The difference between Shopify and Amazon is that Shopify is an e-commerce platform for building your own online store, while Amazon is an online marketplace where you can list products alongside millions of other sellers.
Here’s a quick comparison of Shopify vs Amazon:
- Shopify is better for building your own brand and having full control over your online store.
- Amazon provides access to a massive existing customer base but with less control and higher fees.
- Shopify has lower long-term costs but requires more work to drive traffic.
- Amazon FBA simplifies logistics but comes with strict rules and intense competition.
- Many sellers use both platforms to maximize their reach and sales potential.
What’s the Difference Between Amazon and Shopify?
Shopify Overview
Shopify is an all-in-one e-commerce platform that allows you to create your own online store. The difference between Shopify and other platforms is that with Shopify, you have full control over your brand, website design, and customer relationships. It’s ideal for sellers who want to build a unique brand identity and have more flexibility in how they run their online business.
Key features of Shopify include:
- Customizable website templates
- Built-in payment processing
- Inventory management tools
- Marketing and SEO features
- App store for additional functionality
Amazon Overview
Amazon, on the other hand, is an established online marketplace where you can list your products alongside millions of other sellers. The difference between Amazon and Shopify is that Amazon provides instant access to a vast customer base but offers less control over your brand presence and customer interactions.
Amazon’s key offerings for sellers include:
- Fulfillment by Amazon (FBA)
- Amazon Prime eligibility
- Built-in trust and credibility
- Advertising options within the platform
Understanding the Platforms
What is Shopify?
Shopify is a comprehensive e-commerce solution that empowers entrepreneurs to start, grow, and manage their own online stores. Shopify is an e-commerce platform that provides all the tools necessary to create a professional-looking website, process payments, manage inventory, and market products.
How Shopify Works for Sellers
- Choose a plan and sign up
- Select and customize a website template
- Add products and set up payment methods
- Launch your store and start marketing
Key Features of Shopify
- Customizable Themes: Over 70 professional themes to choose from
- Shopify POS: Integrated point-of-sale system for in-person sales
- SEO Tools: Built-in features to help improve your store’s search engine ranking
- Mobile App: Manage your store on the go
- 24/7 Support: Access to customer service via phone, email, and live chat
Amazon’s Marketplace Model
Amazon is an online marketplace where multiple sellers can list their products. This model allows Amazon to offer an extensive range of products while letting third-party sellers handle inventory and fulfillment (unless using FBA).
Fulfillment by Amazon (FBA) Explained
FBA is a service where Amazon stores, packs, and ships your products for you. This can significantly simplify logistics for sellers but comes at an additional cost.
Benefits of FBA:
- Products become Prime-eligible
- Amazon handles customer service and returns
- Potential for higher search rankings on Amazon
Amazon’s Seller Programs
- Individual Selling Plan: For sellers who plan to sell fewer than 40 items per month
- Professional Selling Plan: For higher-volume sellers, includes additional features
- Brand Registry: Protects your brand and provides enhanced marketing tools
- Amazon Handmade: Specifically for artisans and makers of handcrafted goods
How Shopify vs Amazon Stack Up: A Comprehensive Comparison
Costs and Fees
Shopify Pricing Tiers
| Plan | Monthly Cost | Features |
| Basic | $29 | Basic reports, 2 staff accounts |
| Shopify | $79 | Professional reports, 5 staff accounts |
| Advanced | $299 | Advanced reports, 15 staff accounts |
Amazon’s Fee Structure
- Individual plan: $0.99 per item sold
- Professional plan: $39.99 per month + referral fees (vary by category, typically 8-15%)
- FBA fees: Based on item size and weight
Hidden Costs to Consider
- Shopify: Apps, themes, domain name, marketing
- Amazon: Storage fees, long-term storage fees, return processing fees
Control and Branding
Customization Options on Shopify
Shopify offers extensive customization options, allowing you to create a unique brand experience:
- Fully customizable website design
- Custom domain name
- Ability to use your own logo and branding elements
- Control over product presentation and descriptions
Brand Presence on Amazon
Amazon provides limited branding opportunities:
- Standard product listing format
- Brand Store option for registered brands
- A+ Content for enhanced product descriptions (for Brand Registered sellers)
Customer Relationship Management
- Shopify: Direct access to customer data, email marketing tools
- Amazon: Limited customer data, communication restricted through Amazon’s system
Traffic and Visibility
Shopify’s SEO Capabilities
Shopify provides tools to optimize your store for search engines:
- Customizable title tags, meta descriptions, and URLs
- Blog functionality for content marketing
- Integration with Google Analytics and Search Console
Amazon’s Built-in Audience
Amazon offers immediate access to millions of active shoppers:
- High-intent customers ready to buy
- Amazon’s powerful search algorithm
- Opportunity for products to appear in “Customers also bought” sections
Marketing Efforts Required
- Shopify: Requires significant effort in SEO, paid advertising, and social media marketing
- Amazon: Less marketing effort needed, but advertising within Amazon is often necessary for visibility
Product Restrictions
Shopify’s Open Platform
Shopify allows you to sell almost anything, with few restrictions:
- More flexibility in product types
- Ability to sell services or digital products easily
Amazon’s Category Restrictions
Amazon has strict rules about what can be sold:
- Some categories require approval
- Certain products are prohibited (e.g., alcohol, tobacco)
Fulfillment and Shipping
Shopify’s Shipping Partners
Shopify integrates with various shipping carriers and offers Shopify Shipping:
- Discounted rates with USPS, UPS, and DHL
- Print shipping labels directly from Shopify
- Option to use third-party fulfillment services
Amazon FBA vs. Self-fulfillment
- FBA: Amazon handles storage, packing, and shipping
- Self-fulfillment: You manage inventory and ship orders yourself (Fulfilled by Merchant – FBM)
Customer Service
Shopify’s Hands-on Approach
With Shopify, you’re responsible for customer service:
- Direct communication with customers
- Flexibility to provide personalized support
- Ability to build long-term customer relationships
Amazon’s Customer-centric Policies
Amazon prioritizes customer satisfaction:
- Strict performance metrics for sellers
- Amazon handles customer service for FBA orders
- A-to-Z Guarantee for customers
The Pros and Cons of Amazon vs. Shopify
What Are the Advantages of Amazon?
The advantages of Amazon are:
- Massive Customer Base: Access to millions of active shoppers.
- Built-in Trust: Customers trust Amazon’s platform and policies.
- Simplified Logistics: FBA handles storage, shipping, and returns.
- Prime Eligibility: FBA products can be Prime-eligible, increasing visibility.
- Lower Initial Investment: No need to build a website or drive traffic.
What Are the Disadvantages of Amazon?
The disadvantages of Amazon are:
- High Competition: Millions of sellers competing for visibility.
- Limited Brand Control: Less ability to showcase your brand identity.
- Fee Structure: Referral fees and FBA costs can eat into profits.
- Strict Rules: Amazon’s policies can be restrictive and change frequently.
- Customer Ownership: Amazon owns the customer relationship, not you.
What Are the Advantages of Shopify?
The advantages of Shopify are:
- Brand Control: Full customization of your online store and brand experience.
- Direct Customer Relationships: Access to customer data for marketing and retention.
- Multiple Sales Channels: Easily sell on social media, in-person, and other marketplaces.
- Lower Long-term Costs: Predictable monthly fees with no per-sale commissions.
- Flexibility: Sell any type of product or service with few restrictions.
What Are the Disadvantages of Shopify?
The disadvantages of Shopify are:
- Traffic Generation: Responsibility for driving your own traffic through marketing.
- Higher Initial Effort: Need to set up and design your entire online store.
- Learning Curve: Requires understanding of e-commerce and digital marketing.
- Additional Costs: Potential expenses for apps, themes, and marketing tools.
- Customer Service: Full responsibility for all customer support.
Is It Cheaper To Sell With Amazon or Shopify?
The question of whether it is cheaper to sell with Amazon or Shopify depends on various factors, including your sales volume, product type, and business model.
How Does Pricing Differ?
The difference in pricing between Shopify and Amazon is:
Shopify Pricing:
- Fixed monthly fee ($29, $79, or $299)
- Payment processing fees (2.9% + $0.30 per transaction for online sales)
- No per-sale commissions to Shopify
Amazon Pricing:
- Monthly fee for Professional sellers ($39.99)
- Referral fees (typically 8-15% of the sale price)
- FBA fees (if using Fulfillment by Amazon)
What Fees Should I Take Into Consideration?
The fees you should take into consideration for each platform are:
For Shopify:
- App subscriptions
- Theme costs
- Marketing expenses
- Domain name registration
For Amazon:
- Storage fees
- Long-term storage fees
- Advertising costs
- Account management tools
In general, Shopify tends to be cheaper for high-volume sellers in the long run, while Amazon may be more cost-effective for low-volume sellers or those just starting out.
How Do Amazon Shipping Compare to Shopify Shipping?
The difference between Amazon shipping and Shopify shipping is:
Amazon Shipping:
- FBA handles storage, packing, and shipping
- Prime-eligible shipping for FBA items
- Strict packaging and prep requirements
- Potential for multi-channel fulfillment
Shopify Shipping:
- Integrations with major carriers (USPS, UPS, DHL)
- Discounted shipping rates
- Print shipping labels directly from Shopify dashboard
- More flexibility in packaging and branding
Do Both Amazon and Shopify Offer Dropshipping?
Yes, both platforms support dropshipping, but with different approaches:
Amazon Dropshipping:
- Must be the seller of record
- Cannot use other retailers or marketplaces to fulfill orders
Shopify Dropshipping:
- Easily integrate with dropshipping apps like Oberlo
- More flexibility in supplier choice and product sourcing
How Do Shopify and Amazon Differ Regarding SEO?
The difference between Shopify and Amazon regarding SEO is:
Shopify SEO:
- Full control over on-page SEO elements (title tags, meta descriptions, URLs)
- Blog functionality for content marketing
- Customizable site structure
- Ability to target any keywords relevant to your business
Amazon SEO:
- Focus on optimizing product listings for Amazon’s internal search algorithm
- Limited control over on-page elements
- Emphasis on factors like sales velocity, customer reviews, and pricing
- Restricted to product-related keywords
Shopify provides more comprehensive SEO capabilities for ranking in general search engines like Google, while Amazon SEO is focused on visibility within the Amazon marketplace itself.
What Are Customer Payment Options Offered By Shopify and Amazon?
The customer payment options offered by Shopify and Amazon are:
Shopify Payment Options:
- Shopify Payments (built-in payment processor)
- Credit/debit cards
- PayPal
- Apple Pay
- Google Pay
- Shop Pay
- Local payment methods
- Cryptocurrency (through apps)
Amazon Payment Options:
- Amazon Pay
- Credit/debit cards
- Gift cards
- EBT cards (for eligible items)
- Installment plans for eligible purchases
Shopify offers more flexibility in payment options, allowing you to choose from over 100 payment gateways. Amazon, while more limited, provides a streamlined checkout process that many customers trust and prefer.
Can I Sell On Amazon and Shopify At the Same Time?
Yes, you can sell on both Amazon and Shopify simultaneously. Many successful e-commerce businesses use a multi-channel approach to maximize their reach and sales potential.
Will Using Both Help Me Expand My Reach?
Using both Amazon and Shopify can help you expand your reach in the following ways:
- Diverse Customer Base: Access Amazon’s massive audience while building your own brand on Shopify.
- Risk Mitigation: Reduces dependence on a single platform.
- Synergistic Marketing: Use insights from one platform to improve performance on the other.
- Inventory Management: Efficiently manage stock across multiple channels.
To integrate Amazon with your Shopify store:
- Use Shopify’s Amazon sales channel app
- Sync inventory between platforms
- Manage orders from a single dashboard
- Use Amazon FBA for Shopify orders (optional)
Remember that managing multiple channels requires more time and effort, but the potential benefits often outweigh the challenges for many sellers.
Which is Right for my Business: Amazon or Shopify
How Do I Know Which Service Will Be Best for Me?
To determine whether Amazon or Shopify is best for your business, consider the following factors:
- Business Goals:
- Brand building → Shopify
- Quick market entry → Amazon
- Product Type:
- Unique or handmade products → Shopify
- Mass-market items → Amazon
- Budget:
- Limited upfront investment → Amazon
- Long-term cost efficiency → Shopify
- Marketing Skills:
- Strong marketing abilities → Shopify
- Prefer built-in traffic → Amazon
- Control Preferences:
- Full control over store and customer relationships → Shopify
- Willing to trade control for convenience → Amazon
Factors to Consider
Other factors to consider when choosing between Amazon and Shopify are:
- Product margins
- Competition in your niche
- Fulfillment capabilities
- Customer service resources
- Long-term scalability plans
When to Choose Shopify
Shopify is better when you:
- Want to build a unique brand identity
- Have products with high profit margins
- Are willing to invest in marketing
- Prefer full control over your online presence
- Plan to sell through multiple channels
When to Choose Amazon
Amazon is better when you:
- Want immediate access to a large customer base
- Sell products with lower profit margins
- Prefer to focus on product sourcing rather than website management
- Want to leverage Amazon’s fulfillment network
- Are new to e-commerce and want a simpler start
Hybrid Approach: Using Both Platforms
For many businesses, a hybrid approach using both Shopify and Amazon can be the most effective strategy:
- Use Shopify as your primary storefront and brand-building platform
- Leverage Amazon for additional exposure and sales
- Use insights from each platform to improve overall performance
- Gradually shift focus to your Shopify store as your brand grows
This approach allows you to benefit from Amazon’s traffic while building a sustainable, branded business through Shopify.
The Bottom Line
Both Shopify and Amazon offer powerful e-commerce solutions, each with its own strengths and weaknesses. Shopify provides greater control and brand-building opportunities but requires more effort in marketing and customer acquisition. Amazon offers instant access to a vast customer base but at the cost of higher fees and less control over your brand presence.
Ultimately, the best choice depends on your specific business goals, resources, and long-term vision. Many successful e-commerce businesses find that a combination of both platforms yields the best results, allowing them to maximize reach while building a strong, independent brand.
Remember, the e-commerce landscape is constantly evolving. Stay informed about updates to both platforms and be prepared to adapt your strategy as needed. Whether you choose Shopify, Amazon, or both, focus on providing excellent products and customer service to build a sustainable and profitable online business.
