Last Updated on September 14, 2023 by James Ewen
If you’re an online retailer, you’ve probably heard about the two major players in the e-commerce space: Shopify and Amazon. But what exactly is a platform? And what makes one better than the other? In this article, we’ll go over some of the key differences between these two platforms so that you can make an informed decision about which one is right for your business.
Amazon is an e-commerce giant, with over $136 billion in revenue in 2018. The company has become the world’s largest online retailer by offering a wide range of products and services through its platform. Amazon also offers cloud computing services, music streaming, video streaming, and more.
Amazon has a huge customer base: The company had over 500 million active users worldwide as of April 2019 (according to Statista). This means that your product or service could reach millions of potential customers if you sell through Amazon Marketplace and there’s plenty more room for growth; only about 25% of U.S adults shop on Amazon today according to eMarketer!
In addition to its large customer base, Amazon collects vast amounts of detailed data about those customers: Everything from what they’ve bought historically (which can be used for marketing purposes) down to what they’re currently browsing (which helps merchants improve their website experience).
Shopify is a hosted e-commerce platform that allows you to set up an online store in minutes. It’s a great option if you are looking for a simple, easy-to-use solution that will get your business up and running quickly. Shopify is also great for small businesses that want to sell online but don’t have the resources or time needed to create their own website from scratch.
Comparing Features and Functionality
When it comes to comparing features and functionality, there are some important things to keep in mind. First, Shopify offers more customization than Amazon. If you’re looking for a platform that allows you to customize your store according to your needs and preferences, the difference between Amazon and Shopify is clear – Shopify is the way to go.
Second, if you want an integrated e-commerce solution with lots of add-on options available like accounting software or third-party apps then Shopify is probably better suited for this purpose than Amazon because of its sheer breadth of features. However, if all you need is a basic e-commerce site with limited functionality (such as just selling products), then Amazon may suffice just fine.
Pricing and Cost Considerations
Amazon is a pay-as-you-go platform, meaning you only pay for what you use. Shopify offers two pricing plans: $29/month or $79/month. Both plans include unlimited products, inventory, and sales channels (eBay and Walmart). The difference between the two plans is that with the higher-priced option, you can also create an online store in addition to selling on marketplaces like Amazon or eBay.
Ease of Use and Setup
Amazon is very easy to use and set up, but it has a lot of features that can be overwhelming. Shopify is more user-friendly and has a simpler interface, but it has fewer features than Amazon. In general, both platforms are easy to set up and get started with you won’t need any technical knowledge or experience to get going on either platform.
Customization and Branding
Both Amazon and Shopify offer you the ability to customize your website. This can be done through a variety of tools, including:
- Custom domains (which allow you to have your own domain name for your store)
- Widgets (which are small pieces of code that are used to display information on your site)
- CSS (Cascading Style Sheets), which lets you control how certain elements look on your site
Payment Processing and Fees
Both platforms offer a variety of payment options, including ACH and Amazon Pay. Shopify is integrated with Stripe, which has lower transaction fees than PayPal.
Amazon offers monthly plans starting at $39/month plus a transaction fee of 2.9% + 30 cents per sale (minimum fee of $0). The Professional plan costs $149/month plus a transaction fee of 3% + 15 cents per sale (minimum fee of $0). The Enterprise plan costs $999/month plus a transaction fee of 2% + 10 cents per sale (minimum fee).
Shopify charges no setup or monthly fees; however there are other charges for things like additional storage space or apps that you may need on top of your basic store platform.
SEO and Marketing Tools
Both Shopify and Amazon have a large selection of marketing tools available.
Shopify’s marketing tools are more focused on eCommerce, but they also have some unrelated ones like landing pages and social media integrations.
Amazon has a lot of options that you can use for your eCommerce store or non-e-commerce site (like selling books), but they don’t have as many specific options for eCommerce sites.
Scalability and Growth Potential
Amazon is a behemoth in the e-commerce world and has an enormous customer base that can help you grow your business. It also has an ecosystem of services like Amazon Web Services (AWS), Fulfillment by Amazon (FBA), and Kindle Direct Publishing (KDP). These services make it easy for companies on their platform to scale up quickly or reach new markets with ease.
Amazon Web Services (AWS) provides cloud computing resources such as storage, computing power, database management systems, etc., which you can use to build custom applications for your business without having to spend money building them yourself from scratch. This frees up valuable time so that you can focus on other important aspects of running your business like marketing or customer service instead of spending hours researching how best to set up these systems yourself a huge advantage if you’re just starting!
Customer Support and Resources
Amazon’s customer support team is known for being responsive and helpful, even if you have an issue with your Amazon store. Shopify also has a good reputation for customer service, but you may find yourself waiting longer for answers than if you were using the Amazon platform.
That said, both platforms offer plenty of resources including eCommerce courses and webinars that can help get your business started in no time at all!
This is a comparison of the two platforms to help you figure out which one is best for your business.
As a business owner, you’re always looking for ways to improve your sales and boost your bottom line. One way to do this is by selling products online. But which platform should you use?
Amazon and Shopify are two of the biggest names in e-commerce platforms and for good reason. Both offer robust solutions for businesses of all sizes and budgets that want to sell their goods online through an easy-to-use interface that lets them customize their storefronts with no coding experience required. However, there are some key differences between these two platforms as well:
- Amazon has been around longer than Shopify (which launched in 2004), but it’s also much larger than any other e-commerce platform on earth; even if they don’t have what you need right now, they probably will soon enough!
- Shopify offers more customization options than Amazon does when it comes time to design your store’s look and feel; however, many people prefer having everything done for them so they can focus on getting their product listings up rather than worrying about colors or fonts!
We hope this article has helped you make a more informed decision about which platform is best for your business. While Amazon may have more traffic and sales potential, Shopify offers more flexibility and customization options, while also being cost-effective and easy to use. If you’re looking to grow quickly, then Shopify might be the right choice for you!
James is the head of marketing at Tamoco