Is there really a single best eCommerce platform for your eCommerce business? In today’s eCommerce space, it is undeniable that two of the biggest platforms are Shopify and Amazon. As an eCommerce business owner, one of the most important decisions you’ll make is choosing the right eCommerce platform for your business.
While it’s true that both platforms have their own advantages and disadvantages, businesses should take into account how an eCommerce platform would meet their business’ unique needs. If you’re thinking of establishing an eCommerce business, then you clicked the right article! Let Envision Digital walk you through the differences between these two eCommerce giants to help you make an informed decision. Ready? Let’s dive right in!
Don’t have the time to read the full post? Here’s an outline:
- Shopify vs Amazon: An Overview
- Shopify vs Amazon: What’s the difference?
- Shopify vs Amazon: Pricing
- How much does it cost to use Shopify?
- How much does it cost to sell on Amazon?
- Shopify vs Amazon: Order Fulfillment
- Shopify vs Amazon: Payment Options
- Final Thoughts: Is there really a single best eCommerce platform out there?
Shopify vs Amazon: An Overview
Shopify is an eCommerce platform that businesses can use to build their online store from the ground up. As opposed to starting a website from scratch, Shopify provides a comprehensive yet convenient way to build an online eCommerce store without the need to hire a web developer. Shopify simplifies the web development process for those with little to no experience building an eCommerce website. In addition, Shopify integrates the whole buying process by integrating various processes such as payment, logistics, and customer service.
On the other hand, Amazon could be best described as the world’s biggest online marketplace. Amazon allows sellers to reach millions of potential customers through Amazon’s vast customer base – a great selling point for businesses that are just starting out. So what’s the difference between the two?
Shopify vs Amazon: What’s the difference?
While both platforms seem similar, Amazon and Shopify fundamentally work differently. Amazon lets you sell on their platform while Shopify lets you build an all-in-one Commerce site. Amazon’s main selling point is its huge customer base while Shopify offers an all-encompassing tool that enables business owners to set up and run their business as they see fit.
Shopify vs Amazon: Pricing
How much does it cost to use Shopify? Here’s a quick rundown of Shopify’s pricing:
- Basic Shopify Plan: $29USD/month
- Online store that includes an eCommerce website and blog
- Up to 2 staff accounts
- Up to 4 inventory locations
- Up to a 77% discount on Shopify shipping (DHL Express, UPS, or USPS)
- Shopify (Standard Plan): $79USD/month
- Online store that includes an eCommerce website and blog
- Up to 5 staff accounts
- Up to 5 inventory locations
- Up to a 88% discount on Shopify shipping (DHL Express, UPS, or USPS)
- Includes professional reports that enable you to take a look at your sales performance and analyze buying trends
- Advanced Shopify: $299USD/month
- Online store that includes an eCommerce website and blog
- Up to 15 staff accounts
- Up to 8 inventory locations
- Up to a 88% discount on Shopify shipping (DHL Express, UPS, or USPS)
- Includes professional reports that enable you to take a look at your sales performance and analyze buying trends
- Includes an advanced report builder that lets you customize your metrics based on existing reports
Does Shopify offer a free trial? Yes, it does! You can avail of a 14-day free trial with no credit card required.
How much does it cost to sell on Amazon? Here’s a quick rundown of Amazon’s pricing:
- Individual Plan: $0.99/item sold + additional selling fees
- According to Amazon, this plan would be perfect for you if:
- You sell fewer than 40 units a month
- You’re still deciding on what to sell
- You don’t plan to advertise/use advanced selling tools
- According to Amazon, this plan would be perfect for you if:
- Professional Plan: $39.99/month + additional selling fees
- According to Amazon, this plan would be perfect for you if:
- You sell fewer than 40 units a month
- You want to qualify for top product placement as well as advertise your products
- You plan to use advanced selling tools such as APIs and make use of reports
- You want to sell products in restricted categories
- According to Amazon, this plan would be perfect for you if:
Shopify vs Amazon: Order Fulfillment
Both eCommerce platforms have their own fulfillment networks. Amazon has FBA, also known as Fulfillment by Amazon, while Shopify has its Shopify Fulfillment Network (SFN). According to Shopify, SFN is a great way for businesses to take advantage of Shopify’s fulfillment centers across the US and Canada for fast and affordable shipping. Businesses can also manage business data from shipment tracking to inventory management all in one place. However, to qualify for Shopify’s SFN, your business needs to meet the following criteria:
- Your business sells in the United States.
- You have fewer than 200 SKUs.
- You ship between 3 and 200 orders per day.
- You don’t sell any regulated or perishable products.
When it comes to order fulfillment, you may have heard about Amazon’s FBA program. As mentioned above, Amazon FBA stands for Fulfillment by Amazon. Basically, what this means is that as a seller, you send your products to an Amazon FBA warehouse and Amazon stores your inventory for you. Whenever you receive an order, Amazon processes it and handles the logistics from packing to delivery. Amazon FBA lets businesses leverage Amazon’s extensive fulfillment network to save costs on storage and shipping fees. Let’s take a look at some of Amazon FBA’s benefits:
- Inexpensive fulfillment option especially for businesses that are just starting out
- Peace of mind knowing that Amazon handles your logistics for you
- Eliminates the need for storage facilities
- Businesses using Amazon FBA automatically qualifies for Amazon Prime
Shopify vs Amazon: Customer Payment Options
One important thing to note when comparing Shopify and Amazon is to look at payment options and not just the fees and costs associated with each service. After all, having a wide range of payment options allows you to reach more customers and increase your conversion rates. When it comes to Shopify and Amazon, Shopify has Shopify Payments and Amazon has Amazon Pay. While both platforms have partnered with various payment providers, Shopify is the clear winner as it eliminates transaction fees and customers can choose from hundreds of payment methods to complete their transactions.
Final Thoughts: Is there a single best eCommerce platform out there?
The answer depends on what you’re looking for. While choosing the right platform for your eCommerce business can be a daunting task, it really depends on what you need. It’s no secret that both platforms have their own strengths that will benefit your business in one way or another. However, it is imperative for you to figure out what your priorities and goals are in order to make the most out of the platform you would choose. Who knows, you can even end up using both platforms in the long run.
