Shopify vs Amazon FBA: can’t decide which one to use? Choosing the right platform is tricky, especially if you’re not clear on what sets them apart.
When people think about launching an online business, Shopify and Amazon are usually the first names that pop up. That’s because both platforms have proven track records for helping sellers grow their brands.
But if you had to pick just one, which should it be? Sure, you could technically use both, but let’s be real: juggling two platforms means double the time, double the effort, and potentially double the headaches.
So in this guide, we’ll break down the real differences between Shopify and Amazon FBA. By the end, you’ll have a clear idea of which one fits your business best based on your goals, budget, product type, and how hands-on you want to be.
Table of Contents
What Is Shopify
For online sellers who want to build their own e-commerce website, Shopify has become a go-to option. It’s a user-friendly, cloud-based DTC (Direct-to-Consumer) platform that lets you create and manage your store without needing to know a single line of code.
With Shopify, sellers can fully customize their storefront, from branding and layout to checkout experience. So, if you’re looking for full control over your customer journey, product presentation, and marketing tools, Shopify makes it possible.
Benefits of Using Shopify
Using Shopify offers a lot of advantages for sellers who want full control over their brand and store. Here’s why so many choose it to launch and scale their e-commerce business:
- You get full control over your brand, website, and customer data.
- No coding skills are needed thanks to drag-and-drop tools and modern templates.
- The store design, layout, and checkout process are fully customizable.
- You don’t compete directly with other sellers on your own site.
- It’s easy to add apps for marketing, payments, and shipping.
Drawbacks of Using Shopify
Even if Shopify is a solid platform, there are still some real challenges sellers need to consider. Below are the most common reasons some sellers struggle with it:
- You have to generate all your own website traffic.
- Marketing efforts like SEO and ads can be expensive and time-consuming.
- Setting up your store and learning the tools takes time.
- Monthly costs can add up with apps and third-party services.
- Shopify relies heavily on Google for organic traffic, limiting reach compared to marketplaces.
Looking for an agency to help manage your Shopify store? Check out our DTC Services!
What Is Amazon FBA
Did you know that around 94% of Amazon sellers use FBA? That’s because it offers the kind of convenience and built-in traffic that most e-commerce sellers dream of.
Amazon FBA is a service where Amazon stores your inventory, packs your orders, and ships them directly to customers. This lets you sell everything from everyday essentials to niche products without handling logistics yourself.
Benefits of Using Amazon FBA
With so many sellers using Amazon FBA, you might be wondering what makes it so appealing. These are the reasons why:
- Your products are listed on a marketplace visited by over 300 million customers worldwide.
- Amazon handles storage, packing, shipping, returns, and customer service.
- No need to build or maintain a website; just list and sell.
- You can rank in both Google and Amazon search, increasing your exposure.
- Shoppers on Amazon are ready to buy, which means fewer abandoned carts and more sales.
Drawbacks of Using Amazon FBA
However, just like any other platform, there are also drawbacks to using Amazon FBA. Here are the key downsides you need to watch out for:
- Storage, fulfillment, and other fees from Amazon can add up quickly.
- Amazon’s lenient return policy can lead to higher return rates.
- You pay more if inventory stays too long in Amazon warehouses.
- FBA demands specific packaging and labeling, which can be a hassle.
- Competing against thousands of sellers, especially as a new seller, is tough.
Shopify vs Amazon FBA: The Key Differences
Although both platforms are solid options for e-commerce sellers, there are key differences between the two. Learning about these differences can help you decide which one better fits your business goals and selling style.
1. Seller Requirements
Before you can sell on either platform, there are certain requirements you need to meet to make sure your business is set up the right way. Depending on how much effort, paperwork, or tech setup you’re ready to handle, these requirements could influence which platform is the better fit for you.
Shopify Seller Requirements
- Officially register your business and get any licenses or permits required in your state or country.
- Choose and pay for a Shopify plan that fits your business size and goals.
- Set up payment gateways like Shopify Payments, PayPal, or third-party processors to accept online payments.
- Depending on your location, a seller’s permit may be required to collect sales tax.
- Buy a custom domain or use a free Shopify-branded one.
- Create clear shipping, return, and privacy policies.
Amazon FBA Seller Requirements
- Provide your business name, contact details, and a valid email.
- Submit a Tax ID (SSN or EIN) and a government-issued ID.
- A chargeable credit card is required for account setup and fees.
- Add a bank account to receive payouts.
- Amazon may request a recent utility bill or bank statement as proof of address.
- A business license may be needed depending on your product type or category.
- International sellers must provide a chargeable international credit card and routing number.
2. Ease of Use
How easy a platform is to set up and manage should never be overlooked. The smoother the experience, the faster you can focus on actually selling and scaling your brand.
Shopify makes it simple, even for beginners, to launch a store. Its clean dashboard, step-by-step setup, and 24/7 live support keep things easy to manage without feeling overwhelmed.
Amazon’s setup is quick, but the backend tools can feel dense, especially for new sellers. You’ll need to spend more time learning the system, and support isn’t as hands-on as Shopify’s.
3. Traffic Generation
How you get eyes on your products matters just as much as the product itself. This is where Shopify and Amazon FBA take very different paths, and it could make or break your decision.
With Shopify, you’re starting from scratch since there’s no built-in traffic. You’ll need to drive visitors through ads, social media, influencers, or email marketing to get any real traction.
Amazon brings the crowd to you with millions of shoppers searching every day. You still need to optimize your listings, but the traffic is already there; you’re just plugging into it.
4. Costs & Fees
When choosing between Shopify and Amazon FBA, you’ve got to follow the money. Costs can creep up fast, and how each platform charges you will absolutely impact your profit margins.
Shopify has simple, upfront pricing with no extra selling fees beyond the subscription and payment processing. What you pay monthly is predictable, making it easier to manage your budget.
| Plan | Monthly Fee (Yearly Billing) | Monthly Fee (Monthly Billing) | Key Features |
|---|---|---|---|
|
Basic |
$29 |
$39 |
For new sellers, it includes basic reports and online store setup |
|
Shopify |
$79 |
$105 |
Better reporting, lower credit card fees, and more staff accounts |
|
Advanced |
$299 |
$399 |
Advanced analytics and lower third-party shipping rates |
|
First 3 Months |
$1/month on select plans |
Promo subject to change |
Trial offer available for new users |
Amazon’s pricing is less predictable, it has a lower entry cost on paper, but more fees once sales roll in. Between referral fees, FBA fulfillment charges, and storage costs, expenses can add up fast.
| Fee Type | Cost | Notes |
|---|---|---|
|
Individual Plan |
$0.99 per item sold |
Best for under 40 sales/month |
|
Professional Plan |
$39.99/month |
Unlimited listings, access to ads, and reporting tools |
|
Referral Fees |
8%–15% (up to 45% for some categories) |
Based on product category |
|
FBA Fulfillment Fees |
$2.50–$5.50 per unit |
Covers picking, packing, and shipping |
|
Storage Fees |
$0.75–$2.40 per cubic foot |
Higher during peak season (Oct–Dec) |
5. Help or Seller Support
Some might think seller support isn’t a big deal when picking a platform: huge mistake. When things go wrong (and they will), having responsive support that actually helps you can save your business from major headaches.
Shopify sets the standard for seller support with 24/7 access to live chat and phone support, plus a massive library of guides and video tutorials. Whether you’re dealing with a glitch or just need help setting something up, getting answers is fast and painless.
Amazon’s seller support is a different story since it is less responsive, harder to navigate, and often frustrating. Many sellers report unresolved cases, generic replies, and delays, making it tough to get help when you really need it.
6. Potential Profit
Let’s be honest: profitability is one of the biggest factors when deciding where to sell. Knowing how much money you can make on each platform helps you choose the path that aligns with your goals and resources.
Shopify gives you more control and typically lower platform fees, but you’ll need to pour money into marketing to drive traffic. With average conversion rates around 1–2% and higher ad spend on channels like Google or Facebook, your profit margins can get squeezed unless you’ve nailed your audience and offer.
Amazon has a higher profit ceiling thanks to its massive customer base, 8–12% conversion rates, and lower ad costs. While the competition is fierce with over 9 million sellers, the built-in traffic and buyer intent make it easier to scale fast and generate consistent profits.
7. Customization
For some businesses, customization matters because it helps them present their brand exactly how they want customers to see it. Having more freedom over the look, feel, and functionality of your store can be a game-changer or irrelevant, depending on your goals.
Shopify gives sellers near-total control over their store design, from layouts and colors to functionality using apps and integrations. If branding, customer experience, and control matter to you, Shopify is the clear winner.
Amazon FBA severely limits how much you can customize your Brand Store since it controls most of the layout, and your branding options are minimal. You’re playing in Amazon’s sandbox, and they make the rules, which means your ability to stand out visually is extremely restricted.
8. Marketing Options
To get more sales, sellers need to market their products. So, having a wide range of marketing options and control over them can make a big difference depending on your strategy.
With Shopify, you’re responsible for driving all traffic to your site through SEO, social media, email marketing, and paid ads. While this takes more work and budget, it gives you full control over your marketing and customer relationships.
Amazon brings the traffic to you, making it easier to get visibility without running full-scale outbound campaigns. However, sellers still need to invest in PPC campaigns and use tools like A+ Content to boost conversions.
| Category | Shopify | Amazon FBA |
|---|---|---|
|
Seller Requirements |
Business license, domain, payment setup |
Tax info, ID, bank account, sometimes business license |
|
Ease of Use |
Beginner-friendly setup with strong support |
Quick setup but harder to navigate; limited support |
|
Traffic Generation |
You build it with ads, SEO, and content |
Built-in traffic from millions of Amazon shoppers |
|
Costs & Fees |
Flat monthly fee + payment processing |
Selling plan + referral, FBA, and storage fees |
|
Seller Support |
24/7 live support, extensive help docs |
Slower, less helpful, often frustrating |
|
Potential Profit |
More control, but lower traffic and higher ad costs hurt margins |
Higher volume, better conversions, lower ad costs = more profit potential |
|
Customization |
Full control over design, layout, and branding |
Minimal control; Amazon controls most of the customer experience |
|
Marketing Options |
Full control, but effort-intensive |
Limited control, but built-in traffic + PPC and A+ Content available |
Shopify vs Amazon FBA: Find Out Which Platform Is Right for You
Not sure whether to build your own Shopify store or jump into Amazon FBA? This quick quiz will help you figure out which path fits your goals, skills, and budget best.
FAQs About Shopify vs Amazon FBA
Build Your Own Store or Tap Into a Marketplace?
When you decide to start an online business, one of the first choices you’ll face is whether to build your own website or sell through a massive platform like Amazon. This decision shapes everything, from your marketing approach to how you handle logistics and customer service.
With this blog, we hope we helped you figure out which one fits your goals better. Whether it’s full control with Shopify or built-in traffic with Amazon FBA, the right choice comes down to how you want to grow your brand.
Need help managing your Shopify or Amazon FBA seller account? Reach out to our full-service Amazon agency and let our team of experts help you out!
