Amazon FBA vs Shopify - Which Should You Choose?
There is no doubt that the "Amazon FBA vs Shopify" is one of the biggest battles going on the eCommerce world. It is not surprising that choosing between the two platform could be a tall order.
If this is your current dilemma, reading this article might provide you the answer you are seeking for.
I understand how valuable your time is so without any delays, let’s get started!
Amazon FBA vs Shopify -
A Side by Side Comparison
I have taken the liberty to come up with seven different categories to help you get a better picture of what these two platforms can offer to your eCommerce business.
#1 Company Track Record
Amazon is an American multinational technology company based in Seattle, Washington. The company focuses on cloud computing and artificial intelligence but is well-known for its eCommerce platform.
Base on revenue and market capitalization, Amazon is the largest eCommerce marketplace platform in the world.
Jeff Bezos founded Amazon on July 5, 1994.
On its early days, Amazon began as an online bookstore and has expanded to a variety of products and services. This include video and audio streaming.
Shopify, on the other hand, is a Canadian eCommerce company based in Ottawa, Ontario. Its proprietary eCommerce platform "Shopify" offers online marketers a suite of tools and services to simplify the process of starting and running an online store.
Shopify was founded in 2004 by Tobias Lutke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil - an online store for snowboarding equipment.
However, Lutke was dissatisfied with the current existing eCommerce platforms, so he decided to build his own.
The Snowdevil founders launched the platform as Shopify in June 2006, and it began its rise to fame since then.
While You're Here: Check Out My #1 Online Business Recommendation
#2 Cost To Get Started
If you decide to start your eCommerce business with Amazon, there are two Amazon Seller Accounts you can choose to get started with.
However, since you are planning to use the Amazon FBA business model...
You will need to get an Amazon Professional Seller account. But I humbly suggest that you get started with the Individual Seller account first. Here's why.
The Amazon Professional Seller membership account will cost you a monthly fee of $39.99 + other selling fees.
The membership comes with different perks and premium services such as eligibility for top placement on product detail pages, customization of shipping rates for certain products, offering promos to your customers, gift wrapping and more.
There are four different plans you can choose in starting an eCommerce business with Shopify. The most popular plan is the Basic Shopify which will cost you a monthly subscription fee of $29.
However, as the name suggests...
The Basic Shopify plan doesn’t include some of the more sophisticated features that you can utilize for your business. Such tools includes promotional gift cards, analytics, reports, and the abandoned cart recovery.
It is most likely that you will need to move to higher subscription plans to run your business smoothly.
If doing so is what you see fit for your business, these are the other Shopify Plans to choose from:
- Shopify Plan - $79 per month
- Advanced Shopify Plan - $299 per month
- Shopify Plus - Starts around $2000 per month
#3 Ease of Use
Both Amazon FBA and Shopify offers an excellent customer experience when building your online business.
Setting up your business with Amazon FBA cannot be more straightforward.
All you need to do is create an Amazon Seller account and complete each set-up stage. Once you complete your registration, you have to list your products, sell them and get paid.
I understand if you would think that I might be forgetting something.
What about shipping?
The good news is, the Amazon FBA takes one of the biggest challenges of running an eCommerce business, shipping your products.
With the FBA...
Amazon will keep your inventory on their own facilities, manage order fulfillment - including product shipping and customer service.
On the flip side...
Shopify does a fantastic job of making powerful sales tools accessible to everyone who wants to start selling online.
Whether you’re selling a pair of mittens or on the verge of starting your own eCommerce empire...
Shopify is designed to help building your eCommerce store as easy and efficient as possible. The platform also has a clean, clear design and comes with tons of help pages for easy navigation.
#4 Marketing and Lead Generation
Getting your customers’ attention is one of the biggest challenges in running an online store.
This is where Amazon really shines!
With millions of visitors a month, the odds are stacked temptingly in your favor. Amazon has an enormous number of daily shoppers that naturally visit the platform on their own.
This means, you don’t have to worry (a lot) about search engine optimization (SEO), marketing and running email campaigns.
In short, lead generation, in addition to shipping and customer services are taken care of by Amazon.
If your products are of excellent quality at a reasonable price, you are almost guaranteed a buyer when running an Amazon FBA business.
This way, you can dedicate more time to attend on other important things of your business such as:
- managing your inventory,
- dealing with orders,
- keeping an eye on your competition,
- device new means to get higher profits and;
- finding the best suppliers for your products.
On the other hand...
Starting an online store with Shopify might be a little challenging, especially for beginners.
Just like I mentioned in the first part of this section...
One of the biggest challenges you have to overcome in running an eCommerce course is driving traffic and generating leads for your business.
Because Shopify doesn’t have the same search volume as Amazon, making people find your products fall in your own devices. You have to establish your own brand and gain people's trust.
Furthermore, you will also be responsible for driving traffic to your site and ranking your products on specific keywords. You have all of these to worry on top of completing orders, shipping products and managing your online store.
However, Shopify compensates this by providing you with all the assistance that you would need.
Shopify has excellent tools in dealing with email campaigns, building a strong social media presence, personalized shopping, SEO and an abandoned cart recovery feature.
#5 Store Design Flexibility
Although the Amazon FBA store is more limiting in its designs, the trade up is that you do not have to spend a grueling amount of time trying to set up and customize your store.
Amazon takes full control of how your products will appear. All you need to do is upload product images, write product title and descriptions.
Shopify gives you a lot of flexibility over the layout and design of your online store. Shopify will provide you with 10 free themes and over 60 premium ones which cost between $100 - $200.
You can edit, personalize, and even switch your themes to create a unique brand image for your eCommerce business.
#6 Payment Options
Amazon supports Amazon Pay as its main payment gateway. You can accept credit and debit cards, but unfortunately, you cant accept PayPal payments.
For Professional Sellers, Amazon applies selling fees in addition to its monthly subscription. These fees vary by category but are made up of referral fees and shipping fees.
Then there are monthly inventory storage fees dependent on the size, volume, and type of product.
Shopify also has its own payment gateway called Shopify Pay. When you are using Shopify Pay, you don’t have to pay any transaction fees.
In addition, it also provides over 100 different payment options - including Amazon Pay and PayPal.
#7 Additional Features
Amazon provides its members with a straightforward and convenient way to run an eCommerce business.
With the FBA, they even take the hassle shipping process out of your hands. You will have the freedom to allocate your time on learning how to earn higher profits and on how to scale and grow your business.
Shopify will allow HTML and CSS customization which will enable you to design your online store just the way you want it.
Shopify also comes with a decent blogging platform and a suite of handy SEO capabilities. Including driving traffic to your website through different social media platforms such as Facebook, Twitter, and Pinterest.
- Amazon FBA vs Shopify, which is better overall?
- Which eCommerce platform do you think is more suitable for beginners?
Let me hear your thoughts in the comment section below.
Well, I’m afraid that in the end, the decision falls in your hand.
I merely presented you with all the things you possibly need to know about these two giants in the eCommerce industry.
Perhaps one of the best ways to summarize this article is this.
While Shopify has a wide range of eCommerce tools that you can utilize to build and promote your business...
Amazon FBA will allow you to take advantage of its "trusted" name to drive massive traffic into your business. Not to mention you won't have to handle the packing, shipping and customer service.
But what’s important in the end is for you to identify how you want to run your online store.
A Friendly Reminder
Making a living online thru eCommerce is not only possible but is also very doable.
However, before you get started selling with Amazon FBA or thru Shopify, you must first ask yourself, is this really what you wanted to do?
Is eCommerce For You?
Many factors can affect your success in an online business, and one of them is your passion for what you are doing.
No matter how good the platform is, how effective the training program or how fantastic the business opportunity but if your heart's not into it, you are most likely to fail.
If you are confident that starting an online store is your ticket to financial independence, I know an excellent eCommerce training course that you can get started with.
This training course has been proven to provide effective eCommerce strategies that will get your business earning 6 figure a month - or more!
Meanwhile, if you are on the fence on whether eCommerce is indeed for you, you can take a look at other popular online businesses today.
For starters, have you taken a look at Affiliate Marketing?
If so, I can recommend an excellent Affiliate Marketing training course that you can get started for free!
Thank you for reading this article on Amazon FBA vs Shopify. I am hoping that you found the answers that you were looking for.
If you feel that this was worthy of your valuable time, kindly share this to other people so they too would be guided with the proper course of action to take regarding this matter.
Until next time and I wish you all the success in your chosen path to financial independence.
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