The competition between Shopify and Amazon in the e-commerce market will be more intense than ever in 2023. With both platforms offering unique features that appeal to different types of businesses, it can be difficult to decide which is right for you.
To make the decision easier, let’s take a look at the pros and cons of both platforms and how they compare. Shopify lets you build an online store from scratch and provides a range of ecommerce features, while Amazon is an online marketplace where you can easily sell existing products to consumers.
We’ll also discuss how to use Shopify Payments and explore the advantages and disadvantages of each platform. By the end of this article, you should have a better understanding of whether Shopify or Amazon is best for your business in 2023.
Shopify vs. Amazon – Basic Differences
Shopify and Amazon are two of the most popular eCommerce platforms on the market. With Shopify, you can create your very own online store, complete with Shopify Payments, to collect payments from your customers. It also provides a wide range of features and tools to help you sell online, such as inventory management, shipping, and tax calculation, customer accounts, and more.
On the other hand, Amazon is an online marketplace where you can list products for sale. It has a large user base already and is expected to be the leading ecommerce platform by 2023.
In this guide, we are covering the following most relevant factors.
- Ease of use online
- Flexibility with the products
- Promotional tools
- Payment options as a seller
- Customer and seller support
- Processing fees
Are Shopify and Amazon Different?
When comparing Amazon vs. Shopify, it is clear that both offer different services. Amazon Marketplace allows customers to purchase products from third-party sellers and from Amazon itself.
On the other hand, Shopify provides users with an e-commerce platform to create their own online store and sell their products directly to customers.
The main difference between Amazon and Shopify lies in the way they approach customer service. Customers of Amazon have access to the benefits of Amazon Prime, while Shopify users are responsible for setting up their own customer service system.
Moreover, if you decide to become a seller on Amazon Marketplace, you will need an existing Amazon Seller Account or create one before you can start selling products on the platform.
Shopify vs. Amazon: Pros & Cons
The pros and cons of using the two platforms will help you make a better decision. Let’s take a look at how you can weigh the options available.
Shopify
Here are some pros & cons of using Shopify:
Pros:
1. Multiple Ecommerce tools
Shopify is an independent platform and supports you with many E-commerce tools. This help build your online brand. Users can expect an increase in sales with these services. We recommend that you try the platform to understand its features. Promotions become easy when the Ecommerce services are efficiently executable.
2. Online Presence
A new business needs to develop its online presence. Through a service like Shopify, it is simple to create the brand value of your business. Customers can make purchases, leave reviews, and expect value delivery.
Cons:
1. Subscription model
- Shopify makes use of a monthly subscription model for its users.
- It is a new system in the current E-commerce business models.
- Many people prefer giving out a percentage of their sales.
2. Extra costs
Users need to pay extra if they are looking for more features. For example, certain tools are available only when you purchase them from the app store.
3. No marketing support
As a new online business owner, it is crucial to market your products heavily. Shopify is not going to help you at all in this field. Instead, users have to be completely responsible for their online presence.
Amazon
Here are some pros & cons of using Amazon:
Pros:
1. Huge traffic
Amazon has huge traffic and gets millions of visits every day. Your brand and product can get extra online exposure through this feature.
2. Global website
Amazon is popular all over the world. They are the most recognizable chain of online stores on the internet. Depending on the supply chain, you can sell products to a global audience.
3. Services
Their platform offers sellers extra features like inventory management, packing, and shipping logistics. It reduces costs, brings efficiency, and increases customer satisfaction.
Cons:
1. Largest marketplace
It is the largest marketplace, but it also means they have the largest number of online sellers. You are dealing with a heavy saturation of product manufacturers in many fields. The competition is unhealthy and high in most regions.
2. Creating a brand
As an Amazon seller, creating your brand online takes time and effort. Buyers on the platform don’tdon’t notice the people or manufacturers selling the product. To the average Joe, Amazon is the seller and manufacturer.
Shopify vs. Amazon: Key Features
Doesn’t matter whether you choose Shopify or Amazon; both platforms are excellent for selling goods and making a profit. However, when choosing the best eCommerce platform to sell your products, you need to consider the features and ease of set-up.
So, let’s talk about the features of Shopify first before making any decision.
Shopify Key Features
Shopify, like Amazon, also provides incredible features that assist you in starting your Shopify business. It keeps it separate from Amazon because it provides better customization features and gives you access to add-ons for better customer reach.
In addition to this, the features are as follows:
- Premium Custom Themes
Shopify gives you access to premium themes to impress your product page.
- Customer Profiles
It provides you with customer profiles and account management to reach them directly.
- Multiple Payment Support
Shopify, like Amazon, offers multiple payment support for making payments easily.
- SEO and Campaign Facility
The biggest thing about Shopify is optimizing your page and improving its functionality. Moreover, you get better marketing and campaign features that help to target the audience impressively.
- Inventory Management
Shopify also provides inventory management and order management facilities. This means sellers don’t need to worry about stock maintenance.
- Dropshipping and Fulfilment
This also provides you dropshipping and fulfillment facility.
- Automatic Tax Calculation
With this feature, you can stay away from the hassles of calculating tax and other transactions.
- Drag & Drop Editor
These features allow you to change the themes and customize the product view easily.
- Product Reviews and Testimonials
Shopify’s plus point is that it helps to manage product reviews and testimonials, which play a significant role in improving sales.
Amazon Features at A Glance
Amazon is a popular eCommerce platform where you can sell your goods and make a profit. However, to sell products, you need to create an account. The major features offered by this platform are as follows:
- Fulfillment By Amazon
FBA allows sellers to start their businesses on Amazon and accomplish their goals.
- Product Images and Graphics Support
For better clarity, Amazon supports images and visual concepts. This helps the sellers upload videos and images of their products to decide a better way.
- Shipping Services
Amazon also provides shipping services and shipping calculations.
- Better Business and Pricing Models
Amazon offers quantity discounts and better business pricing models to the sellers. In addition, it suits the need of beginners to advanced sellers.
- Automatic VAT Invoicing
This helps the sellers to stay away from manual invoicing and calculations.
- Easy to Access
The account creation process and product selling are easy on this platform.
- Better Customer Reach
Amazon is a vast platform that offers better customer reach and allows you to sell products for profit. However, the only downside is that Amazon doesn’t offer many page customization features. Aside from this, you can have better security features that let you access the platform freely.
- Multiple Payment Support
Amazon provides multiple payment options, so sellers and buyers feel safe in transactions.
- Warehousing Facility
You can enjoy the warehouse facility to stock your products.
Shopify vs. Amazon: Factors
Here are the factors which help us know the difference between Shopify and Amazon. Let’s take a look at these to conclude your online selling destination.
1. Ease of use online
An online seller has many things to worry about when it comes to their products. A platform that can help ease the stress will be your best option.
Shopify offers customers a sleek user interface. Creating product listings and working on marketing strategies can be done in minutes. There are various tabs to keep all the necessary data orderly. It helps you to focus on value delivery.
Amazon, on the other hand, has an intuitive platform for sellers. Users can create an account and then make unique listings. In addition, they offer users with FBA or fulfillment by Amazon features to their sellers. In addition, it helps reduce the task of shipping and packaging.
Overall they are both unique and easy-to-use platforms.
2. Flexibility with products
Shopify is a platform that lets you sell anything. However, building a brand online with their service is a great idea. Once the brand runs, users can promote and market anything that resonates with their online store.
Amazon offers you the freedom to sell everything. There is no brand limitation on the platform. You can sell a product that gives you high margins. The majority of sellers on the website have hundreds of unique listings.
3. Promotional tools
The Shopify store helps you to get the online presence your products deserve. Their app store is full of marketing and promotional tools. Users can boost their sales with the help of such services. It is a great idea to invest in Shopify to work on advocacy.
Amazon doesn’t offer its customers any built-in promotional tools. There are external research services that help you get recognition on the platform. So you have to invest further to get more results.
4. Payment options
Both websites offer users secure payment gateways on their platforms. It is a great way to collect money online for your sales. Amazon and Shopify excel in managing their sellers’ cash inflow and outflow. They accept services like Visa, MasterCard, Paypal, and many more options.
5. Customer support
As the sellers on their platforms, you become the direct customer. Shopify plays a big role in ensuring its users are comfortable. The customer support team is available 24/7 and offers live chat features.
Users also get access to video and written tutorials. Overall the platform is heavily accessible all around the world. Amazon, on the other hand, could be more easily understandable and offer more customer support.
6. Processing fees
As a seller on both platforms, you must pay a certain amount of processing fees. Users utilizing the Amazon FBA program must spend on inventory management and storage costs. It ranges anywhere from $2.41 to $100+ per fulfillment. The cubic foot storage cost is $0.69 to $1.32, depending on the region. Amazon also has to pay affiliates for sales.
Shopify, on the other hand, has different charges. They will charge you a monthly subscription for their plans. Users also need to pay a payment processing fee for online card payments. It is usually 2.9% + 30 cents for all users. The payment processing fee is true for Amazon sales as well.
Shopify vs. Amazon: Pricing Plans
Before sellers start selling their products on any eCommerce platform, they must choose pricing plans. So, let me know about the pricing plans of both these platforms.
Shopify Pricing Plans
Like Amazon, Shopify also provides three distinctive pricing plans to the sellers. The starting plan is available at $39 per month. The Shopify plan is available at $105 per month, and the advanced Shopify plan is available at $399 per month.
The best thing about choosing the premium plan of Shopify is that you get 14 days of free trial services. So, you can try any of the premium plans worry-free. Shopify premium plans provide several features, including USPS shipping labels, fraud analysis, multichannel selling, additional locations, and staff accounts.
Amazon Pricing Plan
Amazon provides two different pricing plans for two kinds of sellers, which are as follows:
Individual Sellers Pricing Plan
If you’re a new seller, start with the individual seller plan. This plan doesn’t cost you anything; instead, you need to pay $0.99 per item you sell on Amazon. Moreover, the sellers don’t need to choose expensive premium plans to run their accounts. Instead, add the products and start selling on Amazon.
Professional Sellers Pricing Plan
If you are a professional seller, invest in the premium plan, which is too affordable. Sellers can pay only $39.99 per month. In this plan, sellers can complete access to the tools like API integration, advertisement tools, and many more.
Additional Fee Charges
Sellers also need to pay 2% additional referral fees on their products.
Shopify vs. Amazon: Payment Options
Payment options/gateways are the biggest concern for sellers. However, the transaction fee rises exponentially, so it would be great to consider the payment options.
Let’s start with Amazon. This platform supports multiple payment gateways such as debit cards, accept credit, Amazon Pay, and others. However, Amazon doesn’t support the PayPal account yet. But then, professional sellers have to pay a monthly subscription fee which may vary.
The average fee ranges from $2.41 to $137.32 per unit. In addition, if sellers use Amazon warehouses, then sellers need to pay storage charges ranging from $0.69 to $2.40 per foot. The charges are according to the size and the volume of the products.
Let’s now talk about the Shopify payment options. This platform supports payment options, including credit cards, debit cards, visa cards, and Amazon Pay. The best thing about this is that it also allows you to make payments through PayPal.
However, sellers need to pay processing fees which may depend on the premium plan you select. For example, the processing fees may vary between 2.4% to 2.9% and additional 30 cents on the transactions made by the sellers.
Using Amazon with Shopify
Amazon and Shopify are the two biggest eCommerce platforms for sellers and shoppers. Sellers often get confused while choosing between these platforms. They both provide incredible services and allow sellers to sell their products and make income.
How about using Amazon with Shopify to leverage both platforms? You might be surprised to know this, but yes, sellers can integrate both platforms and combine Shopify stores with Amazon. This means you can build your eCommerce store on one platform and promote it on the world’s biggest marketplace.
You can sync your inventory list and product links from Shopify to Amazon directly. Moreover, you can also create your own Amazon FBA seller account to the Shopify account and improve your product exposure to gain more profit.
Shopify vs. Amazon: The winner
These two platforms are the only options available to online sellers. Individual online stores are losing their market share to the giants. Switching sides to either of these seller platforms is a good idea today.
We recommend Amazon to our readers because of its huge user base. There is always the chance to do your regular research and make smart investments. You can earn huge profits with a little hard work on the internet.
Conclusion:
The Shopify vs. Amazon debate has been troubling our readers for a long time. This guide has uncovered all the hidden data that can help you make a decision. We hope it is now easy to start your online business.