~$214 |
$261 |
$3,132 |
|
$10,000 |
~$950 |
~$359 |
$591 |
$7,092 |
Table 1: Shopify vs. Etsy fees compared
Estimates include standard transaction, payment, and ecommerce platform fees. Actual costs may vary based on order mix and Offsite Ads.
Tools like Webgility automatically track and categorize all these fee types, ensuring sellers do not overlook variable or hidden charges.
Misconceptions about platform fees can cost real money. Here are three to watch for.
At low sales volumes, Etsy’s lack of a monthly subscription can be more affordable. However, once you reach $2,500-$3,000 in monthly sales, Shopify’s lower per-transaction fees and fixed costs often make it the better deal.
Many sellers focus on Shopify’s $39 monthly fee and overlook how quickly Etsy’s percentage-based fees add up. At $10,000/month in sales, Etsy’s total fees can exceed $950, while Shopify’s are closer to $359, even with app costs.
Suggested read: A Guide to Ecommerce Accounting Process Improvement
For sellers earning over $10,000/year, Offsite Ads are mandatory and add 12-15% to the order total for sales attributed to Etsy’s ads.
Once you know the real Etsy and Shopify fees, the next step is to calculate your personal break-even point.
Calculating your break-even is step one; validating it with real data is what gives you confidence.
Total monthly fees = Fixed fees + (order count × per-order fees) + (revenue × percentage fees)
Suppose you have $5,000/month in revenue, 100 orders, and a $50 average order value.
In this scenario, Shopify saves you $301/month, or $3,612/year.
Compare your last three months’ actual fees to your projections. Adjust your break-even calculation as needed.
Seasonal swings and fee changes can shift your break-even point. Recalculate at least twice a year to stay ahead.
Webgility’s real-time accounting and fee reconciliation eliminates manual spreadsheet errors, giving sellers confidence in their numbers.
But break-even is not one-size-fits-all. Let us see how it shifts for different types of sellers.
Suggested read: Best Shopify Integrations to Grow Your Store
No two sellers have the same break-even, see where you fit and what to watch.
Etsy likely wins on simplicity and lower upfront costs. Focus on the total fee percentage of revenue. If fees exceed 15%, review your platform choice.
Shopify or a hybrid approach often wins. Track per-channel profitability, not just revenue. Most sellers see Shopify become more cost-effective at $2,500–$3,000/month.
Suggested read: Shopify Automations to Eliminate Bottlenecks & Boost Profits
Shopify’s fixed fees and scalability win. Focus on operational efficiency and true margin by SKU and channel.
Webgility enables channel-level profitability tracking, so you always know which platform is truly more profitable.
But Shopify vs. Etsy fees are only part of the story. Switching platforms brings real-world operational challenges.
Follow these steps to monitor your break-even with Shopify vs. Etsy fees, and switch at the right time.
Checklist:
Suggested read: Shopify Accounting: Best Practices, Automation & Tips
The smartest sellers revisit their numbers as they grow because platform choice is not set-and-forget. Break-even is a living number, and operational realities matter as much as the math.
Review your Shopify vs. Etsy fees and numbers quarterly, and use real-time tools to stay ahead of fee shifts and operational costs.
Ready to track your true profitability? Webgility gives sellers the data and automation needed to adapt quickly as their business grows. Schedule a demo with Webgility today.
Track your monthly sales and total fees. If your fees as a percentage of revenue are higher on Etsy and you consistently exceed $2,500–$3,000/month in sales, it is likely time to consider Shopify.
Etsy Offsite Ads fees are mandatory for sellers earning over $10,000 per year on Etsy. Below that threshold, participation is optional, but fees still apply to attributed sales.
Common hidden costs on Shopify include app subscriptions, premium themes, and fees from third-party payment processors. These can add up quickly, so factor them into your break-even analysis.
Yes, many sellers operate both platforms during a transition period. Use inventory sync tools to manage stock and avoid overselling.