TikTok Shop vs Etsy: A Heated Battle Of The Giants

With TikTok Shop becoming available in more and more countries, TikTok is no longer just a short-form video platform but a potential social commerce platform as well. But can a ‘rising star’ like TikTok Shop offer you more selling opportunities than a well-established marketplace like Etsy? Let’s find out with our TikTok Shop vs Etsy comparison article.

An overview of Etsy vs TikTok Shop for selling

Before we dig deeper into the heated battle between the two platforms, let’s have a glance at the fundamentals of TikTok Shop vs Etsy first.

A quick look at TikTok Shop

TikTok Shop is a shopping feature integrated into the TikTok platform that Bytedance launched in an attempt to gain market shares in the lucrative eCommerce sector. After Bytedance’s successful experiment with Southeast Asia markets like Indonesia (2021). Vietnam, Thailand, Malaysia, and the Phillippines (2022), TikTok Shop was finally brought to the US in September 2023.

Unlike traditional eCommerce platforms, TikTok Shop leverages the app’s addictive short-form video format and its highly engaging live-streaming features to create immersive shopping experiences.

 

>> Relevant reading: Etsy competitors

A quick look at Etsy

Unlike TikTok Shop, Etsy is a purposely built eCommerce marketplace where artists can sell their handmade items, crafts, or vintage items to buyers seeking these types of products.

Think of Etsy like Amazon or eBay. However, the biggest difference between Etsy and Amazon, eBay, or TikTok is its specialized, niche product focus on handmade items. This sets Etsy apart from mass-market retailers and creates a space where buyers can find unique items with personal touches.

>> Relevant reading:

• • How to sell on Etsy for beginners
  • Is selling on Etsy worth it

Selling on Etsy vs TikTok Shop: a detailed comparison

Now that you have a better understanding of TikTok Shop and Etsy, let’s dive into the battle between the two platforms in six rounds:

#1. Customer perception

🔎 Key takeaways: Etsy has a better reputation as an eCommerce marketplace. With 20 years in the market, Etsy has defined itself as a leading marketplace for handmade items. Meanwhile, despite its huge traffic, only a very minor of TikTok users perceive the platform as a place to buy something online.

TikTok Shop’s customers perception

It’s true that TikTok has over 1 billion monthly active users. However, let’s set something clear here– that number is attributed to TikTok in general, not TikTok Shop– the shopping functionality TikTok integrates into the platform.

According to Statista’s US TikTok Shop and TikTok, only 8% of TikTok users have used TikTok Shop to purchase something online overall. Meanwhile, 35% claim they have never heard of it, and half of the surveyed said they have not used it and are not interested in it either.

Clearly, TikTok Shop’s adoption rate in Western countries, especially the United States is extremely low in the meantime. This shouldn’t come as a surprise given that Americans and Europeans are not as crazy about live-streaming culture as people in Southeast Asian countries.

So, if you are living in a SouthEast country, opening a TikTok Shop can be a nice idea. However, if you plan to sell online in Western countries, TikTok Shop isn’t that ideal of a choice. This is because you have to put tons of effort into educating the market and shaping your customers’ perceptions– which unfortunately don’t change overnight.

Etsy’s customer perception

Unlike TikTok Shop, Etsy users don’t come to Etsy for entertainment purposes or to unwind after long, hard-working days. Indeed, as a long-established marketplace, Etsy has gained trust among shoppers worldwide as the best marketplace to buy unique handmade pieces.

Clearly, with 96 million active buyers and 450 million monthly traffic, Etsy is behind TikTok. However, since people come to Etsy for shopping purposes and not for anything else, their buying intention is much higher than on TikTok.

Hence, though Etsy has a slightly smaller pool of audience, traffic to the platform is much more qualified for sales purposes.

#2. Eligibility

🔎 Key takeaways: Etsy is available in many more countries than TikTok Shop. Comparing Etsy vs merch by TikTok Shop, both platforms have certain product guidelines you need to pass in order to list and sell your items online. Nevertheless, while Etsy supports over 60 countries, TikTok Shop is only available in 10 countries.

TikTok Shop’s eligibility

Currently, TikTok Shop is only available for sellers who are living in one of the following countries:

1. 1. United States
   2. United Kingdom
   3. Indonesia
   4. Malaysia
   5. Thailand
   6. Vietnam
   7. Philippines
   8. Singapore
   9. Spain
   10. Ireland

This means if you reside where TikTok Shop isn’t supported yet, opening a TikTok store is simply off the table. If you meet the country check, the next thing to ensure that your products are not listed in the TikTok Shop Prohibited Products.

Afterward, registering for a TikTok Shop and setting up your store is actually quite easy, which we’ll cover in the ease of setup section.

Etsy’s eligibility

On the other hand, after being in business for nearly 20 years, Etsy supports over 60 countries– which is six times more than TikTok Shop. As of writing this article, here is a list of eligible regions for Etsy:

Argentina Australia Austria Belgium Bulgaria Canada Chile China Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland

Israel Italy Japan Latvia Lithuania Luxembourg Malaysia Malta Mexico Morocco Netherlands New Zealand Norway Peru Philippines Poland Portugal Romania Singapore Slovakia Slovenia South Africa

Spain Sweden Switzerland Thailand Türkiye Ukraine United Kingdom United States Vietnam Argentina Chile Japan Peru Thailand Ukraine Bulgaria Croatia Czech Republic Hungary Romania Poland Turkey Israel

Similar to TikTok Shop, in order to start selling on Etsy, your products must meet Etsy’s Creativity Standards.

#3. Selling costs and fees

🔎 Key takeaways: Overall, the costs and fees of selling on Etsy are more competitive. Etsy charges listing fees, but its commission rate is only 6.5%. Meanwhile, though TikTok Shop lets sellers list products for free, its commission rate is 5% to 11.34% (largely 8% to 10% for most categories).

TikTok Shop’s selling costs and fees

Here is a list of the main costs and fees you will be charged for launching an online store on TikTok Shop:

Fee type	Definition	How much is it?
Marketplace Commission	When you complete a sale on TikTok Shop and the buyer receives their order, you’ll see a deduction from your earnings. This is called the Marketplace Commission Fee. TikTok Shop automatically takes this fee from your payout, and the amount varies depending on what type of product you’ve sold.***	5.0% – 10.50%
Payment processing fee	These are the fees charged by your payment gateways or processors to accept payments from your buyers.	3.50%
Shipping Fee Program	If you choose to join the TikTok Shipping Program, you’ll be charged a service fee for successfully delivered orders.	5%

*** Before September 2024, TikTok Shop’s commission fee was around 2.5% to 4%, which is lower than Etsy. However, starting from September 5th, this fee increased significantly, which can add up to your costs if you sell products like clothing (~10.26%) or jewelry (8.10%).

And unlike Etsy’s fee, TikTok seemingly updates their costs and fees for TikTok Shop very frequently. So, always double-check for the most up-to-date information.

Etsy’s selling costs and fees

Meanwhile, here are the main costs and fees you need to factor in if you plan to open an Etsy store:

Fee type	Definition	How much is it?
Listing fees	These are the fees Etsy charges you for listing products on their marketplace	– Base: $0.20 per listing – Auto-renewal: $0.20 per listing – Multi-variant: $0.20 per listing – Private listing: $0.20 per private listing
Transaction fees	These are the fees Etsy charges when a shopper makes a purchase on your store	6.5% of the total amount in your listing currency
Payment processing fees	These fees are charged on each transaction that is processed with Etsy Payments.	It varies by country. For instance, the fee is 3% + $0.25 in the US.

Though Etsy charges listing fees, the marketplace’s commission fee is only 6.5% and that applies to all products, not up to 10% like TikTok Shop. So, if you regularly handle large sales volumes, the costs of operation will be lower with Etsy.

#4. Search engine optimization (SEO)

🔎 Key takeaways: Doing SEO is much more challenging on TikTok Shop than Etsy. Etsy’s approach to SEO is more aligned with traditional eCommerce best practices, making it more accessible for sellers who may not be comfortable with the fast-paced, trend-driven nature of social media marketing.

TikTok Shop’s SEO

Honestly speaking, we don’t think TikTok leaves sellers much room to do SEO on the platform. To be more particular, TikTok Shop’s SEO is highly dynamic and less predictable compared to traditional eCommerce platforms like Etsy, Amazon, or eBay.

At its core, TikTok’s algorithm heavily favors trending content and user engagement. Though this can lead to rapid and huge engagement (views, shares, comments), TikTok videos’ visibility is very short-lived.

This means you have to be highly creative and constantly keep up with fast-changing trends happening on the platform. While it offers the potential for viral growth and quick exposure to a large audience, maintaining consistent visibility for your videos and products can feel like an extreme sport.

Etsy’s SEO

On the other hand, Etsy’s SEO is much more predictable and controllable than TikTok Shop, providing you with a stable platform to grow your online business. The marketplace offers clear guidelines and tools that allow you to directly influence your shop’s visibility.

For instance, you can steadily improve your rankings over time by consistently following these SEO best practices:

• • Keyword optimization: Use relevant, targeted keywords in your product titles, descriptions, and tags.
  • Category and attribute selection: Choose the most accurate categories and attributes for each listing.
  • High-quality images: Upload clear, professional-looking photos that showcase your products effectively.
  • Shop policies and About section: Provide comprehensive information to build trust with potential customers.
  • Customer reviews: Encourage satisfied customers to leave positive feedback.

While Etsy SEO requires ongoing effort and attention to detail, it offers a reliable framework where you can see tangible results from your optimization efforts.

#5. Sales and marketing

🔎 Key takeaways: Both have great marketing features, but Etsy has better sales features than TikTok Shop. The two platforms give you various sales and marketing features. However, while you have the ability to sell print-on-demand products and digital products on Etsy, these options are off the table with TikTok Shop.

TikTok Shop’s sales and marketing

• • In-feed video and live shopping: You can showcase your products through engaging short videos and live streams, allowing your customers to add to their cart and check out directly without leaving the app.
  • TikTok ads: TikTok provides you with specialized ad formats like LIVE Shopping Ads and Shop Ads so you can reach more potential customers and drive sales effectively.
  • Affiliate program: One of the cool stuff about selling on TikTok is that you can partner with creators who align with your brand, and they’ll promote your products through their content for commissions.
  • Shipping fee program: You can streamline your logistics with TikTok’s “Fulfilled by TikTok” option or integrate with various shipping services depending on your country.

 

Etsy’s sales and marketing

As a specialized eCommerce marketplace, Etsy offers various eCommerce and promotion features to help sellers drive more sales. To name a few:

• • Etsy marketplace ads: You can utilize Etsy’s targeted advertising system to display your products to potential buyers browsing the marketplace.

 

• • Etsy’s offsite ads: Etsy offers you the option to promote your products beyond its platform, including on search engines and social media sites such as Facebook.
  • Coupons: The marketplace provides a built-in discount feature, allowing you to offer special promotions and coupons to attract and retain customers.
  • Social media integration: You can use Etsy’s integrated social media tools to share shop updates, sales, and products directly on Facebook, Instagram, Pinterest, and Twitter.
  • Shipping and fulfillment: Etsy enables you to create shipping profiles for similar items and set discounted shipping when your customers purchase multiple items or let them pay more for faster shipping. You can ship and deliver your orders with USPS, FedEx, or Canada Post right from your Etsy shop and benefit from discounted shipping labels, automatic tracking, and insurance coverage.

 

 

• • The ability to sell digital products: Did you know that you can sell digital content on Etsy too? This ranges from printable artwork and eBooks to planners, social media banner templates, etc. 👉 Learn how to sell digital downloads on Etsy.
  • Print-on-demand: If you create the artwork, Etsy enables you to sell print-on-demand items by connecting with Production Partners such as Printful, Printify, or Gelato.

Pros and cons of TikTok Shop vs Etsy

• • Pros and cons of TikTok Shop

Pros	Cons
+ Short videos and live streaming allow sellers to showcase products in engaging ways + The platform’s affiliate program enables you to partner with TikTok influencers seamlessly	– TikTok Shop is only available in 10 countries – Most users on TikTok are not interested in shopping – The overall cost of selling on TikTok is higher than Etsy – Your success on TikTok depends largely on TikTok’s ranking algorithm, which is unpredictable

• • Pros and cons of Etsy

Pros	Cons
+ Etsy’s built-in audience has a much higher buying intention + Etsy’s commission fee is lower than TikTok Shop + You can sell digital products and print-on-demand items as well	– The competition can be high on Etsy where many sellers sell the exact same types of products – Etsy has stricter rules regarding handmade, vintage, and craft supplies.

Which is better Etsy or TikTok Shop?

It’s tough to say what is better Etsy or TikTok Shop since, as we mentioned, each platform has its own pros and cons. So, depending on your goals, target audience, and what you want to sell, you might find a better choice among the two options.

When to choose Etsy over TikTok Shop

Choose Etsy over TikTok Shop if you:

• • Sell handmade, vintage, or unique craft items, including digital products
  • Target customers specifically looking for artisanal or one-of-a-kind products
  • Prefer a traditional e-commerce model with established seller tools and analytics

When to choose TikTok Shop over Etsy

Choose TikTok Shop over Etsy if you:

• • Already have a well-established TikTok account with an adequate follower base who loves your content
  • Want to leverage viral marketing and influencer partnerships for rapid growth
  • Live in a Southeast country where TikTok Shop is all the rage

Closing lines– is Etsy better than TikTok Shop?

All in all,  Etsy continues to be the leading online marketplace with an extensive built-in audience and tons of eCommerce features. Meanwhile, TikTok Shop is a very promising social commerce platform. However, since most TikTok users are scrolling TikTok for, well, scrolling purposes, TikTok will need to put in greater effort, especially in Western countries to boost their feature adoption.

Masstic team hopes after reading our TikTok Shop vs Etsy comparison article, you can now know which platform to opt for.

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