Etsy vs Shopify
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
Shopify gives sellers their own branded store but no demand; Etsy supplies built-in buyers but owns the customer relationship.
At a glance
| Metric | Etsy | Shopify |
|---|---|---|
| Revenue | $2.88B (FY2025, +2.7% YoY) | $11.56B (FY2025, +30.1% YoY) |
| Profit | $163M net income (FY2025) | $1.47B operating income (FY2025, +36.6%) |
| Active users | ~86.5M active buyers | Millions of merchants across 175+ countries |
| Employees | ~2,400 | ~8,100 |
| Founded | 2005 | 2006 |
| HQ | Brooklyn, NY | Ottawa, Canada |
LLitmus Framework Score
Overall: Etsy 90 · Shopify 93
Customer Segment
96
98
Value Proposition
94
95
Marketing Channel
85
92
Engagement
88
89
Income Source
95
97
Asset Validation
82
94
Core Operations
85
91
Strategic Alliance
90
96
Expense Validation
93
88
Etsy leads 1 module, Shopify leads 8. Overall edge: Shopify.
Head to head
| Dimension | Etsy | Shopify |
|---|---|---|
| Model | Marketplace with built-in demand | Storefront software; bring your own traffic |
| Built-in buyers | 86.5M active buyers | None; merchant drives own traffic |
| Revenue | $2.88B (FY2025) | ~$11.56B |
| Best for | Micro-sellers wanting instant reach | Brands wanting full control of customer data |
| Customer ownership | Etsy owns the buyer relationship | Merchant owns the customer |
FAQ
Is Etsy or Shopify a better business?
Shopify gives sellers their own branded store but no demand; Etsy supplies built-in buyers but owns the customer relationship. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between Etsy and Shopify's business model?
Etsy operates in Ecommerce (Keep Commerce Human), while Shopify is Ecommerce / SaaS (The Entrepreneurship Company). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, Etsy or Shopify?
Etsy: $163M net income (FY2025). Shopify: $1.47B operating income (FY2025, +36.6%).