Amazon vs. Shopify – Which One Should Start E-Commerce?

Shopify vs Amazon

The number of online shoppers continues to grow every year, which means there are many opportunities for e-commerce entrepreneurs. Before you can start an online business, you'll need to choose an e-commerce platform to build it on. While there are many feature-rich platforms on the market, in this guide we'll cover two popular options, Shopify and Amazon.

Shopify is a user-friendly platform where users can sell their products online. On the other hand, Amazon is an online marketplace with millions of consumers. Both options are reliable and it is entirely possible to use both, each with its own advantages and disadvantages. Let's compare the key features, pricing, pros and cons of Shopify and Amazon to determine the best one for your needs.

Shopify vs Amazon Overview

Shopify is a subscription-based e-commerce infrastructure for businesses looking to build their brand and online store. Users can build websites through easy-to-use and mobile-friendly themes. They can also increase site functionality with features such as marketing, store management, analytics, and third-party integrations.

Amazon is an online marketplace that receives more than 2.5 billion monthly visits. Unlike Shopify, you have to compete with other online sellers in the same marketplace. The Amazon FBA (Amazon Logistics) program allows sellers to use hubs where they ship products to Amazon warehouses and where products are stored, packed, and shipped.

Because Shopify requires building a website, it appeals more to people who have experience building their own website, whereas Amazon is a ready-made platform where you can start selling more quickly.

Shopify vs Amazon​

	Shopify	Amazon
Platform Type	Website builder and host	Market place
Pricing	$32 - $399 per month	$0.99 per product sold for individual plans or $39.99 per month for professional accounts
Templates and Design	Templates and plugins designed for various industries	Although Amazon has no control over its own design, you can design your own store.
Pazarlama Seçenekleri	Social media integrations, discount coupons, gift cards, Google Ads Credits	Amazon ads and competitive pricing
Commission	Zero commission applies on all packages for Shopify Payments only. If an external payment infrastructure is used, a commission fee of 0.5% - 2% applies.	Category-based commission fees apply.
Mobile Compatible	Compatible	Compatible
Customer Support	Shopify Lite offers 24/7 live chat and email support; all other packages offer 24/7 live chat, email support and phone support.	It offers support through the Seller Central account with the Amazon Seller Support team.

There are different pricing options for both platforms. With the basic Shopify package for $32 per month, you can create an online store, build product lists, manage product inventory, and fulfill orders. More expensive options give you access to advanced reporting features, calculated carrier shipping, and international price adjustments.

Amazon has two pricing plans: Individual Plan and Professional Plan. The Individual plan requires you to pay $0.99 for every item sold. On the other hand, the Professional plan costs $39.99 per month.

Shopify charges a commission on every transaction for users who don't use Shopify Payments, while Amazon charges a category-based commission fee for each product sold.

Additionally, Amazon sellers can customize their store while Amazon has no control over its design. They can use Amazon's beautiful store and product listing, as well as Amazon's advertising system to attract customers.

On the other hand, sellers who want to sell on Shopify need to master digital marketing, social media advertising, etc. to build a website from scratch and drive traffic.

Store Creation

Shopify offers more than 100 pre-designed themes with customization options. There are themes for various industries, from sports and recreation to apparel and accessories. Using these themes, beginners can build their store.

With Amazon's Individual plan, an individual Amazon Seller account is free. Unlike Shopify, you don't have to build a website from scratch, but you have direct control over product images and descriptions. To stay ahead of your competitors on Amazon, you need to have your product listings and photos professionally prepared.

Marketing Options

Amazon Marketplace has 174.9 million monthly Prime members and receives 2.5 Billion monthly visits, which is a lot more than Shopify's 56.5 million monthly unique visitors.

Since you're in direct competition with other sellers on Amazon, it can be hard to stand out. However, Amazon ads make it easier to make sales by allowing you to promote your products and increase your visibility on product pages and search results.

Unlike Amazon, Shopify allows users to create their own websites. However, it's entirely up to you to attract web surfers to your site and convince them to buy your products.

On the positive side, Shopify has many marketing and SEO areas. You can integrate it with social media platforms and advertise on Facebook. Also, discounts and gift cards can be an option to entice customers. Although the marketing part can be complicated for a beginner, if you have experience in digital marketing, Shopify can be a good option for you.

Order Shipping

Entrepreneurs who don't want to deal with inventory management and order fulfillment can use Amazon FBA. However, individual selling accounts have a storage limit of 10 cubic feet, while professional selling accounts have no storage limit. There are also FBA fees per sale depending on product weight, size, type, and the channels through which the product is sold.

Shopify also has a fulfillment network, but it's not as advanced or streamlined as Amazon FBA. There's also the option to use Amazon FBA even if you're not an Amazon seller.

Conclusion

Both platforms allow e-commerce entrepreneurs to build their websites, but there are important differences between the two platforms. Shopify allows you to build your online store and website, which makes it a viable option for entrepreneurs selling specialized products. However, in order to build a successful online store and make sales on Shopify, you need to make sure that you can utilize digital marketing channels and social media advertising well.

On the other hand, Amazon's traffic and customers are readily available. Therefore, it may be a more suitable platform to start e-commerce. You can simply create a seller account and start e-commerce either with your own brand or with different branded products.

The best choice will depend on your e-commerce knowledge and goals.

To learn more about e-commerce

FBAPro Private Label 2.0