Shopify and Amazon are the most popular tools for the sale of online products, but they present very different characteristics and functionalities. Even though both facilitate the commerce to brands and retailers, Shopify is a software that allows you to create your own e-commerce with easy direct sales to the public, and Amazon is a marketplace that agglutinates millions of sellers on the global level. The selection of marketplace or e-commerce for the sale of your products will depend on your objectives, the brand image that you want to create and your business plan. As a starting point, you can perform an estimation of costs and profits. Once you start to sell, and you choose the platform that you choose, you will be able to monitor your competition’s prices with our tool and mark a pricing strategy to continue being competitive and attractive to your clients. If you have doubt about which tool to choose, we will give you the keys here.
Differences between Shopify and Amazon
From entry, the difference in the business and functionality models of Shopify and Amazon imply that the services offered to sellers is going to be different. Shopify puts within reach all that is necessary for the creation and maintenance of an e-commerce, including its own payment gateway. On Amazon, the sale takes place through their standardized system and equal to all sellers, but the marketplace offers access to a database with millions of potential clients and online marketing and positioning services. This is one of the principal benefits for brands, the access to users already interested in their products and that they trust Amazon for their purchases. This summarizes the following differences:
Configuration and initiation of sales
Although Shopify provides a simple and intuitive interface, the configuration of an e-commerce can be a complex because the web should be created from zero and adjust the templates to the necessities of each seller. On the contrary, Amazon only requires an inscription process to start to include your products in their lists (even though, thanks to internal bureaucracy of the business and the requirement of adaption to their standards, it can also take a while). From the beginning it also offers the possibility of activating the logistical FBA service for your comfort.
Personalization and visibility of the brand image
The level of personalization that Amazon allows as a marketplace is scarce. All sellers should comply with their norms and provide a limited space on their product page for image personalization. In the respect of packaging, the brand image of a seller that chooses the FBA model disappears completely, so that their engagement will be lower. This does not occur with the e-commerce of Shopify, where the brand has complete control of management and of the web contents, that which improves the user experience with the brand and facilitates the distinction among competitors.
Prices and sales commissions
The two options, the e-commerce and the marketplace, share a series of fixed monthly costs and others derived from transactions and sales made. Shopify has three pricing plans following the necessities of every brand, from the $29 Basic plan to the $299 Advanced plan. It will also be necessary to pay for the implementation of determined applications on the website and for the sales of items using payment methods outside of Shopify.
n In the case of Amazon, you can choose an individual account or a professional account. In the individual account, the seller should pay 99 cents for every sale, plus a commission following the type and size of the product. With the professional account, they pay a monthly quota of $39.99, plus the commissions. The main defect of this system is that, given that the sales commissions depend on the type of product, on occasion they can be greater than 40%. Some costs can suppose a period of profits for the brand.
Before this scenario, it will be the seller who decides what advantages they compensate more to them. If the business can assume it, one can value implementing the two tools: creating an e-commerce with a worked brand image and close with the clients, and sell determined products also through Amazon. An omnichannel strategy that increases sales and visibility of the brand. In the last instance their success will depend on the fixing of some attractive and competitive prices. For this it is important to know the competition prices, both in their own e-commerce and within the different marketplaces. You can help yourself with automized tools. Look here for a demo.