Is It Better to Sell on Amazon or Shopify? Expert Tips

There are many options when it comes to selling products online. There are many options available to business leaders. They can build an online store with payment processing, subscription and membership options. For beginners, it might be better to sell through an existing marketplace like eBay or Etsy.

Two names stand out in today’s digital marketing landscape. Shopify offers the best solution for businesses that wish to create their own website. Shopify is easy to use for any small business. You can quickly create an online store and begin accepting debit and credit cards.

If you are looking to get started selling quickly, you can also set up an Amazon account. You have access to a large audience of people who browse Amazon regularly as an Amazon seller.

Each of these tools has its benefits, so which one should you choose?

Let’s see what happens.

Amazon vs Shopify: The Basics

Let’s begin by taking a look at what business owners and sellers can do with both Shopify as well as Amazon. First, you should know that both these tools can help you establish yourself as a retailer. Either you can start your own online ecommerce store or sell directly through an online marketplace.

But that’s not the end of similarities between Amazon and Shopify. While both Amazon and Shopify can be used to sell products online, they operate in completely different ways.

Shopify gives you a complete platform to create your ecommerce site. It also includes templates that will make your product listings stand out. You can access search engine optimization tools and tools to connect your store to other sales channels, depending on the Shopify package that you select.

Amazon, on the other hand doesn’t require you to create anything new. Instead, you can sell through an existing warehouse with other sellers like you. Shopify allows you to rent a space in the real world to sell your products. Amazon, on the other hand, gives you a stall among many sellers in a busy marketplace.

Shopify and Amazon offer very different business models. Shopify is great for smaller businesses and larger brands as well as individual sellers looking to establish themselves online. If you are a single seller selling a few products, Amazon might be a better option.

You may choose to use both options as your online business grows.

Comparison of Shopify and Amazon

If both Shopify or Amazon can help you make more money in an ever-evolving digital world, then how do you decide which option is best? It can be helpful to list the obvious advantages and disadvantages of each tool when comparing them.

Shopify Pros

  • You don’t have to worry about security and updates (everything is taken care of for you).
  • Easy way to create your entire brand store
  • Integrations with tons more tools, such as Amazon
  • You can use premium and free templates to enhance the look of your website
  • Opportunities for offline selling and POS integration
  • Fantastic support from the entire team
  • Different marketing and SEO tools to help you grow your business
  • A popular community with lots of happy customers
  • Offer services and physical products

Shopify Cons

  • Transaction fees can eat into your profits
  • For things like templates and integrations, costs can add up.
  • You will need to set up your entire store before you can start selling.

How does Amazon stack up? Although it might be a different experience for online sellers than Amazon, there are still pros and cons.

Amazon Pros

  • Amazing brand exposure (millions use Amazon)
  • It’s easy to set up and you can start selling immediately
  • Access to tools such as FBA (fulfilled Amazon)
  • Gift cards, discounts, and other offers
  • Shipping fees are very affordable in almost all cases
  • You are responsible for security and updating
  • Convenient back-end environment
  • Good customer support

Amazon Cons

  • Only for the sale of physical products
  • It is difficult to establish a strong brand image in a market
  • There is a lot of competition from other people selling similar or identical products

Shopify vs Amazon: Pricing

After you have reviewed the pros and cons of each service let’s get to the bottom of it – what you will spend. When you plan to increase your profits, both Amazon and Shopify have costs.

Shopify is a very affordable platform, despite the many features and tools it offers. Shopify Lite is a package that allows you to add a “Buy Now” button to your existing website or social media store. This will cost you $9 per month. However, the Shopify Lite package does not allow you to create your own website or use all of the other features that Shopify offers.

You can also choose from other package options:

  • Basic Shopify:$29 a month. Unlimited product hosting, online shop tools, staff accounts and 24/7 support are available.
  • Shopify – $79 per Month. This is the Shopify standard version that most businesses choose. It includes all of the features of Basic plus up to 5 locations and 5 staff accounts. You can also sell in multiple languages with POS technology (Lite) and fraud analysis.
  • Shopify Advanced – $299 per Month. This package is for larger companies that sell at scale. You can access 5 languages, sell internationally, unlock fraud analysis and more. Plus, you get premium service.
  • Shopify Plus This Shopify enterprise version is available, but you will need to talk to a Shopify professional for pricing. Costs will typically start at $2000 so you need to have a budget.

Shopify plans with more features are better than others. The higher the Shopify plan, the less transaction fees you will pay. Online credit card rates for Basic Shopify start from 2.2% plus 20cs. In-person rates are 1.7% plus zero cents. All payment providers, except Shopify Payments, charge additional fees of 2%

However, if you use Advanced Shopify, your online credit card rates will drop to 1.6% plus 20cs. The in-person rate is 1.5% plus 0.5%, while additional fees for transactions companies other than Shopify are 0.5%.

How does Amazon compare to other retailers?

Amazon isn’t expensive either, which makes it an affordable choice for sellers and companies that just want to get started on the internet. If you don’t sell a lot of products, it’s not worth spending hundreds of dollars on a platform.

Amazon’s selling plans include:

  • Individual Selling Plan:There is no monthly fee, but each item you sell will incur a $0.99 charge. These fees are in addition to the additional selling fees that may arise when you sell on Amazon. They vary according to category.
  • Professional selling plan: This plan has a $39.99 monthly fee. You will still need to pay additional selling fees from third parties. The third-party fees charged will vary depending on the product you are selling.

Why would you want to use the Professional plan? Individual selling accounts let you sell in many open categories and allow you to access feeds and spreadsheets to upload inventory information online. Other features are not available. The Professional plan allows you access to order-related feeds, and order reports. You will be able to place your products in the top 10 categories. You can also modify your shipping rates.

The professional plan has more features than you would expect. This gives you more sales opportunities. There are additional fees if you use Fulfilled by Amazon or other Amazon services.

Fulfilled by Amazon makes it easier to place orders around the globe and gives you access to Prime shipping. Prime shipping is a big bonus for many customers who sell on Amazon these days. You also get a Fulfilled by Amazon badge.

It’s impossible to predict the cost of FBA. This is because prices are not available until you contact the team and discuss your needs.

Shopify vs Amazon: Features

It doesn’t matter if you choose Amazon or Shopify as your selling platform, you will always get more features if the price is higher. This is a fact that every online selling solution will tell you. Let’s look closer at what features you can expect from Amazon and Shopify and how they will affect you.

Shopify Features

You should not choose the “Lite” package Shopify, which only grants you access to a sale button. Otherwise you will be able unlock a fair amount of features on any Shopify plan. This is why Shopify is so popular. Even HTML and CSS can be used to edit your website and you can accept payments from more than 70 payment processors.

Shopify offers a variety of premium and free templates that will help you build your online store. You can also customize the templates by accessing integrations, making edits, and implementing add-ons. Analytics and reporting are available to help you understand your customers’ needs.

These features include:

  • There are dozens of payment processor options
  • Secure SSL Certificate
  • Premium themes and free themes
  • Drag-and-drop editor for your website
  • Recovery of abandoned carts
  • Profiles and customer accounts
  • Fulfillment and Dropshipping
  • Review and testimonials about products
  • Management of inventory and orders
  • Marketing and SEO
  • Profiles and customer accounts
  • Automated tax calculation

The Shopify features are constantly evolving with new functionality. You can also explore the Shopify marketplace.

Amazon has a few more features than Shopify, but you don’t get an online store builder. You can instead create an account to start selling to a large audience in a matter of minutes.

Amazon Features

  • Amazon Business allows you to reach new customers
  • Automated VAT Invoicing
  • Pricing for businesses and quantity discounts
  • Exclusive business deals and offers
  • Increased order visibility
  • Use the invoice payment option
  • Fulfillment by Amazon
  • Video support and product picture
  • Access to product page edits in the back-end is easy
  • Shipping Calculation
  • Hosting and security included

Amazon can also help you ship products to your customers. Amazon Fulfilled by Amazon is a similar extension to Shopify that allows dropshipping. Fulfilled by Amazon takes the hassles out of shipping and ecommerce.

Shopify vs Amazon Payment Options

When you are building an online shop, payment options should be considered. Your customers are more likely to buy your products if you offer more customization options for payment. The payment methods they are familiar with will make them feel more at ease.

It doesn’t matter if you have a basic or advanced Shopify shop. You will still need to pay transaction fees unless Shopify Payments is enabled. You won’t have to worry about transaction fees, but this will limit you to selling through Shopify.

Shopify offers other payment options if you are willing to pay transaction fees. There are over 100 options, including Amazon Pay and PayPal. However, each option has transaction fees that can vary in price so be sure to do your research.

Amazon follows a similar approach with Shopify payment methods. Amazon Pay, which allows you to accept most debit and credit cards, is the primary payment gateway. Although you can’t access PayPal or any other payment options, most people are quite comfortable using Amazon Pay.

Amazon offers professional sellers selling fees and a monthly subscription. Fees can vary depending on the category and may include shipping and referral fees. There are additional fees if Fulfilled by Amazon is chosen. You will also need to pay monthly inventory storage fees. Prices for fulfilment and storage vary depending on how large the product is, what type it is, and when it’s done.

Shopify vs Amazon Design and Customization

Shopify and Amazon have many differences.

Amazon has limited customization options because it is a marketplace. Shopify is different. Shopify lets business owners of any size create a stunning storefront and sell their products professionally through the platform.

There are many great themes to choose from, both paid and free. You also get the benefit of an exceptional user experience. You can use keyboard shortcuts and undo to quickly move through different changes. Shopify makes it easy to get started, with tons of themes available.

Shopify makes it easy to create a website that stands out. It comes with everything you need in order to open a store that is right for you. Shopify offers more eCommerce features than the website building tools, but it is still a good solution for design and more flexible than Amazon.

There is one problem: you cannot change your theme once you have chosen it.

Amazon is an online marketplace that allows businesses of all sizes to sell their products quickly and easily. It’s also limited in terms of customization. It is not possible to create your own website for your products. Although you can upload product images and descriptions to your site, they will not look the same as any other listings on the marketplace.

Amazon’s homepage promotes products without branding. Customers can also visit your store page through Amazon but they won’t be able to make a connection with you brand as they can’t choose their colors or brand options.

Shopify vs Amazon: Sales Management

Shopify and Amazon both aim to make eCommerce startups as easy as possible.

Shopify makes it easy to manage your online store and is one of the most advanced options on the market. You can monitor your sales and set up notifications to track inventory. Shopify can also be integrated with other platforms such as Amazon, eBay, or Facebook. To start selling, you don’t need to be an expert in HTML and PHP. You can simply jump in.

Shopify gives you everything you need to create a store and bring customers in through its SEO tools and advertising tools. Shopify can be integrated with social media selling strategies and email marketing, as well as create user ratings to show social proof. You can also manage an abandoned cart campaign in case someone leaves your website without purchasing.

With over 100 payment processors available, you can sell digital and physical goods with discounts, coupon codes, etc. You can also access multiple shipping options, manage tax settings and dropshipping functionality.

Amazon offers many selling tools that are easy to use for beginners. Although you can sell many products through Amazon’s marketplace, you will not be able to create a website from scratch as you would with Shopify.

Amazon offers many ways to support your ecommerce business. You can sell handmade products, ship internationally, and even create targeted ads. Amazon FBA is one of Amazon’s most popular selling points. This allows you to connect with professionals who can ship your products for you. FBA gives you access Amazon Prime, which can be a great way for your customers to show more interest in you and to expedite shipping.

FBA allows you to send your products directly to Amazon. They will then take care of everything, from packing each item to ensuring that they get to your customers as quickly and efficiently as possible.

Shopify vs Amazon: Using Both Tools

If you are having trouble choosing between Amazon and Shopify, one option is to use both. Both tools can be used together, since they offer different ways of running an eCommerce business. Shopify allows you to create your own store and establish a brand. Amazon offers another way to sell and a large audience.

Because of Amazon’s open integration policy and vast marketplace, it is simple to integrate Amazon with Shopify. You only need to create an Amazon seller account, and then add the Amazon Sales channel in your shop.

You must remember that your Professional Amazon account will still need to be paid. Your Shopify subscription will be due at the same moment, which could impact your budget. When scaling their businesses, most people will focus on Shopify and Amazon.

Amazon can be a great addition for your Shopify strategy if you want to grow an existing audience or just to sell more. Fulfilled by Amazon doesn’t require you to do a lot more work.

It’s similar to having your product on a Walmart shelf, but also owning your store and WordPress website. If you have the cash, you can combine Amazon and Shopify to get the best of both worlds.

Shopify vs Amazon

It is difficult to compare Shopify and Amazon. Both of these tools can help you sell online but they have different goals. Shopify allows you to create your own store and brand. However, you might need to consider cubic foot warehousing without having access to an Amazon warehouse.

Shopify is an ecommerce platform that gives you all the tools you need to succeed, even if your business involves multichannel selling. Amazon allows you to add any item you wish to sell to any product category within an existing marketplace. You can also access Amazon from your Shopify while you build your brand.

Both have their advantages, and both work well together. You can choose the option that is best for you.