Amazon vs. Shopify: Which Ecommerce Platform is Right for Your Business?
If you’re a business owner looking to sell your products online, you’ve probably heard of Amazon and Shopify. Both are popular ecommerce platforms that offer a range of features and tools designed to help businesses succeed. But which one is the better fit for your business? In this article, we’ll compare Amazon and Shopify in more detail to help you make an informed decision.
Amazon is one of the largest ecommerce platforms in the world, with millions of customers and products. It’s a well-established platform that’s trusted by customers worldwide. Here are some of the key features of Amazon:
Product Listings: Amazon allows businesses to list their products on its platform, giving them access to millions of customers worldwide.
Fulfillment Services: Amazon offers Fulfillment by Amazon (FBA), which handles the storage, packing, and shipping of products for businesses. This can save businesses time and money on logistics.
Referral Fees: Amazon charges a referral fee on each sale made through its platform. The fee varies depending on the product category, but generally ranges from 6% to 45% of the sale price.
Advertising: Amazon offers advertising tools that businesses can use to promote their products on the platform.
Amazon charges a referral fee on each sale made through its platform. The fee varies depending on the product category, but generally ranges from 6% to 45% of the sale price. In addition, if you choose to use Fulfillment by Amazon (FBA), there are fees for storage, picking, packing, and shipping your products. These fees vary depending on the size and weight of your products.
Amazon also offers a monthly subscription service called Amazon Professional Selling Plan. This plan costs $39.99 per month and is designed for businesses that plan to sell more than 40 items per month. With this plan, businesses can list their products on Amazon without paying the per-item selling fee, but they are still subject to the referral fees.
While Amazon is a well-established ecommerce platform with a large customer base, it does have some drawbacks for businesses. One of the main issues is the referral fees, which can add up quickly, especially for businesses selling higher-priced products. Additionally, while Amazon does offer advertising tools, it can be difficult for businesses to stand out among the millions of products listed on the platform.
Shopify is a dedicated ecommerce platform that’s designed specifically for businesses of all sizes. It’s a comprehensive platform that offers a range of features and tools to help businesses succeed. Here are some of the key features of Shopify:
Customizable Storefront: Shopify allows businesses to create a fully customizable storefront, giving them complete control over the design and branding of their online store.
Payment Processing: Shopify offers a range of payment processing options, including credit card processing, PayPal, and more.
Fulfillment Services: Shopify offers a range of fulfillment services, including shipping, order tracking, and more.
Subscription Fees: Shopify charges a monthly subscription fee, which varies depending on the plan selected by the business. The fee includes access to a range of features and tools designed to help businesses succeed.
Shopify charges a monthly subscription fee, which varies depending on the plan selected by the business. The fee includes access to a range of features and tools designed to help businesses succeed. Here are the pricing plans for Shopify:
- Basic Shopify: $29/month
- Shopify: $79/month
- Advanced Shopify: $299/month
In addition to the monthly subscription fee, there are transaction fees for each sale made through Shopify’s payment gateway. These fees range from 2.4% to 2.9% plus 30 cents per transaction, depending on the plan selected by the business. However, if you use a third-party payment gateway, such as PayPal, then these fees are waived.
It’s important to note that while Shopify’s monthly subscription fees may seem higher than Amazon’s referral fees, Shopify’s fees are generally more predictable and can be more cost-effective, especially for businesses that sell a high volume of products. Additionally, Shopify’s subscription fees include access to a range of features and tools, such as website design, payment processing, and marketing tools, which can help businesses succeed online.
Advertising: Shopify offers advertising tools that businesses can use to promote their products and drive traffic to their online store.
One of the main advantages of Shopify is its customizability. Businesses have complete control over the design and branding of their online store, which can help them stand out from the competition. Additionally, Shopify’s subscription fees are generally lower than the referral fees charged by Amazon, which can make it a more cost-effective option for businesses.
Which Platform is Right for Your Business?
Deciding between Amazon and Shopify ultimately depends on your business’s specific needs and goals. Here are some factors to consider when making your decision:
Product Type: If you sell products that are already popular on Amazon, such as books, electronics, or household goods, then selling on Amazon may be a good option. However, if you sell niche or unique products, then Shopify may be a better fit.
Fees: Consider the fees associated with each platform. If you sell high-priced products, the referral fees charged by Amazon may add up quickly. However, if you sell a large volume of lower-priced products, Shopify’s subscription fees may be more cost-effective.
Customizability: If having complete control over the design and branding of your online store is important to you, then Shopify may be the better option.
Ease of Use: Consider the ease of use of each platform. If you’re new to ecommerce, then Shopify may be the better option as it’s designed to be user-friendly and easy to set up. On the other hand, Amazon can be more complex, especially if you’re using Fulfillment by Amazon.
Scalability: Consider your business’s growth potential. If you’re expecting to grow your business rapidly, then Shopify may be the better option as it’s designed to handle high levels of traffic and sales. Amazon, on the other hand, may not be able to handle sudden spikes in demand.
Support: Consider the support offered by each platform. Both Amazon and Shopify offer customer support, but Shopify’s support is generally regarded as more responsive and helpful.
Ultimately, the decision between Amazon and Shopify comes down to your business’s specific needs and goals. If you’re selling niche products and want complete control over your online store’s design and branding, then Shopify may be the better option. On the other hand, if you’re selling popular products and want access to a large customer base, then Amazon may be the better option.
If you’re looking to start an ecommerce store and want help deciding between Amazon and Shopify, Book a free review. Our team of experts can help you choose the platform that’s right for your business and set up your online store. Click here to learn more about our ecommerce services.
A portion of our proceeds is donated to local charities.