A Side-By-Side Comparison of Amazon FBA and Shopify 🛒
If you are looking to start selling online and want a platform that is secure, scalable, and flexible, Shopify is what you’re looking for. It has e-commerce features that allow sellers to sell their products online without worrying about shipping, payment processing, customer support, or search engine optimization (SEO).
With an app store and payment options such as credit cards and Amazon Pay on hand, sellers can focus on creating their brand while shipping products.
In this blog post, we will discuss the differences between selling online via FBA and selling online via Shopify. We will also compare the pros and cons of each platform before giving you our verdict.
What Is Amazon FBA? 🚚
Fulfillment by Amazon, also known as “FBA”, is a popular e-commerce platform among businesses.
It allows businesses to store, pick, pack, and ship products through Amazon’s fulfillment centers. This process cuts down on the cost of shipping products while also ensuring high-quality customer service.
To use FBA, businesses must list products on the Amazon marketplace, attach barcodes, and ship inventory to the correct Amazon warehouse. There are different types of FBA business models, including seller subscription and seller fee plans.
The seller fee model involves selling items on amazon.com as well as through FBA. Businesses incur costs for customer service, storage, and other items such as shipping and handling. Besides, they pay a monthly fee for access to the platform.
On the other hand, the seller subscription model involves purchasing products from amazon.com ($0-$1000) and then selling them on FBA for a commission or fee (from $1-10K). This business model offers more flexibility but comes with higher operational costs compared to the seller fee plan.
Besides, businesses must follow a different process than that of posting and selling products on amazon. They have to physically handle customer orders at their own locations instead of online transactions.
But despite these disadvantages, many ecommerce entrepreneurs prefer using fba due to its easy customer acquisition process and customer loyalty benefits.
What Is Shopify? 🛒
Shopify is an e-commerce platform designed for small and medium-sized businesses.
It allows users to create and manage their own online store, customize the front-end design, and optimize operations from the start. It includes all of the optimization tools necessary to manage operations right from the start.
Shopify has seen significant growth over the last few years. In 2019, it had a 50% growth rate compared to 2018. This growth can be attributed to its versatility and robust feature set. Its platform is designed for small businesses looking to start online stores, but it also offers advanced e-commerce capabilities for larger businesses.
With Shopify, users can choose their own domain and custom branding. This allows them to easily create a unique online presence without having to invest in expensive hosting or domain name costs. Additionally, it includes all of the tools necessary to run a successful online business, allowing users to focus on growing their business rather than technicalities.
Another reason for Shopify’s popularity is its seamless integration with Amazon as a sales channel. Users can easily add Amazon listings from existing products on the platform and monitor sales via e-commerce software like the Seller support app or amazon seller app.
Overall, Shopify is a cost-effective e-commerce platform that offers powerful features and customization options for both large and small businesses.
Pros & Cons of Amazon FBA 👨💻️
FBA covers the cost of Amazon storing, packing, and shipping your products. As a seller, you don’t have to worry about customer service, returns, and payment handling.
With FBA, you pay storage fees and fulfillment fees for each unit sold on Amazon. Plus, you get access to customer service and free shipping with Prime. This can save you time and money compared to doing it yourself.
You can also choose to do-it-yourself fulfillment or use FBA. With FBA, you pay storage fees plus a fulfillment fee for each unit sold on Amazon. It’s a good option if you want customer support, free shipping, and access to customer service with Prime.
But be aware that it may cost more than doing-it-yourself fulfillment due to higher processing fees from Amazon. Also, consider the time and effort required for fulfillment as well as online selling in general.
Pros & Cons of Shopify 👨💻️
Shopify is a platform for ecommerce owners to create online stores. It provides a wide range of features including easy-to-use design tools, flexible design, a variety of app integrations, secure payments, and reliable customer & seller support.
Starting up on Shopify can be expensive with pricing plans starting from $29/month and may require third-party apps to add ecommerce functionality.
The platform’s feature-rich nature makes it an appealing choice for ecommerce business owners looking for a high-quality ecommerce platform. Shopify offers an optimized experience that loads quickly with quality sales features, ecommerce tools, and mobile responsiveness.
Quality customer and seller support are provided by Shopify, with 24/7 customer service available. This ensures that business owners have the support they need when launching their online shop on the platform.
Which Platform Is Best For Your Business? ✅
Shopify is a good choice for entrepreneurs looking for flexibility and control over their e-commerce marketing. The platform allows you to easily design, build, and launch your online business with customization options that are not available on other e-commerce platforms.
In addition, Shopify offers a wide range of templates and themes to choose from and provides support for both free and paid add-ons to further enhance your e-commerce store.
On Amazon, businesses can start selling online immediately with tools such as seller accounts, seller tools, and fulfillment services. It also has an app store with thousands of apps designed specifically for e-commerce business owners.
However, Shopify is ideal for businesses selling exclusive products or building their brand. It offers advanced marketing tools that help you easily track your sales and conversions.
In terms of pricing plans, Shopify offers three plans: Starter ($9 per month), Ecommerce ($25 per month), and Shopify Plus ($299 per month).
Amazon might be the better option for businesses that want immediate access to a wide range of customers. Apart from its extensive payment options, it has an app store with thousands of apps designed specifically for e-commerce business owners.
With regards to pricing plans, the ecommerce platform offers three plans: a $29/month basic plan ($2.75 per transaction), a $49/month professional plan ($3.50 per transaction), and a $99/month enterprise plan ($8.75 per transaction).
How To Get Started With Amazon FBA & Shopify ▶️
You need both a Shopify store and an Amazon seller account to get started with Amazon FBA and Shopify.
Both platforms offer similar selling tools and services, but you should consider the differences before making your decision.
Shopify requires you to build your own customer base, whereas Amazon FBA already has 12 million Prime members. So it has a larger customer base and sales funnel. This means that it is easier to scale your business. However, Shopify has more features e.g mobile app store, payment gateways, etc. So the platform offers more customization options.
If you’re looking for ecommerce on a budget, then Shopify is the better choice as it offers helpful plans at affordable pricing.
However, if you are willing to invest in ecommerce marketing efforts and branding, Shopify may be a better fit for you. It provides tools for tracking customer behavior, branding options, and advanced ecommerce features that other platforms lack.
Amazon offers a variety of fulfillment options for selling online, ranging from basic fulfillment to advanced options such as Fulfillment by Amazon (FBA) and seller-managed fulfillment.
While the platform is ideal for amateurs and business owners who have limited online selling experience, its advanced options are suited for entrepreneurs with strong e-commerce business plans.
Both platforms have their own advantages and disadvantages, so it’s best to consult an expert before making a decision. Here’s a side-by-side comparison of Amazon FBA and Shopify that highlights their respective features.