Amazon OR Shopify – Overview
When choosing between Amazon or Shopify, users need to consider whether they want to build their own store and brand OR they want to take advantage of a platform already thriving with millions of users.
Being a subscription based ecommerce platform, Shopify enables its users to create full customized brands and storefronts. With the help of simple and easy to use tools, users can build their own websites in minutes and start selling online. To get a full grip over how their businesses perform, users get access to tools like marketing, analytics, store management and 3rd party integrations.
Amazon on the other hand is an online marketplace with established user base of 197 million users. It is like entering in an online version of Wall Street hosting sellers of every type and size competing with each other. Unlike Shopify, sellers can send goods to Amazon warehouses to be stored, packed and then shipped when ordered.
Shopify
Shopify hosts more than 1.75 million businesses on their ecommerce platform and provides its services in 175 locations. Users can build stunning websites and online stores using pre-made themes. The best thing about it is that it doesn’t involve coding. It also comes with powerful e-commerce capabilities like inventory management, logo creation, abandoned checkout recovery, and numerous payment methods. Being a website builder as opposed to an online marketplace like Amazon, it works best for those creating a fresh brand or offering distinctive items.
Amazon
Amazon is considered to be the largest ecommerce platform in the world by far. Talking strictly about numbers, Shopify doesn’t even come close to the customer base and traffic of Amazon. According to the latest data, Amazon serves more than 197 Million users worldwide. As a seller, Amazon does not allow a lot of customization for product listings and storefronts. Sellers can sell their brands on Amazon but they will need a separate website to maintain their unique brand identity. Amazon offers various models out of which Fulfilled by Amazon is the most popular. In this model sellers send their inventories to Amazon warehouses and Amazon is responsible for all the storage and shipping for a small fee. If sellers have the means to handle storage and shipment on their own, then they can opt for Fulfilled by Merchant model. In both models, a small percentage is deducted on account of Amazon referral fee.
Amazon OR Shopify – Barrier to Entry
When we talk about ease of setup there are many factors to consider like whether you are setting up a new brand or reselling a product that is already there on the market. Keeping this in mind, selling on Amazon is fairly easy as sellers can start selling their products with bare minimum. As Amazon does not allow any customized styling and store design, everything required to sell is already in place. It is one of the main reasons that Amazon has seen steady growth over the years and nobody knows when its going to plateau.
On the other hand to start on Shopify, apart from all the product research, competition analysis and business research, one must plan out a whole website to go with their brand. In case of product listing and restrictions, Shopify has a much smaller list compared to Amazon. Shopify even provides new users with a commitment less option to look around and get the feel of the platform. It literally says “I’m just playing around”.
Amazon OR Shopify – The Specifics
Below are some of the specifics that are important deciding factors when starting an online ecommerce business.
| AMAZON | SHOPIFY | |
| Monthly Subscription Fees | $0.99 per sale (Individual Plan) $39.99 (Professional Plan) | $29 -$299 |
| Type of Platform | 3rd Party Marketplace | Web Hosting + Builder |
| Store Design | Limited Control & Generic Store Design | Fully customized with free & paid website & store themes |
| Marketing Options | External + Amazon Ads and Competitive Pricing especially when Amazon is selling as a competitor | External Social Media Ads, Discount codes, Google Ads credit |
| Sales Transaction | All sellers must pay a referral fee when a sale happens based on product category | For using Shopify payments there is no charge External payments rates range from 0.5% to 2% |
For both platforms, there are many pricing alternatives. You can construct and configure an online store, add products to product listings, control product inventories, and process orders with Basic Shopify for $29 per month. Access to their comprehensive reporting capabilities, calculated carrier delivery, and foreign pricing adjustments are available with more expensive solutions.
An Individual plan and a Professional plan are Amazon’s two pricing tiers. For each item sold under the Individual plan, retailers are required to pay $0.99. The Professional plan, meanwhile, costs $39.99 per month. For consumers that don’t use Shopify Payments, Shopify levies a transaction cost of up to 2 percent, whereas Amazon imposes a referral fee based on the product category for each item sold.
Furthermore, Amazon sellers have limited influence over how their storefront appears. To attract buyers, they rely on Amazon paid marketing, yet the market is fiercely competitive. Users of Shopify can customize and design their online store, but they must start from scratch with their brand.
Amazon OR Shopify – Bottom-line
Both platforms make it possible for e-commerce business owners to launch their websites, but they differ greatly from one another. Shopify is an excellent choice for businesses selling specialized products or developing their brands because it allows you to create your own online store and website. Amazon, on the other hand, has a lower entry hurdle. You can start selling anything, including brand-new and used goods, after creating an account. In the end, the ideal decision will rely on your long-term objective of launching an online business.
