Shopify FBA Vs. Amazon FBA- Which is Best for Your eCommerce Business
If you are looking for a way to expand your eCommerce business, there are two main options that come to mind: Shopify FBA and Amazon FBA. But which is best? Both have their advantages and disadvantages, but the answer all comes down to what you want out of your eCommerce business. Are you looking to sell on multiple platforms or just one? Do you need help with fulfillment or do it yourself? Will someone else handle returns for you? These questions will lead us toward the right choice between these two popular third-party marketplaces.
Key Differences Between Selling on Amazon and Shopify
Amazon and Shopify are both popular ecommerce platforms, but they have some important differences sellers should understand.
Amazon
Amazon is primarily a marketplace where multiple sellers compete to list and sell their products. As an Amazon seller, you get access to Amazon's huge customer base of over 150 million Prime members. However, you have less control over your brand and listings. You also pay various fees that can amount to 30-40% of sales. But Amazon handles most of the logistics like storage and shipping.
Shopify
Shopify enables you to build your own independent online store and brand. You have full control over the look, feel, and experience in your store. There are lower overall fees compared to Amazon fees. However, you are responsible for driving traffic and marketing to your store, as well as arranging shipping and fulfillment.
Integration
It is possible to integrate Amazon as the fulfillment provider for a Shopify store using Shopify's FBA integration. This allows Shopify stores to leverage Amazon's large fulfillment network while still owning their independent store.
Which is Better - Amazon or Shopify?
For small sellers prioritizing simplicity and reaching Amazon's built-in audience, Amazon may be the better choice. The extensive Prime customer base and fulfillment infrastructure make it faster and easier to start selling.
For those focused on owning their brand and having full control of their customers, Shopify is likely the better pick. Shopify does not drive traffic so it may be harder initially. But you retain ownership over your brand and store as you grow.
Next Article: 5 Strategies To Accelerate eCommerce Order fulfillment
FAQs
What are the main differences between Amazon and Shopify?
The main differences are that Amazon is a marketplace where you compete with other sellers, while Shopify enables you to build your own independent brand and store. Amazon provides fulfillment and has existing customer traffic, but takes higher fees. With Shopify you have more control but lower fees, but are responsible for marketing and logistics.
Can you use Amazon FBA fulfillment with a Shopify store?
Yes, Shopify offers an FBA integration that allows you to use Amazon's large fulfillment network to store inventory and ship Shopify orders. This means you can focus on your Shopify store without managing shipping.
Is Amazon or Shopify better for small sellers?
For small sellers just starting out, Amazon is likely the better choice. You can tap into their existing audience and fulfillment capabilities to simplify logistics. Shopify requires more work upfront to drive traffic.
Is Shopify or Amazon better for branding?
Shopify is better for building an independent brand since you own the entire customer experience. On Amazon you compete with other sellers and have less control over brand messaging and visuals.
What fees do Amazon and Shopify charge?
Amazon fees add up to 30-40% of sales from referral fees, FBA fees, and more. Shopify has lower monthly subscription fees around $30, plus payment processing fees around 2-3% of sales.
Can you sell on both Amazon and Shopify?
Yes, many sellers have both an Amazon seller account and an independent Shopify store. This allows them to leverage Amazon's built-in traffic while also owning the customer experience through their Shopify store.
