Shopify vs. Etsy

Etsy and Shopify are both e-commerce platforms. However, Etsy is skewed toward fashion e-commerce, and it works primarily as a marketplace where it makes money by charging a take rate on each transaction. In contrast, Shopify is more of a facilitator, where the company offers a comprehensive e-commerce software platform at a subscription price. At the same time, it also provides a set of merchant services on top of that.

Related Visual Stories

Shopify Business Model

Shopify is an e-commerce platform that enabled over 2 million merchants to commercialize their products. While Shopify works with a subscription-based business model, it makes most of its money via merchant services, which are additional services provided to merchants. The company generated over $4.6 billion in revenue, of which $1.34 billion (more than 29% of total revenue) was from subscriptions and $3.7 billion (more than 70% of total revenue) from merchant solutions.

Shopify Profitability

Shopify was profitable in 2021, as it generated over $2.9 billion in revenue on over $4.6 billion in revenue. Driven by the massive wave of e-commerce throughout the COVID-19 pandemic, Shopify turned to profitability in 2022, generating over $319 million in net income.

Shopify Revenue


About The Author

Scroll to Top