Start with the same SKU
A fair channel comparison holds the commercial product assumptions constant: selling price, product/landed cost, packaging, return rate and—where possible—the same service level. Then change the costs that are genuinely channel-specific.
Etsy: model the complete stack
For Etsy, relevant economics can include listing, transaction, payment and optional advertising. Do not reduce the channel to one visible percentage; include only the programs you actually use and verify current terms for your market.
Shopify: model the complete stack
For Shopify, relevant economics can include subscription allocation, payment processing, apps and acquisition. Recurring costs should be allocated transparently rather than ignored, and acquisition cost should be separated from core platform/payment cost.
Contribution profit is more useful than headline fees
A channel with a higher visible fee can still generate more contribution if it converts traffic efficiently, reduces fulfillment burden or supports a higher selling price. Conversely, a low platform fee can be overwhelmed by expensive customer acquisition. Compare the amount left per order after realistic variable costs.
Traffic economics can reverse the result
Etsy and Shopify may generate demand differently. Do not assume equal customer-acquisition cost unless that reflects your data. Run a base case and at least one higher-acquisition-cost case for each channel.
Fulfillment must be comparable
If one channel uses platform fulfillment and the other uses merchant fulfillment, include the actual pick-and-pack, storage, inbound and outbound costs. A fee-only comparison can otherwise favor the channel whose logistics costs were omitted.
Returns and refunds matter
Use realistic return assumptions for the product and channel. A category with high returns can materially change retained revenue, shipping cost and inventory recovery.
Decision framework
- Compare contribution profit per order.
- Compare contribution margin, not just gross margin.
- Calculate the advertising or acquisition-cost ceiling.
- Test discount and higher-return scenarios.
- Consider cash flow, payout timing and inventory requirements separately from margin.
- Verify current official platform terms before acting.
The best answer may be multi-channel
The purpose of the comparison is not to declare one platform universally better. A seller may use one channel for discovery and another for retention, or choose different channels for different SKUs. Use the model to identify where each product has enough economic room to operate.
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Document the date and source of any fee assumption you enter. When a marketplace changes pricing or your supplier and logistics costs move, update the model and rerun the scenario. A repeatable process is more valuable than a one-time calculation because ecommerce economics change over time.
Use the framework with a real SKU rather than a hypothetical average product. Pull selling price, discounts, product cost, shipping and fulfillment from your own records. Enter marketplace or payment fees using the current terms that apply to your account. Then compare a normal case with a conservative case that assumes either higher returns or higher acquisition cost. The purpose is to understand which assumptions have the greatest effect on contribution, not to produce a false sense of precision.
How to use this guide in practice
Editorial note
Fee schedules and seller programs can change. Verify current official marketplace terms for your country, category and account before making a commercial decision. Ecomly Profit provides planning estimates and educational guidance, not accounting, tax, legal or investment advice.