ECOMMERCE TOOLS   |   3 minute read

Shopify vs Amazon: Which One Is Right For You?

Small business owners choosing between Amazon or Shopify should understand the pros and cons of each platform. 

Both Shopify and Amazon are vying for the future of the eCommerce market. One of the biggest battles in the retail world is happening as they seek to position themselves as the best choice for online sellers. 

tradegeckoblog_whichisrightforyouFounders need to weigh the features of each platform in order to decide which is best for their business and customers.

Evaluating

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Pros
  • Massive potential shopper base of over 150 million monthly visitors, including 100 million Amazon Prime members
  • That built-in audience often means less external marketing is required
  • Setup is easy, requiring little technical expertise
  • Takes advantage of Amazon’s reputation for reliability and ease-of-use
  • Any product can be sold, so long as it conforms to Amazon’s standards
  • Allows sellers to use Amazon’s logistics, from payment options to Fulfillment By Amazon for inventory storage and shipping
  • Already used by 600,000 sellers with over $82 billion in sales
  • Sellers maintain more control over their business since Shopify features fewer restrictions on product listings and other details
  • Broad set of tools and apps for sales, customer support, inventory management and more
  • More flexibility in design leads to increased opportunities for branding and customization of the user experience
  • Fewer fees imposed means sellers keep a larger percentage of each sale
  • Allows sellers to utilize Shopify Fulfillment Network, using existing storage and shipping logistics
Cons
  • Sellers can be kicked off the platform for unknown violations of the terms of service, often with little opportunity for appeal
  • Those terms of service can be changed at any time with little to no advance notice
  • High fees are leveraged on sales, meaning sellers earn less from each sale
  • There are restrictions on categories products can be placed in
  • Amazon is both host and competitor, selling the same items as the other retailers using its Marketplace
  • Companies have to engage in their own marketing, including ongoing advertising spending, to gain traffic to their stores
  • Setup requires more technical and design expertise
  • Membership levels have increasingly high fees that can cut into profitability

Amazon, Shopify or both?

After reviewing the pros and cons of each, how will you decide which one is right for you? 

Some businesses will find that either Shopify or Amazon is the clear choice as their sole eCommerce platform. Others may decide that using both allows them to reach a wider range of shoppers. 

Each has advantages and disadvantages, and requires different investments of time and other resources. The decision then comes down to which is the best option to meet the goals set for your business. 

Find out more about how TradeGecko can help you with a multiplatform eCommerce strategy today. 

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