Small businesses wanting to profit from online sales have many platform options. Amazon and Shopify are two of the most popular selling sites, generating billions of dollars’ worth of revenue. Each platform has potential benefits and drawbacks, and choosing between them is sometimes challenging.
If you’re researching whether selling on Shopify vs. Amazon is best for you, this helpful guide provides invaluable information.
Are You Considering Selling on Shopify vs. Amazon?
Both sites welcome millions of shoppers daily, although Amazon’s numbers are significantly higher.
Both options have other benefits and drawbacks as well. When comparing the two, consider:
- Your company’s size and stage
- Your business goals
- The types of products you sell and which site your target clients typically favor
- How much control you want over your online selling
What’s right for one business isn’t necessarily suitable for another. You must prioritize your needs and decide whether Shopify or Amazon meets them best.
Is It Better To Sell on Amazon or Shopify?
Companies want to make sales, earn profits, develop a customer base and strengthen their brand. When researching selling on Amazon vs. Shopify, evaluate the same factors for each company to make an “apples to apples” comparison.
Amazon’s broader customer base can give you more exposure, but competition is fierce. Shopify offers small businesses more options, but you must drive traffic to your store.
Shopify’s platform allows sellers to create customized e-commerce websites and provides multiple tools to enhance them. Sellers can integrate numerous apps to promote their stores and increase sales. With Amazon’s online marketplace, sellers must use pre-determined formats to showcase their stores and individual products.
Shopify charges sellers monthly fees ranging from $39.99 to $399 for small businesses, with enterprise-level plans starting at $2,000. You won’t pay third-party transaction fees using specific Shopify Payment options, but you do pay Shopify to accept credit cards.
Amazon’s Individual plan subscribers pay $0.99 for each item they sell, while the Professional plan costs $39.99 monthly. Amazon charges a referral fee, which is its cut, for every item sold. These fees vary between product categories and are a percentage of the total item cost. Some items also have a closing fee.
Advertising and Marketing Capabilities
Shopify offers sellers more marketing options and capabilities than Amazon. With Shopify, you can offer discount codes, use social media integrations, create specially priced bundles, and use third-party apps like Ultimate Upsell in your marketing strategies.
Although Amazon offers features and optional programs that allow you to advertise in different ways, most are only available for sellers with a Professional subscription. These programs have additional associated costs.
Is Selling on Shopify Profitable?
Some Shopify sellers can turn a profit within a month, while it may take longer for others. Factors such as your product selections and appeal, marketing approach, quality, target market, and brand loyalty affect profitability.
Can You Sell on Both Amazon and Shopify?
You can integrate Amazon and Shopify stores for the best of both worlds. However, you will have to utilize a third-party application to do so.
Selling on Shopify vs. Amazon: How Can ADG Help?
If you want to take advantage of your ability to integrate sales-boosting apps into your Shopify store, ADG has you covered. Over 8,000 Shopify stores use our reasonably priced, highly effective, feature-packed apps, giving us a 4.6/5-star rating.
The benefits you gain from our apps may help you make your Shopify vs. Amazon decision. For questions or to sign up, contact ADG today.