Etsy vs. Your Own Website

Let’s be honest. Talking about money isn’t always the most fun topic. It can feel a little awkward, especially when you’re pouring your heart into your small business and just trying to stay afloat (or finally get ahead). But in this digital age, having an online store front is basically a non-negotiable. So, let’s get into it: Should you sell on Etsy, build your own website, or maybe do both?

Selling on Etsy: Easy Start, But It’ll Cost You

Etsy is kind of like the mall of handmade and vintage—people are already there, looking to shop. That’s a huge plus when you’re just getting started and don’t have an audience yet. But that built-in traffic comes with a price tag (and not a small one).

Here’s the breakdown of Etsy’s fees:

• $0.20 listing fee per item (yep, even if it doesn’t sell).

• 6.5% transaction fee on the total sale (yes, including shipping and gift wrap).

• 3% + $0.25 payment processing fee per sale.

• 12–15% offsite ad fee if Etsy advertises your product and it sells (mandatory for shops making over $10,000/year) 

(You can find more information here.)

Those fees can pile up quickly. It’s not uncommon for Etsy to take 9–10% (or more) of your sale when all is said and done. It’s not totally unfair—they are providing the platform and the audience—but if you’re running a tight margin or trying to scale, those cuts can sting.

Your Own Website: More Work, More Reward

Now, let’s talk about going solo with your own website. This option gives you way more control over your branding, your customer experience, and most importantly, your money.

Here’s what you’re looking at:

• Startup costs: Think around $10–$20/year for a domain and maybe $5–$30/month for hosting (depending on the platform). I used Google (now run by Squarespace) for my domain provider and Wix for web-hosting.

• Payment processor fees: Usually around 2.9% + $0.30 (PayPal, Stripe, etc.). I use Square and love it! Let me know if you want a review of the Square system.

• Full branding freedom: Your site, your vibe, your rules.

• Better customer data: You get insights into who’s shopping, what they like, and how to keep them coming back.

The catch? You’ve got to bring the traffic. That means learning a bit about SEO, email marketing, maybe running ads—and yes, that can feel overwhelming at first. But remember: the long-term potential is way bigger. You’re building something that’s truly yours.

What About Doing Both?

Here’s a little secret: a lot of successful sellers use Etsy and their own websites (myself included). Etsy is great for visibility, especially when you’re starting out. Your own site, though? That’s where you grow your brand, keep more of your profits, and have more control over your business.

Some sellers list their bestsellers on Etsy to reel people in, then direct them to their personal site for more options, custom work, or exclusive products. It’s a smart way to leverage both platforms without putting all your eggs in one basket.

Final Thoughts (From Someone Who's Been There)

There’s no one-size-fits-all answer here. Etsy might be great for visibility, while your own site offers more freedom and better profit margins. What matters most is choosing the path that works best for you and your business goals.

And if you're ready to get more confident with your numbers, take a peek at my Digital Planner for Small Businesses. It's built in Google Sheets and helps you track sales, expenses, inventory, and more.

Your business deserves to grow with intention. Let’s make it happen.

Jen