Should You Sell on Etsy or Your Own Website?

Many product-based businesses start on marketplaces like Etsy. It’s easy to start a shop and list products. You benefit from Etsy already being a global marketplace with loyal customers, making it appealing for beginners.

However, as businesses grow, many realize they need more control, branding, and profit margins, leading them to explore e-commerce website design services.

I’ve worked with several e-commerce businesses on website design. While I don’t think you need to abandon your Etsy shop, there are several benefits to having your own website to market and sell your products.

 

 

What is Etsy, and why do so many businesses start there?

Many new e-commerce businesses start on Etsy. With a built-in marketplace and customer base, small ecommerce businesses can get in front of new customers every day.

Benefits of selling on Etsy:

• Easy setup with minimal technical skills
• Lower startup costs
• Trust factor for buyers
• Built-in payment processing

Downsides of Etsy:

• Listing fees and transaction fees
• Limited branding customization
• Competing with thousands of similar sellers
• Customers belong to Etsy, not your business.
• Algorithm changes can impact visibility.

Some small businesses accept the downsides and continue to sell their products on Etsy. I’m not here to judge if that works best for you.

But if you want more control over your business, it’s time to consider a new e-commerce website for your brand.

 

What Is an eCommerce Website?

An e-commerce website is a dedicated online store owned by the business. It’s the domain people type into the search bar to find your products, like target.com or oldnavy.com. It’s where all the products an online store sells live.

Here are some examples of platforms used to build an e-commerce website:

• Shopify
• WooCommerce
• Showit + Shopify Lite
• Squarespace Commerce

While some features differ between the platforms, they all serve one purpose: to allow businesses to list products and have online checkout capabilities.

 

5 Benefits of Selling on Your Own Website

I’ve been in marketing for a long time, and can confidently say that all businesses need a website, even e-commerce brands. Think of it as your brand’s digital storefront. Would you rather your storefront be on Etsy, where you could be banned or shut down without notice, or on your own website, where you have full control over updates, strategy, and marketing?

​I think I know your answer! But let’s go over some benefits of selling online products on a website that you own.

 

1. Full Control Over Your Brand

You get to design everything exactly how you want.​

Don’t want a banner image? Remove it.

Want your brand colors incorporated into everything? You can do it.

Need to change some fonts? It’s easy.

You get to design a unique brand experience unlike any other on the Internet. A more professional, distinctive appearance earns your customers’ trust, leading to more online sales.

 

2. Higher Profit Margins

Etsy charges a few fees to become a seller:

• One-time shop set-up fee
• $0.20 per month per active listing.
• 6.5% transaction fee on the total sale price.
• Payment processing fee.
• 15% offsite ads fee (if applicable)
• 2.5% currency conversion fee (if applicable)

Those fees can really start to add up! And you really aren’t given any other option.

With your own online store, you normally only pay for your website domain, hosting platform, and a processing fee, but you can choose from a variety of providers. This cost can range depending on the website platform you choose, but you can expect to pay $200-450 annually.

I know this can feel like a big expense up front, but it quickly becomes small compared to the per-sale fees you pay on Etsy. This annual fee doesn’t change, no matter how many sales you make.

 

3. Better SEO Opportunities

You’re at Etsy’s mercy for keyword strategy and algorithm optimization. With your own e-commerce website, you have more control over your organic SEO strategy. You can optimize every single page for SEO, start a blog for more keyword opportunities, and optimize each listing to appear in search results.

​This is especially important with the new Google Shopping feature. Individual product listings can appear in search results if they are optimized well. And that is completely in your control on your own website!​

SEO is so important for e-commerce companies!

 

4. You Own Your Customer Relationships

You get to decide how to build customer relationships—there isn’t a middleman like Etsy. You can build an email list, collect customer data, and automate marketing campaigns to re-engage customers.

​The client experience is a huge factor in creating a loyal customer base. Every interaction you have with them—from first impressions to checking out to receiving their order—is an opportunity to get another sale. You have control over what those interactions look like.

 

5. Digital Marketing is an Option

If you decide to leverage paid ads or digital marketing tactics to boost sales, you’re in full control of that customer journey. Not only does your website already house all of your products (and not anyone else’s) but you also have full control over tracking pixels, user experience, and outcomes. 

Additionally, you can install a retargeting tag on your website, so if someone visits your e-commerce website and doesn’t purchase something (or abandons their cart partway through the transaction) you can reengage with them in a variety of ways to bring them back to your shop. 

Ever checked out a cool outfit online and then began seeing that outfit on Instagram or got an email about it? That’s retargeting! And it’s not just for big brands!

 

6. More Flexibility for Growth

Etsy is pretty limited in how you can grow on the platform. It basically comes from getting tons of sales—not so great for beginners!

​On your own ecommerce website, you can create bundles, subscriptions, and upsell options to cater to your audience’s needs.

​You can also integrate your marketing tools (CRM, email marketing, etc.) to automate processes and improve the customer experience, boosting repeat sales over time.

 

When Etsy Is the Right Choice

I know I just gave you a lot to think about when it comes to e-commerce website design. But I will admit that there are situations where Etsy is the better choice.

Situations where Etsy makes sense:

• New businesses testing product ideas
• Side hustles
• Businesses without marketing resources
• Handmade or niche products that perform well in Etsy search

 

When It’s Time to Build Your Own eCommerce Website

Buttttt there are also times when it’s better to have an e-commerce website that you own.

Signs you should upgrade:

• You’re paying significant Etsy fees.
• You want stronger brand recognition.
• You want to build an email list.
• You want to rank on Google.
• You want more marketing options.
• You want more control over the customer experience.
• Your product line is growing.

 

The Best Strategy: Etsy + Your Own Website

A hybrid strategy works well for many ecommerce brands. People shop in different ways—Etsy, Google, Instagram—and it’s a great strategy to meet your audience wherever you can.

Many successful e-commerce brands use Etsy for discovery but direct repeat customers to their website. Then, they can build an email list for long-term growth.

You don’t have to choose one over the other. Etsy and an e-commerce website can work well together.

 

Build Long-Term Growth with an E-Commerce Website

Etsy is a great place to start, but serious brands eventually need to make the leap to owning an e-commerce website. A custom e-commerce website gives you control over branding, scalability, and customer experience, all of which lead to a successful online business.

If you’re ready to move beyond marketplaces, investing in custom e-commerce website design can help you build a more sustainable online store. Let’s talk about how we can work together to achieve that goal.

 

FAQs About E-Commerce Website Design