Shopify vs. Amazon: Which One Should You Choose?

Two major platforms dominate the ecommerce space, both letting merchants sell products and offer tools and resources for a monthly fee. But which is better to sell on: Amazon or Shopify? This article compares these two options to help you choose the best platform for your online store. So, which will it be?

Keep reading to discover what our research reveals—you might be surprised by the results!

Platforms overview: Shopify or Amazon

To define the difference between Shopify and Amazon, we need to discover their main features and functionalities. Amazon is an online marketplace where you sell alongside other sellers, while Shopify is a dedicated ecommerce platform where you create and manage your own online store.

Selling on Amazon is like having a booth at a bustling street market. You’re surrounded by many other sellers, and while you benefit from the high foot traffic, customers may not be specifically looking for your brand. On the other hand, selling through Shopify is more like renting your own storefront. Customers who visit your Shopify store are actively looking for your brand, giving you the chance to build a unique brand image. Although it requires more effort to attract and retain customers, you have more control over your brand’s presence.

Amazon vs. Shopify – See the comparison:

Shopify offers over 100 professionally designed themes that you can customize to fit different types of businesses, from sports to clothing. Its easy-to-use web builder makes it simple for beginners to set up their store. Getting an Amazon Seller account is free with the Individual plan. While you can’t build a custom storefront like you can on Shopify, you do have control over your product images and descriptions. However, because your products are shown next to those of other sellers, it can be harder to grab customers’ attention.

These differences between Shopify and Amazon make the first one suited to various kinds of sellers. Amazon is ideal for individual sellers and small to medium-sized businesses seeking high exposure. Shopify is better for small to large enterprises that want to create a distinct online presence and build a loyal customer base.

Shopify vs. Amazon: Pros and cons recap

Now before thoroughly discovering the key differences between Amazon and Shopify, let’s review their pros and cons.

Pros of Shopify

• Store ownership: You fully own your online store, giving you control over sales, customer data, and marketing strategies.

• Extensive customization options: Shopify offers a wide range of tools to personalize your store and build a distinctive brand.

• Built-in marketing tools: Shopify provides all the tools you need to market your business effectively from one platform.

Cons of Shopify

• Learning curve: It’s easy to use, but there’s a lot to learn at the start.

• Traffic responsibility: You need to drive traffic to your store yourself through marketing and SEO efforts.

Pros of Amazon

• Large customer base: Amazon gives you access to a massive audience of millions of potential buyers.

• Easy setup: Setting up an Amazon store is quick and simple.

• FBA services: Amazon’s Fulfillment by Amazon (FBA) handles shipping and storage for you.

Cons of Amazon

• Limited customization: You can’t personalize your store as much, so it’s harder to stand out.

• High competition: With many sellers on Amazon, it’s competitive and challenging to attract customers.

Shopify vs. Amazon: Pricing

Shopify pricing has a simple and predictable subscription-based structure, while Amazon’s pricing is more complex and varies based on factors like sales volume, product category, and fulfillment services. Let’s break down how pricing works for both Shopify and Amazon.

Shopify plans: Which is best for you?

Shopify offers a 3-day free trial, which can be extended to $1/month for the next month. It’s a great chance to explore the platform. After the trial, you can select from four pricing plans based on your business needs (paid monthly):

• Basic plan: $32/month, with a 2.9% credit card processing fee, a 2% fee for third-party payment providers like PayPal or Stripe, 24/7 chat support, and 10 inventory locations.

• Shopify plan: $92/month, with a 2.6% credit card processing fee, a 1% fee for third-party payment providers, 5 additional staff accounts, standard analytics, and custom APIs.

• Advanced plan: $399/month, with a 2.4% credit card processing fee, a 0.6% fee for third-party payment providers, 15 additional staff accounts, enhanced live chat, and custom reports and analytics.

• Shopify Plus: from $2,300/month, with a 0.2% fee for third-party payment providers, designed for large stores handling thousands of orders daily.

All plans include web hosting and an option to connect a custom domain, though the domain must be purchased separately. Note that these plans do not cover order and fulfillment services. While Shopify integrates with various third-party fulfillment providers, costs for storage, picking, packing, and shipping are additional expenses separate from your Shopify plan.

Amazon offers two plans – Individual and Professional. The Individual plan costs $0.99 per item sold, while the Professional one costs $39.99 per month.

Choose Individual if you:

• Sell up to 40 products per month
• Have no need of sales programs or advanced tools
• Are still in the process of selecting the products you’ll sell

Choose Professional if you:

• Sell over 40 products per month
• Want access to the API and additional sales reports
• Want to sell through programs like Handmade or Launchpad

It should be noted that by choosing the Professional plan, you’ll only pay the monthly subscription fee ($39.99), regardless of how many items you sell. You won’t pay $0.99 for each sale. But there are still other fees to consider, like referral fees, which take a cut of every sale – anywhere from 6% to 45%, depending on what you're selling. Plus, if you use Amazon's Fulfillment by Amazon (FBA) service, there are extra charges for storage, picking, packing, shipping, and even handling returns. These costs can add up, especially if your products are large or heavy.

With Shopify, you pay a flat monthly fee, and no per-item fees. But on the flip side, the platform doesn’t include fulfillment in that price, so you’ll need to handle shipping yourself or use a third-party service. Besides, don’t forget – Shopify doesn’t drive traffic to your store like Amazon does. So, while Shopify has lower fees, you'll need to put in the work to generate sales.

To put it short, Amazon's FBA is great because it handles all the shipping and storage for you, but it can get pretty expensive. If you want to keep things simpler and have more control over your costs, Shopify might be a better fit. Its pricing is straightforward, which can be helpful as your business grows.

Customization capabilities

Is Shopify better than Amazon? Let’s explore how these two platforms stack up against each other in terms of customization capabilities.

A strong brand helps you sell products and attract new customers. When choosing an ecommerce platform, check how well you can customize your store to match your brand. Still hesitating concerning the question, ‘Should I sell on Shopify or Amazon’, let’s move forward.

Shopify offers more advanced customization and branding options than Amazon, allowing you to add your brand’s colors, logos, fonts, and images.

Shopify also provides options to create pop-ups, add social media embeds, and use custom CSS to personalize your store. Content is your key way of building brand authority and engaging with your audience. Shopify includes a built-in blogging platform and an AI assistant to help you generate content effectively.

All in all, with Shopify, you get full control over their online store and a wide range of customization features to design a brand exactly how you want.

Compared to Shopify, Amazon offers fewer options for brand customization. While you can register your brand on Amazon if you have a trademark, customization options are limited. You can add branded images and adjust product descriptions, but your product listings will still look the same as others and have limited opportunities for distinct branding.

Building a brand on Amazon can be tough, especially for beginners. Selling on Amazon vs Shopify might be easier because Amazon is well-known, has a huge customer base, and is trusted by many. However, since Amaz