As the demand for online shopping continues to grow, it's becoming increasingly important for store owners to shift their business activities to online stores and efficiently manage them.

Luckily, there are plenty of eCommerce businesses available to help with this. However, two platforms that stand out from the rest are Amazon(link) and Shopify(link). It's crucial to choose the most suitable tool for the growth of your business. To make this decision, you need to accurately determine your business needs and have a comprehensive understanding of the available tools.

In this article, we will focus on how you can determine which platform would be more beneficial for your business. However, before delving into that, let's briefly discuss why choosing the right eCommerce platform is important.

Why is It Important to Choose the Right eCommerce Platform?  

Choosing the right eCommerce platform is pivotal for your business success, impacting performance, scalability, and profitability. Factors like budget, ease of use, customization, scalability, SEO capabilities, and security are crucial in this decision.

For instance, consider the flexibility of Shopify, allowing easy customization for optimized search results and scalability as your business grows. On the other hand, Amazon, with its vast customer base, provides security measures, but customization options may be limited.

The right choice ensures a secure, efficient, and tailored platform for your unique business needs. It's all about identifying your business and needs accurately to make the right call.

The Difference Between Shopify and Amazon

Shopify is a Canadian-based multinational e-commerce company. It enables businesses to build an online store, market to customers, and accept payments across multiple sales channels and locations—all in one place.  By 2023, the number of online Shopify stores in the United States has exceeded 1 million. Shopify has more than 100,000 online stores in the United Kingdom, Australia, and Canada according to Statista.

Amazon is a United States-based eCommerce and cloud computing company with over 197 million users. Unlike Shopify, you have to compete in the same marketplace as other online retailers. Through the Fulfillment by Amazon (FBA) program, retailers can ship their goods to Amazon fulfillment centers. At these centers, the goods are packaged, transported, and stored.

If we consider their effect size, Amazon is recognized as the largest online shopping company in the world. Therefore, Shopify's volume is comparatively smaller than Amazon’s. Amazon operates as a well-established marketplace where you can both purchase and sell products. On the other hand, Shopify functions more as a platform specifically designed for eCommerce. With Shopify, you can create, design, and manage websites. Shopify employs various marketing techniques to drive traffic and assist you in building a successful website. They can even develop websites similar to Amazon, providing you with a platform to showcase and sell products online. In summary, Amazon and Shopify serve different purposes while catering to distinct needs.

Shopify vs Amazon: Advantages & Disadvantages

Let's dive into advantages and disadvantages of Shopify and Amazon platforms for eCommerce businesses.

What are the Advantages & Disadvantages of Amazon?

Let's take a closer look at the advantages and disadvantages of Amazon.

Amazon: Advantages

• ‍Vast Customer Base: Amazon attracts a large number of customers globally, leading to increased sales and making it one of the most popular platforms for both selling and shopping.‍
• Credibility and Trust: Products listed on Amazon automatically gain credibility and trust, as users are more inclined to buy from Amazon due to its reputation.‍
• Promise of Excellence: Amazon's commitment to excellence and great service convinces users to choose Amazon over other websites, enhancing the overall shopping experience.‍
• Global Selling Opportunities: Amazon makes it easy for retailers to sell globally, allowing them to test products on a global scale by creating listings on local Amazon sites without dealing with local payment systems and logistics.‍
• Ease of Selling: Selling products on Amazon is straightforward, providing a user-friendly platform for retailers to list and sell their items.‍
• Daily Traffic and Earnings: Amazon attracts daily traffic, providing sellers with the opportunity to earn money consistently.

Amazon: Disadvantages

• ‍High Competition: Intense competition on Amazon requires sellers to have a long-term strategy to stay competitive. Without a strategic approach, sellers risk falling behind.‍
• Price Competition: Sellers may find themselves in a race to the bottom in terms of pricing, especially when selling the same products as others, leading to potential challenges in maintaining profitability.‍
• Amazon Buy Box Competition: Competing for the Amazon Buy Box, where products are featured, can be challenging. Amazon decides which seller is the best fit, potentially impacting the visibility of products.‍
• Product Page Ranking: Unlike Google Shopping, where rankings are not solely determined by the platform, Amazon decides the order of product pages, potentially disadvantaging certain sellers.‍
• Limited Control for Bottom Sellers: Amazon's decisions on product pages may limit the chances for bottom sellers to move up in rankings, which some sellers perceive as unfair.

In conclusion, while Amazon offers significant advantages in terms of customer reach and credibility, sellers need to navigate challenges such as high competition and Amazon's influence on product rankings. A well-thought-out strategy is crucial for success on the platform.

What are the Advantages & Disadvantages of Shopify?

Let's take a closer look at the advantages and disadvantages of Shopify.

Shopify: Advantages

• Ease of Use: Shopify is a user-friendly platform for merchants. It allows the creation of websites without coding or design skills, and various themes are available to users. This ease of website creation is particularly advantageous as it eliminates the need for expensive website developers. Besides, you also should determining the correct Shopify image size when you customize your store.
• No Need for Developers: Shopify eliminates the need for a website developer, making it accessible to users without coding expertise. For those familiar with HTML and CSS, Shopify offers flexibility and options for customization.
• ‍Accessibility and Location Independence: Shopify's cloud-based nature means users don't have to worry about web hosting or software installation. This provides convenience, and users can manage their stores from anywhere, offering location independence.‍
• Shopify Payment Processor and Email Marketing Tools: Shopify's integrated payment processor includes email marketing tools, streamlining the process for merchants. The platform allows customization to meet individual store requirements, contributing to its popularity among a vast user base.‍
• Large User Base and Trust: Shopify's substantial user base, with $319 billion in sales, instills a high level of trust among online merchants. The platform's widespread use is a testament to its reliability.‍
• Category-Specific Apps: A diverse array of tools and apps are developed for Shopify to enhance various aspects of e-commerce businesses, marketing, SEO, payment, inventory management, and much more. Among them, Fabrikatör stands out, providing you the opportunity to leverage all of Shopify's advantages by managing your inventory more accurately and maximizing profits.

We've compiled the features that make Fabrikatör essential for your Shopify store.

Shopify: Disadvantages

• ‍Cost: Shopify is a paid platform, and users need to pay subscription fees, which could be a drawback for those looking for a free solution. Additionally, you must pay a certain fee to use third-party applications with Shopify. ‍
• Legal Issues in Europe and GDPR Compliance: Shopify may face challenges in meeting all the requirements related to cookie consent, as mandated by the EU's GDPR laws. Compliance with these regulations, particularly concerning the display of a cookie banner, might be an issue.

Which Is Cheaper: Selling on Shopify or Amazon?

Shopify has a lower initial cost but additional expenses may arise as your business grows. Amazon, on the other hand, may have a larger customer base, but it comes with listing fees, selling fees, and other associated costs.

When comparing both platforms, it's important to consider specific needs such as the size of your business, target audience, and business model. Additionally, checking the current pricing and policies of both platforms from official sources is the best course of action.

Plus, keeping your store's inventory in order is just as important as serving customers in an online store. If you want to manage your products accurately and boost your earnings on Shopify, Fabrikatör is the way to go!

Which One is Better: Shopify or Amazon?

It depends on your business!

When it comes to choosing between Shopify and Amazon, the question of which is better for your business often arises. However, there is no definitive answer to this question as it depends on the nature of your business.

If you aim to establish an independent online store, Shopify is the recommended choice. With Shopify, you have more autonomy and can create your store without relying on external sources. However, keep in mind that you will need to pay for using Shopify's services.

On the other hand, if your primary goal is to sell products and you are not concerned about creating a large-scale business, Amazon may be a suitable option. While using Amazon, there is a possibility that your products may not appear in the top listings and it could be more challenging to make sales. Both options have their advantages and disadvantages, so the decision ultimately rests with you.

How Does Fabrikatör Help You Grow Your Shopify Business?

Fabrikatör is an all-in-one solution for managing & planning your inventory, orders, and fulfillment. With Fabrikatör, you can track your stock levels in real-time and receive alerts when your stock is running low. You can also manage your purchase orders and suppliers, and track your sales performance.‍

• ‍Real-Time Inventory Management: Fabrikatör provides an all-in-one solution for inventory management, allowing you to monitor stock levels in real time. This ensures that you stay informed about your product availability at all times.‍
• Low Stock Alerts: With Fabrikatör, you receive timely alerts when your stock is running low. This feature helps you avoid stockout and ensures a seamless shopping experience for your customers.‍
• Efficient Purchase Order Management: You can streamline your procurement process by managing purchase orders and suppliers through Fabrikatör. This efficiency ensures that you maintain optimal stock levels and meet customer demand effectively.‍
• Sales Performance Tracking: Fabrikatör enables you to track your sales performance comprehensively. By analyzing sales data, you can make informed decisions, identify top-performing products, and strategize for business growth.

In summary, Fabrikatör serves as a valuable tool for enhancing inventory management, streamlining order processes, and providing insights to optimize your Shopify business for sustained growth.

If you'd like to give Fabrikatör a try and boost your income on your Shopify store, see it in action right away! 

You can also use Fabrikatör for your Amazon, request integration from here.