Selling on Amazon vs Shopify: Which Is the Savvy Move for Online Retailers in 2023?
Starting a side hustle is an excellent way to make some extra cash during times of economic downturn. Using your skills and knowledge to prepare taxes for others or to perform home maintenance is incredible, but there are other ways to bring in a side income. The United States of America is home to more than 2.6 million Shopify stores as of 2023.
Selling on Amazon vs. Shopify is a viable option, but each has its perks to help you sell your goods and bolster your finances. Learning how to sell on Amazon and Shopify is vital, but you must determine which option best meets your needs.
The good news is that you’ve found the perfect guide to learning about Amazon and Shopify for online retailers. Keep reading this article to learn more today!
Table of Contents
What Is Shopify?
Shopify is a subscription-based service that makes life much easier if you open an e-commerce store to sell your goods. It’s an excellent platform to use if you want to grow your brand and create a welcoming online store that customers will love. You get to build a website that is easy to navigate and use, providing a simple and enjoyable user experience.
Many people selling on Shopify love the marketing and store management features. You can also use analytics to understand your store’s performance and adjust your business strategy. It’s an excellent option for brand building since it requires you to build your website rather than posting the goods you wish to sell on an all-encompassing platform.
Building your own website for those without coding and web programming experience is simple. Many users create simple but eye-catching websites on Shopify, and you’ll have access to several templates to get started. You’ll get a ton of value since the monthly expense is $29 each month.
Pros of Selling on Shopify
A significant reason why many people go with Shopify vs. Amazon is the store builder feature you’ll gain with a Shopify subscription. Yes, you’ll need your website to use Shopify, but their templates and store builders make the process quick and easy. The e-commerce features are also efficient and powerful, providing an excellent experience for everyone involved.
You’ll also love the drop shipping integrations that Shopify added to their platform. These perks help you run your store in the most efficient manner possible. Best of all, you get to try these features for free thanks to Shopify’s 14-day free trial.
Cons of Selling on Shopify
The pros of selling on Shopify sound great, but there are some drawbacks worth considering when comparing selling on Amazon vs. Shopify. A significant disadvantage is the transaction fee you’ll face while using Shopify’s e-commerce platform. Each transaction faces a 2 percent fee, which seems good but adds up over time.
You’re also responsible for your order fulfillment if you use Shopify for online retailers. Each sale you make needs to get processed, packaged, and shipped by you or a third party to the customer. That’s a ton of extra work compared to selling on Amazon. Add in the expenses of packaging and shipping labels, and you’ll see your bottom line shrink.
What Is Amazon?
Amazon is a massive online marketplace that caters to hundreds of millions of consumers. It makes shopping and finding your essentials a breeze, and it’s paired with rapid shipping times. Using Fulfillment By Amazon is a great method to sell your own goods or wholesale goods that you’ve purchased at a discount.
You’ll need to compete head-to-head with other merchants using Amazon’s marketplace platform. Your pictures and product descriptions make a world of difference in generating more sales than other Amazon merchants.
Learning how to sell on Amazon also brings the benefit of FBA’s product shipping. You can ship your products to an Amazon Fulfillment Center and take an additional burden off your shoulders. When you get a sale, Amazon takes care of the processing, packaging, and shipping on your behalf.
Your goods will remain at the Amazon storage facility until they are sold. Amazon offers a great opportunity to capitalize on the massive online marketplace with your goods and marketing skills. Best of all, you won’t need a website to get started, though you will spend $40 per month for your FBA membership.
Pros of Selling on Amazon
A significant pro of selling on Amazon is the fact that you’ll get access to the Amazon Marketplace. You can get your goods in front of hundreds of millions of consumers with little effort on your part.
The Fulfillment By Amazon feature is another incredible perk that comes with selling on Amazon. The process involves sending your goods to an Amazon storage facility so they can process and ship your goods when they sell. It saves you a ton of time and money on shipping materials.
Another benefit is the lower barrier to entry. You don’t need a ton of money to start selling your products on Amazon. FBA is affordable and offers great value for your money, especially when using the right Amazon selling tips.
Cons of Selling on Amazon
Selling on Amazon sounds like a prime (pun intended!) opportunity, but there are some drawbacks to consider. You’re facing a lot of competition when you start selling on Amazon. You must use top-notch product descriptions and pictures to stand out in a crowded marketplace.
SEO also comes into play with selling on Amazon. Using the right keywords and having beneficial descriptions will help you move your products up the Amazon search rankings.
Start Selling on Amazon vs. Shopify Today
Selling your goods online is an excellent way to start a business and bring in some additional income, but you must choose the right selling platform. Selling on Amazon vs. Shopify is a cost-effective option since you’ll benefit from the Fulfillment By Amazon feature, which takes the shipping burden off your shoulders. Shopify requires a website and is great if you want to work on branding.
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Last Updated on March 1, 2023
