Last Updated on by LAUNCHTIP
(Originally Published December 14, 2020.)
Shopify vs Amazon – Ecommerce Comparison
As a business owner, it can be confusing to choose the right services and channels to operate your business.
When the competition is between a Commerce behemoth called Amazon and the #1 Merchant eCommerce platform – Shopify, the confusion can escalate even more.
But don’t worry!
In this short guide, we will walk you through the essentials and benefits of both platforms. And help you make the right choice for your business.
So, before we dive into the comparison, let’s quickly look at the core of the two platforms and how they are revolutionizing the eCommerce market for businesses like yours.
Shopify in a nutshell
The reason behind Shopify’s popularity is the ease that comes with it.
It is a supreme beginners friend platform as it allows you to set up and manage your unique online store with unlimited products without any requirement for code or development expertise.
You can manage your product catalog, orders, payment system, and shipping details on the platform itself.
It is also cloud-based which means you don’t have to invest a big chunk of your money purchasing and updating different software and servers.
Amazon in a nutshell
Amazon is an eCommerce Marketplace that allows third-party sellers like you all around the world to sell on its platform as an individual or a company.
With multiple shipping options, support systems, and over 2.5 billion global visitors every month, amazon makes the discovery of your products really easy.
You can also opt for Amazon FBA (Fulfillment by Amazon), an in-house service through which you can use Amazon’s warehousing and logistics network to avoid inventory storage costs and extra administrative burdens.
Now, let’s look at the list of benefits and flexibilities which both of these platforms have to offer to their onboarded sellers.
Benefits of using Shopify
Nothing Technical – The user-friendly interface and the ease of setting a fully functional online store is the major benefit of Shopify.
You can be a complete beginner in the space of eCommerce but can still set up and manage your unique online store.
Shopify also supports multiple languages. So you can put up your storefront in any language you want.
Shipping Fulfilment – Shopify provides you flexible fulfillment flexibility. You can opt to ship your order do it on your own or hire a third party to do the same.
Customer Support – Another major benefit of Shopify is the 24/7 customer support team that can be reached at any point.
Being it anything while setting up the store or while selling the products, the customer support, and the platforms service task lists get it sorted for you.
Functionality – Shopify comes with pre-made beautiful and functional themes that you can use to design your store.
It also allows zoom in, reviews, and rating option to your customers so that they can have a better look at the product.
You also have the option of aggregating much software from the Shopify app store in your online store to further streamline the processes.
Shopify also takes care of the SEO and mobile responsiveness of your online store.
Pricing and Payments – Shopify comes with three plans to choose from. All these plans come with varying pricing and hence features and capabilities.
Basic Shopify – With as low as $29 a month, even the basic plan covers a wide array of features and has a lot to offer like unlimited products catalog, 24/7 customer support, various automation, integrated marketing, etc.
Transaction fees in this are 2% on all sales that don’t use Shopify payment.
Shopify – This plan targets growing businesses. With a monthly subscription of $79, this plan is power-packed with features that any business would require in its growth phase.
Transaction fees in this are 1% on all sales that don’t use Shopify payment.
Advanced Shopify – This is the premium that allows the most flexibility to scale your business. With over 15 staff account and all the benefits of prior plans, this one is jammed packed with features.
Plus – This is a dedicated plan that gives you full granular control along with some extras suitable for large scale ecommerce operations.
Transaction fees are 2% on all sales that don’t use use Shopify payment.
Benefits of using Amazon
More Visibility – Since amazon already receives a high amount of traffic each month, it increases the discoverability of products.
Shipping Fulfilment – With Amazon FBA, you can opt to use Amazon’s in house warehousing and logistics network that will take away your responsibility to store inventory and supply them globally.
Streamlining Complicated processes – As a new seller you get access to a large marketplace without having to worry about inventory management.
You can also fall back on Amazon’s already established reputation to build trust and authority in the market for your brand.
Pricing and Payments – Amazon basically has two different plans for the kind of seller you are i.e, individual or company. Also, it charges you separately for the order fulfillment service on the basis of units and warehousing fee per cubic foot of product.
This plan costs you 99 cents per sale with the ability to add new products to your catalog and fulfillment option.
This plan costs you $39.99 per month with additional features like bulk listings, custom shipping rates, and eligibility for top product placements.
While there is also an option to integrate your Amazon account with Shopify and use both of the services. You can choose between the two on the basis of how much control you want to have over your store.
Shopify gives you the advantage of having full control over your products, profits, and the growth of your business.
While Amazon is a great place for small businesses to start selling internationally without having to worry about warehousing and shipping without having to invest a large amount of money. It also takes a substantial cut on the profits on each unit sold.
So, if you are a small seller who wants to enter them without having to deal with heavy capital, costs in inventory management and marketing you can start with Amazon.
And if you are a business owner who would like to practice utmost control over branding, ownership, design, and profits and don’t mind investing some money in that then Shopify has to be your best option.
The ultimate harmony of operating both should be a very obtainable and desirable goal for most businesses,