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Negozio vs. bottega

In Italian, both negozio and bottega translate to shop or store, but they are not always interchangeable. The choice between them depends on the size, type, and character of the establishment, with negozio being the general term and bottega implying tradition and craftsmanship.

Negozio

A1
This is the most common and neutral word for shop or store. It can be used for almost any type of retail business, from small shops to large stores in a shopping mall, selling a wide variety of goods. It does not carry any special connotation of tradition or craftsmanship.
Ho comprato questo vestito in un negozio in centro.
(I bought this dress in a store downtown.)
C'è un nuovo negozio di scarpe che ha aperto nel centro commerciale.
(There is a new shoe store that opened in the shopping mall.)
Devo andare al negozio di elettronica per un nuovo telefono.
(I have to go to the electronics store for a new phone.)
Il sabato pomeriggio i negozi sono sempre molto affollati.
(On Saturday afternoons the shops are always very crowded.)
Hanno chiuso il vecchio negozio di giocattoli alla fine della strada.
(They closed the old toy store at the end of the street.)

Bottega

B1
This word evokes a sense of tradition, craftsmanship, and high-quality, often artisanal products. It typically refers to a small, specialized shop, like a butcher's, a cheese monger's, or a craftsman's workshop where goods are both made and sold. Using bottega adds a charming, sometimes old-fashioned, and authentic feel.
Il falegname sta costruendo un tavolo nella sua bottega.
(The carpenter is building a table in his workshop.)
Ho comprato del formaggio e del salame in una piccola bottega di prodotti tipici.
(I bought cheese and salami in a small shop selling traditional local products.)
Le sue borse in pelle sono fatte a mano in una bottega artigiana a Firenze.
(Her leather bags are handmade in an artisan shop in Florence.)
Mio nonno andava sempre a fare la spesa nella bottega sotto casa.
(My grandfather always went shopping at the little shop just downstairs from his home.)
Il pittore espone i suoi quadri nella sua bottega d'arte.
(The painter displays his paintings in his art studio.)

Summary

In short, use negozio as the general, all-purpose word for any shop or store. Use bottega when you want to emphasize that the shop is small, specialized, and offers artisanal, traditional, or high-quality goods, often with a direct link to the craftsman or a skilled shopkeeper.