A comprehensive guide for Canadian businesses to choose between Alibaba and Amazon
This guide helps you pick between Alibaba and Amazon for selling products, while introducing the Wise Business account for international business transactions
A fee comparison on Etsy and Shopify for Canadian Businesses going global
Whether you’re running a quaint craft store or a contemporary e-commerce platform, taking your Canadian business global requires some careful decision-making – especially when it comes to choosing between Etsy and Shopify. Along with considering the features, you’ll want to compare Etsy vs Shopify fees and find out how you can minimize currency conversion fees – and we’re here to help! With the help of Wise, you can conduct international business without the hefty fees.
Etsy’s fees for Canadian sellers selling Internationally
Etsy does not have a base subscription fee but rather a listing fee per item. There are also typical transaction fees and payment processing fees, as well as currency conversion fees to keep in mind.
| Fee type | Cost |
|---|---|
| Transaction fee | 6.5% of the price (including delivery and gift wrapping)1 |
| Listing fee | $0.20 USD per item2 |
| Payment processing fee (international orders from Canada) | 4% + CA$ 0.25 (exclusive of VAT, where applicable)3 |
| Currency conversion fee | 2.5% on the sale amount4 |
| Exchange rate fee | Depends on bank |
Shopify’s fees for Canadian sellers selling Internationally
In comparing Etsy fees vs Shopify fees, Shopify has the requirement of selecting a plan from Basic, Shopify, and Advanced. The higher the tier you choose, the lower the fees when it comes to credit card rates and transaction fees. Although fees might be lower than Etsy’s, don’t forget about the monthly costs associated with the Shopify plan!
| Fee type | Cost |
|---|---|
| Shopify Plan | CA$ 51 /mo (Basic), CA$ 132 /mo (Shopify), CA$ 517 /mo (Advanced)5 |
| Shopify online international/Amex credit card rates | 3.5% + CA$ 0.30 (Basic), 3.4% + CA$ 0.30 (Shopify), 3.3% + CA$ 0.30 (Advanced)5 |
| Transaction fee (third-party payment providers) | 2% (Basic), 1% (Shopify), 0.5% (Advanced)5 |
| Currency conversion fee (for Canadian stores) | 2% with Shopify Payments6 |
| Exchange rate fee | Depends on the customer’s bank |
How to minimize currency conversion fees when selling globally
Global sales can be exciting as you open up the possibility for buyers from many countries to purchase your products. But the downside is that sellers have to tackle currency conversion fees, which can take away a huge chunk of their hard-earned revenue. While you might not have any control over the fees the platform you opt for charges, you can get bank details in multiple currencies to lessen conversion costs.
Multi-currency accounts, such as the one offered by Wise, let you receive and make payments in several currencies. It’s an especially useful tool for global sellers as it removes the need for currency conversion when receiving payments from customers or sending refunds.
Another important tool to take advantage of for successful international expansion is app marketplaces. Wise has a robust app marketplace that allows you to integrate your platform with powerful tools and services. Tools like QuickBooks and Xero can enhance your business management, giving you a solution to track sales, expenses and cash flow, manage invoices, and even prepare you for the tax season.
Please see Terms of Use for your region
Final verdict
Etsy and Shopify accommodate different types of sellers. If you’re a creative, crafting unique handmade items or vintage wares, Etsy is an ideal marketplace. It offers a ready-to-go audience looking for unique, handmade, and vintage items.
On the other hand, if you prefer more control over your brand and are looking to build a stronger online presence, Shopify is worth considering. Although the basic plan comes at a fee, the platform provides a wider scope for customization, combined with extra features, support, and access to an extensive app marketplace.
Regardless of the platform you choose, using Wise to receive international payments can make a big difference in your costs. With the ability to hold and convert 40+ currencies at a low, transparent fee, you’re able to save on conversion costs in every transaction - which doesn’t just benefit your customers, but your revenue stream too!
Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information
Sources:
1 - Etsy fees and Payment policy (Section 1)
2 - Etsy Fee types (Section 1)
4 - Etsy currency conversion fees
5 - Shopify pricing
6 - Shopify payment processing fees
Sources verified on: 29 November 2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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