For crafters, artisans, and small business owners, Etsy vs Squarespace are two great options to consider. But which one is better for your business in 2024? If you're trying to decide between a customizable website and a niche marketplace, you've come to the right place!
Via this article, you will know:
- Key differences between Squarespace and Etsy;
- Comparison of key features: ease of use, pricing, design and more;
- Pros and cons of each;
- And who should consider using Etsy vs Squarespace?
Let’s explore this together!
Key Takeaways of the Article
Let’s take a quick look at what we’ll explore together so you can figure out if Squarespace, Etsy, or maybe a mix of both is the perfect fit for your business goals:
- Squarespace offers high customization, ideal for branding control, and supports eCommerce functionalities.
- Etsy provides a built-in audience and an easy entry for new sellers, perfect for those in creative niches who want a marketplace approach.
- Both platforms have distinct pros and cons, particularly in costs, customization, and scalability, which are essential for any business owner to consider.
- Many sellers find that starting on Etsy and later expanding to Squarespace is a balanced approach, using Etsy’s audience and then building a branded website as they grow.
With these insights in mind, let’s dive deeper into each platform to see which one might be right for you!
Just a quick note: Since there are some unique differences between an eCommerce platform and a marketplace, I’ll focus on helping you figure out which option would work best for your needs and not declare the winner of each category.
Understanding Squarespace and Etsy
What is Etsy?
Etsy is a popular online marketplace that’s all about handmade, vintage, and unique items. It’s packed with a large community of shoppers who are specifically looking for artisan-made products, making it an easy choice for creatives to start selling right away.
Here’s what Etsy offers:
- Etsy’s marketplace is already bustling with millions of shoppers, so your products can get in front of buyers quickly.
- You can get started with minimal design or tech skills, making the setup process a breeze.
- Etsy provides promotional tools like on-site ads and social sharing to help get the word out about your products.
What is Squarespace?
On the other hand, Squarespace is an all-in-one website builder that allows individuals and businesses to create their own fully customized websites or online stores. Known for its stylish, professional templates and powerful design tools, Squarespace gives you much more control over your branding and site layout than a marketplace like Etsy.
Here’s what Squarespace offers:
- The drag-and-drop editor lets you design a site that reflects your brand’s look and feel.
- Squarespace’s eCommerce features support various product types that give you flexibility.
- Built-in SEO tools help your site rank in search results, bringing more visitors over time.
Key Differences Between Squarespace and Etsy
1. Business model and platform purpose
Etsy is a marketplace where buyers and sellers connect to buy handmade goods, vintage items, and crafts. It is a good choice for new sellers who want quick access to customers without spending on marketing. Etsy takes care of the technical side, letting you focus on listing products and managing orders. However, you’ll be sharing the platform with other sellers in similar categories, so competition is part of the game.
Meanwhile, Squarespace is for those who want to create their own branded website. It offers a customizable platform to build a professional site, sell products, write a blog, or showcase services. Squarespace is best for sellers who want full control over their site’s design, branding, and customer experience.
2. Built-in audience vs standalone website
Etsy’s main strength lies in its large, active community of shoppers who regularly visit the site looking for unique, handmade items. When you list products on Etsy, they’re instantly visible to a broad audience without needing much additional marketing on your part.
Squarespace doesn’t come with a built-in audience, so you’ll need to work on driving traffic to your website. This usually means investing in SEO, social media, or paid ads to draw in customers. The upside, though, is that when visitors land on your site, they’re immersed in your brand alone, without competing products vying for attention.
3. Product types and categories best suited
Etsy is a natural fit for handmade goods, vintage finds, digital downloads, and other unique, artisanal items. If your products have that one-of-a-kind feel that aligns with Etsy’s aesthetic, this platform is ideal. You’ll find it particularly useful if you’re a jeweler, artist, or vintage collector, as Etsy’s audience expects and appreciates creative, unique items.
Squarespace offers flexibility for a wide range of products and services. It’s a great choice for small businesses that want to showcase offerings that don’t necessarily fit Etsy’s niche, like digital products, consulting services, or professional portfolios. Squarespace is ideal if you need a flexible online presence that allows you to go beyond product listings with options for content marketing, blogging, and even appointment scheduling.
Pricing Comparison and Value for Money
Breakdown of Etsy fees
Etsy's pricing structure includes several types of fees that sellers should be aware of:
- Listing fee: $0.20 per item listed, renewed every four months or when the item sells.
- Transaction fee: 6.5% of the sale price (including shipping and tax).
- Payment processing fee: Varies by country but generally around 3% + $0.25 per transaction.
- Advertising fees: Optional fees for Etsy Ads to boost product visibility.
To illustrate the costs, let's assume you sell 10 items priced at $20 each:
- Listing costs = $0.20 x 10 = $2.00 (for listing all items)
- Transaction fees = 6.5% of $20 x 10 = $13.00 (total sale price)
- Payment processing fees = ($200 x 0.03) + ($0.25 x 10) = $6.00 + $2.50 = $8.50 (assuming a 3% fee on $200 + $0.25 per transaction)
So, the total estimated cost for selling 10 items priced at $20 each would be as below:
Listing costs + Transaction fees + Payment processing fees = $2.00 + $13.00 + $8.50 = $23.50.
However, be aware that many sellers find Etsy’s fee structure frustrating, with costs adding up through listing fees, transaction fees, and a mandatory fee for offsite ads if their shop does well. These offsite ads can take up to 12% of a sale, cutting into profits without giving sellers the option to opt-out. On top of that, Etsy’s transaction fees, 6.5% plus payment processing fees, can make it even harder for small businesses to stay profitable, especially when they’re already working with tight margins.
Breakdown of Squarespace pricing
As of 2024, Squarespace has updated its pricing structure and introduced new plan names as below:
- Basic: $25/month – Great for simple sites without advanced eCommerce tools.
- Core: $36/month – Adds basic eCommerce features so you can start selling products.
- Plus: $62/month – Includes tools like customer accounts and inventory management.
- Advanced: $199/month – Offers premium eCommerce features like abandoned cart recovery and advanced shipping options.
Each plan has a monthly fee, though you’ll get a discount if you pay annually. Plus, unlike Etsy, Squarespace doesn’t charge per-sale transaction fees (except for a small processing fee with e-sellers).
Yet, while it’s true that Squarespace does not charge a per-sale transaction fee on all plans (like the Plus and Advanced plans), lower-tier plans (Basic and Core) do include transaction fees for online sales and digital memberships. Additionally, all plans include standard payment processing fees based on the payment gateway (ranging from 2.5% to 2.9% + $0.30 per transaction).
Seamlessly migrate your store to a more robust place!
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Ease of Use and Customization
Ease of use with Etsy
For new sellers, Etsy offers a quick and beginner-friendly setup. The platform guides you through listing products, setting prices, and choosing payment options, allowing you to start selling in just a few hours. Its simple interface is intuitive and perfect for sellers without web design experience. Etsy also handles much of the backend work, such as payment processing and basic customer support, so you can focus on listing products and interacting with buyers rather than managing site maintenance.
However, Etsy’s design options are limited. While you can personalize elements like a banner, logo, and profile picture, every shop follows the same basic structure. This uniform layout keeps the marketplace visually cohesive, which can be beneficial for buyer experience but limits how much your shop can visually stand out.
Ease of use with Squarespace
Squarespace, on the other hand, is for those who want full creative control and don’t mind a little extra effort to set up a unique, branded site. While Squarespace’s setup process is more involved than Etsy’s, the platform provides guides and tutorials to help you along the way.
Building a site might take a bit longer, especially if you’re diving into detailed customization, but it allows for a high level of personalization. Squarespace offers a range of sleek, adaptable templates and an easy-to-use drag-and-drop editor where you can adjust colors, fonts, and layouts to match your brand’s style.
For more design-savvy users, Squarespace even allows CSS customization, animations, and page transitions to create a polished, professional look.
As a Squarespace user, I often feel held back by the platform’s customization limits. While I can make some adjustments with CSS, full HTML editing isn’t an option, which gets frustrating when I want to add more advanced customizations. And even though there are lots of templates available, they can feel limiting if I’m aiming for a unique, brand-specific design that really stands out.
Ecommerce Features
1. Inventory management and order processing
Starting with inventory and order management, Etsy keeps it simple for smaller shops. It offers basic inventory tracking that’s easy to manage, along with order tools that allow sellers to print shipping labels and communicate with buyers through its messaging feature. What's even better is that Etsy teams up with popular shipping carriers and offers discounted postage rates, which can save sellers both time and money when fulfilling orders.
Now, on to Squarespace. It allows sellers to track stock levels, set up low-stock alerts, and manage product variations like different sizes or colors. Squarespace also integrates with various third-party shipping and fulfillment services, making it a robust choice for businesses handling a larger range of products or international orders.
2. Marketing and SEO tools
On the marketing front, Etsy’s tools are designed to work within its marketplace ecosystem. You can boost their product visibility with Etsy Ads, offer discounts, and easily share listings on social media to reach more buyers within the platform. These tools are effective but somewhat limited, as they’re primarily geared toward promoting within Etsy’s own environment.
On the other hand, Squarespace gives you extensive control over its marketing and SEO efforts. With customizable page titles, meta descriptions, URLs, and image alt text, Squarespace allows you to optimize your SEO to attract external traffic. Additionally, Squarespace provides built-in email marketing tools for creating newsletters, plus social media integration to share products and blog posts or even embed social feeds directly onto the site.
As you can see, for sellers focused on building an independent online presence, Squarespace’s marketing and SEO tools offer a level of flexibility and control that Etsy’s platform doesn’t.
Customer Support
Customer support on Squarespace
Squarespace offers a solid range of support options for both technical questions and design help. They provide 24/7 email support and live chat during business hours, so you can get assistance fairly quickly, especially for more complex or customization-related questions.
For DIYers, Squarespace also has an extensive help center packed with tutorials, guides, and FAQs covering everything from setup to advanced design adjustments. Additionally, Squarespace hosts community forums and webinars, which are great resources for learning new skills and getting inspiration from other users.
However, many users find it challenging to get timely help from customer support. Common complaints include limited availability as live chat is often unavailable due to high demand, which can be frustrating when you need quick assistance. Even when users do reach support, there are often delays, with some issues being escalated to technical teams but not followed up on promptly.
Customer support on Etsy
Etsy’s support focuses on marketplace-specific issues, like listing policies, payment processing, and buyer interactions. They have a dedicated help center with articles on account setup, listing management, and more, a handy resource for new sellers learning the platform. While Etsy also offers email support, response times can vary, so sellers might rely on the help center or active community forums where fellow sellers share advice and tip.
Yet, be careful that Etsy's policies can sometimes make sellers feel like they’re not fully in control of their own business. For instance, the platform’s algorithms often favor larger shops with bigger inventories, which can make it tough for smaller sellers to stand out and gain visibility. Additionally, sellers don’t have full access to customer data, which limits their ability to market directly and build lasting relationships with their buyers.
As you can see, Etsy’s support isn’t as detailed as Squarespace’s but covers the essentials for sellers focused on listings and customer interactions within the marketplace.
Pros and Cons of Etsy vs Squarespace
Etsy pros and cons
Advantages of Etsy:
- Etsy’s marketplace attracts millions of potential buyers, so your products can reach people without extra marketing on your part.
- Setting up an Etsy shop is quick and straightforward so you can focus on your products rather than design.
- Etsy is known for quality, handmade items, which gives new sellers a reputation boost that can help establish early credibility.
Drawbacks of Etsy:
- With so many sellers on Etsy, standing out can be tough, especially if you sell products in a crowded category.
- Etsy’s design options are basic, which limits your ability to create a truly unique brand look.
- Etsy charges listing, transaction, and payment processing fees, which can impact profits, especially for lower-priced items.
Squarespace pros and cons
Advantages of Squarespace:
- Squarespace gives you the tools to design a site that’s distinctly “you.” From colors to layouts, you can shape your website’s look and feel to match your brand.
- Squarespace makes running an online store easy with features for managing inventory, tracking orders, and processing payments.
- Built-in SEO tools and the ability to add a blog help attract organic traffic and improve search rankings, which is great for businesses wanting to grow independently.
- Unlike a marketplace, with a standalone site, you won’t have other sellers’ products distracting your visitors, allowing full focus on your offerings.
Drawbacks of Squarespace:
- Since Squarespace doesn’t come with a ready-made customer base like Etsy, you’ll need to put effort into marketing and driving your own traffic.
- Squarespace requires a subscription, which can add up, especially if you’re just starting out.
- While its design tools are powerful, they can feel overwhelming for beginners to website building.
Who Should Consider Using Etsy vs Squarespace?
Etsy is a natural fit for creatives, artisans, and sellers of handmade or unique products who want a quick and easy way to start selling. With its built-in audience and simple setup, Etsy is a strong choice for those who want to begin selling immediately without the responsibility of maintaining a standalone website.
Who should use Etsy?
- An artist or maker creating handmade products like ceramics, paintings, or jewelry.
- A vintage collector who wants to list curated items.
- A part-time seller is looking to reach a niche audience with minimal setup.
On the other hand, Squarespace is perfect for sellers who want full control over their brand and website. If you’re building an independent business or personal brand, Squarespace lets you create a professional site with a custom domain, unique design, and advanced eCommerce tools.
Who should use Squarespace?
- A service-based business that wants to offer scheduling and consultations.
- A digital creator who sells e-books, courses, or other downloadable content.
- A brand-focused store that wants total control over design and branding.
- With these typical scenarios in mind, you can now have a clearer picture of which platform suits your type of business.
Did you know that the best way forward might not be choosing between Squarespace and Etsy? Instead, think about using both together! While using both platforms involves additional effort, it allows sellers to use the strengths of each platform: Etsy’s built-in traffic and Squarespace’s branding power.
Why don't you give LitCommerce Etsy Squarespace integration a try?
Alternatives to Etsy and Squarespace
If you’re still on the fence about Etsy or Squarespace, other eCommerce alternatives to Squarespace and Etsy might suit your business needs better. Here are a few alternatives, each with its own unique perks.
1. Shopify
Ideal for: Small to medium-sized businesses wanting a dedicated eCommerce platform with lots of integrations and app choices.
Why it stands out: Shopify is built specifically for online selling, making it a greate place for eCommerce businesses. It offers extensive tools for managing inventory and a wide selection of integrations to support growth. If you’re looking for a highly scalable solution, Shopify might be your best bet.
2. Wix
Ideal for: New sellers who want an affordable, user-friendly website builder with basic eCommerce features.
Why it stands out: Wix is beginner-friendly, with a drag-and-drop editor that’s easy to navigate. It’s also budget-friendly, with a lower starting cost than many other platforms. While it doesn’t offer Etsy’s marketplace exposure or Shopify’s advanced eCommerce options, it’s a good pick for simpler stores.
3. Big Cartel
Ideal for: Artists, makers, and small businesses with a smaller product lineup.
Why it stands out: Big Cartel is affordable and easy to use, designed with small-scale sellers in mind. It’s not as feature-packed as Shopify or Squarespace, but it has a clean, straightforward design that’s perfect for indie creators who don’t need a lot of extras.
4. Other marketplaces
Examples: Amazon Handmade, eBay, Facebook Marketplace.
Why they stand out: If you’re interested in a marketplace format but aren’t sure Etsy is the right fit, these platforms offer access to a wide range of audiences and selling environments. Each platform has its own unique community and buyer base, so you can explore which one aligns best with your business goals.
Squarespace vs Etsy: FAQs
Yes, you can switch from Etsy to Squarespace by creating a new site, transferring product data, and redirecting traffic. Many sellers begin on Etsy to get their start, then move to a standalone site like Squarespace for more control and customization as they grow. And with LitExtension, the migration to Squarespace is smooth and hassle-free, helping you make the transition without losing your valuable data or momentum.
It can be, especially if you’re using Etsy to gain initial exposure and Squarespace to build your brand. This dual approach combines Etsy’s ready audience with Squarespace’s potential for long-term brand development.
It depends on your goals. Etsy is ideal for quick setup and access to a built-in marketplace, while Squarespace shines in customization and brand control.
Etsy offers instant exposure within a niche market, but a website gives you greater control and flexibility. Many sellers start on Etsy and then expand to a website that captures the benefits of both approaches.
Etsy has high competition, transaction fees, and limited branding options, which can be a challenge for sellers looking to build long-term growth.
Yes, it's worth selling on Squarespace, especially if you prioritize branding and customization and are prepared to drive traffic yourself. Squarespace is a strong choice for building a professional and unique online store.
Final Thoughts on Squarespace vs Etsy for Selling Online
Choosing the right platform, Etsy vs Squarespace, depends on your business needs, product type, and goals. Etsy is great for an easy start in eCommerce, especially for handmade or niche products, thanks to its built-in audience. Squarespace, however, allows you to create a custom-branded website, ideal for building a long-term online presence.
Many sellers find that starting on Etsy to build an initial customer base and then expanding to Squarespace for more control offers the best of both worlds. Both platforms bring unique advantages to help grow your business in the way that suits you best.
We hope this guide has been helpful! For more insights, visit the LitExtension blog and join our eCommerce community to connect with other business owners.
