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I Compared Shopify Vs Amazon: Here's What Will Make You More Money

Published on: December 9 2022 by MyWifeQuitHerJob Ecommerce Channel

I Compared Shopify Vs Amazon: Here's What Will Make You More Money

I Compared Shopify Vs Amazon: Here's What Will Make You More Money

many of you are probably wondering
whether you can make more money selling
on Amazon or your own online store well
I've been selling on Amazon since 2015
in my own online store since 2007. and
in this video I'll give you my take on
which platform is better which one you
should start with and which one will
lead to a better long-term e-commerce
business
now Shopify and Amazon are two of the
top leaders in the e-commerce World both
will help you display your products in
front of millions of potential customers
but they are completely different
Services Shopify is an e-commerce
platform that lets you build an online
store without code in contrast Amazon is
an online marketplace where you sell
your products alongside other sellers
now if you're looking to sell your goods
online you're probably comparing Shopify
versus Amazon as both platforms have
their pros and cons now in this video I
compare Shopify versus Amazon in detail
based on ease of use which platform is
easier to get started pricing which
platform is cheaper payment options
which platform offers more payment
options design flexibility which
platform offers more design flexibility
and freedom support which platform
offers better customer service and then
e-commerce features which platform
offers better selling features and then
finally there's traffic and sales which
platform will generate you more traffic
and money now let's start with with just
the differences the primary difference
between Shopify versus Amazon is that
Shopify is an e-commerce platform and
Amazon is an online marketplace with
Shopify you can easily create an online
store where you have the flexibility to
design the front end and sell whatever
you want you can build an e-commerce
brand from the ground up with Shopify
however you'll need to learn how to
Market your brand and drive traffic to
your website Amazon is an online
Marketplace that attracts 231 million
unique monthly visitors just in the US
Alone by listing your product on Amazon
your product instantly becomes visible
to hundreds of millions of users without
having to learn how to drive your own
traffic however you're only allowed to
sell products on Amazon that adhere to
their guidelines in addition certain
categories require Amazon's approval
before selling such as fine art music
and jewelry now selling on Shopify is
like renting a commercial building for
your business you have your own space
and you can use it however you want but
you'll need to advertise its location so
people can find you selling on Amazon is
more like renting a small store in a
shopping mall thousands of potential
customers visit your store when they're
shopping at the mall although they
aren't explicitly looking for your
business you will make sales because of
the high foot traffic so simply put
Amazon works best for individual sellers
and small businesses who want a faster
ramp up to sales whereas Shopify is the
perfect solution for businesses who want
to run their own brand and website now
let's just start with the Shopify Pros
you don't need any coding skills to
build a Shopify website it's easy to use
and has an intuitive admin interface
additionally there's plenty of
documentation available to guide you
through the setup process Shopify is
also highly customizable you can choose
one of Shopify as many themes or
third-party templates to design your own
professional looking store Shopify also
gives you access to 7 000 apps that
aren't available to Amazon sellers so
for example Shopify has an app called
point of sale that unifies your online
and offline stores by managing sales
payments and returns among other things
which Shopify you can create a unique
brand identity as you have full control
over the product display and your
branding Shopify also offers more than
100 different payment options such as
PayPal Apple pay stripe and Amazon pay
Shopify also has an in-house payment
Gateway where there are no transaction
fees Shopify also has no restrictions on
what you can sell using their platform
except for firearms and other dangerous
or illegal products Shopify is designed
to be suitable for online stores of all
sizes and it also hosts world famous
Brands such as Heinz and Kylie cosmetiks
here the downsides to Shopify with
Shopify you are fully responsible for
building your own brand and driving
traffic to your website so you will need
to learn how to use Google ads Facebook
ads and social media to advertise your
products and build a customer base
it's also more costly to start selling
on Shopify than on Amazon as the
cheapest Shopify pricing plan starts at
29 a month installing third-party apps
to add e-commerce functionality further
increases your initial setup costs now
let's tok about Amazon here are the
pros of Amazon
starting an online store from scratch
and driving traffic requires a marketing
investment now as Amazon attracts
millions of Shoppers every month it
gives your products instant exposure
with high traffic and Superior
conversion rates selling on Amazon is
much easier to start now Amazon's user
interface is also simple and easy to use
you only need to follow a couple steps
to start selling on Amazon such as
providing your account details and
adding product images and descriptions
Amazon also has a unique program called
fulfillment by Amazon or FBA which
handles storing packing and shipping
your products at low cost and having
Amazon FDA makes it much easier for you
to run your business now Amazon also has
confident buyers since shopping online
can be a hit or miss experience Shoppers
are often hesitant to purchase from
unknown stores but because Amazon is a
household name you benefit from their
reputation and their brand Authority
it's also significantly less expensive
to start selling on Amazon versus
Shopify you can actually start selling
on Amazon for free now here are the
downsides of Amazon there is high
competition there are over 10 million
Amazon sellers and over 2 million are
from the us alone the competition is
fierce and there's rampant piracy on the
platform standing out on Amazon is
extremely difficult
Amazon doesn't support third-party
payment gateways like striper PayPal
either they have their own in-house
gateway called Amazon pay which only
accepts credit card and debit cards you
also get limited access to your
customers Amazon owns all of your
customer data so you can't do email
marketing SS marketing or direct mail
marketing as a result it's extremely
difficult to generate repeat sales
Amazon also has a lot of restrictions on
what you can sell and what you can't
they also restrict specific categories
such as watches jewelry and sports
collectibles you will need to contact
Amazon directly for approval alright so
now let's compare the two head-to-head
by the way if you're enjoying this video
so far then sign up for my free six day
e-commerce mini course below alright
which one's easy to use getting started
selling on Amazon is much easier than
Shopify because you don't have to build
an entire website from scratch to sell
on Amazon you simply need to register
for an account and list your products
senegment online store and Shopify is
easy as well and like Amazon Shopify has
a guided wizard that that walks you
through the setup process one step at a
time however there is a steeper learning
curve with Shopify as you need to set up
your domain theme shipping payment
provider taxes Etc now that said both
platforms are intuitive and offer a
minimalist design easy navigation and
tutorials to help you get started
Shopify and Amazon are designed to be
straightforward to set up for new
e-commerce sellers but in terms of easy
use and getting started Amazon wins
hands down so the winner here is Amazon
now which one is cheaper to get started
Shopify or Amazon due to Amazon's High
fees selling at Amazon is more expensive
than Shopify once your business
generates a steady stream of sales
however Shopify costs more to set up
than Amazon when you are first getting
started now Shopify offers a 14 day free
trial and six pricing plans that range
from 29 a month all the way to two
thousand dollars a month all these plans
give you access to core e-commerce
features such as Security discount codes
unlimited product listings and credit
card processing now on the other hand
Amazon offers only two plans as follows
there's the individual seller's account
the individual plan has no monthly fees
but you must pay 99 cents per item sold
you can't advertise or take part in
Amazon brand registry and this plan is
suitable for sellers testing the waters
before choosing to go all in on Amazon
there's also the professional plan
this plan has a monthly subscription fee
of 39.99 you get access to more advanced
tools such as promotions ads and
inventory management which are essential
for running a successful Amazon store
now in addition to the cost that I just
specified Amazon also charges a referral
fee for every product sold the referral
fee depends on the product category but
it's typically around 15 percent now if
you choose to use fulfillment by Amazon
you'll have to pay another 2.92 cents to
150.94 per unit depending on the weight
size and the time of year
now the cost of selling on Shopify
versus Amazon depends on your sales
volume so if you're making a hundred
bucks a monthly sales then Amazon will
cost you 15 bucks which is cheaper than
Shopify but if you're generating ten
thousand dollars in monthly sales you'll
end up paying 1500 to Amazon Which is
far greater than what you'd have to pay
with Shopify now because of Amazon's
High referral fees Shopify is a cheaper
alternative for selling in larger volume
however you must also factor in the
additional cost of marketing and sales
when you run a Shopify store so in terms
of comparing the two I call it a draw
they're both around the same
now let's compare Shopify versus Amazon
in terms of payment options Shopify
offers many more payment options than
Amazon with greater flexibility so for
example Shopify allows you to accept
Paypal whereas Amazon does not Shopify
also has its own payment gateway called
Shopify payments which does not charge
any transaction fees now tiknically
Amazon doesn't charge extra fees for
payment processing because the cost of
payment processing is already kind of
embedded into the 15 percent that you
pay when you make a sale however
Amazon's Payment Processing options are
extremely limited because you can accept
Paypal Apple pay Google pay or any other
payment gateways now in contrast Shopify
supports over 100 plus payment gateways
including Amazon PayPal stripe and Apple
pay these payment gateways have a
transaction fee ranging from 0.05
percent to two percent depending on the
plan and your payment options now for
credit card payments a separate credit
card rate is applicable which is around
2.9 plus 30 cents depending on the plan
so the winner in terms of payment plans
is clearly Shopify
now which one offers more design
flexibility well Shopify is
significantly more flexible than Amazon
when it comes to design and you have
full control over your website and the
presentation of your products designing
your website is simple Shopify provides
access to 88 beautiful themes which can
be edited and personalized according to
your brand you can also find attractive
eCommerce themes on digital marketplaces
like out of the sandbox theme force and
template monster Shopify literally gives
you complete control over your site
design and every aspect of your site is
fully customizable on the other hand
Amazon offers no room for customization
and every Amazon listing looks the same
all Amazon Pages have a similar layout
and design making it easy for sellers to
create product listings and sell right
away however uniformity across all pages
makes it difficult for you to stand out
from the competition so overall Shopify
wins hands down when it comes to
creating a unique brand image and having
the freedom to design your own online
store so the winner here is Shopify
now which platform has better support
Shopify or Amazon well Shopify offers
much better support than Amazon hands
down Amazon is notorious for outsourcing
their customer support to India and
other non-english speaking countries and
they often provide can responses that
are not very helpful there's no phone
number to be found on Amazon's site and
you have to struggle to reach a customer
support rep over the phone now in
contrast Shopify offers 24 7 phone and
email support and they've got tons of
Artikles tutorials and guides that cover
everything you need to know about
Shopify the Shopify help center is easy
to browse and navigate in addition
Shopify offers an extensive set of
Support options such as the form phone
support live chat email social media and
advanced specialist support their 24 7
support is always accessible for all
Merchants regardless of the plan and
like Shopify Amazon also has a help
center that answers frequently asked
questions and Amazon also is a forum
where you can submit questions and
discuss issues with fellow Merchants but
in order to get anyone on the phone you
must request a call using the contact us
button and this button is often hidden
because Amazon encourages its sellers to
resolve their issues using resources
such as forums help pages and tutorials
so overall Amazon support is horrible
and you'll end up wasting countless
hours trying to get a straight answer
from a non-native English speaking
customer support rep so the winner hands
down here is Shopify
now which platform has better selling
features and tools well Shopify offers
more eCommerce selling features than
Amazon but this is largely because
Amazon is less flexible and does not
provide you with your customers
information most Shopify and Amazon have
powerful built-in features that help you
manage your Ecommerce business
efficiently for example Shopify offers
the following tools abandoned cut
recovery an inventory tracking system
coupons and discounts a point of sale to
take orders at trade shows and flea
markets you can also add live chat
customer loyalty programs email
marketing SMS marketing and many more
tools designed to retain your customers
and generate repeat business with more
than seven thousand apps in the
marketplace the Shopify app store has a
solution for all of your needs and if
you're a drop shipper Shopify offers
many apps that automatikally import
products from AliExpress into your
online store now like Shopify Amazon
also offers many selling tools that make
doing business easy but fulfillment by
Amazon is by far Amazon's best feature
with FBA Amazon will store pack and ship
your products so you don't have to worry
about inventory all you got to do is
send your products to an Amazon
warehouse and Amazon does the rest
there's a fee for FBA but it saves the
headache of inventory management
shipping and returns now both Amazon and
Shopify possess a unique set of
e-commerce features and tools which
aren't found in the other so I give it a
tie here it's a draw
all right which one's better for
generating traffic and sales Shopify or
Amazon now Amazon has a massive
advantage over Shopify when it comes to
generating traffic and sales because
Amazon gets 2.45 billion monthly
visitors in the us alone you can get
instant exposure for your products to a
huge audience now the only drawback with
Amazon is that the competition is fierce
and you must convince Shoppers to buy
from you over your competitors now when
you build a store in Shopify you're
starting from Ground Zero your website
won't have any traffic so you need to
generate your own sales with Google ads
Facebook ads search engine optimization
email marketing SMS marketing or
blogging now learning these skills takes
time and there's a significant learning
curve however your website allows you to
own your customers and Shopify provides
various marketing tools that give you
complete control over your brand to
attract repeat business now with Amazon
many customers will buy from you but
you'll never know who they are which
makes it difficult to build a brand but
in terms of sheer traffic and sales
Amazon wins hand down due to its massive
customer base so the winner here is
Amazon hands down now which one is
better for search engine optimization
Shopify or Amazon now if you compare
Shopify versus Amazon in terms of SEO
Amazon has a superior advantage and
here's why when you build a store on
Shopify with a brand new domain you have
little or no domain Authority which
makes it difficult for you to rank on
Google search you must learn how to
optimize your pages for the search
engines and create content to rank on
Google which can be very time consuming
but when you list your products on
Amazon they can rank on the front page
of Google right away and this is because
Amazon has high domain Authority and
their listings carry massive weight with
the search engines now if you list a
product on Shopify and Amazon at the
same time the chances of ranking on
Google are much higher with your Amazon
listing in addition Amazon runs its own
search engine which drives traffic and
sales for over 50 percent of the United
States so overall if you understand both
Amazon SEO and Google SEO you will be
successful so the winner for SEO in this
case is Amazon hands down now when
should you use Shopify versus Amazon
well here's a quick overview Shopify is
an e-commerce platform and Amazon is an
online marketplace with Amazon it's
cheaper to start your online business
but it can get more expensive Azure
sales volume increases Amazon owns your
customer base making it challenging to
build a brand meanwhile Shopify offers
design flexibility and lets you
customize your store however you want
with no restrictions Shopify is better
customer support and both Shopify and
Amazon offer useful eCommerce features
Shopify is abandoned cut recovery Drop
Shipping email and SMS marketing
customer loyalty programs whereas Amazon
has to fill them by Amazon one of the
world's most advanced fulfillment
networks now the decision between
Shopify and Amazon really depends on
your budget and your sales goals so you
want to choose Shopify if you want to
build your own brand and a scalable
e-commerce business you want to own your
own custom domain you don't want any
restrictions on how to design your
website you have the time to learn about
SEO and other marketing strategies and
you're willing to put in the effort to
build a loyal customer base you should
choose Amazon if you want to make money
as quickly as possible you're on a
limited budget your focus is not on
building a brand and you don't want the
hassle of managing inventory packaging
and shipping your products now when it
comes to evaluating Shopify versus
Amazon you should eventually sell on
both platforms to maximize your sales
and your reach in fact you can easily
integrate Amazon with your own Shopify
store the Shopify Amazon app allows you
to own your own Ecommerce business and
promote your products to millions of
customers on Amazon with just a few
clicks alright so the million dollar
question is what's the best e-commerce
platform for you now my recommended flow
for new e-commerce entrepreneurs is to
start out selling on Amazon and then
transition to your own Shopify store
once you've validated your product now
if you're on a budget and don't want to
invest in marketing or designing a
website then just start with Amazon and
then once your Amazon store generates
some sales and you get decent traffic
you should consider setting up a Shopify
store to start building your brand with
Shopify you can collect customer data
and use it to grow your customer base
now ultimately your goal should be to
sell on as many platforms as you can to
maximize your reach now for a more
detailed comparison of all the
e-commerce business models make sure to
watch this this video next

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