The number of online shoppers keeps climbing every year, which means there are a lot of opportunities for e-commerce entrepreneurs as well. Before launching an online business, you’ll need to choose an e-commerce platform where you’ll set up. There are many feature-rich platforms on the market, but we’ll focus on two popular options in this guide—Shopify and Amazon.
Shopify is a user-friendly platform where users can sell their goods online. Meanwhile, Amazon is an online marketplace with millions of consumers. While both options are reliable–and it’s completely feasible to use both–they each have pros and cons. Let’s look at Shopify vs Amazon, comparing their main features, pricing, pros and cons so that you can decide which best fits your needs.
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Shopify vs. Amazon: At a Glance
Shopify is a subscription-based e-commerce platform that allows businesses to build their brand and online storefront. Users can build websites through easy-to-use and mobile-friendly themes. There are also features related to marketing, store management, analytics and third-party integrations to boost the site’s functionality.
Amazon is an online marketplace with more than 197 million consumers. Unlike Shopify, you must compete alongside other online merchants in the same marketplace. The Amazon FBA [Fulfillment by Amazon] program lets merchants send goods to Amazon fulfillment centers where products are stored, packed and shipped.
Because Shopify requires building a website, it’s ideal for e-commerce entrepreneurs looking to develop their own brand. On the other hand, Amazon is suitable for those who want to take advantage of the thriving Amazon marketplace.
Starting price $39 per month E-commerce capabilities Yes
Multiple payment options Yes
$39 per month
Yes
Yes
Shopify is an e-commerce platform with 1.75 million merchants across 175 countries. Even without coding or design expertise, you can build a clean and gorgeous website with ready-made templates and various styling options. It also has powerful e-commerce features such as abandoned checkout recovery, inventory management, logo maker and multiple payment getaways. Since it’s a website builder and not an online marketplace like Amazon, it’s best for those who are launching a new brand or selling unique products.Shopify
Amazon
Starting price
$39.99
per month
E-commerce capabilities
Yes
Multiple payment options
Yes
$39.99
per month
Yes
Yes
Amazon is the largest marketplace in the U.S., with around 112 million U.S. Amazon Prime subscribers. It’s free to make an individual Amazon seller account, create product listings—and start selling. With the Amazon FBA, merchants can let the e-commerce giant handle inventory management and order fulfillment. Since it’s an online marketplace, it’s best for those who are selling generic products, as opposed to those working on building a new brand.
- Access to Amazon Marketplace
- Fulfillment by Amazon service
- Low barrier to entry
- Ability to sponsor products (paid ads)
- More competition
- Difficult to stand out
- Must learn Amazon SEO
How Shopify vs. Amazon Stack Up
| Shopify | Amazon | |
|---|---|---|
|
Platform-type
|
Website builder and host
|
Third-party marketplace
|
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Pricing
|
$39 to $399 per month
|
99 cents per each item sold on Individual plan; $39.99 per month for Professional plan
|
|
Templates and Design
|
Equipped with an online web builder and a diverse collection of professional and free templates for various industry types
|
No control over design of Amazon store
|
|
Marketing Options
|
Social media integration, gift cards, discount codes, Google Ads credits
|
Amazon paid ads, competitive pricing
|
|
Transaction Fee
|
Zero percent on all plans only if using Shopify Payments. If using an external payment gateway, transaction fees are 2% for Shopify Lite and Basic Shopify; 1% for Shopify and 0.5% for Advanced Shopify.
|
All sellers must pay a referral fee based on the product category
|
|
Mobile-Friendly
|
Yes
|
Yes
|
|
Customer Support
|
Shopify Lite offers 24/7 live chat and email; all other plans offer 24/7 live chat, email and phone support
|
Contact Amazon Seller Support team via Seller Central account
|
There are different pricing options for both platforms. For $29 per month, Basic Shopify lets you build and customize an online store, create product listings, manage product inventory and fulfill orders. More expensive options offer access to their advanced reporting features, calculated carrier shipping and international pricing adjustments.
Amazon has two pricing plans—an Individual plan and a Professional plan. The Individual plan requires merchants to pay $0.99 for every item sold. Meanwhile, the Professional plan costs $39.99 per month. While Shopify charges a transaction fee of up to 2% for users who don’t use Shopify Payments, Amazon collects a referral fee for each item sold based on the product category.
In addition, Amazon sellers have no control over their storefront design. To attract customers, they rely on Amazon paid ads, but there’s a lot of competition within the platform. While Shopify users can design and customize their online store, they must build their brand from the ground up.
Creating a Storefront
Shopify has more than 100 professionally designed themes with customization options. There are themes from various industries, from sports and recreation to clothing and accessories. The web builder is also easy to use and navigate, so beginners can launch their store in an instant.
Getting an individual Amazon Seller account is free with an Individual plan. Unlike Shopify, you can’t build a storefront, but you have direct control over product images and descriptions. Because Amazon showcases products alongside your competitors’, it’s more challenging to attract customers’ attention.
Marketing Options
The Amazon Marketplace offers access to more than 197 million people a month, which is more than Shopify’s 56.5 million unique visitors per month. Despite the high traffic on Amazon, it’s a lot more competitive than Shopify. It’s harder to stand out because the design and layout for every merchant are the same. However, Amazon ads let you advertise product offers and increase your visibility on product pages and search results.
Unlike Amazon, which has one platform, Shopify lets users build their online store. However, you have to attract customers to your site and market your business yourself.
On the bright side, Shopify has a lot of marketing and SEO capabilities. You can integrate it into social media platforms and start selling on Facebook. There are also options to boost sales with discounts and gift cards. Even if marketing is complicated, Shopify won’t display your products alongside your competitors, so it’s not as competitive.
Order Fulfillment
Entrepreneurs who don’t want to deal with managing inventory and product fulfillment can use Amazon FBA. However, individual selling accounts have a storage limit of 10 cubic feet, while professional selling accounts do not have storage limits. There are also fees based on the product weight, size, type and channels where the product is sold.
Shopify also has a fulfillment network, but it’s not as advanced or streamlined as Amazon FBA. There’s also an option to use Amazon FBA, even if you’re not an Amazon Seller.
Bottom Line
Both platforms allow e-commerce entrepreneurs to get their websites up and running—but there are significant differences between the two platforms. Shopify lets you build your online store and website, making it a good fit for entrepreneurs selling exclusive products or building their brands. On the other hand, Amazon has a lower barrier to entry. Just create an account and you can start selling anything from brand-new to used products. The best choice will ultimately depend on your long-term goal of starting an online business.
