Thinking about launching your online store and can't decide between Shopify and Amazon? With 4.8 million Shopify stores and over 9 million Amazon sellers globally, it's clear that Shopify and Amazon are the two biggest names in eCommerce today. But which one is right for your business?
Our Shopify vs Amazon comparison will guide you through the pros and cons of each, helping you determine which platform aligns best with your business goals. Letās see what each has to offer and find out which might be the right choice for your eCommerce venture.
Shopify vs Amazon: 2024 Comparison | Contents at a Glance
Selling Platform
Build Your Own Brand Store vs Tap Into the World's Largest Marketplace
Shopify
Shopify is a versatile eCommerce website builder and host that gives businesses the power to build their own brand and fully customize their online storefront. With 2.1 million daily active users shopping across Shopify-powered stores, there's a tremendous opportunity for sellers to reach a broad audience. Its user-friendly website builder provides flexibility and control, making it easy to create a unique shopping experience that reflects your brand identity.
Amazon
Amazon is the world's largest online marketplace, where you'll be selling alongside millions of other merchants. While the competition is fierce, the access to Amazon's massive shopper traffic is unbeatable. With 310 million active users globally (230 million in the US alone), your products are exposed to a customer base already searching for what you're selling. So, if you're ready to compete and want immediate access to a large audience, Amazon's marketplace could be a game-changer for your business.
Creating Your Store
Custom Brand Experience vs Ready-to-Sell Marketplace
Shopify
With hundreds of professional themes to choose from, Shopify offers the flexibility and customization that let you bring your brand vision to life. With Shopify, you can showcase your products or services however you want, creating a store that's consistent with your brand's style and character. Whether you're selling fashion, electronics, or handmade crafts, Shopify's diverse collection of templates makes it easy to find the perfect fit for your industry.
Plus, the Shopify App Store provides a vast selection of apps to enhance your store's functionality, including SEO plugins, social media integration, store design tools, blog builders, store management solutions, and email marketing tools. Here, you'll find virtually everything you need to optimize and manage your Shopify store effectively.
Amazon
Amazonās customization is more limited than Shopify because it focuses on creating product listings rather than building a fully customizable store. You create individual listings that appear in Amazonās marketplace, where shoppers can easily compare them with similar products from other sellers. However, with tools like A+ Content, you can still showcase your products and brand story by adding rich media, product descriptions, and visuals that bring your brand to life.
If you're brand-registered, you can also create an Amazon Storefront to give your brand a more cohesive feel. This feature lets you build a dedicated page within Amazon that highlights your products and brand story in one place. And with Amazon's massive shopper traffic, your Storefront puts your brand in front of millions of potential customers, giving you a big opportunity to stand out.
Check out our step-by-step guide to building an Amazon Storefront.
Pricing & Fees
Subscription Plan vs Pay-as-You-Sell
Shopify
Shopify offers a range ofĀ subscription plans tailored to different business needs, from solo entrepreneurs to large, complex businesses. Each plan provides varying features such as lower card rates and transaction fees, bigger shipping discounts, and greater access to Shopify tools and support as you move up the tier.
Subscription Plans:
- Basic:Ā $29 per month
- Shopify:Ā $79 per month
- Advanced:Ā $299 per month
- Plus:Ā $2,300 per month
Transaction Fees:
- Shopify Payments: 0% if using Shopify Payments, Shop Pay, Shop Pay Installments, and Paypal Express
- Third-Party Payment Providers: 2% for Basic, 1% for Shopify, and 0.6% for Advanced
- Manual Payments: 0% for cash, cash on delivery (COD), and bank transfer methods.
Amazon
Amazon offers two selling plans designed to suit different selling models. The Individual Plan is suitable for low-volume sellers, while the Professional Plan provides advanced features for high-volume businesses.
Selling Plans:
- Individual:Ā $0.99 per item sold
- Professional:Ā $39.99 per month
Transaction & Other Fees:
- Sellers are required to pay a referral feeĀ for every item sold based on product category.
- FBA fulfillment fees, storage fees, and others may apply.
Attracting Customers
DIY Marketing vs Built-In Traffic
Shopify
Attracting customers to your Shopify store is mostly up to you, requiring a proactive marketing approach. You'll need to harness a combination of content marketing, SEO, social media platforms, and paid advertising to create buzz around your brand. Hereās a quick overview of how you can boost your Shopify storeās visibility:
- Content Marketing: Create blog posts, guides, and videos to provide value and drive traffic.
- SEO Optimization: Optimize your site for search engines to attract organic traffic.
- Social Media Presence: Engage with your audience on platforms like Instagram, Facebook, and TikTok.
- Paid Advertising: Invest in Google Ads or social media ads to reach a wider audience.
- Shopifyās Built-in Marketing Tools: Take advantage of Shopify's suite of marketing tools to streamline your outreach efforts. From email marketing to lead capture, these tools help enhance your visibility and drive sales effectively.
Amazon
Amazon offers the advantage of its built-in, massive customer base. Selling on Amazon gives you access to millions of shoppers actively searching for products. Hereās how you can attract even more customers on the platform:
- Amazon PPC: Advertise directly on Amazon through Sponsored Products, Sponsored Brands, and Sponsored Display ads.
- Competitive Pricing: Stand out with attractive pricing to capture more shoppers.
- Promotions: Utilize discounts and coupons.
- External Marketing Channels: Use social media, email marketing, and influencer partnerships to drive traffic to your Amazon listings.
Order Fulfillment
Self-Fulfill vs Full-Service
Shopify
- Shopify Shipping: Take advantage of Shopifyās partnerships with major US carriers to get pre-negotiated shipping rates that can save you money. While this option allows you to reduce shipping costs, it does require you to handle packing, print shipping labels, and drop off packages yourself.
- Multi-Channel Fulfillment with Amazon FBA: Even if youāre not listing products on Amazon, you can use Amazonās FBA through the MCF app to fulfill orders from your Shopify store. You just need an Amazon Seller Central account to get started. This setup allows you to streamline your logistics by tapping into Amazonās robust fulfillment network.
- Shopify Fulfillment Network: While it offers a streamlined logistics experience, itās not as extensive as Amazonās FBA, but itās improving and expanding.
Amazon
- Seller Fulfillment: Youāre in controlāmanage everything from pricing and shipping to customer service and storage, tailoring each aspect to fit your business model.
- Fulfillment by Amazon (FBA): Let Amazon take the wheel on logistics. You set the prices; Amazon handles the rest, including shipping, packing, and customer support, making it easier for you to scale.
Seller Support
24/7 Chat vs Ticket System
Shopify
Shopify offers multiple ways to reach their support team, including chat for all plan levels and dedicated phone support for Shopify Plus members, ensuring a variety of options to get the help you need.
- Basic and Shopify Plans: Access to 24/7 chat support.
- Advanced Plan: Enhanced 24/7 chat support.
- Plus Plan: Priority 24/7 phone support in addition to chat.
Amazon
You can contact Amazonās Seller Support team by filing a ticket through your Seller Central account. While you can access phone support, there is no chat option available. Response times can vary, and navigating support through the ticketing system can sometimes be challenging.
Shopify vs Amazon: The Bottom Line
So, what's the best pick for your online businessāShopify or Amazon?
Well, it really boils down to what youāre aiming for, how you like to run things, and the kind of relationship you want with your customers. If youāre all about building a unique brand and want complete control from website design to checkout, then Shopify is your go-to. Itās perfect for those ready to dive into marketing and really engage with their audience to grow a distinctive brand.
On the flip side, if your main goal is to get your products in front of as many eyes as possible without worrying about driving traffic yourself, Amazon is hard to beat. With its massive built-in audience and streamlined selling processes, it makes selling simpler, although you'll be up against a lot of other sellers and will follow stricter rules.
Maybe youāre thinking, "Why not both?" Combining both platforms could be a smart strategy, using Amazon for its incredible reach and Shopify for its branding prowess. Consider your long-term vision, your products, and how you want to scale up. Whatever route you choose, make sure it fits with your big-picture business goals and helps push your growth forward.
Thinking eCommerce? Let's Talk!
Whether you're eyeing a fresh start on Shopify or aiming to conquer the vast Amazon marketplace, Your eCom TeamĀ is here to help. Here's what we can do for you:
- Shopify Store Management: Want a standout Shopify store that showcases your brandās uniqueness? Weāve got you covered from the ground up, handling everything from the initial setup to daily operations to make sure your store performs at its best.
- Amazon Sales Acceleration: Tap into our Amazon expertise to boost your visibility and sales. Weāll fine-tune your listings, manage your PPC campaigns, and get your products noticed by more customers.
- Multichannel Strategies: Why choose one when you can benefit from both? We specialize in integrating Shopify and Amazon, allowing you to maximize your reach and revenue across multiple platforms.
Get started today with a free brand review!
Frequently Asked Questions
What is the main difference between selling on Shopify and Amazon?
Shopify allows you to create and customize your own online store, while Amazon provides access to a massive marketplace where you list products alongside other sellers.
Can I use both Shopify and Amazon to sell my products?
Yes, many sellers use both platforms to maximize their reach. Shopify can be used to cultivate a brand and direct customer relationships, while Amazon offers vast exposure and customer traffic.
What are the key factors to consider when choosing between Shopify and Amazon?
Consider your business goals, the level of brand control you want, your willingness to manage logistics, and how much market exposure you need.
How do the fees on Shopify compare to Amazon?
Shopify charges monthly subscription fees and transaction fees if not using Shopify Payments, whereas Amazon charges per-item selling fees and monthly fees, along with additional fulfillment and referral fees.
Is it easier to attract customers on Shopify or Amazon?
Amazon provides access to a large pool of customers, but competition is high. Shopify requires you to attract customers through marketing efforts but offers greater brand loyalty potential.
What are the benefits of Shopify's fulfillment network compared to Amazon's FBA?
Shopify's fulfillment network, partnered with Flexport, offers a more personalized approach to logistics and is expanding its capabilities, though it is less extensive than Amazon's FBA, which provides robust logistics support with a vast distribution network.
Do I need to be a seller on Amazon to use Multi-Channel Fulfillment (MCF)
No, you don't need to actively sell on Amazon to use Multi-Channel Fulfillment (MCF). You only need an Amazon Seller Central account. This allows you to benefit from Amazon's extensive fulfillment network for orders placed on other platforms, such as Shopify, enhancing your logistical capabilities without listing products on Amazon's marketplace.
How does seller support compare between Shopify and Amazon?
Shopify offers 24/7 support via chat and phone, depending on your plan. Amazon provides support through a ticket system in Seller Central, with phone support also available.
How does the marketing support on Shopify compare to Amazon?
Shopify provides tools for SEO, email marketing, and social media integration but requires you to drive your own traffic. Amazon offers powerful internal marketing tools like Amazon PPC and access to a massive built-in audience, reducing the need for external marketing efforts.
What type of seller typically thrives on Shopify versus Amazon?
Sellers focused on brand-building and those who prefer control over customer experience and branding thrive on Shopify. Those looking for quick access to a large market and who prefer a more hands-off fulfillment approach may find Amazon more suitable.
About the Author
Dan Serignese
Partner and Chief Brand Officer at Your eCom Team, Dan has over eight years of experience in Amazon advertising for thousands of sellers. He is dedicated to helping brand owners expand their businesses both on and off Amazon.
