Shopify vs Amazon: Which Platform is Right for You in 2024?

Choosing the right platform for your online business can feel overwhelming. With so many options out there, it’s crucial to find the one that fits your needs. Amazon and Shopify are two of the most popular choices, each with its own strengths.

In this article, we’ll break down the key differences between Amazon and Shopify. By the end, you’ll have a better idea of which platform is the best match for your business goals.

Overview of Shopify and Amazon: What’s the Major Difference?

Let’s kick things off by exploring what these platforms are and their key features.

Amazon is an online e-commerce marketplace akin to a massive shopping mall. Picture this: thousands of stalls, each one selling different products. As a seller, you rent space in this mall, displaying your goods alongside competitors. Customers flock to Amazon, confident in its reputation, knowing they can find almost anything they need.

On the other hand, Shopify is an e-commerce store platform that allows you to create your own online store. This setup is like having your own dedicated building where customers come directly to shop for your brand. They know your name and are looking for your products, rather than aimlessly browsing a mall.

Shopify vs Amazon: Detailed Comparison

Now that we’ve laid the groundwork by understanding the fundamental differences between Shopify and Amazon, it’s time to dive deeper into the specific features and functionalities of each platform.

1. Reputation and Customer Base

Let’s start with Amazon. Founded in 1994 by Jeff Bezos, Amazon has grown from an online bookstore into a massive global marketplace.  In 2023, Amazon’s net revenue reached nearly $576 billion.  Interestingly, almost 50% of sellers reported monthly sales between $500 and $1,000 in 2024. Additionally, in April 2023 alone, Amazon attracted about 4.8 billion visits. This impressive activity underscores Amazon’s reputation for convenience and reliability. Shoppers trust Amazon because they know they can find almost anything they need, backed by fast shipping and easy returns.

Now, let’s talk about Shopify. Launched in 2006, Shopify has rapidly grown to help people create their own online stores.  In the fiscal year 2023, it generated over $5.2 billion in subscription solutions and about $1.8 billion in merchant solutions. As of 2024, Shopify hosts over 5.6 million active stores worldwide, showcasing a diverse range of products.

In summary, Amazon is all about scale and established trust. It’s easier for sellers to tap into a larger customer base than Shopify.

2. Fees

Let’s start with Amazon. When you sell on Amazon, the costs mainly come from two types of fees: the subscription fee and the referral fee.

• Subscription Fee: Amazon offers two selling plans. The Individual plan has no monthly fee but charges $0.99 per item sold. The Professional plan costs $39.99 per month, regardless of how many items you sell.
• Referral Fee: This is a percentage Amazon charges on each sale, typically ranging from 6% to 45%, depending on the product category. This fee is automatically deducted from your earnings after a sale.

You might wonder if there are any extra costs involved. Yes, there can be! There are some additional fees. For example, if you use Fulfillment by Amazon (FBA) for shipping, you’ll pay for storage and fulfillment services. Plus, If you are selling media items, closing fees are involved.

Now, let’s look at Shopify, where the fee structure differs a bit. Shopify’s fees are broken down into two key types: subscription fees and payment/transaction fees.

• Subscription Fee: Shopify charges a monthly subscription fee based on the plan you choose. The Basic Shopify plan starts at $25 per month, the Shopify plan costs $69 per month, and the Advanced Shopify plan is $299 per month. Each plan offers different features and support levels, so the right choice depends on your business needs.
• Payment Fees: If you use Shopify Payments, you only pay credit card processing fees. These fees are 2.9% + 30¢ per transaction for the Basic plan, 2.6% + 30¢ for the Shopify plan, and 2.4% + 30¢ for the Advanced plan. These fees apply whenever a customer makes a purchase using a credit card.
• Transaction Fees: If you choose to use a third-party payment gateway (like PayPal or Stripe) instead of Shopify Payments, Shopify charges an additional transaction fee on top of the payment processor’s fees. For the Basic plan, this fee is 2%, for the Shopify plan, it’s 1%, and for the Advanced plan, it’s 0.5%.

Platform	Fee Type	Details
Amazon	Subscription Fee	Individual: $0.99 per item Professional: $39.99 per month
	Referral Fee	6% to 45% per sale, depending on product category
	Additional Fees	FBA fees (storage/fulfillment) Closing fees (media items)
Shopify	Subscription Fee	$25-299/month
	Payment Fees	2.9% to 2.4% + 30¢ per transaction
	Transaction Fees	0.5% to 2% if using third-party payment gateways

In summary, both platforms have their own fee structures. Amazon has a mix of subscription, referral, and potential fulfillment costs, while Shopify offers a more predictable monthly fee with transaction fees that vary based on your payment method.

3. Setting up your store

Setting up your store on Amazon and Shopify involves two very different approaches, each with its own advantages and challenges.

When you set up a store on Amazon, it’s pretty simple. You’re basically adding your products to a massive online marketplace that already gets millions of visitors. You don’t need to worry about building a website or designing a storefront. Instead, you’ll start by choosing between two seller plans: Individual or Professional. The setup involves creating a seller account, listing your products, and using Amazon’s existing templates. If you’re a standard third-party seller, you won’t have much flexibility in customizing your store’s appearance. However, if you enroll your brand in the Amazon Brand Registry, you can create your own Amazon storefront and access additional templates. 

Shopify, on the other hand, gives you a lot more control over how your store looks and works, but it takes a little more effort to set up. With Shopify, you’re creating your own website. You’ll pick a theme (basically, the design and layout of your store), and you can customize things like colors, fonts, and product pages. The setup is more detailed because you’re building something from scratch. This gives you a lot more flexibility to make your store unique.

So, what’s the main difference? 

Amazon is easier and quicker to set up, but your store will look like everyone else’s, and you don’t have full control over how it’s presented. Shopify takes more time, but you get to fully control your brand’s look and feel, which is great if you want to stand out.

Interested in launching your store on Amazon? Check out this guide: What Is Amazon? A Guide on How to Start Selling on Amazon

4. Marketing and Promotion

When it comes to marketing your store, Shopify and Amazon take very different approaches.

On Shopify, you’re responsible for attracting customers. The platform gives you full control over your marketing strategies. You can use:

• Email marketing: Re-engage customers or announce new products with email campaigns.
• Popups and notifications: Offer discounts or get sign-ups directly from your site.
• Social media: Use Instagram, Facebook, and TikTok to reach a broader audience.
• SEO (Search Engine Optimization): Since Shopify is your website, you can optimize how your store appears in search results. You can create high-quality, engaging content that boosts your SEO and attracts more visitors.
• Seasonal promotions: Customize promotions or discounts to suit your business.

In contrast, Amazon offers built-in marketing tools within its platform, but with fewer customization options. Popular methods include:

• Sponsored ads: Pay for your products to appear higher in Amazon search results.
• Deals and coupons: Offer discounts to boost visibility.
• Amazon Vine: Send products to trusted reviewers for feedback.

If you prefer more control and diverse options to build your brand, Shopify is a better fit. If you’d rather a simpler approach with built-in traffic, Amazon is the way to go.

5. Customer payment options

According to Statista, around 13% of U.S. customers abandoned their shopping carts in 2024 because of limited payment methods. Clearly, offering a variety of payment options is critical to keep customers satisfied and avoid losing sales.

On Shopify, sellers can provide an extensive range of payment methods. These include:

• Credit and debit cards
• PayPal
• Stripe
• Amazon Pay
• Apple Pay and Google Pay
• Worldpay
• Cryptocurrencies

Amazon, however, primarily focuses on credit and debit cards, including Amazon Pay for easy checkout. In certain states, they also accept more specialized payment methods such as FSA, HSA, and SNAP EBT cards.

So, which Platform Supports More Payment Methods?

Without a doubt, Shopify provides a more diverse range of payment options. Amazon remains simpler and more limited.

6. Shipping and Fulfillment Options

When it comes to shipping, Amazon has several options. One of the most popular is Fulfillment by Amazon (FBA). With FBA, Amazon manages everything from storage to shipping. This is not only convenient for sellers but also beneficial for customers, as products fulfilled by Amazon are eligible for Prime shipping, ensuring faster delivery. Alternatively, if you prefer to handle shipping yourself, Amazon offers Fulfillment by Merchant (FBM), where you take care of storage and shipping.

Similar to FBA, Shopify provides the Shopify Fulfillment Network (SFN), which handles logistics for you. You can also choose to ship products yourself using various methods like UPS, FedEx, or DHL.

7. Help and Support

Customer support is vital for running any business, and both Amazon and Shopify offer solid options but in different ways.

Amazon, as a massive marketplace, provides 24/7 customer service to both sellers and buyers. You can reach support through various channels, including live chat, email, and phone.

Shopify also offers 24/7 support for its users. Sellers can connect via live chat, email, or phone. Additionally, Shopify’s Help Center features guides, community forums, and an academy with courses on e-commerce and marketing. Shopify is very hands-on, helping you grow your business with tips and strategies, unlike Amazon, which focuses more on operational support.

In summary, while Amazon’s support is geared toward resolving transactional issues quickly, Shopify’s support aims to help you navigate and grow your e-commerce store for the long haul.

Shopify vs Amazon: Pros and Cons 

Here’s a quick overview of the pros and cons of Amazon and Shopify to help you choose the right fit for your business.

Platform	Pros	Cons
Amazon	– Huge customer base, making it easier to reach buyers. – Built-in traffic, so you don’t have to spend much on marketing. – Reliable fulfillment options like FBA for quick shipping. – Strong reputation for customer trust and satisfaction.	– Limited control over branding and store design. – High fees, including referral and fulfillment costs. – Increased competition with many sellers in the same space. – Less flexibility in marketing strategies.
Shopify	– Full control over your store’s design and branding. – Variety of payment options for customers. – Flexible marketing tools to build your brand. – Predictable fee structure based on your subscription plan.	– Requires more effort to attract customers and build traffic. – Monthly subscription fees can add up depending on the plan. – No built-in audience, so you have to generate your own sales. – Shipping and fulfillment are your responsibility unless you use third-party services.

FAQ about Shopify vs Amazon

1. Do Amazon and Shopify support dropshipping?

Yes, both Amazon and Shopify allow dropshipping. Shopify is more flexible, letting you set up your store and choose suppliers as you see fit. You can easily integrate various dropshipping apps to manage your products. On Amazon, dropshipping is permitted, but you have to follow strict guidelines.

2. Which one is better, Amazon or Shopify?

It really depends on your needs. If you want to tap into a vast customer base quickly and don’t mind sharing space with other sellers, Amazon is a great choice. However, if you’re looking to build a unique brand and have full control over your store, Shopify is better. It all comes down to what you value more: convenience and exposure or control and branding.

3. Can I sell on Amazon and Shopify at the same time?

Absolutely! Many sellers use both platforms to maximize their reach. By doing this, you can benefit from Amazon’s massive audience while also building your brand on Shopify. Just keep in mind that managing two platforms requires good organization and clear inventory management to avoid overselling.

4. Is selling on Shopify cheaper than Amazon?

Generally, Shopify can be cheaper in terms of upfront costs. You pay a flat monthly subscription, and you can control your expenses more easily. Amazon has various fees, including referral and subscription fees, which can add up. However, the total cost depends on your sales volume and business model. It’s essential to consider all costs when deciding which platform works best for you.

Conclusion

In the end, choosing between Shopify and Amazon really depends on your business goals and preferences. Shopify offers the freedom to create a unique brand experience, while Amazon provides access to a vast customer base. Both platforms have their pros and cons, so it’s essential to weigh them based on what matters most to you.

If you’re looking to dive into dropshipping, Sup Dropshipping is here to help. We simplify the process by connecting you with trusted suppliers and handling the logistics, so you can focus on building your brand and growing your sales. With our support, you’ll be well-equipped to navigate the e-commerce landscape. Contact us and let’s make your dropshipping journey a success together!