Let’s address the elephant in the room: comparing Shopify and Amazon is kind of like comparing apples and oranges. One is an ecommerce platform, and the other is a marketplace. But if you’re looking to sell products online, you’ll likely find yourself weighing these exact options.

The real question isn’t which platform is better. It is a matter of understanding which one (or both) aligns with your business goals. We’ve helped hundreds of business owners navigate this decision, and we will share what we’ve learned along the way.

Think of it this way: Amazon is like setting up shop in the world’s biggest mall. You’ll get foot traffic, but you’ll play by the mall’s rules. Shopify? That’s your stand-alone store. You control everything, but you’re responsible for getting people through the door.

In this guide, we cover:

• Pros and cons of selling on Shopify
• Pros and cons of selling on Amazon
• Differences between the two
• How to choose
• How Quiet Light can help in your ecommerce business journey

Related Article: How to Buy a Shopify Store: Your Go-To Guide

Pros and Cons of Selling on Shopify

After working with countless Shopify stores, we’ve seen firsthand what makes some soar while others struggle. 

What works well

• Create the exact experience you want. For example, a luxury brand can transform its Shopify store into a digital showroom that perfectly matches its high-end positioning. Try doing that on Amazon.
• You own the customer relationship completely. For instance, a business can increase its value simply by building a strong email list through its Shopify store.
• Transaction fees tend to be lower, especially if you use Shopify Payments. Businesses can save thousands monthly just by optimizing their payment setup.
• The platform integrates beautifully with social media. Many businesses can run their entire multichannel empire from one Shopify dashboard.

The challenges

• The tough part is that driving traffic is entirely on you. A business could spend six months and tens of thousands of dollars on marketing before seeing consistent sales.
• The technical learning curve can be steep. While Shopify is user-friendly, you’re still responsible for everything from updates to app management.
• The initial investment isn’t small. Between design, photography, and marketing, you might spend a serious chunk of money before making your first sale.

Pros and Cons of Selling on Amazon

Amazon’s massive customer base is no joke. The right business can grow from zero to $60K in monthly revenue in just a matter of months through Amazon FBA.

The good stuff

• Immediate access to millions of ready-to-buy customers. It’s possible for a majority of sales to come from customers who never search for your brand but instead find the product through Amazon’s recommendation engine.
• Fulfillment by Amazon (FBA) is a game-changer. Imagine handling thousands of orders without touching a single package. That’s the reality for successful FBA sellers.
• Built-in trust factor. New brands can start selling immediately without building credibility from scratch.

The not-so-good

• Competition is fierce. We’ve seen profitable products become unprofitable overnight when new sellers enter the market.
• Those fees add up. Between referral fees (8%–15%), FBA costs, storage, and advertising, margins can get tight fast.
• Limited brand control. On Amazon, you’re building Amazon’s business, not your own.

Key Differences Between Selling on Shopify vs Amazon

Setup and maintenance

Starting on Amazon is like moving into a furnished apartment—everything’s there; you just bring your products. Shopify? You’re building your house from the ground up. It takes more time but gives you complete autonomy.

The control factor

Opting for Amazon is like running your business with a partner who makes most of the rules. Shopify puts you in complete control, for better or worse.

Fulfillment and shipping

Amazon’s FBA network is hard to beat. We’ve seen businesses scale from 10 to 1,000 orders daily without breaking a sweat. Shopify has its own fulfillment network, but it’s still catching up to Amazon’s capabilities.

Conversion rates

Here’s an interesting stat: Amazon’s average conversion rate hovers around 10%–15% for Prime offers, while Shopify stores typically see an average of 1%–3%. The difference? Amazon’s built-in trust and one-click ordering.

Cost breakdown

Amazon’s Individual plan ($0.99 per item) works for low-volume sellers, while their Professional plan ($39.99 monthly) makes sense once you hit 40+ sales monthly.

Shopify starts at $29 monthly, with transaction fees decreasing as you move up plans. Many successful stores run on the $79 plan, finding it to be the sweet spot for features and fees.

Choosing Between Shopify and Amazon

Interestingly enough, you might not have to choose at all. Many of the most successful businesses we’ve sold use both platforms strategically. Here’s how to think it through:

Consider Amazon if:

• You want immediate access to customers
• You’re selling products in established categories
• You don’t want to handle fulfillment
• You can maintain healthy margins despite fees
• You’re new to ecommerce and want to learn the ropes

Choose Shopify if:

• You have a unique brand story
• You want to build customer relationships
• You already have an engaged audience
• You plan to create content around your products
• You want complete control over the customer experience

Or do both

We’ve seen this hybrid approach work brilliantly. One approach is to start on Amazon to validate your product, then build a Shopify store once you have consistent sales. You can maintain Amazon as a sales channel while building your brand through Shopify. Amazon can be the source for new customer acquisition, while repeat buyers are directed to your Shopify store for better margins and relationship building.

The key factors in your decision should be:

• Your margins (can they handle Amazon’s fees?)
• Your marketing capabilities (can you drive traffic to Shopify?)
• Your fulfillment setup (do you need FBA?)
• Your brand vision (how much control do you need?)

Partner with Quiet Light 

If you’re building an empire on Shopify, crushing it on Amazon, or mastering both platforms, we can help you understand your business’s true value. Our team of experienced Advisors has valued and sold hundreds of ecommerce businesses across both platforms.

Looking to buy an established business instead of starting from scratch? We can help with that too. Contact us for a free valuation or to explore our current listings.