The Pros & Cons: Shopify vs. Amazon

The Shopify vs. Amazon discussion is something you’ve likely come across if you’re thinking about starting a digital business.

There is no disputing that they are two of the biggest brands in online retail.

Both platforms offer practical eCommerce solutions, but they are distinct in their own ways.

You should learn the advantages and disadvantages of each option before making a final decision.

So that you can make an informed decision, we’ll compare Shopify with Amazon and cover all the bases here.

Get right down to business, shall we?

Introduction to Shopify 

The Shopify e-commerce platform is a subscription service that helps business owners set up and manage an online storefront with minimal technical expertise. It provides numerous APIs, plugins, and other tools to help you customize your online shop as you see fit.

In a nutshell, Shopify is a platform for creating and managing online stores rather than an actual market.

Sales, Revenue and Traffic Statistics

It’s estimated that a Shopify store in the United States can earn $72 from each customer.

Profit margins of 10–40% are reasonable to anticipate, bringing your total monthly Shopify income to around $3900.

Of course, the specifics will change based on the size of your store, your advertising plan, and the volume of customers.

For a Shopify store, email marketing is the best method for attracting customers.

Its 4.29% conversion rate is significantly higher than the 1.81% average brought by social media.

The Pros of Selling on Shopify

The Shopify platform makes opening an online shop simple. Getting started is as simple as selecting a plan, creating your site, and making your first payment.
Shopify’s customer service department is available at all hours of the day and night. You can reach them via phone, in-person, or electronic mail chat.
Establishing a Name for Yourself: When you open a Shopify store, you’re taking the first steps toward creating a name for your business.
Electronic Merchandise Tools Shopify’s vast ecosystem of tools and plugins allows you to expand your store’s capabilities in a number of ways.
Shopify is a one-stop-shop for all your eCommerce needs, including safe and secure hosting.

The Cons of Selling on Shopify 

For startups on a tight budget, Shopify’s monthly subscription fees could be prohibitive.
Disadvantages in Customization – Most Shopify Plugins are Paid, and Manual Modifications Can Be Complex.

Introduction to Amazon

As the largest online retailer in the world, Amazon needs no introduction. Every day, millions of users explore the site’s wide range of offerings.

While there are many ways to make money on Amazon, the Fulfillment by Amazon (FBA) program is where most people think of when they think of how to sell on the site.

Sales, Revenue and Traffic Statistics

As one of the most popular online stores, Amazon attracts customers from all over the globe.

More than 2.45 billion monthly visits were recorded on the platform as of June 2021, making it far more popular than any of its rivals.

According to research conducted by Jungle Scout, Amazon sellers can expect to earn an annual profit of $42,000.

With little effort, even new business owners can bring in $1,000 each and every month.

The Pros of Selling on Amazon

High Foot Traffic Thousands of customers visit Amazon every day, so even a mediocre advertising campaign can bring in a fair amount of customers.
Automation – Running an Amazon store is a breeze, especially if you sign up for Amazon’s FBA service.
Cost-Effective Advertising Because Amazon already has millions of users, you can easily make a profit with a small advertising budget.
Amazon has over 175 fulfillment centers located all over the world, so you never have to worry about a package not arriving on time.
Exponentially Increase Your Global Reach Thanks to Amazon’s Presence in Multiple Countries

The Cons of Selling on Amazon

Competition is fierce due to the sheer volume of goods offered for sale on Amazon.
Commissions and fees vary depending on which plan you choose to use: the Amazon Individual Plan costs $0.99 per item sold, while the Amazon Professional Plan costs $39.99 per month.

Are Amazon and Shopify Competitors? 

Since one is a marketplace and the other is a platform for creating e-commerce stores, Amazon and Shopify do not compete with one another.

The vast Amazon customer base is the primary benefit of opening an Amazon store.

Shopify, on the other hand, allows you to start fresh when constructing your store, but you will still need to put in effort to draw in customers.

After reading this, you must be convinced that Amazon is the best option, right? Unfortunately, it’s not quite as simple as it seems at first glance.

If you go the Amazon route, you’ll still need to put in some effort to rise in the search results.

Amazon will also charge you a regular commission or monthly fee for using its services.

Because of this, comparing the two shopping carts is tricky.

In the end, your choice of platform will depend on how well its various components serve your organization.

Shopify vs. Amazon – Core Differences and Similarities 

Shopify vs. Amazon: Comparison by Features

Have you been wondering what sets Shopify apart from Amazon? A comparison of the two systems’ features is provided below.

Costs

If you’re just getting your business off the ground and have a limited budget, which platform do you think is best? Let’s see what their price tags say.

Pricing and Fees

Shopify’s packages include the following, to begin with:

$29 per month for the “Basic Plan.”
Shopify’s Monthly Plan is $79 USD.
The $299/month Premium Plan.
All three options have benefits worth considering, but the enhanced staff accounts stand out as particularly useful. Two staff accounts are all that are available with the Basic Plan, but with the Shopify Plan, you can have up to five, and with the Advance Plan, you can have up to fifteen.

The Advance Plan is unaffordable for most small businesses because it costs $299 per month. However, you need not worry; the Basic Plan comes loaded with everything you’ll need to launch a successful online store.

Only if you use a third-party app will you incur any additional costs.

Amazon’s options are less versatile in comparison. There are just two options available:

Individualized Product and Service Promotion – There is no regular membership fee, but a flat rate of $0.99 is taken from each sale.
In addition to the monthly fee of $39.99, there may be a one-time fee of up to $199.99, depending on the product you’re selling, for the Professional Selling Plan.
If you sell fewer than 40 items per month, the Amazon Individual Plan is your best bet. Keep in mind, though, that you can’t alter the shipping costs with this package.

Marketing Costs

If we’re only considering price, Shopify is a no-brainer. When we factor in marketing, however, things get more complicated.

Amazon has a lot of rivals, but it also has a lot of customers, so if you know who you’re selling to, you can get away with a poor marketing strategy.

However, since you’re starting from scratch with Shopify, you can’t make the same claim. To increase exposure for your online shop, you will need to allocate significant resources to advertising.

The Verdict

Experience and forethought are crucial in retail marketing. However, if we only consider price, Shopify’s adaptable and open packages make it the obvious choice.

Ease of Use 

The thought of opening an online shop may seem daunting at first. In spite of this, you won’t believe how simple it is today.

Now, a simple online store can be set up on Shopify with minimal effort. All you have to do is follow the on-screen prompts, which is a testament to its user-friendly layout.

A custom theme may require technical expertise, but there are plenty of free themes to get you started. In addition, Shopify eliminates this concern by including hosting with every plan.

Just like with Google, Amazon’s user interface is straightforward, and setting up a seller account on the platform entails completing a few quick forms. As soon as you’ve done that, you can start selling your wares online and receiving payments from customers.

Better yet, the Amazon FBA program handles packaging and shipping for you if you don’t feel like dealing with the hassle yourself.

The Verdict

Thanks to improvements Amazon has made to its FBA program, it is now easier than ever to sign up and begin fulfilling orders. Shopify’s ease of use in creating an e-commerce platform cannot be overlooked. So, we’ll call this a tie.

Branding (Design and Customization)

A well-designed website not only better reflects your brand, but also encourages shoppers to complete their purchases.

That’s why Shopify gives you so much leeway in terms of how your store looks. Picking a premium theme is a good idea if you intend to take your company seriously. It’s completely customizable for around $140 to $180.

You won’t have to worry about your website’s response time with Shopify, either, because all of their plans come with hosting.

However, Amazon does not provide any snazzy customization options for its products.

The only place you can customize the design is when adding content like images and descriptions to individual products.

Amazon pages still allow for some degree of personalization, but not nearly to the extent that Shopify does.

The Verdict

Having a visually appealing website can do wonders for your company’s success. Although some originality is required, the outcomes are well worth the effort. Shopify triumphs handily because of its adaptability.

Marketing (Attracting Customers) 

Increasing store traffic is the ultimate goal of any business owner. To put it another way, you could spend a lot of money on advertising. However, that might not be doable for you if you’re on a tight budget.

Simply looking at the numbers, it becomes clear that Amazon is the best place to reach consumers. Again, that’s all thanks to the thousands upon thousands of regulars who use the site.

If you choose Shopify, however, you’ll have to create your store’s web presence from scratch.

To accomplish this, you’d have to employ every conceivable marketing strategy, including intensive Search Engine Optimization (SEO) work on your site and promotional campaigns. However, things will begin to smooth out once you begin receiving organic traffic.

In addition, Amazon isn’t without its flaws, most notably the extreme levels of rivalry present there. The market is saturated with competitors offering the same product you do.

This means that Amazon’s SEO guidelines must be followed if you want to rise in the rankings. Worse still, all it takes to drop in the rankings is a couple of unfavorable customer reviews.

The Verdict

Amazon emerges victorious from this competition. Amazon’s large user base and steady stream of buyers makes the shopping process much more convenient. Even though Shopify gives you everything you need to promote your brand, you’ll need to take a more methodical approach.

Ecommerce Tools

With Amazon’s integrated supply chain network, sellers can more easily fulfill customer orders. However, these assistance options would cost money.

However, the Shopify app store provides access to a wide variety of tools that can assist store owners in managing a prosperous online presence.

Given that it is a store builder and not a marketplace, Shopify naturally offers more eCommerce tools than Amazon.

The Verdict

The results are in, and Shopify is the victor. While Amazon has many tools for store owners, Shopify is far and away the best option for online merchants.

Payment Options

The majority of business owners pay no attention to the substantial transaction fees they incur. It would be wise to check into various methods of payment. It’s always worth looking for ways to cut costs.

Shopify Payments, PayPal, Stripe, Apple Pay, and a lot of other options are just a few of the more than a hundred different payment processors that can be integrated with the platform.

However, if you use Shopify Payments, you won’t have to worry about paying any transaction fees.

Amazon, on the other hand, can be disappointing because it does not support alternative payment methods like PayPal. Amazon Pay or a major credit card is required for purchase.

The Verdict

The victor is so obvious that no explanation is needed. Basically, the only criticism we have is that Amazon needs to expand its selection of accepted payment methods.

Order Fulfilment

One of the most important aspects of running a successful online shop is making sure all orders are processed and shipped out promptly. Let’s check out the shipping and order-fulfillment options available on these sites.

Shipping 

In order to fulfill customer orders, Shopify merchants have the option of using either Shopify’s own Fulfillment Network or contracting with a third-party logistics service.

Selling on Amazon also gives you the option of handling shipping yourself or using their FBA service.

The latter is what you should focus on if you want to automate your business and make money with little effort.

Shopify Fulfilment vs. Amazon FBA

Due to their respective target markets, Shopify Fulfillment Network and Amazon FBA are incompatible comparisons.

And if we’re talking money, they both have the same basic pricing. Both types of fulfillment will charge you on a regular basis for the use of warehouse space.

Amazon’s standard rate per cubic foot is $0.69, but during the holidays that rate increases to $2.40.

Shopify’s pricing structure isn’t as clear as Amazon’s, unfortunately. The only way to learn how much Shopify Fulfillment will cost you is to go through its pricing process.

Shopify, as far as we can tell, places a premium on providing competitive pricing.

Dropshipping 

Since its acquisition of Oberlo, Shopify has become the superior platform for dropshipping. There is a fine line between following Amazon’s dropshipping guidelines and breaking them, and doing the latter will result in suspension of your store.

All bills must be made out to you and contain no packaging, as this is a firm policy.

If you’re serious about dropshipping on Amazon, you’ll need a dependable service to help you personalize your products.

The Verdict

It’s undeniable that dropshipping is much simpler on Shopify than it is on Amazon. But when it comes to shipping, Amazon FBA has a more straightforward pricing model.

It would be unfair to compare Shopify Fulfillment Network and Amazon FBA, as they are intended for different kinds of online shops. Let’s just agree to a draw on this one as well.

Support and Help

Amazon is one of the biggest online retailers, but it doesn’t provide a clear path to getting in touch with customer service. However, you still have the following choices:

Documentation must be submitted.
Share your thoughts on the topic in online discussion groups.
Make a call-in request through their phone service.
Shopify’s customer service can be contacted in a variety of ways, such as:

All hours, every day, you can call for live chat service.
Discussion Boards and Other Online Communities
This demonstrates that Shopify’s customer service is prioritized and that your issue will be solved more quickly.

The Verdict

Although Amazon provides support, it is not nearly as user-friendly or accessible as Shopify, making Shopify the clear winner here.

Seller Autonomy

When it comes to dropshipping, Amazon has stricter policies than Shopify. Though there are still rules to follow, you have a little more leeway on Shopify.

From a marketing point of view, success on Amazon depends heavily on adhering to the site’s policies, accumulating five-star reviews, and conducting extensive keyword research.

However, because your Shopify store is being built from the ground up, you have more leeway to try out various forms of advertising.

The Verdict

Except in cases where you’re selling illegal goods, Shopify is a relatively risk-free place to run a business. However, due to Amazon’s stringent policies, you must proceed with caution. By and large, Shopify is the superior option because it gives sellers more flexibility.

Can You Sell On Shopify and Amazon at the Same Time?

If you have the time and organizational skills, you can sell on Shopify and Amazon stores simultaneously. Shopify stores that are already doing well can take advantage of Amazon’s extensive customer base by connecting their platforms.

FAQs about Shopify and Amazon

How to Sell on Amazon via Shopify

In the event that you still can’t decide between Shopify and Amazon, why not use both? It’s hard to believe, but with the help of an app like Codisto, you can make that dream a reality.

When this app is properly installed on your Shopify store, you will be able to do a wide variety of things, including creating Amazon listings without ever leaving Shopify, retrieving product details, syncing inventory, and more.

How to Fulfill Shopify Orders with Amazon FBA

Using Shopify, you can set up your current inventory for fulfillment by Amazon in a few simple steps:

From your Shopify control panel, navigate to the product page.
You can select the product you want by clicking on it.
To view Amazon Marketplace Web’s inventory guidelines, select the relevant subheading.
Don’t forget to enter the correct SKU and weight.
Save.
When you’re ready, return to your Shopify admin dashboard and navigate to the “Orders” menu item, followed by the “Order Details” submenu item.

Simply select “Request fulfillment,” and then “Send fulfillment” and “Fulfill items” from the subsequent page.

Whose Product Pages Rank Higher on Google, Shopify, or Amazon?

How you intend to promote your business will determine how you answer this question. The number of reputable websites that link back to your store is a major factor in Google’s algorithm. There will be cases where an Amazon product page outranks a Shopify one, and vice versa.

Shopify vs. Amazon – The Final Verdict

Shopify and Amazon both have their uses, so neither can be considered “better.”

The first one is a marketplace where you can list your products alongside those of other sellers, while the second one is used to help you set up a stand-alone eCommerce store.

Your organization’s objectives should guide your decision.

Amazon is the best option if you want to enter a preexisting market.

Shopify, on the other hand, gives you plenty of leeway to create your own identity if you’re willing to start a store from scratch.

You needn’t look for a supplier if you want to dropship on any of these marketplaces.