Amazon vs Shopify: Features, Pricing and Pros & Cons

Amazon vs Shopify | iTMunch

If you are a small business owner and planning to set up your shop online and confused between Amazon and Shopify, you’ve come to the right place. In this blog, we compare the world’s two biggest e-commerce giants – Amazon and Shopify. In this Amazon vs Shopify blog, we have compared the two ecommerce selling platforms, in terms of what they have to offer. You will also find a pricing plan comparison of Amazon vs Shopify here. 

It is completely okay to feel confused about the question “is it better to sell on amazon or shopify?,” as both are considered equally good platforms. According to a Marketplace Pulse report, Amazon marketplace today has over 9.7 million sellers across the globe[1]. Moreover, as of 2020, Shopify says it powers more than 1 million businesses via its platform [2]. WIth numbers like these, it naturally becomes tough to pick between Amazon vs Shopify. Now, let us start having a look at how the two platforms can be beneficial for your online business.

What is Amazon FBA

The FBA in Amazon FBA stands for ‘Fulfilment by Amazon’. WIth Amazon FBA, sellers can store products in an Amazon warehouse and the e-commerce giant will take care of the packaging and delivery of your orders to customers. Amazon also handles return requests and provides customer service. Basically, if you sign up for Amazon’s FBA program, you automate your orders by leveraging the advanced shipping and fulfillment services of Amazon. 

How Amazon FBA works?

  1. You, as a business, send your products to Amazon
  2. Amazon stores your products in its warehouses
  3. Whenever a customer orders your products, Amazon picks, packs and ships it to the customer
  4. Amazon also tracks the order for you
  5. Moreover, the tech giant also handles returns and refunds

What is Shopify

Shopify is an online ecommerce platform that allows business owners like you to create an online store. It also allows you to manage all the ecommerce functions, including inventory management, payment acceptance along with shipping. It is a leading ecommerce platform that’s designed for all businesses sizes. It is an all-encompassing online commerce solution that helps you sell on social media or through your website. 

How does Shopify work?

  1. First, you design your Shopify store 
  2. Next, you make sure you have an up-and-running website that’s responsive 
  3. Now, you focus on promoting your Shopify store
  4. If a customer purchases your product, Shopify processes the payment and pays you 
  5. Shopify also provides you with real-time insights you can use to understand your audience

Now that you know the basics of Amazon FBA and Shopify, let us get into Amazon vs Shopify and help you pick what’s better for your business.

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