Shopify Vs Amazon: which is best for online sellers? This article is all about finding which is best. One of the most major decisions you’ll make as a digital company owner is picking which e-commerce platforms to employ to sell your products online — and, as two of the most prominent names in e-commerce, you’ll likely choose between Shopify and Amazon. While both have pros and limitations, you may discover that combining the two platforms improves your organization.
Today, the e-commerce market is ruled by two giants: Amazon and Shopify. They are both distinct and provide sellers with various options when it comes to selling online. Over 2.5 billion people visit Amazon every month, while Shopify’s platform supports over 1 million companies. With stats like these, deciding on the best platform to sell on might be difficult.
If you opt to sell on Amazon, you’ll be able to tap into the platform’s massive, already-engaged Amazon audience without having to do much small-business marketing yourself. However, with Shopify, you have complete control over your online store’s logo, layout, and consumer experience.
Shopify vs Amazon: The Basics
Let’s start with what Shopify and Amazon can achieve for individual sellers and company owners. You should know that both of these tools will help you establish a reputation as a merchant. You may earn money online by starting your own e-commerce business or selling on an online marketplace.
The parallels between Amazon and Shopify, on the other hand, end there. Both Amazon and Shopify are digital marketplaces for selling things, but they operate in quite different ways.
You receive a whole platform to develop your e-commerce website with Shopify, including templates to make your product listings appear amazing. Depending on the Shopify subscription you pick, you’ll have access to anything from SEO tools to tools that let you connect your store to other sales channels, such as Amazon.
On the other hand, Amazon does not need you to construct anything from the ground up. Instead, you sell through a pre-existing warehouse, where other similar vendors join you. Selling on Shopify is similar to renting a building and selling your own items in the real world, but selling on Amazon is similar to having a stand among thousands of other merchants in a very crowded atmosphere.
Because of the significant differences in the business models that both Shopify and Amazon support, both technologies serve very different types of online retailers. Small companies, major brands, and individual sellers who want to establish a reputation for themselves online would benefit from Shopify. If you’re simply one individual selling a modest amount of things, the Amazon ecosystem could be a better fit.
You may decide to employ both systems as your internet business expands.
Shopify vs Amazon: Pros & Cons
So, if both Shopify and Amazon can help you generate money in the digital age, how do you decide which is the best option for you? When evaluating these options, it might be helpful to make a list of the obvious benefits and drawbacks of each tool, such as:
Pros of Shopify
- There are no issues about upgrades or security (everything is done for you)
- A simple method to create your whole branded store.
- Integrations with a slew of other products, like Amazon Premium and free themes to help you make your site stand out.
- Possibilities for offline sales with POS integration
- A great deal of help came from a whole crew.
- For expansion, a variety of marketing and SEO solutions are available.
- Popular community with a large number of satisfied consumers
- Sell services or tangible goods.
Cons of Shopify
- Transaction costs eat away at your profit margins. Integrations and templates add up to a lot of money.
- Before you start selling, you must first create your entire store.
- So, how does Amazon do in comparison? It may provide a unique experience for online retailers, but it still has several advantages and disadvantages.
Pros of Amazon
- Exceptional brand exposure (millions of people use Amazon)
- Setup is simple, and you can start selling right away.
- FBA, for example, is a tool that you may use (fulfilled by Amazon)
- Gift cards, rebates, and other incentives are available.
- In most situations, shipping expenses are very reasonable.
- You don’t have to think about security or updates because they’re taken care of for you.
- Good client assistance in a convenient backend environment
Cons of Amazon
- It’s only suitable for selling physical goods.
- Building a solid brand image in a marketplace is challenging.
- There is a lot of competition from other businesses providing the same or comparable items.
Shopify vs Amazon: Pricing
Let’s get down to business – how much you’ll spend now that you’ve weighed the advantages and disadvantages of each service. When you’re looking for a means to boost your revenues, both Shopify and Amazon have charges to consider.
Despite its broad set of features and capabilities, Shopify is generally thought to be reasonably priced. If you already have a company website or a social media store that you want to sell from, Shopify Lite may simply add a “Buy Now” button to your account for $9 per month. However, the Lite plan does not allow you to create your own website or use Shopify’s numerous extra features.
Other package options include:
Basic Shopify: costs $29 a month and includes unlimited product hosting, online shop tools, staff accounts, 24/7 support, social network integrations, discount coupons, SSL certificates, gift cards, abandoned cart recovery, and other features.
Shopify: $79 a month for the standard edition of Shopify, which includes all of the Basic features plus up to five locations, five staff accounts, and professional reports. There’s also fraud detection, POS (Lite) technology, and the ability to sell in many languages.
Shopify Advanced: $299 a month. This subscription is designed for bigger businesses selling at scale. It includes the ability to sell in up to five languages, access foreign domains, unlock fraud analysis, and much more and premium customer service.
Shopify Plus: This is Shopify’s enterprise edition, but you’ll need to chat with a Shopify expert to determine how much it costs. Costs often begin at $2000, so make sure you have enough money set beforehand.
Aside from more features, the higher your Shopify plan, the more money you save on transaction costs. For example, for Basic Shopify, online credit card prices start at 2.2 percent plus 20 cents, while in-person rates start at 1.7 percent plus 0 cents. Additional costs of 2% apply to any payment providers other than Shopify Payments.
So, how does Amazon do in comparison?
Amazon is also reasonably priced, making it a viable option for businesses and sellers just getting started online. If you’re not selling many things, it’s pointless to invest in a platform that will cost you hundreds of dollars.
Amazon’s selling strategies are as follows:
Individual selling plan: This service has no monthly subscription. However, you will be charged $0.99 for each item you sell. This is in addition to any other selling costs that may apply when selling on Amazon, which vary by category.
Professional selling plan: This is a monthly fee-based plan that costs $39.99 per month. Other parties need additional selling costs, which must be paid. Once
Shopify vs Amazon: Features
Whether you choose Shopify or Amazon as your selling platform, it’s vital to remember that paying more will always bring you more features. This is a universal reality of any online selling platform. Let’s take a deeper look at the features you can expect from Amazon and Shopify and how they’ll influence you.
Shopify Features Include:
- There are plenty of payment processors to choose from.
- For security, an SSL certificate is required.
- Themes that are both premium and free
- Abandoned cart recovery using a drag-and-drop editor for your website
- Accounts and profiles of customers
- Dropshipping and fulfillment
- Testimonials and product reviews
- Management of inventory and orders
- SEO and marketing capabilities
- Accounts and profiles of customers
- Calculation of taxes on the fly
Amazon Features Include:
- Amazon Business can help you find new consumers.
- Invoicing for VAT is done automatically.
- Pricing for businesses and volume discounts
- Deals and offers from companies that aren’t found anywhere else
- Order visibility has improved.
- The ability to pay via invoice is available.
- Amazon fulfills orders.
- Image and video support for the product
- Editing product pages from the backend are simple.
- Calculation of shipping
- Security and hosting are provided.
Significant Difference Between Amazon & Shopify:
The e-commerce behemoths Shopify and Amazon are absolute behemoths. However, while both services allow you to reach a large audience, they are entirely distinct platforms.
Shopify is a platform that permits you to create your own online shop. It’s the online equivalent of hiring a location to open your own shop when you sell on Shopify. Working with Amazon, on the other hand, is more like selling your wares in a huge supermarket.
With Shopify, you’ll have to put in more effort to customize things to your liking – and attract consumers. You will, however, have complete power over everything; you will be able to decide:
- The way your company is portrayed
- How your storefront appears
- How do you promote your products?
- How do you collect data?
If you want to know which platform to employ, you must first choose how much control you desire, how much time and effort you are willing to invest, and how you want your company to grow.
When you know what you want most for your business during the selling process, the decision becomes more accessible.