Shopify VS. Amazon: Which is better for e-Commerce in 2023?

Several e-commerce websites keep popping up on the internet every day. E-commerce is the latest and trendiest sales medium in the market today. E-commerce platforms are becoming popular with sales agents because of their relative ease of use. Shopify and Amazon are some of the biggest trendsetters in the e-commerce sector. Shopify VS. Amazon: Which is better for e-Commerce for beginner sellers?

E-commerce websites have revolutionized the sales and marketing sector for the past two decades. It is slowly becoming the preferred method for shopping. The young and old generations find it easy and convenient to shop online. Shopping online is as easy as pressing a command button on your phone or PC, and in less than a few hours, you can have your product delivered to your doorstep. How can someone choose the right e-commerce store? Having verified facts can guide you into making an informed decision. 

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Table Of Contents

Is Shopify better than Amazon?

Most online sellers and buyers consider Shopify a better e-commerce platform. The main factor informing this decision is that merchants can conduct their business online on a standalone website on a domain that they can call their own. Merchants can use the user-friendly Shopify e-commerce platform to customize and create their personalized presence.

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What is the difference between an Amazon Store and Shopify Store?

The difference between the two online stores is a technical variance. You can view Amazon as an online marketplace that merchants use to sell their products. Amazon lets merchants use their existing platform and resources to sell their items alongside other sellers. Shopify is a fully-fledged e-commerce platform. Merchants use Shopify to build their own customized and personalized web stores.

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Is Amazon competing with Shopify?

Amazon and Shopify operate in an almost similar business environment. Two companies engaged in the same business are bound to compete. However, the two companies have tried to stifle their rivalry by signing a few partnership agreements.

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Shopify VS. Amazon market share

The market share for Amazon grew too close to 47% in the US at the end of 2021. Shopify's market share grew close to 20% in the US at the end of 2021. The global growth for e-commerce grew by a margin of 400% in 2021. The global e-commerce industry made close to $ 4.89 trillion in 2021.

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Shopify dropshipping VS. Amazon FBA

The difference between dropshipping and FBA is the delivery process. Shopify dropshipping is an efficient logistical solution that gets your products delivered to you. You can buy products directly from a Shopify merchant. However, the company contracts third parties to ship your products. Amazon FBA (fulfillment by Amazon) mainly relies on an in-house logistical team to deliver products safely and efficiently. Dropshipping and FBA logistical solutions work well, and it is up to you to select your preference.

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Shopify Fulfillment Network vs. Amazon FBA

Shopify fulfillment network is an efficient fulfillment network that Shopify merchants use. Merchants set up their online store and send their products to the nearest Shopify fulfillment center. Products are shipped from the fulfillment center immediately after you close a sale. A trusted logistical team then delivers your product to your customers. Amazon FBA is an independent logistical network that sellers can use to deliver their products to the nearest Amazon warehouse. After clearing a sale, the Amazon logistical team ships your products directly from the warehouse to your customers.

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Shopify GMV vs. Amazon

Shopify gross merchandise volume (GMV) is the total value of orders a merchant has processed through his Shopify store. The GMV value includes other expenses like the net of your refunds and value-added taxes. You can use the Amazon fulfillment calculator to compute your gross revenue. The fulfillment calculator includes financial details like the FBA fulfillment fee.

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Shopify vs. Amazon: General Overview

Amazon is a reliable online marketplace that has benefits for sellers and buyers. Sellers can benefit from Amazon's logistical team that has broad network coverage. Amazon consumers can benefit from gift cards and Amazon smiles to make donations. Shopify is a trusted e-commerce website for merchants to advertise and sell their products to millions of online shoppers. You can use Shopify to build your online store from scratch and personalize it with your custom design.

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Comparison Categories for Shopify and Amazon

1. Shopify vs. Amazon: Ease of Use

Ease of use is one of the first things you should consider when deciding which e-commerce to use. Ease of use is a crucial factor to both merchants and customers. It is easy to use Shopify because it does not require coding skills. However, you have to design and spruce up your online store to attract customers. Amazon has a user-friendly user interface for customers and merchants. The only technical task for merchants is to write descriptive product reviews and upload relevant photos. Amazon is the winner if you want a simple user interface, but Shopify takes the lead in customizing the user interface.

2. Shopify vs. Amazon: Customer support

Shopify has several ways that you get help whenever you get stuck. The e-commerce platform has live customer service that is available around the clock. You can contact Shopify via email, live chat, call, and help center. The e-commerce platform has a forum where users ask and get answers to frequently asked questions. Amazon has a similar customer care service with a dedicated team working 24/7 and in shifts. You can talk to a live Amazon customer care agent at any time. The customer care service is a draw when we compare Shopify and Amazon.

3. Shopify vs. Amazon: Pricing and Fees

Shopify's pricing plans have three different tiers and an extra 14-day trial. The cheapest pricing plan costs $28/monthly, and the most expensive plan costs 299/monthly.

Amazon has a two-tier membership pricing plan. Amazon merchants can either opt for the individual seller plan that costs $0.99 per item sold or a professional seller plan that costs $39.99 per item sold. Amazon has a cheaper pricing plan, but it excludes customization features. Shopify takes the lead here despite having higher prices.

4. Shopify vs. Amazon: Supported Payment Gateways

Shopify supports several payment gateways depending on where you reside. You can opt for Shopify payments or third-party providers if you want to receive credit card payments. The other supported payments gateways include Apple Pay, PayPal, Facebook Pay, Amazon Pay, and cryptocurrency. Amazon accepts and processes online payments on its e-commerce platform. The main payment gateways include Mastercard, VISA, Apple Pay, Masterpass, American Express, and VISA Checkout. Payment-supported gateways are similar for companies, so it is a draw.

5. Shopify vs. Amazon: e-Commerce tools and Features

Shopify has an arsenal of customization tools and features, whereas Amazon offers a standard user interface. Shopify takes an early lead in the e-commerce tools and features battle.

6. Shopify vs. Amazon: Marketing tools and Features

Shopify provides marketing tools to its members like Helium 10. You can also access marketing features like SEO and email marketing strategies. Amazon has a contingent of marketing tools like Google SEO, Amazon DSP, and Amazon live to rank your pages. The two companies are toe to toe on the e-commerce tools and marketing strategies front.

7. Shopify vs. Amazon: Platform Design Flexibility

Shopify has a flexible platform design because you can customize it. Amazon, however, has a static platform design because it offers users a standard user interface. Shopify wins this battle, hands down.

8. Shopify vs. Amazon: Market Share

Shopify has a market share close to 20%, whereas Amazon has a market share close to 40%. It is an easy win for Amazon because it enjoys a larger market share.

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Advantages and Disadvantages

Shopify Advantages

• Shopify has templates that can simplify the process of building your website.
• The platform has fantastic tools for design and marketing.
• The platform supports many payment gateways.
• The site has features that can simplify sales and marketing processes.

Shopify Disadvantages

• Shopify membership plans are high.
• It is time-consuming because you have to build your site from scratch.

Amazon Advantages

• Amazon has a larger market audience because of its large membership base.
• One party is responsible for handling your product from start to finish.
• Amazon has cheaper pricing plans.
• Little knowledge is required to operate an account.

Amazon Disadvantages

• Amazon supports fewer payment gateway options.
• The platform has a standard and static design.

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FAQs

Q. Shopify vs. Amazon: Which is better for newbies on a budget?

It is better to start with an Amazon account because it is cheaper and requires fewer skills to get started.

Q. Shopify vs. Amazon: Which is better for experienced online sellers?

Amazon was founded earlier and has more experience in online sales.

Q. Shopify vs. Amazon: Which platform integrates well with social media marketing

Both Shopify and Amazon integrate well with social media marketing. However, Shopify has an edge because of its flexible platform.

Q. Shopify vs. Amazon: Where can I make more money selling online? 

You can make money on both e-commerce platforms. Amazon has a massive customer base that you can use to expose your product. Shopify has a user-friendly user interface that you can use as an advantage if you are good at design.

Q. Shopify vs. Amazon; Which is better for scaling my online business?

Shopify has a better scalability package that is compatible with most businesses. You can use the Shopify Plus package to scale your business.

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Conclusion

That’s it for this in-depth guide on Shopify vs Amazon. Hope you have found it very insightful. If you have any suggestions or questions, be sure to drop them in the comments section down below.

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