Shopify vs. Amazon: Which Is Best for Your E-Commerce Store?

Before we start looking at the differences between Shopify and Amazon, let's first look at the similarities. Both are well-known, highly successful e-commerce sales platforms that can be used to promote and sell your products online. We can go as far as to say that they are among the top e-commerce platforms, especially when it comes to first-time store owners.

Even though they have several similarities, they are not the same. It is important for anyone interested in building their own online store to understand the differences so that they can choose the best fit for their online shop. Let’s first look at the advantages and disadvantages of each of the platforms.

Advantages of Shopify

• Easy setup It is quick and easy to set up your Shopify store—you don’t need an IT degree to figure it out.
• Great customer support Shopify’s customer support is top-notch with experts available 24/7.
• Great mobile support More and more people are shopping using their mobile phones. Shopify has taken this into consideration and made the platform super-efficient for mobile shoppers.
• Marketing tools Shopify offers a host of excellent marketing tools to help you market your products like a pro without much prior knowledge.
• Security Security is important to Shopify—this means that you can be confident that your customers’ financial information will always be safe.
• Flexibility You can control the look, feel, and layout of your store. This helps you to truly bring your brand alive.
• Numerous integrations Shopify integrates seamlessly with other platforms and many different Shopify apps, giving you even more flexibility and versatility.

Disadvantages of Shopify

1. Costly Although you have more flexibility with the look, feel and layout of your store, it does come at a cost. Additionally, you may need to upgrade your Shopify plan to have access to all the functions and tools.
2. Limited telephonic support Even though customer support is excellent, telephonic support is not available in all countries.
3. No content management system Shopify doesn’t have a content management system, which can limit the content you want to publish.
4. Limited filtering capabilities The platform’s product search and filter mechanisms do not work as well as some of the other top platforms.

Advantages of Amazon

1. Huge audience According to BigCommerce, a whopping 197 million people visit Amazon every single month. Customers come to you without you having to do much to attract them or promote your products online.
2. Vetted trust According to Morning Consult, Amazon is the second most trusted brand in America. So, not only do you get exposed to millions of customers, they automatically trust your product because of the Amazon brand.
3. Easy to use The functionality is easy to use, conveniently fast, and efficient.
4. Numerous fulfillment centers Amazon has many fulfillment centers that give sellers ease of operations, handling everything for you including storing, picking, packing, and dispatching!

Disadvantages of Amazon

1. 3rd-party fees Amazon charges fees for third-party listing and selling, shipping, storage, and Gross Monthly Value (GMV). These fees add up and make it difficult for you to offer a really good deal.
2. Servicing rules favor customers Customer service rules are strict to keep the Amazon brand as the second most trusted brand in America. The customer is always right—even if they are wrong, which can cost you. Additionally, Amazon limits your capabilities for contacting your customers.
3. Extensive competition There may be millions of buyers but there are also millions of sellers, making it more difficult for your brand to be noticed among your competitors.
4. Reduced profit margins Price wars, because of all the competition, will force you to sell your product at a lower profit margin.

The Major Differences Between Shopify and Amazon

One of the major differences between Shopify and Amazon is that Shopify is an e-commerce platform and Amazon is a marketplace. What does that mean for you? Shopify gives you the tools you need to build your own store the way you want it, while Amazon gives you a space in a market so that you can sell your product alongside many other sellers on the Amazon platform.

With Shopify, you spend more money building your site and brand upfront, but this gives your brand uniqueness, independence, and longevity. The initial outlay with Amazon may be cheaper but you are expected to fit into a box—the same box as all your competitors. It’s true, you have instant customers from day one, but so do your competitors.

Both platforms are easy to use, but when it comes to customer support, Shopify takes the lead.

Can You Integrate Amazon Into Your Shopify Store?

Yes, you can! This is another advantage of Shopify. Let’s say you have successfully set up your Shopify store, all you need to do is add Amazon as a sales channel, link your Amazon listings, and sync your inventory. Once integrated, you will be able to sell your products on both platforms, enjoying all the advantages combined.

Final Verdict: Should You Choose Shopify or Amazon?

This is not such an easy question to answer. Truth be told, it all depends on what you are selling and your vision for the future of your business. A small family-owned business would be better suited to Shopify. It will allow you to make a name for yourself instead of selling under the banner of Amazon. If you want to sell large-scale cost-effective products quickly, then Amazon is your best bet. And remember, there is the option of integration if you are still not sure which platform to choose.

You should also keep in mind that these aren't the only avenues for selling your products online. Take a look at our Wix vs. Shopify and WooCommerce vs. Shopify posts to learn more.