Choosing the right platform can shape the future of any online business. With more sellers entering the digital marketplace in 2025, the question becomes more important than ever: Should we go with Shopify, Etsy, or Squarespace?

Each platform has its strengths. Each serves a different type of seller. But the “best” platform depends on what you are selling, how you want to grow, and the level of control you need.

In this guide, we break down Shopify, Etsy, and Squarespace in a practical, easy-to-use comparison. Whether you plan to start a new online store or upgrade from your current platform, this guide helps you find the right match.

Why Choosing the Right Platform Matters

The platform you choose affects your:

• Profit margins

• Branding

• Customer experience

• Growth potential

• Marketing strategy

• Monthly costs

• Sales channels

Picking the wrong platform can lead to:

• Higher fees

• Exposure to tough competition

• Limited customization

• Lower conversions

• Slow growth

On the other hand, the right platform can:

• Boost sales

• Improve customer trust

• Build a strong brand identity

• Help you expand locally or globally

With that in mind, let’s explore the strengths and weaknesses of Shopify, Etsy, and Squarespace.

Understanding the Three Platforms at a Glance

Shopify: Build Your Own Online Store

Shopify is a full-scale e-commerce platform that allows you to create your own online store. It’s designed for long-term growth, customization, and control.

It’s ideal for:

• Product brands

• Clothing companies

• Beauty brands

• Electronics sellers

• Subscription businesses

• Growing e-commerce stores

Etsy: Sell on a Marketplace With Built-In Shoppers

Etsy is a marketplace where millions of buyers search for handmade goods, vintage items, and unique products. You don’t create a full custom website; instead, you set up a storefront inside Etsy’s ecosystem.

It’s ideal for:

• Hobby sellers

• Small creators

• Jewelry makers

• Print-on-demand artists

• Vintage sellers

• Custom gift shops

Squarespace: Beautiful Websites With Basic E-Commerce Features

Squarespace is known for its modern website templates. It’s mainly a website builder that also includes e-commerce features.

It’s ideal for:

• Portfolio websites

• Small catalog stores

• Photographers

• Musicians

• Service providers

• Brands with minimal product lists

Shopify in Detail

Why Sellers Choose Shopify

Shopify is known for its flexibility, ease of use, and strong growth potential. It gives sellers full control over store design, marketing, payments, and customer experience.

Key Strengths

1. Full branding freedom
   You can customize everything — colors, layout, homepage sections, and more.

2. Large app ecosystem
   Shopify has over 8,000 apps to add features like upsells, email marketing, reviews, subscriptions, and more.

3. Strong inventory and order management
   Great for medium to large catalogs.

4. Professional marketing tools
   You can launch email campaigns, run ads, and optimize SEO directly.

5. Multi-channel selling
   Connect your store to Instagram, Facebook, TikTok, Pinterest, Google Shopping, and Amazon.

6. Scalable
   Whether your store makes 10 orders a month or 10,000, Shopify grows with you.

Limitations

1. Monthly costs add up when you add apps.

2. You must bring your own traffic through ads, SEO, or social media.

3. Requires more setup time and learning compared to Etsy.

Etsy in Detail

Why Sellers Choose Etsy

Etsy attracts millions of buyers actively searching for unique and handmade products.

Key Strengths

1. Built-in marketplace traffic
   Etsy already has customers searching for items every second.

2. Fast setup
   You can start selling within minutes.

3. Buyer trust
   Etsy is known for special products; shoppers feel comfortable buying here.

4. Low upfront cost
   No monthly plan required. You just pay listing and transaction fees.

Limitations

1. High competition
   Thousands of sellers list similar products.

2. Limited branding
   You cannot design your own website layout.

3. Etsy fees can reduce profit margins
   Listing fee + transaction fee + ad fees.

4. Risk of account suspension
   Marketplace rules are strict.

5. Limited growth potential
   Once you scale, Etsy takes a large cut.

Squarespace in Detail

Why Sellers Choose Squarespace

Squarespace is visually attractive, simple to manage, and perfect for brands that need a stylish website.

Key Strengths

1. Clean and modern design templates
   Good for fashion, photography, or art-focused brands.

2. Easy content management
   Great for businesses with blogs, galleries, or service pages.

3. Affordable plans
   Lower cost than Shopify.

4. Simple store setup for small catalogs
   No need for heavy apps.

Limitations

1. Limited e-commerce tools
   Not suitable for large catalogs or advanced features.

2. Fewer payment gateway choices
   Less flexibility than Shopify.

3. Basic marketing features
   No deep e-commerce automations.

4. Not ideal for scaling
   Good for small stores but limited for growth.

Pricing Comparison

Shopify Pricing

• Basic Plan

• Shopify Plan

• Advanced Shopify

Shopify also charges transaction fees unless you use Shopify Payments.

Etsy Pricing

• No monthly fee for basic sellers

• Listing fee for each product

• Transaction fee per order

• Optional ads and promotion fees

Squarespace Pricing

• Personal plan (no store)

• Business plan

• Commerce plan

• Advanced commerce plan

Squarespace offers good pricing but fewer features.

Ease of Use Comparison

Shopify Ease of Use

Shopify is simple once you learn the dashboard.
It’s designed for business owners, not developers.

Etsy Ease of Use

Etsy is the easiest platform among the three.
List your products, add tags, and start selling.

Squarespace Ease of Use

Squarespace is easy for designing websites, but the e-commerce setup is less intuitive than Shopify.

Branding and Customization

Shopify: Full Branding Control

You can create your own brand identity:

• Custom homepage

• Unique product pages

• Brand colors

• Custom checkout (for higher plans)

Etsy: Limited Branding

All shops look similar because Etsy controls the layout.

Squarespace: Beautiful Design Templates

Great design freedom, but less control over e-commerce features than Shopify.

Marketing Tools Comparison

Shopify Marketing Tools

• SEO optimization

• Email marketing

• Social commerce

• Google Shopping

• Retargeting ads

• Upsell and cross-sell apps

Shopify gives you the strongest marketing ecosystem.

Etsy Marketing Tools

• Etsy Ads

• Etsy Search

• Etsy SEO (tags and titles)

But Etsy ads often compete with other sellers.

Squarespace Marketing Tools

• Basic email marketing

• Built-in analytics

• Simple SEO tools

Marketing capabilities are limited compared to Shopify.

Payment Gateways

Shopify

Supports 100+ payment gateways worldwide.

Etsy

Uses Etsy Payments only; limited control.

Squarespace

Uses fewer payment gateways compared to Shopify.

SEO Potential

Shopify SEO

Shopify is excellent for SEO with powerful tools.

Etsy SEO

You depend on Etsy search, tags, and algorithm.

Squarespace SEO

Squarespace has good SEO for content, not as strong for e-commerce.

Shipping and Fulfillment

Shopify

Supports:

• Dropshipping

• Warehousing

• Print on demand

• Global shipping

Etsy

Simple shipping but manual.
Good for small sellers.

Squarespace

Basic shipping tools.
Not ideal for high-volume sellers.

Scalability

Shopify

Best scalability among the three.

Etsy

Limited.
Marketplace fees make scaling harder.

Squarespace

Better for small or medium catalog businesses.

Customer Ownership

Shopify

Full ownership of customer data.

Etsy

Etsy controls customer information.

Squarespace

You get customer data but fewer tools to use it.

Who Should Use Shopify?

Shopify is the best choice if you want:

• Full control

• Custom branding

• Marketing tools

• Long-term business growth

• A large product catalog

• International sales

• Subscriptions or bundles

Shopify is perfect for:

• Clothing brands

• Beauty and skincare

• Fitness accessories

• Electronics

• Home and décor businesses

• Food brands

• Large catalogs

If the goal is to build a brand instead of just listing products, Shopify stands above the others.

Who Should Use Etsy?

Etsy is best for:

• Gift shops

• Jewelry makers

• Handmade goods sellers

• Vintage sellers

• Custom art

• Hobby businesses

Choose Etsy if you want quick exposure without building a full store.

Who Should Use Squarespace?

Squarespace is suitable for:

• Small catalogs

• Artists or photographers

• Service-based businesses

• Portfolio sites

• Brands focusing on aesthetics

Choose Squarespace if design is your priority and you don’t need advanced e-commerce functions.

Head-to-Head Comparison Table

Final Recommendation Guide

Choose Shopify if:

• You want long-term growth

• You want a brand, not just a storefront

• You plan to scale

• You want advanced tools and full control

• You want a complete website

Choose Etsy if:

• You want quick sales

• You want access to built-in marketplace traffic

• You are selling handmade, custom, or vintage products

Choose Squarespace if:

• You want an attractive website

• You have a small catalog

• You need a simple e-commerce

• You want a combination of portfolio + store

Final Thoughts

Shopify, Etsy, and Squarespace each serve different business needs. Etsy works well for sellers who want fast exposure and simple listing tools. Squarespace offers beautiful designs for small catalogs and creative brands. Shopify stands out as the most powerful and flexible choice for long-term growth, branding, marketing, and scaling an online store.

If you want expert help building, improving, or scaling your Shopify store, The Smith Marketing provides complete Shopify design, development, SEO, and marketing solutions. Their team supports brands at every stage—from launching a store to building an advanced Shopify setup designed for growth.