Shopify vs Amazon FBA: Which Can Generate More Sales?

Are you looking to start your e-commerce store to generate revenue by selling your inventory? Several platforms can help in the course, but Amazon FBA and Shopify will always stay ahead of the race. Both function in the exact opposite way. However, they are still a topic of comparison amongst e- sellers looking for a digital medium to market their products. Considering that, we have brought a comprehensive Shopify vs Amazon FBA guide at your end.

Hence, you can easily weigh the advantages and disadvantages and decide well. So, let’s dig deeper into our hot topic for the day. 

What is Shopify? 

Shopify is an e-commerce platform that allows users to build their digital storefront without complex operations. However, its capabilities extend beyond this as it offers many additional features. 

You can use easy-to-apply and mobile-friendly themes according to your brand’s style. Moreover, it also presents several marketing opportunities like email marketing, social media management, etc. 

Even store management is straightforward, thanks to top-notch site functionality. The best part about Shopify is that it does not charge any commission over the sales you acquire. Although it lacks a prior traffic flow, at least all the income will be yours. 

What is Amazon FBA?

Amazon is a ready-made marketplace with a solid base of almost hundreds of millions of customers. By subscribing to this platform, you can sell your products. However, there is substantial competition as you must compete with other sellers in your niche to retain maximum sales. Moreover, the platform asks sellers to pay a certain percentage for each sale. 

While selling Amazon’s marketplace, you can also leverage its FBA services. You just have to send your inventory to the Amazon warehouse. The workers will store, pack, and ship the products accordingly. 

Simply put, Amazon FBA suits sellers who want to avoid creating their customer base from scratch. Instead, they can take maximum advantage of this platform’s widespread marketplace. 

Watch this video: How to Sell on Amazon Successfully (7 Steps)

Shopify vs Amazon FBA: Advantages and Disadvantages 

Amazon FBA and Shopify are excellent options for sellers looking to reach customers digitally. However, their functionality is entirely different, and so are the pros and cons. Let’s briefly overview them below: 

Advantages of Shopify 

Ease of use

Although Shopify includes the creation of a storefront from scratch, it isn’t challenging to get familiar with its operations. You must opt for a template and drag-and-drop elements to create a site that aligns with your brand. 

Plethora of e-commerce tools

Shopify strives to make sellers’ lives more accessible, and its widespread integrating apps are evident in this. Here you can find several third-party apps for streamlining email marketing, social media management, analytical reporting, etc. All the relevant apps feature on the exclusive Shopify App Store. 

Variety of payment gateways

Unlike Amazon, Shopify does not limit its payment means to only two to three options. Instead, you can opt from almost 100 gateways to withdraw your revenue from sales. The best part is that it does not even charge any transaction fee. 

Disadvantages of Shopify 

Limited customisation options

Although Shopify features many templates to develop a storefront, its customisation capabilities are limited as an open-source platform. Since the platform’s source code isn’t available publically, you can’t customise your store due to limitations. You are only left with the design that the platform offers itself. 

Difficult to build a reputation

When you sell with Shopify, you have to build a customer base. The platform features no pre-built traffic. Therefore, standing unique in the crowd and attracting high conversion rates can be challenging. 

Advantages of Amazon FBA 

Larger customer base

You’d be surprised to know that last year Amazon marketplace received 2.4 billion visits by mobile and computer users. Therefore, listing your products on this platform increases your chances of reaching the target audience. The more consumers find your brand, the better sales you can generate. 

Easy to operate 

If you want to avoid the hassles of selling items, Amazon FBA can be your ideal business model. Not only is it easy to use, but it also offers order fulfillment features. This platform can do everything from storing inventory to managing returns and customer concerns. 

Comprehensive portal 

While selling on Amazon, you can access a centralised dashboard for straightforward management of business tasks. With its help, you can tackle everything, including product catalogs, pricing, and inventory, from a single place. Moreover, this section also features shipping rules for your further knowledge. 

Disadvantages of Amazon FBA

Competitive market 

You will find dozens of sellers marketing products similar to yours on Amazon. It increases the competition, leading to failure in generating sales. For example, if your competitor has better reviews, customers will likely shop from it. Due to this, you might lose several potential buyers. 

Limited payment options

You do not have many options to deposit or withdraw cash on Amazon. It might restrict your desired operation if the available gateway does not work for any reason. This platform only accepts credit or debit cards. Meanwhile, you can also utilise the balance from your Amazon Pay account. 

Wrapping Up

Both Amazon FBA and Shopify offer vast e-commerce opportunities to their users. However, their way of functioning is entirely different. Hence, you must first thoroughly overview Shopify vs. Amazon FBA to decide what suits your needs.  Hope you get the answer to your every question.

So don’t think more and go through the pros and cons of Amazon FBA and Shopify now. This way, you can easily decide which model has the most potential to make your venture a financial success. 

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