Shopify vs Amazon Marketplace:
Where to Sell Your Products
When it comes to using different sales channels, it always comes down to two names – Shopify and Amazon. Shopify vs Amazon marketplace is one of the biggest battles in the digital world. Both platforms are popular and offer great features and opportunities for ecommerce sellers.
In the US, Amazon has over 150 million visitors from all over the world per month. Impressive, right?
Shopify, on the other side powers over 800.000 businesses which have sold billions through the platform. With numbers like these, no wonder it is hard to choose.
This article will compare Amazon and Shopify, from features to pricing and explain to you how you can use Amazon to sell on Shopify.
What is the Basic Difference Between Amazon and Shopify
You can sell products and make money by using Amazon or Shopify. You pay a fee every month to both platforms and have access to all the features and tools you need to run an online business.
These are the similarities between Amazon and Shopify. At first, they may seem similar, however, they work in a totally different way.
The main thing to keep in mind is that Shopify is a specially designed ecommerce solution and Amazon is a marketplace.
Shopify provides you with the tools you need to build your own online store while Amazon helps you sell through its popular marketplace together with other sellers.
Selling products through Amazon is like having a store in a famous mall or shopping center. Thousands of people come in to browse and purchase – most of them aren’t looking for your product, however, you still make sales because of everyone coming by and seeing your products.
Selling products with Shopify is like renting a store to set up your business in. You have your own storefront and customers come looking for your brand once they know your name, of course. There is more space to create your own unique image, even though it is more difficult to build up a regular customer base.
These are the main differences which define Amazon and Shopify as two different platforms that cater to different types of sellers. Shopify is perfect for every type of business, from small to large one while Amazon caters for individual sellers.
Ecommerce Features & Tools
Amazon has a wide range of products sold through its popular marketplaces, from books to electronics, toys, gadgets, and more. If you want you can also sell services rather than products.
The marketplace welcomes both businesses and individual sellers and has the features in place to support ecommerce selling. This includes stores like Amazon Handmade, the creation of targeted adverts, global selling, and more.
Another example is the FBA program or Fulfillment by Amazon program which handles the storage, packing, and shipping of your products.
You send the products to Amazon and the team is then responsible for packing and shipping the products to customers once they get sold.
There are, of course, fees for this, however, if you don’t want to deal with shipping, this is a great solution.
Shopify on the other side has the most in-depth and widest range of sales features out there.
Some of the tools Shopify offers are:
- Powerful inventory system
- Multichannel selling
- Abandoned cart recovery
- Automatic tax calculation
- App integration
- Logo maker
Shopify provides the necessary features to make your ecommerce website succeed while making your life easier.
If you don’t find what you are looking for or what you need in the Shopify dashboard, go to the Shopify App Store where you can find everything you need. There are some great tools and plugins you can use to expand and advance your online store.
Payment Options, Price & Fees
Credit card rates and transaction fees can increase your monthly costs so it is always recommendable to check the costs before you commit to a certain platform.
Amazon supports Amazon Pay, its main payment gateway. You can accept credit and debit cards but not PayPal. For more professional sellers, Amazon has selling fees + monthly subscription. These fees vary and are made up of shipping and referral fees.
Individual sellers don’t pay a monthly subscription.
Shopify has its own payment gateway – Shopify Pay. When using Shopify Pay, you don’t have to pay any transaction fees.
Shopify also provides over 100 payment gateways including PayPal, Amazon Pay, and others. These have transaction fees ranging from 0.5% to 2%, depending on which one you are using.
Credit card fees apply to all payment gateways, without exceptions.
Amazon has two selling plans:
- The Professional Selling Plan (the plan costs $39.99 per month)
- The Individual Selling Plan (you pay $0.99 per product sold)
Shopify has three price plans:
- The Basic Shopify Plan ($29 per month)
- The Shopify Plan ($79 per month)
- The Advanced Shopify Plan ($299 per month)
Extra expenses can occur if you are adding extra plugins and apps to your store. These apps, however, help scale your business so should impact the rise in profits.
Using Amazon Marketplace with Shopify
Even though they work differently, Amazon and Shopify are well-matched. They both offer certain things which the other platform doesn’t. So, why not put them together?
You can now integrate Amazon into your Shopify store. You can build your own ecommerce website while promoting your products on the largest marketplace in the world with just a few clicks.
This will help you create your own listings on Amazon, straight from your Shopify dashboard, sync products and product details, and more.
All you have to do is set up your seller account on Amazon and add the Amazon Sales Channel to Shopify.
A very important thing to keep in mind is that you still have to pay a fee for the Amazon Professional Seller account. So, you will already be paying a monthly subscription fee to Shopify and then you will pay for Amazon Professional Seller account.
But if you and your business are ready for expansion and more exposure, combining Shopify and Amazon is a worthwhile investment.
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