Shopify vs. Amazon: Which platform will help you sell better?

Shopify vs. Amazon: Which platform will help you sell better?

Table of Contents

    With the surge in online shopping and the proliferation of competing e-commerce platforms, selecting the right one has never been more critical. Shopify and Amazon, two titans in the e-commerce arena, each provide distinct features tailored to various business needs. 

    Whether you're a small business owner seeking a customizable storefront or a large-scale merchant aiming for a vast customer base, this comparison will help you determine which platform best supports your goals in 2024.

    Shopify vs. Amazon: At a Glance

    Shopify and Amazon serve different business needs with distinct features. Shopify is a website builder with over 1.75 million merchants globally, is ideal for businesses looking for a customizable storefront, user-friendly interface, and strong support. It is best suited for those who want to control their brand and interact with their customers.

    In contrast, Amazon is a marketplace with over 197 million monthly visitors, 9.1 million sellers worldwide, and 1.9 million actively selling, is the perfect place for large-scale sellers to target. widespread customer access. Amazon's massive market reach, Amazon Fulfillment (FBA) services, and broad customer base provide unprecedented customer reach and logistics support.

    Ultimately, the choice between Shopify and Amazon depends on whether you prioritize a personalized online store or selling to a large global audience.

    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're willing to 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.

    Ultimately, consider your business model, branding preferences, logistical capabilities, and growth strategies when making your decision.

    Shopify and Amazon Pros and Cons

    Aspect

    Shopify

    Amazon

    Pros

    - Highly customizable storefronts

     - Full branding control 

     - Various pricing plans 

     - Scalability options

     - Extensive app store

    - FBA services

     - Prime membership benefits 

     - Access to Amazon's vast customer base 

     - Referral program

     - Global presence

    Cons

    - Transaction fees 

    - Limited direct support 

     - Subscription fees 

     - Requires building brand from scratch

     - Smaller customer base compared to Amazon

    - Limited control over branding and design 

     - Template-based customization 

     - Referral fees 

    - Limited payment options 

     - Competition within the platform

    How Shopify vs. Amazon Stack Up

    Feature

    Shopify

    Amazon

    Number of Merchants

    Over 1.75 million globally

    Over 9.1 million globally (1.9 million active)

    Customization

    Highly customizable storefronts

    Limited customization on product listings

    Ease of Use

    User-friendly interface

    More complex due to Amazon's extensive policies

    Fees

    Subscription fees starting at $29/month + transaction fees

    99 cents per each item sold on Individual plan; $39.99 per month for Professional plan

    Plus referal fees from 8% to 45% per sale

    Branding

    Full control over branding

    Limited, as products are listed under Amazon's branding

    Customer Reach

    Dependent on individual marketing efforts

    Access to Amazon's vast customer base

    Logistics

    Merchant managed or Shopify Fulfillment Network

    Fulfillment by Amazon (FBA) services available

    Support

    24/7 customer support through various channels

    Extensive support through Amazon Seller Central

    Marketplaces

    Integrates with multiple social media and marketplaces

    Primarily Amazon's marketplace

    Payment Options

    Multiple payment gateways including Shopify Payments

    Limited to Amazon's payment system

    Scalability

    Suitable for scaling businesses

    Ideal for scaling with extensive logistics support

    Shopify offers more flexibility in terms of pricing, customization, and branding control, making it suitable for businesses looking to build their own brand. On the other hand, Amazon provides a ready-made platform with fulfillment services and access to a vast customer base, making it ideal for sellers who prioritize convenience and scalability. Ultimately, the choice between Shopify and Amazon depends on the specific needs and goals of the merchant.

    Shopify vs. Amazon: Pricing and Plan

    Both Shopify and Amazon offer different pricing options tailored to the needs of merchants.

    Shopify's Basic plan, starting at $29 per month, provides essential features for building and managing an online store, with additional advanced features available in higher-tier plans.

    shopify plans

    In contrast, Amazon offers an Individual plan with a $0.99 fee per item sold, or a Professional plan at $39.99 per month, catering to varying seller needs.

    amazon subscription plans

    Shopify users have more control over branding and customization, while Amazon sellers rely on Amazon's platform. Fees vary, with Shopify charging transaction fees from 0.5% up to 2% and Amazon charging referral fees based on product category. Ultimately, the choice depends on the seller's priorities and business goals.

    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, ideal for businesses seeking a unique branded storefront. You can choose a theme from Shopify theme store or hire a reputable Shopify theme developer like Nextsky ot make one.

    Shopify theme

    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.

    Shopify vs. Amazon: Marketing Options

    Shopify and Amazon both offer diverse marketing options for businesses, but each platform has its strengths.

    Shopify provides robust marketing tools like email marketing, social media integration, and SEO optimization, allowing businesses to reach a wider audience and track their marketing efforts effectively. Additionally, Shopify's customizable discounts and promotions feature enables businesses to drive sales and engage with customers more efficiently.

    shopify marketing

    In contrast, Amazon's marketing options primarily revolve around its marketplace ecosystem, offering sponsored product ads and display ads to increase visibility within the platform. While Amazon provides access to a vast customer base, businesses have limited control over branding and customer experience, which can affect their ability to stand out.

    Overall, Shopify's versatility and comprehensive marketing tools make it the preferred choice for businesses looking to expand their reach and build a unique brand identity. With Shopify, businesses have greater control and flexibility in their marketing strategies, ultimately driving more sales and growth compared to Amazon's more standardized approach.

    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 capabilities in storage, packaging, and shipping. With FBA, businesses can benefit from Amazon's extensive logistics network, ensuring fast and reliable delivery to customers. 

    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: Payment Options

    Shopify boasts a wide array of payment gateways (over 100 payment gateways), including popular options like PayPal and Apple Pay, offering flexibility for businesses. Moreover, it supports alternative payment methods such as cryptocurrency and cash on delivery.

    On the contrary, Amazon primarily relies on Amazon Pay for transactions, limiting payment options compared to Shopify. 

    Overall, Shopify's extensive payment gateway options and support for various currencies give it an edge over Amazon in terms of payment flexibility and convenience for businesses.

    Shopify vs. Amazon: Shipping 

    Both Shopify and Amazon offer robust shipping solutions, but they differ in their approach and capabilities.

    Shopify provides businesses with 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.

    shopify shipping

    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 compared to Shopify.

    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 Is The Best Platform To Sell Your Products?

    Frequently Asked Questions (FAQs)

    Which platform is better for selling products?

    It depends on your specific business needs. Shopify offers more customization options and control over branding, while Amazon provides access to a vast customer base and streamlined fulfillment services through FBA.

    Can I use both Shopify and Amazon together?

    Yes, many businesses use both platforms simultaneously. You can integrate your Shopify store with Amazon to reach more customers and diversify your sales channels.

    Which platform is easier to use?

    Shopify is known for its user-friendly interface and intuitive setup process, making it easier for beginners to create and manage their online stores. Amazon has a more standardized setup process, but its extensive policies and guidelines may be more complex for some users.

    Can I sell internationally on both platforms?

    Yes, both Shopify and Amazon support international selling. Shopify offers multi-currency and multi-language support, while Amazon has separate marketplaces for different countries where you can list your products.

    Can Amazon Pay be integrated into Shopify?

    Yes, you can integrate Amazon Pay into your Shopify store. This allows customers to utilize shipping information saved in their Amazon account and pay using their preferred payment method.