Shopify vs. Amazon for E-commerce Business: A Comprehensive Comparison

f you’ve been in the mainstream eCommerce space in recent years, sooner or later you’ve seen comparisons between Shopify and Amazon.

Trust me, we’ve all been there.

Both are giants in the industry, but they serve different purposes.

So, let’s break it down and figure out which platform is the right fit for your online hustle.

Understanding Shopify and Amazon

Shopify: Building Your Own Online Store

The most obvious and most glaring difference between these platforms is that on Shopify, you’re building your own store and brand from scratch.

You have complete freedom to create your own online store.

Want to customize every little detail? Go for it.

With Shopify, you control the branding, design, customer relationships, and marketing strategies.

It’s your playground.

However, with great power comes great responsibility. And in this case, it’s your responsibility to bring people into your store and generate sales.

It doesn’t matter how great your store is if no one is buying your product.

Amazon: Leveraging a Massive Marketplace

Amazon, on the other hand, is like setting up shop in the world’s busiest mall.

Millions of shoppers are passing by every day.

You list your products alongside competitors and boom—you’ve got access to a massive audience.

But remember, you’re playing by Amazon’s rules.

Customization is limited, and branding opportunities are scarce. So, the most basic decision you have to make is whether you’re ready to sacrifice sales for more control over how your target audience sees your products.

If you’re new to the game, you’ll sell more on Amazon. But, Amazon will skim some off the top.

So, even if you’re selling more, you may be earning the same or less than on Shopify. But there are a bunch of other things to consider that stem from that basic decision.

Key Differences Between Shopify and Amazon

These are the key elements you’ll have to pay attention to:

FeatureShopifyAmazon
Control and CustomizationHigh customization with templates and apps.Limited customization; must follow Amazon’s standards.
Customer BaseBuild your audience through marketing efforts.Immediate access to millions of visitors.
FeesLower fees; no transaction fees with Shopify Payments.Higher fees including subscription and referral fees.
Sales FeaturesAdvanced tools like abandoned cart recovery.Basic sales features; less robust than Shopify.
Marketing ControlFull control, including email marketing.Limited; can’t capture customer emails directly.
SEO OpportunitiesOptimize for Google search.Products can rank on Amazon and Google.

Advantages of Using Shopify

1. Full Control Over Branding and Store Design

You get to create a unique brand identity.

Customize your storefront, choose your own domain name, and make it yours.

With countless templates and apps, the possibilities are endless.

2. Advanced E-commerce Tools

Shopify offers robust tools to manage sales, inventory, and customer relationships.

Need abandoned cart recovery? Check.

Want to integrate with your favorite apps? They’ve got you covered.

Having built-in analytics is extremely useful. Installing and managing analytics is a technical sticking point for most eCommerce store owners and having that is a game changer.

3. Lower Fees and Higher Profit Margins

No transaction fees when you use Shopify Payments.

That means more money in your pocket.

Plus, scaling your business doesn’t come with skyrocketing costs.

Even some of the biggest brands in the world use Shopify. Practically, you can stay on Shopify forever, no matter how big you get. As your business expands, you can easily upgrade your plan and utilize more advanced features.

4. Advanced Point-of-Sale (POS) Features

Sell online and in physical locations without breaking a sweat.

Use Shopify’s hardware and software solutions for in-person sales.

Keep your inventory and sales data consistent across all platforms.

The benefits of marrying your physical and online sales with Shopify’s POS system can’t be overstated. Even if you don’t have a brick-and-mortar store, Shopify’s POS capabilities provide you with the flexibility to grow your business seamlessly.

You’ll benefit from a unified sales experience, allowing you to manage both online and offline transactions effortlessly.

5. Better Customer Support

24/7 support via live chat, email, and phone (for Shopify Plus customers).

Multilingual resources and extensive documentation.

Help is always just a click away.

Shopify’s business model is to provide an eCommerce platform. And it’s clear by their growth that they’re better at it than anyone else. In contrast, Amazon is a technology company with hundreds of operational departments.

And not only that. Shopify’s ecosystem is huge and you can work with Shopify marketing agencies like ours who specialize in the platform and know how to make it extremely efficient.

Shopify’s focus on eCommerce allows it to provide tailored solutions for online retailers, ensuring they have the tools needed to thrive.

Advantages of Using Amazon

1. Immediate Access to a Large Customer Base

Tap into Amazon’s 300+ million users.

No need for heavy marketing upfront.

This is by far Amazon’s biggest selling point. You bring the product, they bring the customers.

However, it’s not exactly a panacea. Amazon has a very low barrier to entry so be prepared for very heavy competition in just about every product category.

Moreover, Amazon itself distributes a huge number of basic goods under its Amazon Basics brand. So, depending on what you want to sell, you may be in a battle that you cannot win by design since Amazon will always prioritize its own offering.

2. Simplified Selling Process

No need to build a website from scratch.

Focus on creating compelling product listings.

Use Amazon’s straightforward seller tools to start selling in literally minutes. Again, this is great but a double-edged sword because everyone else can also start selling in minutes.

3. Fulfillment Services (FBA)

Fulfillment by Amazon (FBA) simplifies shipping, returns, and customer service.

Offer Prime eligibility to attract more buyers and benefit from Amazon’s advanced logistics network.

While this all sounds great (and it is in many ways), it’s also quite expensive. If you want Amazon to do the heavy lifting (quite literally) for you, you’ll have to pay hefty, picking, packing, and storage fees.

4. Dual SEO Opportunities

Optimize your listings for Amazon’s search engine.

Amazon product pages rank well on Google too so you can diversify your traffic sources and increase exposure.

This is just an undeniably good thing without a major drawback. However, if you also want to start selling on your own online store, there’s a very good chance Amazon will outrank you for your own products.

Shopify Vs. Amazon At-a-Glance

When to Choose Shopify

  • Brand Control: If establishing a unique brand is crucial.
  • Customization Needs: If you need extensive customization and specialized features.
  • Long-Term Growth: If you’re willing to invest time and resources in building your own store.

When to Choose Amazon

  • Immediate Sales Potential: If you want quick access to a large audience.
  • Simplified Operations: If you prefer not to handle website maintenance or complex marketing.
  • Product Focus: If you have competitive products and can navigate higher competition and fees.

Combining Shopify and Amazon for Maximum Benefit

In reality, the best course of action is to use both sooner or later on your eCommerce journey. You can leverage the benefits of both and ameliorate each one’s drawbacks with the other.

Multi-Channel Selling

Expand your reach by selling on both platforms. Use apps like Shopify Marketplace Connect to manage everything seamlessly.

Amazon and Shopify can be integrated quite seamlessly to keep stock levels consistent and prevent overselling.

Utilizing Amazon’s ‘Buy with Prime’ on Shopify

By integrating Amazon’s ‘Buy with Prime’ feature into your Shopify store, you can offer customers the benefits of Prime shipping while maintaining your brand presence.

This allows for a smoother checkout experience and can significantly increase conversion rates.

Additionally, you can use Amazon’s extensive logistics capabilities to fulfill orders efficiently, ensuring customer satisfaction. This strategic partnership taps into both platforms’ strengths, maximizing your sales potential and overall eCommerce strategy.

Conclusion: Start With Shopify, add Amazon When You’re Ready to Be Competitive

At the end of the day, the choice between Shopify and Amazon boils down to your specific business goals.

If you want complete control over your brand and customer experience, Shopify is the way to go.

If you’re looking for immediate access to a massive audience, Amazon might be your best bet.

But why not have the best of both worlds?

Combining both platforms allows you to build a strong brand presence while leveraging Amazon’s market.

Maximize your e-commerce potential by playing to the strengths of each.

What are you looking for?

About

Top Growth Marketing

TGM has spent more than $300 Million across social & search advertising platforms. Let us help grow your business using the best, performance-based customer acquisition strategies. 

How to Outsource Ecommerce Marketing?

Whether you are a CMO of a bigger brand or a solo store owner, there comes a time when you’ll need a helping hand—especially in the eCommerce marketing department. But sometimes, hiring in-house may be impossible. It’s hard to divide your resources between multiple...

Are Ecommerce Stores Profitable In 2025

If you’re a current or aspiring ecommerce merchant—you probably think about one thing. Will online stores be profitable this year? The answer is a silent yes. While profitability is possible, you must factor in intense competition, rising costs, and more frugal...

How to Perform an Ecommerce Site Audit: A 2025 Guide With Checklist

If you’d own a car, you’d take it to a check up ever so often, right?  Or better yet—do you perform regular health check ups (Hint: you should)?Well, performing an ecommerce site audit is like giving your online store a thorough check-up, ensuring it’s running at...

You May Also Like…

How to Outsource Ecommerce Marketing?

How to Outsource Ecommerce Marketing?

Whether you are a CMO of a bigger brand or a solo store owner, there comes a time when you’ll need a helping hand—especially in the eCommerce marketing department. But sometimes, hiring in-house may be impossible. It’s hard to divide your resources between multiple...

Are Ecommerce Stores Profitable In 2025

Are Ecommerce Stores Profitable In 2025

If you’re a current or aspiring ecommerce merchant—you probably think about one thing. Will online stores be profitable this year? The answer is a silent yes. While profitability is possible, you must factor in intense competition, rising costs, and more frugal...

How to Perform an Ecommerce Site Audit: A 2025 Guide With Checklist

How to Perform an Ecommerce Site Audit: A 2025 Guide With Checklist

If you’d own a car, you’d take it to a check up ever so often, right?  Or better yet—do you perform regular health check ups (Hint: you should)?Well, performing an ecommerce site audit is like giving your online store a thorough check-up, ensuring it’s running at...

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Share This

Share

Need some help with your media buying and customer acquisition?

Getting Value, Share it With Others!