Shopify vs. Amazon – Which One is 2020 Winner?

Shopify and Amazon are two of the biggest online retailers that are handling the marketing game. They are both top dogs in the E-commerce market. As a regular shopper, you might have already come across these services. On the other hand, people who are selling might be facing a dilemma while choosing between the two. They are both great platforms with unique features and perks to offer. Amazon is the biggest online retailer worldwide, while Shopify powers over 600,000 online businesses.

They are unique in many ways, and today we hope to settle the Shopify vs. Amazon debate. Let’s find out where you should set up a shop for your online business.

Shopify vs. Amazon – Basic Differences

We need to have a few set ground rules which can help us differentiate between the two platforms. There are various factors to check before deciding which one to choose. We recommend that you try out the options available and see for yourself for the most accuracy. 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?

Shopify is an online platform that helps users to build an online business. It is the all in one E-commerce platform which gives individuals and small businesses the chance to sell their products and services online. They give you the ability to create an independent online business.

Amazon, on the other hand, offers businesses a place to sell their products and takes a commission. Their site acts as a referrer to millions of people online. They don’t give you any identity or brand creativity freedom. When you use amazon, it ends up becoming their product. 

Shopify Vs Amazon: Pros & Cons

Finding out 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 in the options available. 

Shopify:

Pros –

1. Multiple Ecommerce tools

Shopify is an independent platform and supports you with a lot of E-commerce tools. These help build your online brand. Users can expect an increase in sales with these services. We recommend you try the platform to get better 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. 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 with this field. Users have to be completely responsible for their online presence.

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. You can sell products to a global audience depending on the supply chain. 

3. Services

Their platform offers sellers with 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, it is quite difficult to create your brand online. Buyers on the platform don’t notice the people or manufacturers who are selling the product. To the average Joe, Amazon is the seller and manufacturer. 

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 a lot of things to worry about when it comes to their products. A platform that can help ease the stress is going to be the best option for you.

Shopify offers customers with 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 in an orderly manner. 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. They offer users with FBA or fulfillment by Amazon features to their sellers. 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. It is, however, a great idea to build a brand online with their service. Once the brand is up and running, 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 which 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 for working 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. You have to invest further to get more results.

4. Payment options

Both the websites offer users with secure payment gateways on their platforms. It is a great way to collect money online for your sales. Amazon and Shopify excel in managing the cash inflow and outflow for their sellers. 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 their 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, is not so easily understandable and offers little customer support.

6. Processing fees

As a seller on both platforms, you have to pay a certain amount of processing fees. Users who utilize the Amazon FBA program have to spend on inventory management and storage costs. It ranges anywhere from $2.41 to $100+ per fulfillment. The cubic foot cost of storage 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.

Can you use both?

No one is stopping you from joining both the options. Shopify and Amazon can work great in harmony, as well.  You can try out different things with these platforms. One can help you gain stability while the other benefits in increasing revenue.

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. It is a good idea to switch sides to either of these seller platforms today. We recommend Amazon to our readers because of their huge user base. There is always the chance to do your regular research and make smart investments. You can earn huge profits by a little hard work on the internet.

Conclusion:

The Shopify vs. Amazon debate has been troubling our readers for a long time. In this guide, we uncover all the hidden data which can help you make a decision. We hope it is now easy to start your online business.

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