Shopify vs Amazon – The battle between two eCommerce giants at their finest. You may wonder which might be the best selling channel for your business in 2024, and here might be the answer.
Whether you choose Shopify or Amazon, it all depends on your business model, scale, and demands. Take these three factors into major consideration. More about the Shopify Amazon comparison, there are some highlights we can give you:
- Shopify will be excellent if you are looking to control the entire customer experience for any visitor to your site. Yet, how you draw them to your online store is a whole different concept.
- Amazon may get you a greater chance to convert visitors into real sales due to its reputation and massive customer base. But always keep in mind that you will be competing against millions of other sellers on this online marketplace.
Besides the significant difference, there is so much more when it comes to Shopify vs Amazon. In the following section, let LitCommerce walk you through a complete analysis of these sales channels. The key aspects covered in our article include:
- Pricing and fees
- Ease of use
- Ecommerce features
- Payment methods
- Dropshipping
- Marketing features
- Design flexibility
- Help and support
Is Shopify better than Amazon? Or vice versa? Let’s dive in to make the best decision when choosing Shopify or Amazon!
Difference between Shopify and Amazon: 8 Key Aspects
Here’s the main point to keep in mind when comparing Amazon vs Shopify: Shopify is made for creating your own online store, while Amazon is more like an online marketplace. Because of this difference between Amazon and Shopify, we can say that:
- Shopify is a better choice if you want your own fully-branded online store with total control.
- On the other hand, Amazon is good if you want to grow your brand and reach a big group of existing customers.
1. Pricing
The main aim of selling on Shopify vs Amazon is to make more money than you put in. It’s not logical to choose a platform that’s expensive if you’re only selling a few handmade items monthly.
Shopify vs Amazon have distinct pricing structures, but with a smart plan, you can still make a profit. Keep reading to learn about their pricing and fees.
Shopify
Shopify has three price plans:
- The Basic plan: $25 per month (Best for solo entrepreneurs)
- The Shopify plan: $65 per month (Best for small businesses)
- The Advanced plan: $399 per month (Best for businesses of all sizes)
- The Plus plan: $2300 per month (Best for complex business models)
Compared to Shopify competitors, this platform is sometimes seen as pricey, but in our opinion, you get good sales features for what you pay. If you’re concerned about the cost, Shopify offers a 3-day free trial followed by 3 months at $1 per month. This gives you a chance to test the platform and maybe start selling before committing to the main plans. As you move up through the pricing plans, you unlock more features.
Unlike some platforms, Shopify doesn’t charge referral fees, but it does have other types of fees for each payment. These are transaction fees ranging from 0.6% to 2%, depending on the payment method and plan you’re on. The Basic plan charges the highest rate at 2% and the lowest from the Plus plan.
For credit card payments, there are fees for all payment gateways, including Shopify Payments. The regular credit card rate on Shopify is 2.9% + 30¢. As you upgrade through Shopify’s price plans, your online credit card rates decrease to 2.4% + 30¢.
Amazon
Amazon has two selling plans:
- The Professional Selling plan: $39.99/ month, and you also have to pay additional selling fees (which depend on the type of products you’re selling).
- The Individual Selling plan: doesn’t charge a monthly fee; instead, you pay $0.99 for each item you sell. The Individual plan is suitable for anyone planning to sell less than 40 items per month. Because of this, it has fewer features available. For example, you can’t customize shipping rates on the Individual plan.
The marketplace charges selling fees in addition to its monthly subscription. These fees differ based on the product category and include referral fees and shipping fees. The referral fees have a minimum of $0.30 and generally range between 8% to 15% of the total sale. However, certain categories, like Device Accessories, have a high referral fee of 45%, meaning you could lose almost half of your sales to Amazon.
If you opt for FBA (Fulfillment by Amazon), there are various fees, ranging from $2.41 to $137.32 for fulfillment per unit. Additionally, there are monthly inventory storage fees, ranging from $0.69 to $2.40 per cubic foot. These costs depend on factors such as the size, volume, type of product, and even the time of year. You can find more details about these prices on Amazon’s website.
To understand more about how much it costs to sell on Amazon, you can check out Amazon seller fees.
Which is better, Amazon or Shopify in terms of pricing? Shopify wins
Shopify has a simpler pricing structure with fixed monthly fees, whereas Amazon’s fees vary based on the products sold and additional expenses like fulfillment fees.
2. Ease of use
Whatever you sell, the goal is to make your online selling experience as seamless as possible. That’s why the ease of use should also be taken into account when it comes to choosing between Shopify vs Amazon.
Shopify
Setting up your online shop might feel like a big task, but based on our experience with Shopify, it does a great job of simplifying the process. With an easy setup, users can effortlessly create and personalize their online stores by using available templates and themes.
They provide a user-friendly dashboard where you can use the drag-and-drop editor to customize your store easily. You can also handle order fulfillment, inventory, products, and other tasks hassle-free.
Shopify also provides access to a Shopify Experts Marketplace where you can hire a professional to help with setup, SEO, and other tasks.
Plus, the platform anticipated the impatience in handling tasks and introduced Shopify Magic—an AI text generation tool. Shopify Magic can generate product descriptions in various tones of voice based on a short description, saving you significant time when updating your store’s inventory.
One more notable competitor of Shopify is Squarespace, which is better for building your online store? You can check this Shopify and Squarespace comparison to learn more!
Amazon
Comparing the setup of Shopify vs Amazon store, the setup process on Amazon might be a bit more intricate than Shopify. It involves several steps before signing up and demands a significant amount of detailed information.
Additionally, their dashboard appears more complicated, containing a lot of information, making it a bit confusing for beginners. Also, the process of uploading images to product listings can be a bit cumbersome initially, but as you become familiar with the function, it becomes easier over time.
Additionally, there is intense competition on Amazon, so it’s important to make your product listings, prices, and how you deliver them better than others to be noticed.
Which is better, Amazon or Shopify in terms of ease of use? Shopify wins
Shopify is great for being user-friendly and allowing customization, while Amazon gives you the opportunity to reach a large number of customers worldwide, but the competition is tougher there.
3. Ecommerce features
When selling on Amazon vs Shopify, it’s crucial to focus on their built-in eCommerce capabilities. This is especially true for the Shopify vs Amazon comparison.
Shopify
This platform provides numerous robust features that are integrated into the service itself:
- Managing products: Shopify allows you to easily add new products through the back-end interface or by importing CSV files. The process of filling in product information is user-friendly, and you can also assign categories to your products.
- Abandoned Cart Recovery: All pricing plans on Shopify come with the default feature of abandoned cart recovery. This allows you to identify the reasons why customers didn’t complete their purchases and send follow-up emails to them. Additionally, Shopify offers other helpful tools like automatic tax calculation, a logo maker, and a QR code generator.
- Shipping: Shopify now offers its own shipping software called Shopify Shipping, which is available for free to all store owners. With Shopify Shipping, you can calculate real-time shipping rates, purchase and print shipping labels, and track shipments.
- Analytics: Shopify provides detailed insights into your online store’s performance, customer behavior, and sales trends. You can easily track important metrics such as website traffic, conversion rates, and average order value. Furthermore, advanced analytics tools like sales channel reporting and customer lifetime value analysis are also available.
Amazon
When it comes to eCommerce features, Amazon also allows you to manage your products conveniently.
- Managing products: On Amazon, you can add new products individually using their interactive listing tool. If you have a large number of products to add, Amazon provides editable Inventory File Templates that can be used in Excel.
- Different selling platforms: If you specialize in selling specific types of products, Amazon offers additional platforms tailored to those categories. For example, Amazon KDP is for selling books, and Amazon Handmade is for selling vintage and handmade items.
- Analytics: Amazon provides limited analytics for individual sellers on its marketplace. While sellers can access some data on sales performance, inventory levels, and customer feedback, the range of metrics and insights is not as extensive as what Shopify offers.
- Shipping: Amazon offers two methods for shipping products. Sellers can choose self-fulfillment, where they are responsible for storing, packing, and shipping products to customers. Alternatively, sellers can use Amazon’s Fulfillment by Amazon (FBA) service, which allows them to store products in Amazon’s fulfillment centers. FBA leverages Amazon’s efficient order processing and logistics infrastructure, providing fast delivery options such as Amazon Prime, which can attract more customers.
Do you wonder how to use the FBA service? Check this guide on how to start an Amazon FBA business to get the step-by-step instructions.
Which is better, Amazon or Shopify in terms of Ecommerce features? Amazon wins
Both Amazon and Shopify offer powerful eCommerce tools and services to support your business. However, from our perspective, Amazon may provide a simpler management experience for your eCommerce store compared to Shopify. When comparing Shopify vs Amazon FBA, it’s evident that while Shopify has its own fulfillment network, it is not as developed or efficient as Amazon FBA.
Leverage the Power of Shopify and Amazon
Why sell on one channel while you can do both on Amazon and Shopify. Check out LitCommerce to integrate your stores together and start streamlining now!
4. Payment methods
When you consider becoming an Amazon seller vs Shopify one, payment gateways they offer can be a factor to take into account. Amazon primarily accepts Amazon Payment and credit/debit cards as the main payment methods for transactions. On the other hand, Shopify provides greater flexibility by allowing a wide range of payment methods to be used on its platform.
Shopify
Shopify offers a variety of payment methods that merchants can use on their online stores:
- Shopify Payments: This is Shopify’s own payment system that lets merchants accept credit card payments directly on their website. It works with major credit cards like Visa, Mastercard, American Express, and Discover.
- PayPal: Shopify integrates with PayPal, which allows customers to make payments using their PayPal accounts. PayPal is a secure and well-known payment option.
- Stripe: Shopify also works with Stripe, a popular payment gateway. It lets customers pay with credit cards and supports different currencies.
- Apple Pay: Shopify supports Apple Pay, enabling customers to make purchases easily using their Apple devices with just a touch or click.
- Google Pay: Shopify integrates with Google Pay, allowing customers to make payments using their Google account information.
- Klarna: Klarna is a service that integrates with Shopify and offers a “buy now, pay later” option. Customers can make purchases and pay for them in installments over time.
- Amazon Pay: Similar to the Amazon Payment method mentioned earlier, Shopify also supports Amazon Pay as a payment option. Customers can use their Amazon account details to make purchases on Shopify.
Amazon
Next on Shopify vs Amazon comparison, let’s look at Amazon’s payment options, including:
- Credit or Debit Cards: Amazon accepts major credit and debit cards, such as Visa, Mastercard, American Express, and Discover, for payment on its platform.
- Amazon Store Card: This is a credit card issued by Synchrony Bank exclusively for Amazon customers. It provides special financing options and rewards specifically for purchases made on this online marketplace.
- Amazon Gift Cards: Customers can use Amazon gift cards to make purchases on the platform. These gift cards can be purchased online or in physical stores and can be used as a form of payment during checkout.
- Amazon Pay: Amazon Pay is a digital wallet service offered by Amazon. Customers can make payments using their Amazon account information on various websites and apps that accept Amazon Pay.
- Amazon Cash: Amazon Cash is a service that allows customers to add cash to their Amazon account. They can visit participating retailers and present a barcode to add cash, which can then be used for purchases on Amazon.
Which is better, Amazon or Shopify in terms of Payment methods? Shopify wins
When comparing Shopify vs Amazon, it’s clear to see that Shopify offers a broader range of payment options compared to Amazon.
5. Dropshipping
Indeed, Shopify vs Amazon operate in different ways when it comes to dropshipping. Here’s an overview of how each platform works:
Shopify
When dropshipping with Shopify, you have access to various dropshipping apps available in the Shopify App Store. These apps can help you find suppliers and streamline your dropshipping process. Here are some popular Shopify dropshipping suppliers:
- Spocket: This app includes products from dropshipping suppliers located in countries like the United States, Canada, Europe, Australia, Brazil, and more.
- DSers: DSers allows you to search, import, and edit product data directly from suppliers on AliExpress.
- Modalyst: Modalyst is another app that integrates with AliExpress, providing access to a wide range of products for dropshipping.
- Dropshipman – Ali Dropshipping: This app works specifically with AliExpress and enables you to import products in bulk from the platform.
- Ali Orders AliExpress Dropship: This app offers a 1-click product import feature, making it easier to add AliExpress products to your Shopify store for dropshipping.
Amazon
If you plan to dropship on Amazon, there are specific requirements and guidelines you need to follow:
- Be the sole seller of the products
- Include business information on products
- Remove third-party seller information
- Handle returns
- Adhere to seller agreement and dropshipping policies
Which is better, Amazon or Shopify in terms of dropshipping? Shopify wins
When it comes to Shopify vs Amazon dropshipping, Shopify is considered more favorable than Amazon because Amazon imposes certain eligibility criteria for dropshipping on its platform.
6. Marketing features of Shopify vs Amazon
Marketing is extremely important when it comes to selling online, whether on Amazon or Shopify. It helps you bring more people to your online store, boost your sales, and create a thriving business.
Shopify
In terms of SEO (Search Engine Optimization) plans, Shopify focuses on making your store visible on search engines like Google. With its customizable system and SEO-friendly features, Shopify lets you make product listings, metadata, and URLs that are optimized. This helps boost your store’s ranking in organic searches, bringing in more specific visitors.
But that’s not all – Shopify also provides a bunch of marketing tools. You get built-in email marketing features, ways to share content, promote on social media, use affiliate marketing, and more.
It’s worth noting that Shopify works well with Google and Facebook, making it easy to create ads for these platforms. And if you ever feel like you need more tools, you can add more marketing apps from the Shopify marketplace to make your marketing efforts even stronger.
Amazon
Unlike Shopify, Amazon’s plan for SEO is mainly about beating other sellers in its own search results, not so much about doing well on external search engines. If you sell on Amazon, you need to pay attention to things like how relevant your product is, what ratings and reviews it has, and how well you’re handling the fulfillment process. These factors will help push your product higher in Amazon’s search rankings.
Amazon also has quite a few marketing tools, mostly for advertising:
- Amazon DSP is a platform where you can purchase display, video, and audio ads, whether you want them on or off Amazon.
- Amazon Live enables you to broadcast live videos that are interactive and shoppable throughout Amazon.
- Amazon Ads provides different kinds of ads, both on the site and off the site.
A side note on the conversion rate of Shopify vs Amazon
Here is something you may take into serious consideration – the conversion rate. For so long, the conversion rate directly affects your sales and overall business operation. Also, it has a lot to do with your ongoing marketing efforts. Cutting the long short, we’ve got you some notes about conversion rates on Shopify vs Amazon.
- Shopify: It requires a lot more work to eventually convert a visitor into purchases. This also means you put a lot of effort into promoting your products. Not to mention, selling on Shopify can indicate you’ll be drawing traffic to your store all by yourself. So if you are a new individual seller, this place is probably not the best one, especially for someone who is after converting customers and raising sales volume.
- Amazon: The conversion rate on Amazon is likely to be higher. Keep in mind that Amazon is a long-trusted online marketplace. More than that, Amazon is almost Google for online shoppers. That’s why your chances to convert visitors into purchases may be higher. Yet, there is a string attached to this. You must run your store and always make sure your products appear on the first result page.
Which is better, Amazon or Shopify in terms of Marketing features? It’s an equal match!
Both Shopify vs Amazon offer robust marketing tools, but if you aim to establish a personal brand, Shopify may be a better fit compared to Amazon.
7. Design flexibility
As we’re all aware, making a good first impression is crucial. Impressions matter when customers first see your store. It’s a challenge because there are already thousands of stores out there, and the design of your store is the key to making it stand out.
Now, when it comes to designing tools, which one is better: Shopify vs Amazon?
Shopify
Shopify gives you access to a variety of well-designed templates. Currently, they offer an impressive selection of 12 free and over 150 premium templates for you to choose from. This ensures that you can create an appealing store.
However, it’s worth noting that the premium templates come with a minimum cost of $150 each, and the free ones might look a bit basic. The design features in Shopify are user-friendly, making it easy for people without coding experience to make changes to colors, images, and more.
But if you want to make more advanced changes in the backend, you might need to collaborate with a developer. This is because Shopify’s templates use Liquid templating code, which can be challenging to access if you’re not familiar with programming.
Amazon
When comparing Amazon store vs Shopify, Amazon has more design limitations compared to Shopify. All pages on Amazon have a similar layout, and there are only three templates available for your product detail page. While you can upload your own images, your store page is meant to be recognized as Amazon’s, not distinctly yours.
Although there are some customizable elements on Amazon, it’s not as flexible as Shopify. Additionally, your products will be displayed alongside those of your competitors. This may be convenient for customers, but it can make it challenging for you to direct their attention specifically to your store.
Which is better, Amazon or Shopify in terms of design flexibility? Shopify wins
Shopify provides more freedom in design compared to Amazon. You can use various themes and make adjustments to colors and font sizes to better suit your preferences and branding.
8. Help and support
When it comes to customer support, both Shopify vs Amazon are dedicated to helping their users with any problems or questions they may have.
Shopify
Shopify provides extensive customer support through different channels. You can seek assistance via phone, email, and live chat. The support team is known for being responsive and knowledgeable, offering quick and helpful solutions to any questions or concerns.
Furthermore, Shopify offers a large knowledge base, which includes tutorials, guides, and forums. Users can find answers to common questions or seek advice from other store owners.
Amazon
Likewise, Amazon has a strong support system in place to cater to the needs of its sellers. The dedicated support team allows users to get in touch with Amazon through phone or email, ensuring timely assistance.
Furthermore, Amazon offers various resources, including detailed documentation, FAQs, and community forums. These platforms help sellers find solutions to common issues and connect with other sellers for advice and guidance.
Which is better, Amazon or Shopify, in terms of help and support? Both win
Both Shopify vs Amazon prioritize customer support, ensuring users can effectively address any issues or questions they may encounter.
Is it Better to Sell on Amazon or Shopify?
Now that we’ve looked closely at Amazon vs Shopify, you likely have a preference. To wrap it up, we’ll highlight a few pros and cons of each platform.
If you’re in a hurry, check out our Shopify vs Amazon infographic for a quick overview of their advantages and disadvantages. It’ll help you better understand the differences between the two.
Shopify vs Amazon: Pros & Cons
Shopify | Amazon | |
Pros | User-friendly platform to build your own website | An incredible traffic source for your store |
A diverse range of eCommerce tools | Easy order fulfillment thanks to the Amazon FBA | |
Greater support and tool diversity for your marketing efforts | Exclusive benefits with Amazon Prime's Buy option | |
Cons | High costs without guaranteed sales | High referral fees |
Premium plan needed to scale up | Lots of competition from other millions of sellers | |
A lot of marketing efforts required to actually make a sale | Lack of branding |
Final verdict
With their respective advantages and drawbacks, Shopify vs Amazon are both great for different types of online sellers.
Amazon is well-suited for individual sellers, small to medium-sized businesses, and even large brands aiming to reach a broader customer base.
On the other hand, Shopify is ideal for a range of businesses on an enterprise level who want to spread their branding awareness from the beginning.
Amazon and Shopify integration – Why not?
At this point, some of you may have made your final decision, while others might still be unsure. For those still wavering, here’s some good news: you can integrate Amazon into your Shopify store. This means you can build your own eCommerce website while simultaneously promoting your products on the world’s largest marketplace.
Once you’ve successfully integrated Amazon into Shopify, you can do things like synchronize inventory, orders and product details, link products, and much more.
Integrate Shopify with Amazon – Why not?
You can easily integrate Shopify with Amazon and leverage the power of both channels in 4 steps with LitCommerce: Connect – List – Sync – Manage
Amazon vs Shopify: FAQs
As mentioned earlier, there are fundamental philosophical differences between Shopify vs Amazon. Shopify is a specialized eCommerce platform, while Amazon operates as an online marketplace. While Shopify has lower annual costs and fewer fees, the built-in customer base provided by Amazon makes the decision ultimately dependent on your business model. If you are ready to invest effort in marketing, Shopify is likely the better choice. Shopify vs Amazon do compete to some extent, but they cater to different segments of the eCommerce market. Amazon is a vast online marketplace where sellers can list their products and access a wide customer base. On the other hand, Shopify is an eCommerce platform enabling businesses to establish their individual online stores. While there is competition, many businesses leverage both Amazon and Shopify in complementary ways. For instance, some use Amazon to reach a larger audience and utilize Shopify to independently build and establish their brand. The choice between Shopify vs Amazon may depend on your business goals. If building and promoting your own brand is a priority, Shopify is the ideal destination. However, if you are looking for a simpler way to list your products, Amazon would be your optimal choice. Certainly! Numerous Shopify store owners utilize Shopify apps like LitCommerce to synchronize inventory and sell products from their stores on Amazon. This approach eliminates the need for separate selling plans and allows for centralized inventory management. In terms of integration, Amazon does accept Shopify. You can integrate Amazon with Shopify right from the Shopify dashboard or use a third-party integration tool. Speaking of which, consider LitCommerce – your All-in-one Shopify Amazon integrator. Some sellers may use Shopify instead of Amazon because of the advanced store customization, marketing tools, and other eCommerce tools. It can also refer to Amazon’s competitiveness. However, Amazon would still be a great place for any seller if they target a massive traffic source of 2+ billion per month (according to SimilarWeb)
Shopify vs Amazon Store: Which is Your Best Choice?
In summary, both Shopify and Amazon are dominant players in their respective sectors. Ultimately, personal preference plays a significant role in the decision-making process. However, there’s no strict need to choose between Shopify and Amazon exclusively. You can enjoy the benefits of both platforms by utilizing Shopify Amazon integration.
We hope that this comparison between Shopify vs Amazon has provided the information you were looking for and has assisted in your decision-making process. Finally, don’t forget to explore our blog for additional eCommerce tips and news. If you have any questions, feel free to reach out to us!