Are you thinking about starting an online business?
Post pandemic period has drastically changed consumer and seller behavior. If your business does not have an online presence already you might have to shift, sooner or later, to an online platform because of the increasing demand for online shopping. Once you conclude to dive into the thriving world of e-commerce, the first step is to decide on an e-commerce platform.
Amazon and Shopify are two of the tech giants in the e-commerce industry. Both offer big opportunities for online businesses. In the US alone Amazon has been receiving 150 million visitors per month. On the other hand, Shopify sellers amounted to approximately 80,000 and sold over $82 billion.
With figures like that, it’s hard for entrepreneurs to pick between these two prominent platforms.
In this article, we have done a depth comparison between both leading platforms including their pros and cons so you can choose according to your preferences.
An Overview of Amazon vs Shopify
Deciding which one is right for you from Amazon and Shopify, majorly depends on your business model. Amazon and Shopify might look similar to you but that’s not true actually. If you have a look at both platforms you can comprehend the difference.
The key difference is that Amazon is an online marketplace to sell goods, whereas Shopify is an eCommerce forum. However, both allow businesses to expand and sell their products online.
Some Advantages and Disadvantages of Amazon
Advantages
- Unlimited Traffic every month
- Automatic brand power.
- Hassle-free setup
- Fulfillment by Amazon (FBA)
- Amazon SEO
Disadvantages
- High Competition
- Strict rules: Amazon is perhaps best known for its unprecedented customer service and strict rules.
Some Advantages and Disadvantages of Shopify
Advantages
- Powerful eCommerce tools
- Unique brand identity
- Payment flexibility
Disadvantages
- Extra costs
- Self-marketing
What is the Major Difference Between Amazon and Shopify?
Tempting Customer
To connect with a wide range of customers worldwide, online selling is one of the best options. What is challenging is getting customer attention. It’s like a race where you have huge competition that it’s hard to get noticed by customers.
Amazon wins here with millions of visitors every month, the probability to get target audience attention is stacked temptingly in your favor. You don’t have to tackle the complexities of search engine optimization (SEO).
With Shopify stores, people have to search your brand individually which confides the search volume compared to Amazon. That means you need marketing strategies to drive customers.
Ease of Use
Whether you’re a small business owner or a big brand-building your eCommerce empire: setting up your very own online store seems a little overwhelming.
Don’t worry! Amazon allows you to use its brand presence and power in the market. You just have to set up your store on Amazon which is quite simple to use.
With Amazon’s easy-to-follow setup process where once you get yourself registered. First list your products, sell them, ship them, and get paid for them—quite straightforward.
On the other side, Shopify provides you with tools that help you design and make building websites as easy as possible with its clear design, tons of help pages, and super easy navigation.
Pricing
Price should be the first thing you should consider before investing in any of these two.
Shopify offers a reasonable e-commerce platform that has a Basic plan, starting at $29, monthly plan starts at 79$ for Advanced Shopify $299 per month. You can avail discounts with annual or biennial subscriptions. A transaction fee is charged by Shopify for every order placed.
Amazon offers better and attractive plans. Small businesses are persuaded by Amazon’s low price of $0.99 per unit sold. However, Amazon also charges transaction fees that range from 8% to 45%. Amazon gives you two options: Individual and Professional, So you can choose what is best suited for you.
Order Fulfilment
With the increasing sales number, you need to put focus on more things like third-party logistics, than just shipping packages. Amazon FBA (Fulfillment by Amazon) takes care of this for you and enables you to use their warehouses to stock your brand inventory. And Uncle Jeff multiple warehouse and company’s employees will package and ship orders to buyers—very convenient right?
Shopify also recently introduced the Shopify Fulfillment Network. This is their attempt to give competition to their rival Amazon’s fulfillment services. But it is not as fulfilling as Amazon. Amazon Multi-Channel Fulfillment allows non-Amazon sellers to use their warehouses.
Which is the Right Platform for my Business: Amazon vs Shopify?
Now here is the deal, there are various advantages and disadvantages of both eCommerce giants.
Shopify gives you complete ownership that can help you grow faster but the disadvantage is the hard work that you have to push yourself with infamous SEO and marketing strategy and if you are new then things get overwhelmed for you.
The significant influence you’ll get through Amazon’s existing audience is a huge magnet, super quick to set up and FBA means you can focus on really selling products.
This contrast concludes that Amazon stands at the top with all handy dashboards and services and already existing customers on-site ready to buy, which help you reach your business goal easier and faster. The only drawback is there strict policies
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