As we know, in the sphere of ecommerce, sellers have all sorts of opportunities when it comes to choosing the platform. One of the most debated options is Etsy or Gumroad, but which is better for your products? While Etsy is famous as a marketplace for handmade and vintage products, Gumroad exists more popularly as a platform for digital artists. Each platform has something distinct to – offer while catering to two different consumer bases and products.
In this blog post, we will discuss guidelines and recommendations about Etsy vs Gumroad. When we compare them in overall categories, we will show you which is more appropriate for business.
Overview of Etsy vs Gumroad
What’s Etsy?
Etsy is an ecommerce platform, focused on handmade, vintage and craft goods. Etsy started as an online marketplace in 2005 and has since grown to be a familiar name to artists, crafters, as well as collectors. The platform enables physical products like jewelry, clothes, home décor, and digital products such as printable arts. Etsy has millions of monthly active buyers, and it has a rather active community like attitude where independent creators can find their audience.
What’s Gumroad?
Gumroad was founded in 2011 and is a simple tool optimized for digital content makers. Gumroad allows you to sell your music, writing, artwork, or online courses directly to customers no matter which niche you are in. Unlike Etsy, Gumroad mainly blends on the digital goods, but it also supports physical products sales. It is easy to use and easy to understand – there are no long setup processes, and creators can make sales in minutes.
What’s the Difference Between Etsy vs Gumroad?
Here’s a brief comparison of Gumroad vs Etsy highlighting key criteria.
| Criteria | Etsy | Gumroad |
| Audience | Buyers who like to purchase handmade, vintage, and craft products. | Those who use digital media products for their work or those who purchase such products. |
| Products | Tangible items, arts and craft materials, and selected electronic media | Primarily digital products (eBooks, art, courses) |
| Seller Fees | Listing fees, transaction fees, payment processing fees | 5% transaction fee, no listing fees |
| Ease of Setup | Moderate, requires product photos, descriptions, and SEO | A very easy and straightforward system of uploading digital products |
| Customization | Limited to store branding and layout | Full control over store design, branding, and pricing |
| Payout Options | Etsy Payments or PayPal, generally weekly | Bank transfer or PayPal, usually within a few days |
| Marketing Tools | SEO tools, Etsy Ads, and social media integrations | Less built-in functionality, only capable of integrating with other applications |
2. Gumroad vs Etsy: Detail Comparison
In this section, we provide details of Gumroad vs Etsy in terms of seven crucial aspects that will enable you to make the right decision.
2.1 Audience
| Criteria | Etsy | Gumroad |
| Audience | Mainly targets buyers who are into arts and crafts, vintage apparel accessories such as home decor, jewelries, outfits among others. | Appeals to the digital consumer who is looking for a product such as an eBook, software, music, and courses. |
| Community | Has a huge number of artists, craftsmen and small businesses. | Gumroad caters for content creators for example artists, musicians, writers and digital marketers. |
| Expectations | Etsy targets stock consumers who are used to obtaining tangible items, but it also sells digital items such as printable files. | Gumroad’s audience is generally prepared to pay for digital goods, and there are fewer physical products available. |
| Traffic | Etsy has millions of active buyers, which guarantees exposure for highly specific and specialized products. | Gumroad has no mechanism for creating a marketplace, and thus the sellers have to find their customers through marketing. |
2.2 Products
| Criteria | Etsy | Gumroad |
| Product Focus | Its primary categories are craft and art items, jewelry, antiques and vintage products. | Mainly targets gadgets like eBooks reader, iPods, music download applications and software. |
| Product Range | Etsy allows for selling digital products but it is not a niche that they focus on as much. | Gumroad was designed for digital products but you can list physical products though not as efficiently. |
| Best for | Small businesses, artisans, crafters, and designers who sell unique pieces. | Artists who are selling digital products, such as downloads or for teachers who sell their online courses. |
| Categories | Etsy has many types of products, ranging from arts and crafts to home decoration materials. | The main product categories of Gumroad are intended for digital artist and content sharing. |
2.3 Seller Fees
| Criteria | Etsy | Gumroad |
| Listing Fees | There is a $0.20 listing fee for each item. | No listing fees, only a transaction fee |
| Transaction Fees | 6.5% of the sale price as a transaction fee | 10% transaction fee on each sale |
| Payment Processing Fees | Payment processing fees of around 3% apply | No additional payment processing fees |
| Additional Costs | Additional fees for promoted listings, Etsy Ads, and payment processing | No hidden fees |
2.4 Ease of Setup
| Criteria | Etsy | Gumroad |
| Setup Process | Require some effort to set up including photographing the product, writing the descriptions and doing keyword research for SEO. | Very simple to get started – it only takes about five minutes to begin selling a digital product as you only need to upload the file and input a few details. |
| Learning Curve | Etsy provides detailed walk-throughs and articles for sellers to use when they are getting started. | Very little guidelines are required to navigate through the site and understand what we are dealing with at Gumroad. |
| Guidance | Etsy offers extensive guides and tutorials to help sellers get started | Gumroad’s user interface is intuitive, with little guidance needed |
| Optimization | Sellers need to adapt to understanding how their store works on Etsy and how they are going to compete. | In Gumroad, the main concern is uploading products and providing the link to interested buyers. |
Looking to expand your sales to digital products? Check out our guide on How to Sell Digital Downloads on Etsy: with 8 easy and fast steps
2.5 Customization
| Criteria | Etsy | Gumroad |
| Customization Options | Restricted adjusting – sellers may adjust the layout only according to Etsy’s guidelines | Entire control of your store branding, layout, pricing and content display. |
| Branding | Sellers are restricted to Etsy’s overall marketplace design, making it harder to create a unique store look | Gumroad provides more flexibility, allowing creators to design their store in a way that matches their brand |
| Appearance | Etsy does allow basic branding, such as logos and product images, but customization beyond that is limited | Gumroad offers more control over customization, including the ability to offer subscriptions or bundled products |
| Seller Control | Etsy’s focus is on the marketplace, meaning branding opportunities are limited by platform constraints | Gumroad’s focus is on empowering creators to have full control over their business, providing options for personalizing the buyer’s experience |
2.6 Payout Options
| Criteria | Etsy | Gumroad |
| Payout Methods | Etsy Payments or PayPal | Payments are made directly to your PayPal account or bank transfer |
| Payout Schedule | Sellers are paid weekly or biweekly, depending on their chosen payout schedule | Payments typically within 3–7 days, with faster payout options available |
| Flexibility | Etsy’s payout schedule is less flexible, and sellers often have to wait a week for their funds | Gumroad offers faster payouts, allowing creators to access their earnings in as little as a few days |
| International Payouts | Etsy supports international sellers but offers fewer payout options in some countries | Gumroad provides flexible payout options for international creators, with little hassle |
2.7 Marketing Tools
| Criteria | Etsy | Gumroad |
| Built-in Tools | Etsy offers SEO tools, Etsy Ads, and social media integrations | Gumroad has very few built-in marketing tools, requiring external integrations |
| Visibility | Etsy is a marketplace, meaning you have access to built-in traffic and SEO potential | Gumroad doesn’t have a marketplace, so sellers are responsible for driving their own traffic |
| Ads | Etsy Ads allows you to pay for more visibility within the Etsy marketplace | No built-in ad system; sellers must use external ad platforms |
| Promotions | Etsy allows for coupons, sales, and discounts through their platform | Gumroad enables sellers to create unique discount codes and run promotions |
Having read through our detailed comparison, you should now have a better sense of whether “Is Etsy better than Poshmark?”. For further insights on how Etsy stacks up against other platforms, including Amazon Handmade, take a look at our detailed comparison in Etsy vs Amazon Handmade: 2024 Comparison.
3. Etsy Or Gumroad Which is Better?
Choosing Gumroad or Etsy ultimately depends on your business goals, product types, and how you prefer to interact with your audience. Let’s summarize the pros and cons of each platform to help you make a decision.
| Criteria | Etsy | Gumroad |
| Pros | – Large built-in audience – Optimized for selling physical goods – Strong SEO and marketplace features – Many built-in marketing tools |
– Low fees, especially for digital goods – Simple, user-friendly interface – Best suited for digital creators – Flexible payout options and creator-friendly pricing |
| Cons | – Higher seller fees – More competition within the marketplace – Limited customization – Manual fulfillment for physical goods |
– Requires sellers to drive their own traffic – Lacks a marketplace (limited visibility) – Fewer built-in marketing tools – Less suited for selling physical goods |
Etsy is Best Suited For:
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- Sellers of handmade, vintage, and custom physical goods.
- Those who want access to a built-in audience with marketplace traffic.
- Sellers who want to use a platform with many marketing tools and strong SEO features.
Gumroad is Best Suited For:
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- Digital creators selling eBooks, courses, music, or other digital products.
- Sellers who want low fees and simple setup.
- Creators who prefer full control over their marketing and audience interaction.
If you’re considering other options beyond Etsy, check out 14 Etsy Alternatives to Sell Your Crafts Online in 2024 to explore additional platforms that might suit your needs
Conclusion
So in considering Etsy vs Gumroad, which is the correct platform largely depends on your business model and your products. While Etsy gives you access to a marketplace of buyers, it also comes with higher fees and more competition. Conversely, Gumroad offers a bit of flexibility for creators selling digital products but requires you to generate your own traffic.
If you need a consultation on what kind of platform to use for your business or help with opening an online store, Masstic is here to guide you.
FAQs – Etsy vs Gumroad
Which platform works best for selling digital products?
Gumroad is better suited for selling digital products, as it offers low fees, flexible payout options, and is specifically designed for digital creators like authors, musicians, and artists. Etsy also allows digital products but focuses more on handmade and physical goods.
Can I sell physical products on Gumroad and Etsy?
Yes, you can sell physical products on both platforms. However, Etsy is better designed for physical goods, with tools like inventory management and shipping options. While Gumroad or Etsy can handle physical items, Gumroad lacks the specialized features for shipping and managing physical product sales that Etsy offers.
Which platform is better for new sellers?
Etsy is often better for new sellers of physical goods because it offers access to a large, built-in audience and comes with marketing tools like Etsy Ads. Gumroad is a better option for new sellers of digital goods who want lower fees and more control over marketing but are willing to drive their own traffic.
