The rapid growth of e-commerce has made choosing the right platform a supercritical decision for a business that sells products online. We are talking about Amazon and Shopify. These two platforms have completely revolutionized the way businesses sell online and consumers can shop. Amazon has over 2.5 billion customers visiting every month. On the other side, Shopify powers around 1 million businesses through its platform. Both platforms are super popular and successful, so how can you choose between them? We will help you through this article.
So let’s imagine this: You have just created the perfect product (Something super unique that you know people will love.
What would be your next step?
Getting your product in front of eager buyers. You look at Amazon, a bustling marketplace that feels like a virtual Times Square.
On the other hand, there is Shopify, a cozy, customizable storefront that lets you set up shop as you desire.
So which one is right for you? Let’s Discuss
BIG THING: Amazon vs Shopify
Before going into an in-depth analysis, let’s discuss the fundamental difference between Amazon and Shopify.
Think of Amazon as the world’s biggest digital marketplace, or you can say that it is a giant shopping mall where millions of people are already browsing the things they want.
On the other hand, Shopify is like giving you the keys to your very own boutique, where you control the look, feel, and vibe of the space.
Amazon connects you to a ready-made audience, but you’ll compete with thousands of hungry sellers. Shopify requires some effort to attract visitors, but it offers unparalleled flexibility.
Shipping and Fulfilment
Let’s say you’ve opted for Amazon. You’ve heard about their FBA – Fulfilment by Amazon – Service, which looks over storage, packing, shipping, and customer service. Sounds very cool, Right?
You send your products to an Amazon warehouse, and they handle the rest.
Imagine this: Your Product arrives at a buyer’s doorstep within 2 days; that is all because of Amazon’s Superb network.
Now, let’s discuss the Shopify world. Shopify gives you more control, allowing you to partner with logistics providers or even handle shipping yourself.
Shopify’s fulfillment network is growing, but it hasn’t matched its supreme rival, Amazon’s level of reach. Shopify’s approach might be awesome if you want to add a personal touch or flexibility to your business.
But for sheer convenience? Amazon’s FBA is the Winner!
Conversion Rates
Conversion rates are Amazon’s main strength, and it’s literally insane. With millions of people shopping on this platform daily, Amazon products often convert at rates of 10 to 15%.
Customers blindly trust Amazon, and they are there but not to spend time browsing.
Shopify, in comparison, sees average conversion rates of around 2 to 3%. But why is there a massive difference in conversion rates? Shopify stores require you to build trust, optimize your website, and attract traffic.
It is not impossible, and many businesses are making massive sales on Shopify. But it is a long-run game and requires effort and patience.
Amazon’s built-in audience is a huge advantage if you are looking for immediate sales. If you are looking to build a loyal customer base, Shopify gives you the tools to do it.
Amazon vs. Shopify Fees
Let’s talk about money.
Amazon
- Individual Plan: Amazon’s individual plan is ideal for sellers with fewer than 40 products per month, costing around $0.99 per item sold.
- Professional Plan: This plan will cost you around $39.99 per month plus referral and FBA fees.
Some additional fees include:
- Storage fees
- Shipping fees
Now let’s talk about Shopify:
- Basic Shopify plan: This plan will cost you $29 per month and includes a 2% transaction fee for non-Shopify payments, blog integration, and order cancellation (manual)
- Shopify Plan: It will cost you $79 per month and offers advanced reporting, gift cards, and reduced transaction fees – 1%.
- Advanced Shopify plan: It will cost you $299 per month, providing you with a custom report builder, 3rd party shipping rate calculations, and about 15 staff accounts.
Shopify also has Shopify plus for big businesses, and Shopify offers starters for $5 for entrepreneurs.
Advice: As far as pricing is concerned, Shopify offers more transparency and flexibility for customization. On the other hand, Amazon’s costs can be harder to predict, but they include its vast customer base.
Amazon vs Shopify, which is easier
Amazon
Getting started on Amazon is a piece of cake. The process is too simple and straightforward. You just have to:
- Create an Account
- List Products
- Start Selling
Shopify
Setting up a Shopify store can be time-consuming. While it offers built-in tools, templates and customization options, you have to take care of tasks like:
- Selecting a domain
- Setting up payment gateways
- Designing the storefront
Advice: If you are a person who does not have much time and doesn’t want to be in complicated stuff, then Amazon is your go-to choice. At the same time, Shopify is better if you want a more personalized brand for yourself.
Shopify vs Amazon: Pros and Cons
Shopify Pros
Appealing Online stores
Shopify gives you access to various templates that will help you to create a visually appealing store. Its designs enhance user experience and make your brand stand out.
Simple Setup
Shopify streamlines the process of hosting and building your online store. An intuitive admin interface makes it easy for beginners to use.
Security
Shopify makes sure the security for handling confidential data. As the hosted solution, it takes care of maintenance tasks and ensures overall platform stability.
Customizations
It allows extensive customizations of your store and integration with other apps that will enhance the functionality of the store.
Customer Support
Shopify offers 24/5 customer support with live chat, calls and email, making sure that your business runs smoothly.
Cons
Costs
Shopify’s pricing structure can add up quickly. And about monthly subscription fees, you will face transaction fees and costs for any additional features you want to add. These costs can become significant if not managed.
Technical Words
If you are a beginner, Shopify will be a bit challenging for you because it includes some technical terms and processes. If you are choosing Shopify, then you have to learn some technical things about this platform.
Time-Consuming Setup
However, Shopify will give you plenty of templates to simplify setup. The initial setup still demands time and effort.
Verdict: Shopify is a great option for your online store, but it requires some technical knowledge about this platform and potential costs. If your business and technical capabilities allow you to do this, then Shopify will be the Superman for your store.
Amazon Pros
Existing Customers
Building a business from scratch or shifting to online means creating your marketing funnel anew. Amazon already has millions of customers with stronger conversion rates. Plus, its SEO strategy helps you rank your product and sell faster.
Easy Setup
Getting started on Amazon is super easy. Once your account is sorted according to Amazon guidelines, you are ready to sell. Compared to Shopify, this setup is much simpler.
Buyer Confidence
Many online buyers are hesitant to purchase a product from a platform they don’t know. Due to Amazon’s trusted reputation, the Sellers can sell their products easily and benefit from its established brand authority.
FBA – Fulfilment by Amazon
Amazon FBA provides a significant edge, especially with over 100 million prime members in the USA alone. Products that are listed as (Fulfilled by Amazon) are more appealing to customers, increasing sales chances.
Seller Community
Although Amazon doesn’t offer a dedicated e-commerce learning platform like Shopify, it does give a seller forum where users can share insights and learn.
SEO
Amazon SEO capabilities are a winner. Well-optimized products with relevant keywords rank higher, which will help in better sales. As Amazon has high domain authority, your products may also appear in Google searches.
Cons
Limited access to customer data
Amazon will not give you customer data information as it believes in customer privacy. This will make things difficult in terms of optimizing your sales funnel and analyzing shopping behaviour.
High Competition
Amazon is super competitive, with sellers contending against both established brands and Amazon itself. Bigger brands often have supply chain and cost advantages.
Brand Limitation
Amazon also provides tools like enhanced brand content (EBC). Amazon stores help sellers enhance their branding, but these options are limited and not customizable. On the other hand, Shopify excels in branding with tools like logo creators, custom URLs and more flexible templates.
Amazon Vs Shopify: Which to choose?
Amazon is ideal for beginners to scale quickly with minimal setup.
Shopify is an awesome choice for those who want more control over their brand and are willing to spend some time and effort in building a brand.
You can use Amazon if:
- You are a new seller without an existing customer base.
- You want an easy and quick set-up
- You are ready for strong competition
Choose Shopify if:
- You want full control of your brand
- you are ready to invest time and effort in setting up your store
- You want to avoid supreme competition
- You have an existing customer base, or can wait to build
Final Thoughts
Amazon vs Shopify is a big debate, but to keep it short. It all depends on how much control you desire or how much effort you can invest and the most important thing – Your business needs. By carefully evaluating your business, you can make a better decision about these platforms.
