Shopify vs. Amazon – that one is best for your ecommerce store?

Shopify vs. Amazon – that one is best for your ecommerce store?

If you want to purchase something online, where should you go?

Because of the wide range of products available, Amazon seems to be a top choice. Would sell on Amazon make sense if you are looking to start an ecommerce company? Not necessarily. Shopify is also a well-known ecommerce platform.

This is an excillent choice for anyone who wants to start an ecommerce company, even if it’s their first venture. Shopify and Amazon don’t have to be mutually exclusive.

So, even if you decide to use one, it doesn’t necessarily mean that you can’t also use the other. You can even link your Shopify online store to Amazon so that you can sell your products on Amazon!

Shopify vs. Amazon – The opinion of ToolTester24

The first thing to note is, the platforms are vastly different. Shopify is the clear winner in all categories due to its ease of use, customization potential, payment options, and simpler pricing. Amazon, on the other hand, is more difficult to set up, and sellers will need to be able to troubleshoot problems on their own rather than relying on support.

But, I am getting ahead of myself.

You may be unsure whether you should choose Shopify or Amazon to host your ecommerce website. I have rated both platforms using not one but 10 criteria.

OUR View abut Shopify…

You should now have a good understanding of the pros and cons of each, as well as whether Shopify and Amazon are right for you.

Let’s get started!

Shopify’s pros and cons: Why is Shopify worth it?

Shopify Easy to Use

The platform is easy to develop and use. Hosting is also handled for you to focus on running your online business and less on technical backend tasks.

Design and Flexibility

You can choose from a variety of themes online to make your online business look exactly how you want.

Shopify vs. Amazon

Simple

Ownership in the sales channel

Your online business is yours to manage, and you can use multiple sales channels to increase orders.

Shopify’s pricing

Shopify’s pricing is easy to understand. Shopify charges a flat monthly fee and a transaction fee of 0.5% per sale. After settling shipping fees, the rest of your purchase is yours.

Easy Payment

Shop Pay customers will not need to enter their details on any Shopify store. This is a serious challenge to the Amazon-like convenience.

Shopify ecommerce: What are the cons?

Shopify has multilingual capabilities.

Shopify does not offer multilingual native options. You will need to download a separate translation application.

Fulfillment

Shopify will not handle the order fulfillment. FBA (Amazon) still exists and is more widely accessible!

Marketing

Because you won’t rely on an existing customer base for orders, you will be responsible for market and driving traffic to your online site.

Amazon Online Stores: What are the pros, and why should you use it?

Popularity on Amazon

Amazon is the dominant ecommerce site in many countries. This makes it the best place to start ecommerce.

Marketing

Amazon has a large and loyal customer base that can help you make significant sales without requiring much marketing effort.

International presence

Amazon’s global recognition makes reaching and selling to international customers easy.

Fulfillment

Fulfilling by Amazon allows you to outsource fulfillment to Amazon and not manage it.

Amazon Online Stores: What are the cons?

Customization for Amazon

You can’t customize your product listings to make them stand out. This is especially true when there will be a lot of competition from other sellers.

Amazon’s pricing

Amazon charges different fees for different products and services. Shopify, however, offers a simpler pricing structure.

You can find more information about Amazon’s fees. As you will see, it is considerably higher than Shopify’s payment fees.

Support

Support via live chat is generally not satisfactory, if at all.

Replication

Amazon often copies successful products to add to its Amazon Basics product lines. Your products are more likely to get noticed and copied if they’re listed with Amazon, as they have complete insight into your sales figures.

Round 1: Popularity of Shopify Ecommerce vs Amazon

According to Shopify’s 2020 annual report, the platform hosted around 1.8 million merchants from approximately 175 countries.

Shopify had an average of 386 million monthly unique visitors and nearly 5.9 billion monthly browsing sessions. Shopify processed, on average, 121.1 million orders each month.

On the other hand, Amazon reports that it has over a 1.9million small and medium-sized enterprises (not including large corporations) on its platform. This contributed to close to 60% of its retail sales in 2020. The third-party seller’s profits are estimated at $25 billion.

Shopify vs Amazon: Amazon Popularity

Amazon is clearly the leader in popularity, with more people using its platform than any other large enterprise user.

If you still need convincing, we can also look at Shopify’s and Amazon’s search popularity on Google over five years…

As you see, searches on Amazon are more popular than on Shopify.

If I had to guess, “amazon” searchers would be mostly people looking for products on Amazon. “Shopify” searchers would be new/existing business owners interested in starting an ecommerce shop using Shopify.

These two audiences could explain the large difference in search interest. This also suggests that Amazon is the best way to target an existing customer base if you want to reach a wider audience.

Winner: Amazon, hands down.

Round 2: Shopify ecommerce ease of use vs Amazon

I have tested many ecommerce platforms and can confidently state that Shopify is the most user-friendly.

Shopify handles everything for you, so you don’t have to worry about hosting an online store like with WooCommerce.

Once you have created your Shopify account, the setup process will be explained. You can have your own online shop with just a few mouse clicks!

Shopify ecommerce vs Amazon: Setting up an Amazon Store

However, setting up Amazon’s website is more complicated and requires more work.

You will need to be able to explain the workings of product categories (there are restrictions on what you can do in each category).

Also, you’ll need to decide whether you want Amazon to fulfill your orders for you via the FBA program. Each scheme has its own rules.

Amazon can ban you if you don’t comply with its rules. There are many horror stories on the internet about people being banned from Amazon.

Winner: Shopify. It makes it so easy to set up an ecommerce site.

Amazon has a steeper learning curve than other companies and requires more compliance, which can be frustrating. Wix is another option you might consider if you’re looking for something simpler than Shopify.

Round 3: Shopify ecommerce and Amazon: Design options and flexibility

Shopify’s online store theme offers more than 100 ecommerce store themes in a variety of layouts and category styles. Please select your favourite and then add it to Shopify to get started.

Some themes may not be free. but The paid versions can cost between $160 and $180.

You can also purchase a Shopify theme through third-party marketplaces like Themeforest, which often comes at a lower price, or have it custom-designed by a Shopify specialist.

Shopify vs Amazon Site Customization

However, if you have ever ordered from Amazon, you might ask: “Where is the customization?” It’s not there.

You’d be correct because it is not very customizable.

Amazon product listings look almost identical to this:

You can set up an Amazon “Store,” which will allow you to create a custom storefront page for your Amazon online business.

Online stores are not available in every country.

Additionally, you would need to be enrolled in the Amazon Brand Registry. (See Round 2 for more information about Amazon’s many schemes and rules).

Winner: Shopify with its greater customization options and design flexibility.

Round 4: Shopify vs Amazon Product Presentation and Features

Shopify’s greater flexibility in design means more product presentation options. Shopify won the design department and is now the winner of the next comparison for product presentation and features.

You have many options for how you present your product on Shopify.

You can also modify the product pages’ features, such as image zoom, gallery or image zoom. To get started, simply choose the Shopify theme that best suits your business.

Amazon doesn’t give you much control over how your products are presented.

They will be displayed the same as other products on Amazon’s platform.

While this can save you time deciding how to present your products, it will not make your products stand out from the rest.

Winner: Shopify You have more control over how you present your products online.

Round 5: Payment options for Shopify ecommerce vs Amazon

Shopify’s Shopify Payments feature allows you to easily collect payments using various methods, including credit card, Apple Pay and Google Pay. Shopify Payments will allow you to accept payment via Shop Pay.

Customers can place orders faster with you without entering their billing information – even if it’s new to your store. They can also register for Shop Pay in any Shopify store that supports it.

Shopify Payments is not available in all countries.

You can still use third-party payment gateways for such options if you’re not eligible.

Be prepared to pay higher transaction fees, ranging from 0.5% to 2.0% for each sale, depending on your Shopify pricing plan.

Amazon Pay vs. Shopify Options

Amazon also offers Amazon Pay, allowing customers to pay with their Amazon account credit or debit cards. Amazon Pay is only available to businesses in the United States.

You can still make payments with Amazon Pay even if you aren’t eligible for Amazon Pay.

Amazon, unlike Shopify, will pay the credit card transaction fees. However, Amazon can still take a substantial cut of every sale, as seen in Round 10.

Winner: Shopify is slightly ahead for accepting payment via Apple Pay or Google Pay. These payment methods are more convenient than making payments using the US checking bank account (which Amazon offers).

Round 6: Shopify vs Amazon Sales Channels

Amazon is your piggybacking platform for listing and selling products. You’re almost locked in because all potential customers will be directed to your Amazon online store to make sales.

This means that you don’t have any control over the channel. To remain on Amazon, however, you will need to follow Amazon’s rules for marketing, sales fulfillment, and so forth.

You could lose your online business or source of income if you don’t comply.

Shopify site vs Amazon store

Shopify allows you to own your online store. Your online store is yours to run as you wish. You can also market it however you like.

You can connect your Shopify store with other marketplaces and platforms such as eBay, Facebook, and Instagram to increase sales channels.

You can even link your Shopify store with Amazon!

This option will allow you to store your products in Shopify and create Amazon product listings so that you can sell them on Amazon.

This is a win-win situation. Instead of choosing between Amazon or Shopify, why not both?

Winner: Shopify. This allows you to control your sales channels, including Amazon.

Round 7 – Shipping Cost Settings for Shopify ecommerce and Amazon

If you plan to sell on Amazon, Amazon’s FBA service may be helpful.

Amazon can pack and ship your products on your behalf by using FBA. Amazon will take care of your fulfillment, making it a huge relief.

Before you sign up for FBA, make sure to understand the process, including the fees fully.

You’ll need to ship your products directly to Amazon’s fulfillment centres so Amazon can deliver them to customers once you receive orders.

Amazon fees vs Shopify

Amazon charges fees for storage, fulfillment and returns.

Amazon charges fees to help you return or dispose of your items.

Shopify also has a fulfillment network that will help you fulfill orders. The pricing is not transparent. You’ll need to contact them to get a customized quote from Shopify.

You can also connect your Shopify store with the Oberlo dropshipping platform.

Amazon won the winner, as its FBA service is very well-established. Shopify should provide more information about its prices to help you with fulfillment.

Round 8 – Multilingual capabilities of Shopify eCommerce vs Amazon

Online marketing can help you reach a global audience. Shopify and Amazon are just two examples.

You can sell to any country that Shopify allows you to set up, as long as the payment processor supports the customer’s payment method.

Amazon is the same. Customers around the globe can access Amazon US’s platform to purchase your products if your products are listed on Amazon.

Nevertheless, there are differences.

There are differences between Amazon and Shopify.

Amazon has several country-specific marketplaces or platforms, such as Amazon UK, Amazon FR and Amazon FR. These are displayed in native languages and currencies.

These platforms differ from Amazon’s US platforms because they have different sign-up requirements. it means you will need to apply for each platform individually, even if your account is already set up on Amazon.

You can make Shopify multilingual and your online store pages available in multiple languages by installing a translation app.

Shopify Payments can be used to sell products in multiple currencies. (See Round 5).

Winner: Amazon. It makes it easier to reach international audiences even if your target market doesn’t speak the same language as you do when setting up Shopify.

Round 9 – Support for Shopify ecommerce and Amazon

Shopify and Amazon offer a comprehensive knowledge base of articles to help you start your business. If you prefer speaking to someone, you able to submit support tickets.

This is why platforms and marketplaces are so different in terms of quality support.

Live support available 24/7

Shopify’s 24/7 support was tested, and the results were outstanding. The support team provided excellent answers to all of our questions, even the more obscure ones.

Amazon’s live support is not something I would recommend.

This is because Amazon’s live support may be slow or nonexistent and ineffective at solving seller issues.

It seems you can ask other sellers to help you with questions about your Amazon online store. Or, you could try searching the knowledge base for an answer.

Winner: Shopify – thanks to its exceptional support experience.

Round 10 – Fees and costs for Shopify ecommerce vs Amazon

Shopify’s fees can be described as simple. You’ll need to pay a monthly fee between $29 and $299 and transaction fees for each successful sale.

These transaction fees vary depending on whether Shopify Payments is enabled (see Round 5 discussion) and can be between 2.4% + $0.30 and 4.9% + $0.30 for each sale.

Amazon’s fees are more complex.

How do you start selling on Amazon?

You will need to choose between these plans before you can start selling on Amazon.

  1. The Individual Plan for $0.99 per unit.
  2. The Professional plan is $39.99 per month. This includes any sales that you make during the month.

Amazon will pay the transaction fee on every successful sale, but covering it will take a large cut.

The referral fee depends upon the product category and can start at 8% but can reach up to 45% depending on shipping costs.

These fees are not the only ones to be aware of, especially if FBA is being used.

Shopify does not charge fulfillment fees as you must fulfill your orders yourself. When comparing the cost of each platform, don’t forget about these costs.

The winner: Shopify for a simpler pricing structure.

Amazon’s huge popularity

Amazon’s popularity is so high that sellers might be able to get customers with less marketing effort than Shopify sellers. Shopify sellers would have to spend more marketing to drive traffic to their website.

Overall, I think Amazon is a great platform for sellers who have more experience in ecommerce or who are confident about their ability to navigate Amazon’s many fulfillment options and compliance policies.

Amazon is very good way to increase your earnings.

Shopify features

Shopify, on the other hand, is better if you want to create not only a store but your brand.

You can make an ecommerce website that reflects your brand thanks to the wide variety of customization options.

You will also be fully responsible for your sales channels. This is a key component of building an ecommerce empire.

Are Shopify stores beginner-friendly?

Shopify offers a more user-friendly alternative, making it easier for beginners to start online selling.

Once you have mastered selling online, you can start to explore expanding your sales channels. This includes venturing to Amazon and operating online websites on both Shopify and Amazon.

This process is made easy by Shopify’s Amazon App.

Shopify vs Amazon: our conclusion

This guide on Shopify and Amazon is hoped to be useful. To learn more about Shopify, you can read our comprehensive review. Or sign up for a Shopify trial to get your copy.

You don’t like Amazon but are still unsure about Shopify? Check out our BigCommerce review. It’s the best alternative to Shopify (also Shopify vs BigCommerce ).

We are also present to answer any questions that you might have via the comments.

We will be happy to hear your thoughts

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