Is it better to sell on Shopify or Amazon? Choosing the best platform for global growth

Shopify and Amazon stand out as two of the most powerful platforms for e-commerce businesses looking to build a global strategy. They each give businesses the tools to reach large audiences and sell online seamlessly.

But how is Shopify different from Amazon? And which platform should you use for your international online store? Business owners must understand the strengths and limitations of Shopify vs. Amazon to make an informed decision that suits their business needs.

This guide will explore the differences between Shopify and Amazon, including each platform’s features, benefits, and potential drawbacks, so you can find the right fit for your global sales operations.

How is Shopify different from Amazon?

Shopify and Amazon are valuable platforms for global e-commerce businesses, but they have several notable differences. First, they operate with different business models. Amazon is a marketplace where brands can sell products alongside other retailers. Shopify is an e-commerce platform that gives businesses the tools to build their own online stores.

Amazon and Shopify also have different pricing systems. Amazon sellers in the U.S. can choose an Individual selling plan, which costs $0.99 per sale, or a Professional plan, which costs $39.99 per month, regardless of sales volume. All sales are subject to a referral fee, which varies depending on the item category.

Meanwhile, Shopify offers several pricing plans with distinct features. These plans include Starter for $5 per month, Basic for $39 per month, Grow for $79 per month, Advanced for $399 per month, and Plus for $2,300 per month. All plans except Plus receive a 25% discount if they’re paid annually. Shopify also charges a small fee for payment processing on each transaction.

Essential pros and cons of selling on Amazon or Shopify 

If you’re debating whether it’s better to sell on Shopify or Amazon, consider each platform’s unique advantages and drawbacks—especially regarding essential factors like costs, ease of use, and localization.

Here’s a closer look at the pros and cons of Shopify vs. Amazon:

Amazon’s pros and cons

The advantages of selling on Amazon include:

• Widespread reach: Amazon attracts billions of monthly visitors, exposing sellers to a vast audience. Amazon also ships to customers in over 100 countries and regions.

• Easy setup: Businesses can create product listings and shop pages without in-depth technical skills, so they can start selling quickly.

• Streamlined fulfillment process: With Fulfillment by Amazon (FBA), Amazon handles product storage, packaging, shipping, and customer service processes.

• Enhanced reputation: Amazon is among the most trusted and well-known global brands. Selling on the platform builds a business’s reputation and credibility.

• Search results exposure: Sellers can employ search engine optimization (SEO) tactics, like adding keywords to product listings, to boost visibility in search results.

However, Amazon sellers face potential drawbacks, as well:

• Increased competition: Competition on Amazon can be tough, especially for popular product categories like tech, making it difficult to stand out and win sales.

• Multiple fees: Amazon charges various fees, including referral fees, Amazon FBA fees, and monthly subscription fees, which can eat into profit margins.

• Minimal customization: Sellers have little control over their storefront appearance, branding, and customer communications.

• Limited payment options: Amazon only accepts specific payment methods, including credit cards, Amazon Store Cards, and checking accounts. This limits customers’ options at checkout.

Shopify’s pros and cons

Key benefits of using Shopify include:

• Easy, customizable setup: Shopify’s interface is easy to use and customize without coding knowledge. Unlike Amazon, Shopify gives businesses complete control over their online store’s branding, design, and customer experience.

• Access to e-commerce tools: The Shopify App Store hosts thousands of apps sellers can use to enhance their e-commerce stores. These apps provide additional features and services, like inventory tracking and customer analytics.

• Multiple payment options: Shopify offers a wide range of payment options for customers, including credit cards, PayPal, Amazon Pay, Apple Pay, and cryptocurrency.

• Localization integrations: Smartling’s Shopify integration helps retailers deliver localized experiences for international customers. This integration lets sellers send e-commerce content, like product descriptions and checkout pages, directly to Smartling for translation. Translations are returned automatically, helping you increase global sales on Shopify.

Still, running a Shopify store comes with challenges:

• Added costs: Transaction fees, paid apps, and third-party payment gateways can increase monthly Shopify costs and reduce profits.

• No built-in audience: Unlike Amazon, a Shopify store doesn’t come with a built-in customer base. Businesses must develop their own marketing efforts to drive customers to their stores.

Selling on Amazon or Shopify: Choosing the best option for your business

When weighing Amazon vs. Shopify, global businesses must assess key factors like operating margins, growth targets, and desired control over the sales process. You might start selling on Amazon if you want to quickly build widespread reach through a global online marketplace. Alternatively, if you’re cultivating a recognizable brand, a Shopify store allows you to customize the buying experience with e-commerce tools, payment options, and integrations.

International sellers should also consider how they’ll localize their content to meet different customers’ linguistic and cultural preferences. With Smartling’s localization services, you can achieve high-quality translations for less, with easy-to-install translation integrations and AI tools designed to maximize your resources.

Häufig gestellte Fragen

Can I sell on Amazon and Shopify at the same time?

Yes, you can sell on Amazon and Shopify at the same time. Running Shopify and Amazon online stores can expand your reach, attract global customers, and drive higher sales. You may run your Amazon and Shopify stores separately or integrate them for smoother inventory management and product fulfillment.

Can Shopify integrate with Amazon?

Yes, Shopify and Amazon can link for smoother e-commerce operations. Businesses can sync inventory data and fulfillment processes between the two platforms using Amazon’s Multi-Channel Fulfillment (MCF) app. They can even offer Amazon products on their Shopify site and provide the “Buy with Prime” service, giving Shopify buyers access to Amazon Prime deals and shipping options. 

What documents are required to sell on Shopify?

To set up a Shopify store, you must provide your business address, billing information, business or tax registration number, and domain name. You may also need to upload documents for Shopify Payments verification to prove your identity and address.

Erweitern Sie den Shopify-Umsatz weltweit mit Smartling

Amazon and Shopify both offer advantages that meet distinct business needs. If you’re expanding your business globally and looking to reach international customers, you might consider selling on one—or both—of these platforms.

No matter your chosen platform, international e-commerce presents unique localization and translation challenges. To communicate with global customers and maximize sales opportunities across borders, you need a comprehensive localization strategy and advanced digital solutions.

Smartling’s Shopify integration helps businesses easily translate e-commerce content. It works directly with Shopify’s e-commerce technology to streamline the translation process for a consistent, localized experience.

Looking for more ways to enhance global sales and engagement? Learn more about how brands tailor translations for audiences around the world here.