With the growth of e-commerce, it almost looks like people barely leave the house to go get groceries and other items they may need. And why should they? After all, there are multiple sites offering to deliver their shopping to their doors. E-commerce has grown even more in the wake of the COVID pandemic.
How they Work
Amazon and Shopify are great examples of this and have been battling it out for a while now, leaving entrepreneurs to wonder what option is the best for their business. Shopify allows users to create online stores where they can manage their e-commerce functions. From one location, they can handle shipping, inventory, and payments. Given the SaaS platform, users pay a membership fee that assures them of access to all updates. Amazon, on the other hand, allows users to sell their items as individuals or professionals and offers a range of shipping options.
Source: Amazon logo.
Overview
Shopify has proven to win in many aspects and appeals to brands that want more control and identity over their products. The scalability of the pricing is also a plus. For small businesses that want to avoid upfront costs, Amazon is the better choice. However, with the additional variable fees, the costs can increase to levels that are no longer friendly to small business owners. Overall, Shopify is the better option and is better in the long term because it allows users to integrate with Amazon. You will not lose out by choosing Shopify if you ever want to consider using Amazon, thanks to this integration. Let’s look at how these e-commerce platforms compare.
Source: Shopify logo.
Features at a Glance
The Ease of Use
Nobody wants to spend time fumbling with controls, which is time that could be used to attract and engage potential clients. Shopify makes it possible for users to set up online stores in an intuitive way. Amazon, on the other hand, does not require users to set up a store. Instead, users sign up for a seller account and can start selling their products almost immediately. On this note, both platforms have it going for them.
Flexibility in Design
With Shopify, you get to set up your own store and can make use of the multiple templates on the site. It’s possible for you to give up a professional look and build your brand at the same time instead of working with a dated look. This is not possible with Amazon where the site has control over design and product displays. It’s much harder for a brand to stand out among the fray.
Tools & Features
With an app store coupled with lots of built-in features, it’s much easier for sellers to customize their shops and appeal to their clients even more. The same cannot be said for Amazon, even though it does offer a wide range of features.
Source: Shopify Payments
Payments
The payment structure on Shopify is very transparent and customers do not incur transaction fees when using the site’s gateway. It also provides more than 100 other payment options whose applicable fees are very clear. The variable pricing in Amazon payments makes it harder to tell how much users will pay, thus taking away from the transparency.
User Traffic
On this note, Amazon is doing better than Shopify. The site is home to millions of visitors per month such that you do not have to do much to get visitors to your page. However, you have to compete against other sellers and must optimize to get more traffic. With Shopify, the site allows you to customize as much as you want but does not help with the marketing. You are responsible for attracting and retaining customers which adds to your workload.
Pricing
Not only does Shopify offer a free trial but it also divides its pricing into three categories, with the cheapest starting at $29. The highest pricing is at $299 per month. Amazon is a bit more challenging with its variable pricing. You can either pay $0.99 per item or pay a monthly fee of $39.99. Both options are subject to varying fees.
It also helps to note that Shopify tech support is available via phone and live chat to help sort through any arising issues. Amazon support is not as accessible, which can be a bit tricky for new users.
Verdict
Is there one option that’s better than the other? It’s safe to say that Shopify scores more points in most aspects compared to its competitor. The possibility of integration makes it an even better choice because you do not have to choose between the two. The ultimate choice comes down to your business needs and your preferences.