Amazon and Shopify combine to take up more than half of the eCommerce market. Selling on either platform could earn you a great deal of money. But which platform is better for your eCommerce business?
To find out which eCommerce website is better for your needs, check out our comparison below.
Shopify vs Amazon FBA - What's the Difference?
The primary difference between Amazon and Shopify is how you can use the two platforms. On Amazon, you create an account and compete with other sellers on a shared marketplace. Meanwhile, Shopify customers build a unique online storefront for their sales.
This means that the two platforms have unique advantages and disadvantages. To learn more about the hurdles you need to overcome, check out our pros and cons comparison below.
Amazon Pros & Cons
- Easy to become an Amazon seller
- Unlimited free traffic
- Amazon's logistics chain is second to none with FBA
- Essentially does the marketing for you
- With FBA they handle everything for you, including customer service
- FBA fees are high
- Amazon owns the traffic
Metrics are everything and suspensions are commonplace
Amazon has a considerable emphasis on sales metrics and following regulations
To start, sales metrics mean you need to have consistent sales records. This means emphasizing the customer experience above all else. Because of this colossal emphasis, inventory stockouts or other mistakes can ruin your chances of competing, forcing you to find alternative solutions.
Alternatively, Amazon has tight regulations regarding working off the platform and encouraging sales. For example, you might lose your Amazon storefront completely if you offer a discount for people who review your product. Amazon is known to suspend user accounts for many reasons it doesn't need to justify.
Shopify Pros & Cons
- Own the traffic/ drive external traffic easier
In addition, once you start getting an audience, you can control where that traffic goes. You don't have to rely on the whims of a massive corporation to drive that forward. In addition, you have wider SEO opportunities for your product pages.
- Adjust your prices according to perceived value
- Can sell products that Amazon won't allow
- Can design your own website and fit your style
- Use Amazon or Shopify warehouses as fulfillment points
- Requires expert marketing skills to do big numbers
Amazon, by comparison, offers advanced tools that beginners can use. This risk of loss is much lower on Amazon.
- Have to be creative when building out a long-term brand strategy
- Way more expensive to advertise
Much of this expense comes from needing to find the right kind of traffic. Amazon advertising is much cheaper because its cost-per-click payments are based on other competitors. What you pay Amazon per click only goes above what the next competitor pays.
Other advertising platforms, like Google or Facebook, are far less generous. The person you're advertising to also might not even what to pay. There is far more experimentation when getting website traffic away from Amazon.
Which platform is right for your business?
Amazon is better for new business owners who want to learn about eCommerce. You are also more likely to make a short-term profit, as your upfront investment is lower.
Alternatively, Shopify is better for individuals who want to establish a long-standing eCommerce business. Those who have dreams of being the next big brand in clothing are a good example. From a long-term perspective, you can make more money on Amazon.
If you are a new seller, you can start with Amazon and move to Shopify as you get more eCommerce experience. Trying out one of the two platforms will be educational.