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E-Commerce · head to head

Etsy vs Razorpay

Etsy logo

Etsy

E-Commerce

Global marketplace for handmade, vintage, and unique items

From
On request
Rated
-
Full reviewWebsite
Razorpay logo

Razorpay

E-Commerce

Indian payment gateway for domestic and international card, UPI and wallet acceptance

From
On request
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Etsy transaction fees at 6.5% of sale price; Razorpay it requires an Indian legal entity and settles only to Indian bank accounts, so it is not an option for a business incorporated elsewhere no matter how many Indian customers it has.
  • They diverge on capability: Etsy covers Shop setup, Razorpay covers Domestic payment methods.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which Etsy and Razorpay actually diverge.

Attributes where Etsy and Razorpay differ
AttributeEtsyRazorpay
Founded2005Unknown

Identical on both: starting price (On request), pricing model (transaction), free tier (No), platforms (Web), user rating (Not yet rated), category (E-Commerce).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Etsy

  • Shop setup
  • Product listings
  • Payment processing
  • Shop customization
  • Order management
  • Shipping labels
  • Reviews & ratings
  • Shipping protection

Only in Razorpay

  • Domestic payment methods
  • International cards
  • Payment links and pages
  • Route
  • RazorpayX
  • Subscriptions
  • Smart Collect
  • Dashboard and reporting

What people use each for

The jobs each tool is most often brought in to do.

Etsy

  • Selling handmade crafts and unique itemsnot Razorpay
  • Reselling vintage goods and collectiblesnot Razorpay
  • Marketing handpicked curated productsnot Razorpay
  • Operating storefront with secured payment processingnot Razorpay

Razorpay

  • An Indian D2C brand needing UPI acceptance alongside cards in a single checkoutnot Etsy
  • An Indian SaaS business billing domestic customers on recurring mandatesnot Etsy
  • A marketplace that must split each payment between the platform and its sellersnot Etsy
  • A business that needs to take payment without building a website, using links and pagesnot Etsy

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Etsy

  • Transaction fees at 6.5% of sale price
  • Payment processing fee of 3% plus $0.25 per transaction
  • 15% offsite ads fee for sales from Etsy external advertising
  • No monthly subscription covers fees - all fees per transaction

Razorpay

  • It requires an Indian legal entity and settles only to Indian bank accounts, so it is not an option for a business incorporated elsewhere no matter how many Indian customers it has.
  • The transaction percentage applies to the full order value including shipping and tax rather than to the product price, so low margin categories with heavy shipping give up more of their margin than the quoted rate suggests.
  • Payment aggregator authorisation sits with the Reserve Bank of India and has been withheld from aggregators before while applications were reviewed, so a dependency exists that no commercial contract term protects you from.
  • Default settlement runs on a delayed cycle with faster settlement sold as a paid add-on, so a business that buys stock from its takings either waits for cash or pays extra for it, and that cost belongs in the effective rate.
  • International card acceptance is priced higher and requires separate approval rather than being a configuration change, so cross-border revenue takes longer to switch on and earns less per order than a domestic sale.

Pricing, plan by plan

Etsy

On request
  • Seller Fees$0.2/listing
    • Listing fee per item for 4 months
  • Transaction Fee$6.5/percent
    • 6.5% of sale price including shipping
  • Payment Processing Fee$3/percent
    • 3% of sale price plus $0.25 per transaction
  • Offsite Ads Fee$15/percent
    • 15% of sale price when sale results from Etsy external advertising

Razorpay

On request
  • Domestic Payments$undefined/mo
    • 2% platform fee per successful transaction across all payment instruments
    • GST: 18% applies on the platform fee
    • No setup fees, annual maintenance charges, or refund fees
  • Corporate Cards$undefined/mo
    • 2.15% platform fee per transaction
  • International Payments - Cards$undefined/mo
    • Up to 3% per successful transaction
  • International Payments - Bank Transfers$undefined/mo
    • 1% per transaction with zero forex markup

Which should you pick?

Choose Etsy if

  • You need shop setup.
  • You also want product listings.
Etsy review

Choose Razorpay if

  • You need domestic payment methods.
  • You also want international cards.
Razorpay review

Questions people ask

Is Etsy or Razorpay better?
Neither clearly leads. Etsy starts at On request and Razorpay at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Etsy or Razorpay?
Etsy starts at On request and Razorpay at On request.
Does Etsy or Razorpay run on more platforms?
Both run on Web, so platform support will not decide this one for you.
What is Etsy best used for?
Etsy is most often used for selling handmade crafts and unique items, reselling vintage goods and collectibles, marketing handpicked curated products, operating storefront with secured payment processing. Of those, selling handmade crafts and unique items and reselling vintage goods and collectibles are not what Razorpay is typically brought in for.
What can Etsy do that Razorpay cannot?
Etsy covers Shop setup, Product listings, Payment processing, Shop customization. Razorpay covers Domestic payment methods, International cards, Payment links and pages, Route.

Answered from the vendors’ own pages

Etsy: What is the listing fee on Etsy?

Each listing costs $0.20 and is active for 4 months. You only pay transaction and payment processing fees when you make a sale.

Source
Razorpay: Can I use Razorpay if my company is not in India?

No. It requires an Indian entity and an Indian bank account for settlement. Overseas businesses selling into India need a different arrangement.

Etsy: What are Etsy's transaction and payment fees?

Etsy charges 6.5% transaction fee on the sale price including shipping, plus 3% and $0.25 for payment processing per transaction. If a sale results from Etsy's external advertising, an additional 15% offsite ads fee applies.

Source
Razorpay: What is the real effective rate?

The domestic percentage on the full order value including shipping and tax, plus higher international rates, plus any charge for faster settlement and dispute handling. Compute it from a month of settlement reports, not the pricing page.

Etsy: Are there monthly subscription costs?

No, Etsy does not require a monthly subscription. You pay per listing ($0.20) and transaction-based fees when you make sales.

Source
Razorpay: How quickly do I get paid?

On a delayed settlement cycle by default, with faster settlement available as a paid feature. Plan working capital around the default, not the add-on.

Etsy: What types of items can I sell on Etsy?

Etsy allows items you made, designed, handpicked, or sourced that meet Creativity Standards. The marketplace focuses on unique, handmade, or vintage goods rather than mass-produced items.

Source
Razorpay: What is the main structural risk?

Regulatory. Indian payment aggregators operate under RBI authorisation and have previously been barred from onboarding new merchants. Keep a second processor integrated if payments are business-critical.

Razorpay: Does it support recurring billing?

Yes, built on India's mandate and e-mandate framework, which has its own rules on authentication and notification that differ from card-on-file recurring elsewhere.

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