Selecting an appropriate platform for expanding an eCommerce business is vital for a businessman. Amazon and Shopify are the two platforms that offer opportunities for eCommerce businesses to flourish.
After seeing the many benefits of these two, you may get confused between Amazon and Shopify. Some businessmen think Shopify and Amazon are competitors.
Amazon and Shopify have different features and distinctions and are not mutually competitive. Nevertheless, people still compare them to each other.
In this article, we will discuss the core differences between them. We will also focus on which is best and which you must choose.
Amazon vs. Shopify: What is their role?
What is better, Amazon or Shopify? Well, you cannot provide a quick answer after hearing the question because both of them have a good number of distinctions.
The fundamental and most crucial distinction between Amazon and Shopify is that Amazon is an online store and an eCommerce platform.
Amazon’s marketplace allows you to sell consumer products along with other online retailers. Shopify provides the tools to create your online store as an eCommerce businessman, where you can sell both consumer and technological products.
Do you still need clarification? Let me give two different examples of Amazon and Shopify.
Selling products on Amazon is similar to opening a store at a well-known fair. People know the fair and what types of goods and products are sold there. While visiting the fair, buyers will see your products and purchase them. But your stall name or brand is not their primary focus.
On the other hand, opening your shop on Shopify is like renting a flat in a big apartment. You will customize your shop with a great brand value for your products, and people will find your shop by themselves to purchase products.
So, why use Shopify instead of Amazon? Simply put, if you want to create your brand value, go to Shopify. Or if your only focus is selling products, then go to Amazon.
For this reason, Shopify and Amazon focus on different types of online retailers. Amazon serves small and medium-sized enterprises as well as individual sellers. Therefore, Shopify suits many organizations, from small businesses to larger ones.
Pros and cons: Amazon vs. Shopify
There is no doubt that Amazon is a vast marketplace, and people are increasingly exploring it daily. Amazon’s UK sales increased by more than 20% in 2021 after reaching 51% in 2020. Consider its advantages and disadvantages before you get too carried away with Amazon so that you can deal with the whole process quickly.
Pros of Amazon
Here are the pros of Amazon:
- Traffic and reputation
- Simple to use
- FBA Facility
Amazon Pros 1- Traffic and Reputation
Every day, millions of people visit Amazon to make purchases. Amazon has roughly 2.45 billion monthly visits. So, you will automatically receive a large amount of traffic to your store.
Even consumers unfamiliar with your brand will trust you because of Amazon’s corporate image. As a result, as an e-commerce business owner, you can concentrate on Amazon’s reputation to gather high traffic.
Amazon Pros 2- Simple to Use
If you are a highly experienced eCommerce businessman or a newbie, Amazon makes it incredibly simple for both of you. The layout of Amazon is highly user-friendly. Starting up on Amazon is simple, but being a successful Amazon seller is a different story.
Amazon has its own rules and guidelines to benefit vendors and customers. Having all of the relevant documentation for selling the product on Amazon is simple. If you have any issues while selling, their seller support team is always available.
Amazon Pros 3- FBA Facility
FBA (Fulfillment by Amazon) is a process that allows Amazon vendors to register their products to build their Amazon product listings. After preparing their products, they will ship them to an Amazon fulfillment center.
The process is easy, and this is not the only reason. There are a few more reasons: FBA is known for its customer satisfaction, cost-effectiveness, and service.
Cons of Amazon
Here are the cons of Amazon:
- Rules and regulation
- Tough competition
- Fees for selling
Amazon Cons 1 – Rules and Regulations
To open a store on Amazon, sellers need to follow Amazon’s rules and regulations. Because it is all about the duty of Amazon to manage the shop and major customization. A seller must know a few Amazon regulations, such as:
- A user cannot use the “Create a Product” link for an existing product
- Using product descriptions to cross-promote other products is prohibited on Amazon
- Putting wrong information about business
- Asking review
Amazon Cons 2- Tough Competition
On Amazon, buyers will observe your product along with your neighbor’s seller’s product. The scope of the judgment is relatively high here. When different vendors offer the same product for sale, Amazon will choose the best seller for the position.
When a consumer clicks the “Add to Cart” button, the highlighted seller’s items are automatically placed in their shopping cart.
To grab the attention of Amazon, concentrate on acquiring the following elements:
- Excellent feedback
- On-time order fulfillment FBA customer service
- We have reasonable prices
- Accessibility is also essential
Amazon Cons 3- Fees for selling
Better things never come for free. Every good sold through Amazon comes with a substantial commission fee. Before you begin, it is helpful to understand what your monthly payments will be.
Let’s take a look at all of the expenses. When creating a business account, you will choose to select one of two account types.
The two selling plans offered by Amazon are as follows:
- Professional – $39.99 per month with no per-item charges
- Individuals – They do not have to pay a subscription fee, but there is a $0.99 cost for each item sold
Pros and cons of Shopify
Shopify is an excellent option for those with an eCommerce business and those wanting to start one. The growth of B2B is increasing day by day.
According to NetSuite, the worldwide B2B eCommerce industry was valued at $5.7 trillion in 2019 and is predicted to grow at 17.5% annually between 2020 and 2027.
So, before taking advantage of a growing B2B platform like Shopify, look at its pros and cons.
Pros of Shopify
Here are the pros of Shopify:
- Usability simplicity
- A large number of storefront themes
- Shopify app store
Shopify Pros 1- Usability Simplicity
As a business owner, your main goal is to increase sales without being slowed down by technology or other time-consuming administrative tasks. But, most eCommerce platforms require minimal technical knowledge. But in this case, Shopify is very easy to use. So, you do not need to be tech-savvy to open a store at Shopify.
Suppose you need more features for your store. In that case, you might look into Shopify’s competition, such as Magento or WordPress, which are self-hosted platforms.
Shopify Pros 2- A Large Number of Storefront Themes
Attractive storefront themes are one of Shopify’s most significant selling points. They make a website visually appealing and professional, which helps in retaining customers. Shopify gives merchants a variety of themes to choose from for their stores. You can filter themes based on your demand. However, Shopify has over 100 pre-built themes.
Shopify Pros 3- Shopify App Store
One of Shopify’s most robust features is its plugins. Shopify has over 1,200 apps that can help you automate tasks so you can focus on more important things like marketing and growing your business.
They have accounting, product personalization, inventory, reporting, shop personalization, shipping, and other apps to handle tasks smoothly. These tools will make your life easier by allowing you to scale your business with technology.
Shopify also creates apps for eCommerce sites with unique requirements based on the countries in which they operate. “The Cash on Delivery App” is an excellent example, and it was created specifically for Indian retailers.
cons of Shopify
Here are the cons of Shopify:
- Traffic and Marketing
- No Email Hosting
- It Could Be Expensive
Shopify Cons 1- Traffic and Marketing
As you create your shop on Shopify, branding and marketing are your responsibility. It will be easier to survive if you already have a well-known brand value, but it can take time for a new brand.
But you can apply the word-to-mouth strategy to create a new brand value. 83 % of marketers use the word-of-mouth strategy to increase brand awareness. But what does it mean? It is a strategy based on customers’ positive experiences with specific brands and their suggestions with their family and friends.
Shopify Cons 2- No Email Hosting
Web hosting is included in all Shopify plans but does not include the secure email hosting option. This means you can not have an email address with your shop name.
It is still possible to forward emails but to use this feature. You must first set up a third-party email hosting connection.
Shopify Cons 3- It Could Be Expensive
Shopify has many free features, but you will have to pay if you want a fully-featured website. The cheapest plan is $29, and the most expensive plan is $299. The subscription could be higher if you use third-party apps for shop customization.
Differences between Amazon and Shopify
Is Amazon better than Shopify? If you need clarification about the issue, then do not hurry. Because both of them have a few core differences, such as:
Difference 1- Versatility in design
An eye-catching website design always grabs customer attention. According to Sweor, 57 % of internet users said they would only suggest a company with a well-designed mobile website.
As we already know, 69% of orders come from mobile users in Shopify. Are you getting the point of creating a website with a friendly theme and design? Shopify is giving you the opportunity.
Shopify offers ten free themes and over 60 premium themes ranging in price from $140 to $180. You may customize, modify, and even replace your theme to give your company a distinct identity.
But in the case of Amazon, this option is limited. The layout of all Amazon pages is the same. You can add your own photographs and descriptions, but your store page’s overall style and design are recognizable as Amazon’s rather than your own.
Difference 2- Tools & Delivery
Shopify delivers all the tools you will need to run a successful online store while keeping your life as a business owner as simple as possible. Furthermore, Shopify and Oberlo have just partnered to enable dropshipping businesses. Shopify mainly follows dropshipping or 3PL ( Thirds Party Logistics).
On the other hand, Amazon offers both FBA and FBM, but the Fulfillment by Amazon (FBA) service is quite popular, gives you access to Amazon Prime customers, and lets Amazon manage your product storage, packing, and shipping.
Difference 3- Pricing
Shopify provides a 14-day free trial as well as three pricing plans:
- $29/month for the basic Shopify plan
- $79/month Shopify plan
- $299/month for the Advanced Shopify plan
The more features your Shopify plan has, the more costly it is. It is also worth noting that you can change your plan. Shopify will give you a 10% discount for annual payments and a 20% discount for semiannual payments if you pay in advance.
On the other hand, Amazon offers two pricing options:
Individual sellers get 99 cents for each item they sell. This plan only allows you to add new products to the Amazon catalog, and if you want, you can use FBA. This plan is appropriate for sellers who are experimenting with their products.
On the other hand, $39.99 per month for professional Amazon sellers. This plan gives you access to more advanced features like API ( application programming interface) integration, on-site advertising, and multiple-user management.
Difference 4- Customer engagement
Shopify and Amazon are different things, and their customers are different. Shopify’s search volume is lower than Amazon’s. You develop your brand, and others must go out of their way to find you. This means that marketing is essential for expanding your consumer base.
But on Amazon, there are many customers available, so if your product beats your neighbor’s product, you can quickly gain a profit. Therefore, a proper application of SEO can also generate traffic on Amazon.
Difference 5- Help and support
Amazon’s support system could be more user-friendly. They have phone support, where you request a call and Amazon contacts you. There are support forms you can fill out and community forums to discuss your problems. Furthermore, there are more user-friendly and streamlined support systems available.
On the other hand, Shopify offers a variety of support services, including:
- 24/7 service
- Social media contact:
- Live chat
- Video tutorials through email
Moreover, they have a “Help Center” with articles and instructions on Shopify. It is simple to use and contains a lot of information.
To summarize, both Shopify and Amazon are successful in different fields. In the end, it is a matter of personal preference. Moreover, you can get a combination of these top-notch platforms using Shopify and Amazon integration.
Hopefully, this Amazon vs. Shopify comparison has provided you with the information you require and has aided you in making your decision.