5 Reasons why Shopify is better than Amazon FBA. The fact that you landed on this post only means one thing, you are considering starting an online store so you need to be sure which of the platform to settle for. Is it Shopify or Amazon FBA?
Well, the truth is, Amazon vs Shopify Dropshipping store are both great online business model that can generate lots of revenue.
But when is it comes real ownership of the business, Shopify bears the upper hand here and this post will talk about the 4 Reasons why Shopify is better than Amazon FBA starting from Shopify website builder price, storefront design flexibility to customer database ownership.
And we will then consider pros and cons for starting Amazon vs Shopify Dropshipping store too because definitely, there are benefits to starting Amazon FBA.
So before we get into the article fully, let’s first understand the main difference between these Platforms (i.e. Shopify vs Amazon FAB).
Shopify vs Amazon Difference
Well, one can simply say that Shopify is an eCommerce platform which allows users full control to create, build, customize, and manage their individual online stores. While Amazon FBA, on the other hand, is a marketplace that lets traders or sellers from around the world list their products and services on the platform they are selling. So with Amazon FBA, you are given a platform that is, a storefront within the Amazon marketplace where you can sell your products, but will not have much control over the product branding, the store design, management, customer relationships and database control, and even the shipping and fulfilment process like you would with Shopify or Shopify Dropshipping store.
In this article, we will look at the major features of the two platform, like pricing, and all other pros and cons. Below is the other at which the post will go:
Table of Content:
- Amazon FBA Overview
- Shopify Overview
- Shopify website builder price vs Amazon FBA Price Comparison
- Shopify Pros & Cons vs Amazon FBA Pros & Cons
- 5 Reasons Why Shopify is Better Than Amazon for me.
- FAQ on Shopify
- how many Shopify stores can you have
- which Shopify plan for Dropshipping
- which Shopify plan to choose
- how many Shopify stores can you have?
- multiple Shopify stores one email
- can you make multiple Shopify stores on one account?
- amazon vs Shopify Dropshipping
Shopify vs Amazon FBA: 4 Reasons Why Shopify is Better Than Amazon
Amazon FBA Overview
Like I mentioned earlier Amazon a marketplace for online seller from around the world. It is one of the largest online retail marketplaces you could ever think selling on. When you sell your products or services via the Amazon platform, you will automatically get access to already existing pull of Amazon loyal customers base who trust and will buy anything from the platform. This makes it a great place to sell your product and serves if you are new to the online business world.
And as for experienced and established online businesses, Amazon FBA can also serve as an additional revenue generation stream while they drive the main revenue through their main online brand store.
Mind you, though you automatically get access to Amazon loyal customer base on listing your products or services on the platform, it will take some time for your store to pick up so it needs some work too and initial promotions.
You must also not that to run your Amazon store smoothly without problems, you have to make sure you abide by Amazon rules and regulation else you can wake one day and one thing or the other has happened.
Amazon FBA Pricing
To starting selling on Amazon, you are required to choose between 2 Amazon service plans which are:
- The Individual plan
- And The Professional plan.
Amazon Individual Plan
Amazon individual plan is best for a mini online store selling less than 40 products within one month. For this plan you are not required to pay a subscription fee but you will be required to pay a transactional fee of 0.99USD for each item sold in addition to Amazon selling fees, shipping fees and closing frees.
Amazon Professional Plan
Amazon Professional Plan will cost you $39.99/month. For this plan, you will not need to pay selling transactional fee per item but you will have to pay referral fee which is not fixed but varies per product or items category. You are also required to pay a variable shipping and closing fees per item sold in addition to FBA Fee (that’s Fulfillment by Amazon Fee).
So if you are using all Amazon FBA services and storage facility, then the charges and cost for selling on Amazon can even go higher and even confusing. Look at this for all Amazon Fee Schedule so you are fully informed.
So when you looking Shopify we can say is like a hosting eCommerce store platform that enables online retail brands to easily create, build and manage their online stores at easy and as a sole legal entity. Shopify, unlike Amazon, is totally scalable and you have full control of everything that goes on around your store. Big corporations like Leesa Mattress, Nestle, Kylie Cosmetics, Tesla motors, Fashion Nova and many more top brands all use Shopify.
I believe you have had about these brands? They are massive! and mind you, their names would have not been had, if they were running Amazon FBA, so with Shopify; you build a brand and not just another store.
Shopify gives store owners over 60 professionally designed store templates that are easily customizable with a personalized gate to accept payment through the Shopify payment gate processor with is powered by Stripe.
With Shopify, you can integrate all your social media account, offer discount and gift cards yourself, control and manage your customer’s information and even link your store to the online marketplace like Amazon and others.
Shopify also offers you a means to sell your product in person if you also like to sell offline. There is the Shopify App store where you can access all kinds of Shopify App to make your store look, function and feel the way you want it to.
Shopify website builder price
So when it comes to building a store on Shopify, you can choose from 3 different Shopify plans which include:
- Basic Shopify plan: $29 per month
- Standard Shopify Plan: $79 per month
- Advanced Shopify Plan: $299 per month
The 3 plan increases in their monthly fees as well as the feature, capabilities and unlimited capacity. This also increases the discount you get on shipping and Shopify payment.
Shopify Website Builder Price Comparison Table
See below the breakdown of what each plan covers.
If you run a large store where you handle large order volumes then it might right your go for the Shopify Plus which off the listing here but customized pricing to your business size lots of unlimited features.
Shopify Pros & Cons vs Amazon FBA Pros & Cons
Shopify Pros and cons
|Total Control and Customer record management for remarking||Extra costs: Shopify has a monthly fee, but it also has an App Store. Adding and running third party apps can increase the monthly costs for your store.|
|Range of ecommerce tools for store design customization to help you build and promote lasting brand||Marketing: On Shopify, you are totally in charge of promoting your business in building and creating brand awareness.|
|Multi-figure scalable: because you have to total control, you can scale your online store to any lent without limitations.|
|You a Unique brand identity with Shopify: the fact to Shopify let you create your own ecommerce website, you also create a strong and unique brand to go with your business starting from the look to the message.|
Amazon Pros and Cons
|Amazon Pros||Amazon Cons|
|You get Access to millions of loyal customers visiting the Amazon marketplace every day. This gives your products and services great exposure for quick sales||Highly competition: Amazon sells almost all any product you could think about so know you will have to do little bite of grinding with lots of the competition from global retailer and sometimes you will be battle directly with Amazon itself.|
|You can get extra bonus services because have where Amazon handles your inventory storage, packing and shipping for you, making it easier for you to run your business.||Branding issues: It’s very difficult if not impossible to create a unique identity or strong brand image while selling on Amazon.|
4 Reasons Why Shopify is Better Than Amazon FBA
So one of the additional advantages of running an Amazon store is the Amazon FBA Option where Amazon helps you fulfil and ship your order while you concentrate on running another side of the business. This is a good thing not question, but these services come with an additional cost which makes your total cost of operation very high.
On the other hand, with Shopify, you can do Shopify Dropshipping which also gives you the same advantage as Amazon FBA but with less cost and at your own rules and regulation.
So the question is Amazon FBA vs Shopify Dropshipping which is better?
Amazon vs Shopify Dropshipping which is better?
Talking about the best between Amazon vs Shopify Dropshipping, I will say Shopify Dropshipping is the best and that is for the following reasons.
- Low Risk and Low Start-Up Cost
So when you are starting up an Amazon FBA business, you are required to re-order all your product and then ship then to Amazon Fulfillment centre prior to even selling.
This will require lots of capital depending on the kind of product you are selling and also a high-risk procedure because it does not allow time for testing running of product demand before socking up.
What if, your market analysis was wrong and you were not able to sell products. So if you lose here, you lose all your capital.
On the flip side, with Shopify Dropshipping you are totally up to you to decide whether to test-run each product demand on your store first before making large branding then product and scaling your business.
With Shopify, cost of test-running each product is directly resulting in sales/ profit or your even out and even when you lose, you still will acquire high-paying-in-demand-skill which adverting. But Amazon FBA texting might lead to Lost.
- Fast Start-Up Speed
Setting an Amazon FBA store could take months before you can finally start selling while Shopify Dropshipping store can be set up in a matter of hours or days depending on your experience level.
- Customer Data Ownership
With Shopify like Mentioned earlier, you own your customer and this will help you make an informed decision and to remarket over and over again with less cost of the advertisement. Whereas on Amazon, you don’t own that information, wait! You don’t even have that record. With Shopify, you can easily pull and record you want for analysis.
- Massive Brand Image Potential
Finally, I also love that fact that I can build a massive brand with Shopify and which not attainable on Amazon
FAQ on Shopify
What is average Shopify Website Builder Cost and Amazon FAB store cost
The average cost of starting a Shopify store is $29 per month for product sales limitation. Whereas is free but with less 40 items sales. Over 40 becomes more expensive ($39.99 /month)
Which of them is cheaper, Shopify or Amazon FBA?
For the individual basic monthly subscriptions (above image), we can say that Shopify is the cheaper option because it has its least Basic Shopify plan at $29/month.
While Amazon has its Professional Selling plan at $39.99/month, plus extra selling fees compare Amazon selling fee here..
And If you are signing up to Amazon’s Individual Seller plan you won’t pay a monthly fee – instead, you pay a $0.99 fee on every item you sell. With extra variable seller and traction, fees will also apply to this plan.
So for Amazon Individual Seller plan is the cheapest option if you’re selling small amounts product below 40 but you need to beware that you end up spending over 30 to $40 per month on this playing Amazon fees while Shopify you only pay $29/month with 2% of order value.
Read our Shopify Pricing Review for a detailed look at its price plans and value for money.
Which Shopify Plan for Dropshipping
Which Shopify Plan is Best for Dropshipping?
There is no fixed rule to the Shopify plan to settle for. The plan you should settle for is dependent on the size of your store. If you are starting on Shopify, I advise you to start with the basic plan and then upgrade as your business grows. You will know when it’s time to move to a higher plan. Upgrading plans can be done easily at any time, so you don’t need to worry about which Shopify plan for Dropshipping because you can always move plans ANYTIME.
How Many Shopify Stores Can You Have?
So this one question is worth considering and the answer is yes. You can owner many Shopify store as you want but you need separate admin to access the multiple accounts when have created various stores.
So Can You Create Multiple Shopify Stores One Email?
If you are wondering “can you make multiple Shopify stores on one account?” yes is the answer. You totally can create multiple Shopify stores with one email, but as we speak, each store can only be accessed and managed through the separate admin area. However, you might want to try this “Shopify central admin plugin” to see if it will help you manage all stores in one place. Bear in mind that this app has not yet been reviewed so I not totally sure of the efficiency. Just use the free trial period first to test it before buying the app.
So here is where round it up on choosing between Amazon vs Shopify Dropshipping store and the reasons why Shopify is better than amazon to me. Hope this post has helped you? feel free to share and bookmark or pin this for feature reference