Shopify vs Amazon: Which platform will help you sell better?
Table of Contents
Currently, Shopify vs Amazon are considered two major giants leading the global e-commerce industry, offering countless exciting opportunities for businesses eager to tap into the vast potential of the online market. So, what are the key differences between these two platforms? Let’s explore in detail with NextSky in the article below.
Overview of Shopify vs Amazon Platform
Before diving into the detailed analysis, you can take a look at some basic information about the two platforms in the section below:
Shopify Platform
Shopify is an e-commerce platform that enables users to easily create and operate an online store, even without programming knowledge. This system integrates all essential features such as product uploads, shopping carts, payments, inventory management, and social media connections.Â
As a result, Shopify has become the ideal choice for small and medium-sized businesses looking to build their brand presence and control the entire online business process.
Amazon Platform
Instead of building your e-commerce website, selling on Amazon is like renting a booth in a bustling shopping mall with millions of visitors daily. Amazon handles logistics through its Fulfillment by Amazon (FBA) service, taking care of storage and shipping.Â
In return, however, you must share some of your profits through commission fees and face intense competition from countless other sellers. Therefore, this platform best suits those aiming to scale their business to a global market quickly.
Pros and Cons of Shopify and Amazon
|
 |
Shoptify |
Amazon |
|
Pros |
 - Highly scalable, customizable, with a rich app store- Full control over your website, design, branding, and customer data - Multiple pricing plans - Multi-channel selling - Suitable for long-term business models, brand development  |
 - FBA services: storage, packing, and shipping handled for you  |
|
Cons |
- Transaction fees (if not using Shopify Payments) |
- No control over customer data and website design - Customization based on templates only - Referral fees and other charges - Limited payment options (within Amazon's system) - Very high competition, easy to get price-gouged - High discount rates and platform fees - Difficult to build your own brand |
Compare key features between Shopify vs Amazon
Below is a comparison table of outstanding features between the two e-commerce platforms, Shopify vs Amazon, to help you easily visualize and choose the platform that suits your business needs
|
|
Shopify |
Amazon |
|
Number of merchants |
Over 1.75 million worldwide |
Over 9.1 million users globally (1.9 million active users) |
|
Online Store Creation |
Build a fully customized online store with drag-and-drop tools, no coding needed. Tailor your brand with unique themes, logos, and layouts. |
Sell on Amazon’s marketplace with a standard interface, minimal customization, and a focus on product listings. |
|
Product & Inventory Management |
Provide a centralized dashboard to manage products, inventory, and orders, and automatically import/export products via Excel files and dropshipping. |
Manages products via Seller Central with inventory tracking. Fulfillment by Amazon (FBA) automatically handles storage, packing, and shipping. |
|
Payments |
Shopify Payments plus 100+ gateways (PayPal, Stripe). Multi-currency support and transaction fees apply without Shopify Payments. |
Amazon Pay with referral fees (8-15%) and FBA costs. No separate transaction fees. |
|
Multi-Channel Selling |
Sell on your site, social media (Facebook, Instagram), marketplaces, and in-store with Shopify POS. Seamless order syncing. |
It primarily sells on Amazon, but it has limited social media integration. No POS for physical stores. |
|
Marketing & SEO |
Includes SEO tools (editable robots.txt, sitemap.xml), email marketing, discount codes, and abandoned cart recovery. Extensive app store for add-ons (chatbots, reviews...). |
Offers PPC (Pay-Per-Click) ads and product listing optimization for Amazon’s search. Limited SEO tools since there’s no standalone website. |
|
Customer Support |
24/7 support via live chat, email, and phone (mainly in English). Large community and rich documentation. |
Support via Seller Central (email, chat, phone), but response times may vary due to high seller volume |
|
Scalability |
Scales from small businesses to large enterprises (Shopify Plus). Supports international sales with multi-language and currency options. |
Ideal for large-scale, international sales, but relies on Amazon’s policies. Limited customization for large enterprises. |
How are costs calculated on Shopify vs Amazon?
Both Shopify and Amazon have different pricing plans to suit the needs of merchants. Below is a detailed comparison table merchants can refer to to make the right decision.
|
Category |
Shopify |
Amazon |
|
Subscription Fee |
- Basic: $29/month - Shopify: $79/month - Advanced: $299/month - Plus: $2,000+/month - 3-day free trial |
- Individual: $0.99/product - Professional: $39.99/month - Identity verification is free (requires documents) |
|
Transaction Fee |
- 0-2% if not using Shopify Payments |
 - Referral: 8-15% of total sale price- Minimum $0.30/transaction  |
|
Storage/Shipping Fee |
 - Shopify Shipping: Depends on the carrier (UPS, FedEx)- Supports FBA integration via the app - Taxes/insurance separate  |
 - FBA: $3-5/order (standard), $8-10+/order (oversized)- Storage: $0.87/ft³ (Jan-Sep), $2.40/ft³ (Oct-Dec) - Long-term storage: $1.50-$6.90/ft³  |
|
Theme Cost |
 - Free themes: 11+ (33 color styles)- Paid themes: $150-$350 (one-time)  |
Not applicable (Amazon provides a fixed interface) |
|
App Cost |
 - Free or $5-$50/month/app- Large businesses: $500-$1,000/month  |
Not applicable (features built-in) |
|
Advertising |
- Depends on channel (Google, TikTok, FB) - Free TikTok integration - Cost: $100-$1,000+/month |
 - PPC (Sponsored Products/Brands): $0.50-$2/click- Budget: $100-$2,000+/month  |
|
Other Costs |
 - Domain: $11-$20/year- Agency: $1,000+ (project-based) - Packaging: Depends on the supplier  |
 - FBA packaging: $0.10 - $0.50/product- Removal: $0.25-$0.60/unit - Legal entity: $3,000-$5,000  |
|
Flexibility |
- Customizable website, multi-channel - Build your brand |
- Limited customization |
|
Target Audience |
 - Small to large businesses- Want an independent website, long-term  |
- Sellers wanting quick customer reach |
Shopify vs Amazon: Creating a Storefront
When comparing Shopify and Amazon for creating online storefronts, they offer distinct approaches. Shopify provides customizable themes and a user-friendly interface, which is ideal for businesses seeking a unique, branded storefront. You can choose a theme from the Shopify theme store or hire a reputable Shopify theme developer like Nextsky ot make one.
On the other hand, Amazon offers a guided setup process and optimized mobile-friendly layouts, simplifying the store creation process. However, it comes with limitations on customizability and strict design guidelines.
Which industry is suitable for Shopify vs Amazon?
Not every industry is suitable for both Shopify and Amazon. Each platform will have advantages depending on the product's characteristics, buyers' decisions, and the market competition. Therefore, before choosing a place to "set foot", sellers need to understand which group their products belong to clearly. Below is a comparison table to help you determine which platform will "match" your industry best.
|
Product Category |
Shopify |
Amazon |
|
Fashion & Accessories |
Very suitable (requires branding) |
Can be used if the competition is low |
|
Cosmetics, Handmade, Personalized Items |
Strong advantage (customization, storytelling) |
Hard to stand out |
|
Electronics, Household Essentials |
Not very strong |
Very suitable (price-driven customers) |
|
Niche or Creative Products |
Easier to build a brand |
Difficult to rank without reviews |
|
Dropshipping |
Shopify is flexible |
Amazon is limited |
Shopify vs Amazon: Order Fulfillment
Amazon's Fulfillment by Amazon (FBA) service stands out as the superior choice for order fulfillment due to its advanced storage, packaging, and shipping capabilities. With FBA, businesses can benefit from Amazon's extensive logistics network, ensuring fast and reliable customer delivery.
While Shopify also offers a fulfillment network, it may not match the efficiency and scale of Amazon FBA, making Amazon the preferred option for businesses seeking efficient order fulfillment solutions.
Shopify vs Amazon: Shipping
Shopify vs Amazon offer robust shipping solutions, but their approach and capabilities differ.
Shopify offers businesses flexible shipping options through Shopify Shipping, offering discounted rates from major carriers and integrations with third-party shipping apps. However, merchants are responsible for managing fulfillment and logistics, either themselves or through third-party services.
On the other hand, Amazon's Fulfillment by Amazon (FBA) service handles storage, packaging, and shipping, ensuring fast and reliable delivery. While FBA simplifies the shipping process and provides access to Amazon's logistics network, businesses may have less control over the process than Shopify.
Shopify and Amazon: Which one should you choose?
Choosing between Shopify and Amazon depends on your specific business needs and goals. Here's a breakdown to help you decide:
Choose Shopify if:
- You want full control over branding and customization of your online store.
- You prefer flexibility in payment gateways and pricing plans.
- You're looking for extensive marketing tools and analytics to grow your business.
- You can handle your own shipping and fulfillment or work with third-party services.
Choose Amazon if:
- You prioritize access to a vast customer base and benefit from Amazon's brand recognition.
- Streamlined fulfillment through Fulfillment by Amazon (FBA) is essential for your business.
- You prefer a more straightforward setup process with fewer customization options.
- You're comfortable with Amazon's payment gateway and referral fee structure.
When deciding, consider your business model, branding preferences, logistical capabilities, and growth strategies.
In conclusion, Shopify offers flexibility and integrations for shipping management, while Amazon's FBA provides a comprehensive solution with built-in logistics support. The choice depends on the business's specific needs and preferences regarding shipping management.
=>> Read more:
- Shopify vs eBay: Which Marketplace Fits Your Business?
- Shopify vs GoDaddy: Which Website Builder Is Best?
- Shopify vs WooCommerce: Which E-commerce Platform Wins?
- Shopify vs BigCommerce: Which Platform Is Better for You?
