• Home
  • |
  • Blog
  • |
  • Shopify vs Amazon FBA – Key Differences And How To Profit

February 12, 2022

Shopify vs Amazon FBA – Key Differences And How To Profit

You want to make money online, but you're not sure which method will work best for you. There are a lot of options, and it can be hard to figure out which one is right for your business.

To simplify things, in this article, we will focus on two popular paths to online income: Shopify vs Amazon FBA.

Shopify and Amazon FBA are both powerful eCommerce platforms. This post examines the business advantages Amazon FBA sellers have over Shopify store owners, and the aspects of Shopify that give it a competitive edge.

We'll break down the pros and cons of selling on Shopify and selling using Amazon FBA. By the time you've read this article, you'll know enough to decide what's right for you! Let’s get right into it.

What Is Shopify And How Does It Work?

Shopify is an eCommerce platform that offers tools and resources for entrepreneurs to design and manage an online store. It's made specifically for e-commerce entrepreneurs with no coding experience who want to create an online storefront quickly and easily.

One of the most significant benefits of Shopify is that you can start an online business with minimal friction. You don't necessarily need your own merchant account because you can use Shopify Payments, the platform's payment processor.

Shopify works like a fairly standard content management system (CMS). It makes it easy to edit and update the website content and functionality from an admin area. This lets you access most of the tools you need for running your website in one convenient place.

While a standard Shopify store doesn't have a lot of bells and whistles, it's possible to add new features via Shopify apps. Apps are extensions of the core software that add new possibilities, such as creating an affiliate program or adding live chat.

Shopify Fulfillment Network vs Amazon FBA

It’s not as well known, but guess what? Shopify has their own fulfillment network similar to Fulfillment by Amazon. The service is not as mature or well rounded, but there are definitely some perks to using it.

The main reason to use Shopify fulfillment over FBA is that it gives you more flexibility and control over your store. As we’ll discuss later, Amazon is good for many reasons but providing a versatile online storefront is not one of them

So if you’re looking for an end-to-end fulfillment service, Amazon is probably the better choice as long as you don’t need to customize your eCommerce experience a lot.

That said, there are some other types of online selling that may work better with Shopify. Let’s take a look at the most popular one, which is dropshipping.

Shopify Dropshipping vs. Amazon For Beginners

Many people get into Shopify because they want to try dropshipping. Dropshipping is not the only kind of business you can set up when it comes to creating an eCommerce website business.. You make the sale and then "drop" the order to your supplier for shipping.

You might be wondering if Shopify has some great dropshipping apps - the answer is yes and no. Some have excellent ratings, but if you need a more specific niche product, it may be challenging to find the same quality.

For example, if you want a print-on-demand drop shipping app, it's hard to find one with a rating above 4.5 stars. You can also create your own fulfillment network from mixed and matched service providers. This makes it difficult to compare Shopify fulfillment vs Amazon FBA directly.

Shopify has a mobile app for checking your sales, inventory, and reports in real-time. This is especially useful for dropshipping because it makes it easy to stay on top of your business with minimal effort and presence.

So, is Shopify better than Amazon? Well, let's investigate Amazon FBA next and figure it out.

What Is Amazon Fba And How Does It Work?

The "FBA" in Amazon FBA stands for "Fulfillment By Amazon." 

Amazon FBA is a service that allows you to store your products in Amazon's warehouses. When someone makes a purchase, the order gets shipped directly from Amazon - not from you.

This is a type of service known as "pick and pack" because the fulfillment company (in this case, Amazon) picks the right product based on your order and packs and ships it for you.

Now that we know that - is it better to sell on Amazon or Shopify? It really depends on a number of personal preferences. The answer can be different for different businesses.

Is It Better To Dropship On Amazon Or Shopify?

While you can dropship products on both platforms, Shopify is more suited to this form of selling. So the real question is this; is Amazon FBA better than dropshipping? Let's delve into that right now.

Why Amazon Fba Is Different Than Shopify

The most significant difference between Amazon FBA and Shopify is that you don't have your own store with Amazon. Instead, you basically "rent" web space from Amazon, as opposed to setting up your own online storefront.

This can be both an advantage and a disadvantage. On the one hand, it's great because tons of people go to Amazon every day to buy stuff. Some of them might buy your products just by finding them with Amazon's search.

On the other hand, if you do have your own website, there are many more options for promoting your brand and your products. After all, even if you send someone straight to your Amazon listing, they might click on a related product and never come back.

Selling Amazon Fba vs. Shopify Dropshipping - Comparison Of Features

Still wondering which is better when you compare  Amazon FBA withShopify? Sometimes the easiest way to figure out the best option is to compare the available features directly. That's why I’ve put together this table of the most popular features comparing Shopify vs. FBA.

Feature

Amazon FBA

Shopify

Upsells

No

yes

Bump offers

No

yes

Your own website

No

yes

Built-in massive audience

Yes

No

Trusted brand name

Yes

No (not until you build it)

Shipping and fulfillment done-for-you

Yes

Yes (only if eligible for Shopify Fulfillment Network)

Warehousing done-for-you

Yes

Only if set up with a fulfillment provider or Shopify’s network

Customer care done-for-you

Yes

Yes (if using Shopify fulfillment)

Can build a list from visitors

No

yes

Can retarget visitors with ads

No

yes

As you can see, each of them includes some great features that the other lacks. But it doesn't exactly tell you which is better. To figure that out, let's take a look at what this actually means for your business.

Pros and Cons of Amazon FBA (The Biggest Online Store)

Amazon FBA has several significant pros and cons for online sellers. Is Amazon FBA worth it in 2021? First, let's take a look at the pros:

  • You don't have to deal with inventory or shipping at all
  • The FBA program allows you to reach millions of customers on one of the world's biggest online stores
  • You don't have to manage an entire website, just your listing(s)
  • People are more likely to trust Amazon with their credit card than some random website

Of course, there are downsides to Amazon FBA as well, which are:

  • It can be difficult to build customer loyalty when you don't have your own website and email list
  • Your brand reaches fewer people because it's hidden behind Amazon search results (most people don't look past the first page of results)
  • You have limited marketing opportunities due to selling on a platform you don't control
  • If your Amazon seller account gets suspended, you're out of luck

Deciding whether or not this type of business is right for you will depend on how those pros and cons stack up with your strengths and weaknesses.

Pros and Cons of Shopify Dropshipping (Your Online Store)

Of course, there are also many Shopify advantages and disadvantages. Having your own eCommerce business can be great but also challenging. First, the pros:

  • You can set up your own site with Shopify, which gives you more options for promoting your brand
  • You can create special offers like discount codes whenever you want
  • Basic Shopify has no transaction fees if you use Shopify pay
  • You can build a customer base with email marketing, push notifications, live chat, and other methods
  • Shopify has an entire online marketplace of eCommerce tools (called apps) which you can use to enhance your site
  • You can create upsells and bump offers to increase your average order value
  • You can set up a Shopify fulfillment service to provide a similar service to FBA

Shopify's cons aren't as obvious as Amazon's, but they definitely exist:

  • Credit card fees are unavoidable
  • It's more complicated to get started with Shopify than just listing your product on Amazon
  • You have to manage and be responsible for your eCommerce brand
  • Your brand may reach fewer new customers because your product isn't featured on Amazon's website
  • You pay a steep monthly fee to keep control of your online store (advanced Shopify costs $299/month at this time)
  • You have to build your customer list and email marketing strategy from scratch
  • Some apps (especially those that help you earn money) may charge transaction fees

Once again, you'll have to think about the pros and cons to determine if Shopify e-commerce is a feasible strategy for you.

Tips For Amazon FBA Sellers in 2022

Here are some tips that can help new Amazon sellers get started or grow your business if you're selling on Amazon's online marketplace:

  • Use Amazon Sponsored Product ads to make sure your products reach the right people.
  • Start an Amazon private label brand if you don't want to use wholesale or create your own products.
  • Don't try to compete on price with major brands - there is no way they will let you win that battle.

The one thing you can control about your Amazon listings is the copywriting, so make sure you invest in compelling copy to increase your conversions. Use powerful language that represents your brand and its values, and consider implementing copywriting formulas for your product descriptions.

Shopify Store Optimization Tips For 2022

If you're planning to grow or launch a Shopify store, you'll need to follow a lot more best practices than on Amazon. Here are some crucial tips:

  • Find out who your ideal customer is and create messaging that speaks directly to them
  • Offer a lead magnet to build an email list so you can remarket to people on autopilot
  • Use reviews, ratings, and testimonials on your product pages to attract new customers
  • Make sure your site loads fast and clean without errors
  • Invest in good product images so people can see what they're getting

You'll be two steps ahead of most Shopify store owners who don't follow best practices if you do all of those things.

Benefits of Shopify as an eCommerce Platform Over WordPress

You might wonder why WordPress and WooCommerce aren't included in this article. The answer is simple; Shopify has many advantages over WordPress, including security, speed, and ease of use.

While you certainly can sell online on WordPress, building a WordPress online store involves learning entire skill sets which you don't need when you use Shopify. For example, even basic Shopify comes with a free, always enabled SSL certificate.

High-end WordPress hosting usually includes SSL certificates as well, but in many cases you're responsible for installing and maintaining it yourself. This can be a tricky process, but having SSL is critical for the security of transactions such as purchases and form submissions.

Conclusion: Should You Pick Amazon FBA, Shopify, or Something Else?

Ultimately, you'll have to consider the pros and cons of each option to determine which is best for your needs.

Amazon FBA has a number of advantages that make it worth considering - it gives you access to millions of customers across one of the world's biggest online stores.

On the other hand, if you already have an established brand with loyal customers looking for more information about what you're selling, then Shopify might be better suited to your business model. It allows you to set up your own site with much more customization and customer touchpoints.

The truth is that while it's best to start off with one or the other, if you want to scale in e-commerce, eventually, you'll need both. This is easier than you might think because of the Shopify Amazon integration.

Even some experienced sellers don't realize that they can use the Shopify Amazon FBA integration. One great thing about it is that you can use Amazon's services to fulfill orders that don't come through Amazon. This means that all of your orders will come from the same place with predictable timing.

With all said and done, both being an Amazon seller and a Shopify store owner are good business models. 

Ready To Start Your Journey?
Now it is your turn to get started building your very own highly profitable online business. To help you get started, this week we are having a free training on the fastest and easiest way we've scaled from $10/day, then systematically grew to $100/day, then $1,000/day & more…Click the button below to join the training now.

Most Recent Posts

May 11, 2022

May 11, 2022

May 11, 2022

May 11, 2022

Mike Vestil

About the Author

Mike Vestil is an author, investor, and speaker known for building a business from zero to $1.5 million in 12 months while traveling the world.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
>