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Shopify vs Amazon: Which e-Commerce Platform is Best For You?

Due to the obvious disparities between the two platforms, the discourse surrounding e-commerce behemoths Shopify and Amazon is frequently disregarded. While Shopify provides an e-commerce platform for both new and established businesses to boost the brand, identity, product, and customer base, Amazon is a Well established online marketplace that provides you with a selling space with an established reputation and a steady stream of relevant traffic.

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With ecommerce on the rise and “bricks and mortar” stores on the wane, we’re looking into “online marketplace” vs. “your online store” Also called “Shopify vs Amazon.”

To make an informed decision that will help your business expand through higher sales, marketing, and reputation, we’ve compiled some statistics and figures to help you understand the differences between Amazon and Shopify and which platform is ideal for you.

Shopify vs Amazon: Understand the Main Differences

Search Engine Optimization and Discovery

Your SEO efforts are one of the most important ways to discover your business online.

Amazon presently ranks first on Google’s first page, with 10,000 keywords. In addition, 95 percent of searches that include “image boxes” include at least one image from Amazon. These figures are incredible, and having your products appear in position one is frequently a major goal for a company. However, because Amazon has its ranking algorithm, it can be even more challenging, as your products must appear on both Google and Amazon’s first pages.

Amazon has its SEO system, A9, which considers traditional ranking variables like keywords and favors products with high conversion rates, relevance, and positive customer ratings. If your things aren’t selling well, they’ll be less likely to discover; and in case, they’ll be less likely to sell, and so on.

On the other hand, Shopify provides merchants with an ecommerce store that allows them to rank for keywords on their website. Google, like Amazon, ranks web pages using an algorithm that considers a variety of characteristics. As a result, ranking for competitive keywords can be tough for new firms. When it comes to the Google algorithm, several professionals in the industry are available to assist. Content marketing, link building, and on-page optimization are all factors that can help your website move in the right direction. Factors that Amazon merchants have little to no control over.

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A Tiny Fish in a Big Pond

The ecommerce behemoth’s reputation is one of the major reasons businesses choose Amazon as their primary selling point. Within the ecommerce industry, Amazon is one of the largest online marketplaces. Amazon had 40% of the ecommerce market share in the United States in 2021, bringing in $367 billion in that year alone. These staggering figures shed light on why many up-and-coming businesses rely on Amazon to build their brand and sell their wares.

Amazon now boasts 9.5 million individual sellers and over 213 million unique monthly visitors in the United States. Due to many products vs. shoppers, it will be incredibly difficult for you to get discovered. Sellers on Amazon frequently run the danger of their products getting lost in a sea of similar offerings. Furthermore, Amazon is selling an increasing number of its products. These frequently include “same-day delivery” and “buy now, pay later,” which are incredibly tempting to a rising consumer base in today’s climate.

In addition to this,  9 out of 10 Amazon customers compare prices on the same page and almost always choose the less expensive option. Though most online buyers do this across many websites, Amazon makes it easy for users by bringing all products, information, and customer reviews together in one location. For vendors, this convenience for buyers can be a source of stress.

Shopify offers a platform for merchants to sell their goods. While you’re not immune to being a small fish in a big pond, your products won’t have to compete with cheaper alternatives or firms with shorter lead times and faster delivery after clients find your website. Once a visitor lands on a website, branding, content, images, and other features, businesses can promote their services and products. Which is more difficult to achieve when using marketplaces like Amazon.

Brand Building and Reputation

Amazon marketplace sellers might find it challenging to develop and maintain a strong and distinct brand. Many firms rely on this to establish a name and reputation and grow their business. As a result, 80 percent of people who utilize the Amazon marketplace also use other venues to sell things and create their business and identity, such as their website. Shopify is one of many ecommerce platforms that merchants utilize to build their websites.

Who is eligible to sell on Amazon? 

To put it another way, anyone. Amazon is an excellent place for new businesses because it is simple to use and sell products. Shopify, on the other hand, permits your business to expand. Shopify is simple to set up and use. Additionally, the standard and premium versions provide easily customizable templates that can be customized to represent your brand and values.

When sellers use Amazon marketplaces, they risk slipping under the Amazon “roof”, which leaves them with little to no room to display marketing collateral, logos, or design. While your firm may gain sales and visibility, it is less likely to be recognized as its entity.

Amazon vs. Shopify 

Amazon and Shopify are two very distinct sorts of ecommerce platforms. As a result, they are not competitors in the classic sense. So why not combine the two? As previously stated, 80 percent of Amazon sellers use Amazon in addition to having their ecommerce store. Which can be beneficial for merchants looking to occupy more space on Google. It increases the number of opportunities for customers to see their products, but what does this mean in terms of costs?

Shopify has monthly pricing options that start at USD 24 a month and go up, depending on the plan and platform. On the other hand, Amazon charges a commission on all things sold. When you purchase through Amazon, they take up to 15% of the price. It might get expensive when you put it all up, especially if you’re utilizing it as a secondary selling platform.

So, what’s the takeaway here?

Amazon and Shopify are unquestionably household names in the ecommerce world. Both present great potential for both start-ups and established companies. Amazon is home to many companies, from start-ups to well-known industry titans. Shopify provided a platform that both new and established enterprises could use.

With over 213 million monthly shoppers, Amazon is a well-known brand that appeals to smaller, up-coming businesses as a place to start their ecommerce adventure. Though this is true, and based on the staggering figures, you can expect to see your products in front of many potential buyers each month. But, likely, your product may not be picked up by customers due to higher prices than your competitors.

Amazon’s name and branding

Unlike Amazon, Shopify is an established ecommerce platform that allows merchants to construct their marketplaces. Shopify is a simple-to-use platform that has evolved with merchants from their humble beginnings to established giants like Kylie Cosmetics, GymShark, and others. More than 3 Million businesses use Shopify, and it processes around $82 billion in transactions every year. This amazing platform fosters growth by allowing merchants to design their name, branding, personality, and values. A website allows a company to improve its reputation and distinctiveness, which is important in today’s culture.

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Conclusion

To conclude, both Shopify and Amazon are notable in their fields with plenty of tools and budgeted pricing. If you want your resources to build and grow an online brand, you can opt for Shopify. The best Shopify development company creates your strong brand identity with customised free tools, templates, and styling options.

And, if you are working on a small scale with no thoughts of building a brand, opt for Amazon. You’ll get a million visitor platform, but with some restrictions and a higher paying fee. 

If you’re still confused, choose our best multi-vendor E-commerce solution and make your business more expandable. We help your business reach out to more customers and boost sales across the globe with our advanced E-commerce solutions. 

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