Shopify vs Amazon: Where Should You Sell Your Products?

Choosing where to sell your products is one of the most consequential decisions you'll make as an e-commerce entrepreneur. The debate between Shopify and Amazon isn't about which platform is objectively better—it's about which platform aligns with your business goals, resources, and long-term vision.

Amazon offers immediate access to 310+ million active customers but takes significant fees and owns the customer relationship. Shopify gives you complete brand control and customer ownership but requires you to drive your own traffic.

This comprehensive comparison breaks down fees, branding, customer ownership, fulfillment, and how the most successful sellers use both platforms together in a multi-channel strategy.

The Fundamental Difference: Marketplace vs. Storefront

Before diving into specifics, understand the core philosophical difference between these platforms.

Amazon is a marketplace. You're selling alongside millions of other sellers in Amazon's store. Customers come to Amazon to shop—not necessarily to find your brand. Amazon controls the experience, the customer relationship, and increasingly, the data.

Shopify is a storefront builder. You're creating your own online store with your branding, your customer relationships, and your data. Customers come to your store because of your marketing, your brand, or your reputation.

This fundamental difference impacts every other comparison point we'll cover.

Fee Comparison: The True Cost of Selling

Understanding the complete fee structure is crucial for calculating your profit margins on each platform.

Shopify Fee Structure

Shopify uses a straightforward subscription plus transaction fee model:

Additional Shopify Costs:

• Third-party payment gateways: Additional 0.5-2% fee
• Apps: $0-300+/month depending on needs
• Theme: $0-380 one-time (many free options)
• Domain: ~$15/year

Example: $50 Product on Shopify (Basic Plan)

• Payment processing: $1.75 (2.9% + $0.30)
• Monthly subscription: $39 ÷ sales volume
• Total per sale: ~$2-4 (varies by volume)

Amazon Fee Structure

Amazon's fee structure is more complex with multiple fee types:

Category-Specific Referral Fees:

• Electronics: 8%
• Clothing & Accessories: 17%
• Home & Garden: 15%
• Beauty: 8-15%
• Books: 15%
• Toys & Games: 15%

Example: $50 Product on Amazon (with FBA)

• Referral fee (15%): $7.50
• FBA fulfillment (standard size): $5.50
• Monthly storage (0.5 cubic ft): $0.44
• Total per sale: ~$13.44 (27% of sale price)

Fee Comparison Summary

For a typical $50 product:

The math is clear: Amazon takes 2-4x more per sale than Shopify. However, this doesn't account for traffic acquisition costs on Shopify, which can significantly close this gap.

Branding and Customer Experience

Your ability to build and express your brand differs dramatically between platforms.

Branding on Shopify

Shopify provides complete creative control:

What You Control:

• Store design, layout, and aesthetic
• Product page structure and content
• Checkout experience customization
• Email communication design
• Packaging and unboxing experience
• Post-purchase journey
• Mobile app experience (with Shopify Mobile)

Branding Tools:

• 100+ free and premium themes
• Custom CSS and HTML editing
• Custom domain (yourbrand.com)
• Branded checkout pages
• Custom email templates
• Loyalty programs with your branding

Customer Experience: Your customers interact exclusively with your brand. From the moment they land on your site through order confirmation and delivery, every touchpoint reinforces your brand identity.

Branding on Amazon

Amazon provides limited branding opportunities within their ecosystem:

What You Control:

• Product images and A+ Content
• Storefront page (Brand Registry required)
• Product descriptions and bullet points
• Brand story section

What Amazon Controls:

• Overall page layout and design
• Checkout experience
• Shipping notifications and packaging
• Post-purchase communication
• Mobile experience
• Search results presentation

The Amazon Brand Challenge: Even with Brand Registry and A+ Content, your products appear alongside competitors, Amazon's own products, and sponsored listings. Customers often don't remember your brand—they remember buying from "Amazon."

Branding Impact on Business Value

This branding difference has significant implications:

For Exit/Acquisition: Shopify businesses with strong brands and customer lists command higher multiples (3-5x revenue) compared to Amazon-dependent businesses (1.5-3x revenue) because they represent owned assets rather than marketplace positions.

For Customer Lifetime Value: Brands that own customer relationships can run email campaigns, retargeting, and loyalty programs that increase customer lifetime value. Amazon sellers must constantly pay to reach new customers.

Customer Ownership and Data

Perhaps the most critical strategic difference between platforms is who owns the customer relationship.

Customer Data on Shopify

You own everything:

• Email addresses
• Purchase history
• Browsing behavior
• Cart abandonment data
• Customer preferences
• Demographic information
• Communication consent

What You Can Do:

• Build email marketing lists
• Run targeted Facebook/Google retargeting
• Create personalized recommendations
• Send cart abandonment sequences
• Launch loyalty and VIP programs
• Communicate new product launches
• Request reviews and feedback directly
• Build customer segments for marketing

Customer Data on Amazon

Amazon owns the customer relationship:

• No direct access to customer emails
• Limited purchase history visibility
• No browsing behavior data
• No ability to build marketing lists
• Cannot contact customers outside Amazon messaging

What You Can Do:

• Include package inserts (with restrictions)
• Request reviews through Amazon's system
• Respond to customer messages reactively
• Use Amazon's limited advertising tools

The Long-term Impact

Consider two scenarios:

Seller A (Shopify-focused): After 3 years, has 50,000 email subscribers who have purchased. Can email new product launches, holiday promotions, and retention campaigns. Customer acquisition cost decreases over time as repeat purchases grow. Business value includes customer list as an asset.

Seller B (Amazon-focused): After 3 years, has made 50,000 sales but has no direct customer contact information. Must pay Amazon advertising for every new sale, including from previous customers. Customer acquisition cost remains constant or increases. Business value is primarily inventory and Amazon reviews.

This difference compounds dramatically over time.

Fulfillment Options

How you get products to customers differs significantly between platforms.

Shopify Fulfillment Options

Self-Fulfillment:

• Pack and ship from your location
• Complete control over packaging and inserts
• Lower volume cost-effective option
• Brand experience customization

Third-Party Logistics (3PL):

• ShipBob, Deliverr, Red Stag, etc.
• 2-3 day shipping nationwide
• $3-8 per order typical cost
• Branded packaging often available

Shopify Fulfillment Network:

• Shopify's own fulfillment service
• 2-day delivery to most US addresses
• Competitive per-order pricing
• Deep Shopify integration

Dropshipping:

• Supplier ships directly to customer
• No inventory investment
• Lower margins, less control
• Apps like Oberlo, Spocket integrate

Amazon Fulfillment Options

Fulfillment by Amazon (FBA):

• Amazon stores, picks, packs, ships
• Prime eligibility (major conversion boost)
• $3.22-$10+ per unit (size-dependent)
• Storage fees apply
• Returns handled by Amazon
• Amazon-branded packaging only

Fulfillment by Merchant (FBM):

• You handle all fulfillment
• No Prime badge (significant disadvantage)
• Lower fees, more control
• Must meet Amazon shipping standards

Seller Fulfilled Prime (SFP):

• Prime badge with your fulfillment
• Strict performance requirements
• Not available to new sellers
• High volume commitment required

Fulfillment Comparison

Traffic and Customer Acquisition

Where customers come from is fundamentally different between platforms.

Getting Traffic to Shopify

You are responsible for all traffic:

Paid Channels:

• Facebook/Instagram Ads
• Google Shopping and Search Ads
• TikTok Ads
• Pinterest Ads
• Influencer partnerships
• Affiliate marketing

Organic Channels:

• SEO and content marketing
• Social media presence
• Email marketing (to your list)
• Word of mouth
• PR and media coverage

Average Customer Acquisition Cost (CAC): Varies wildly by industry and approach. Common ranges:

• Fashion/apparel: $50-150
• Beauty: $30-80
• Electronics: $40-100
• Home goods: $25-75

The Challenge: You start from zero. No built-in traffic, no existing customer base. Every visitor must be earned or paid for.

Getting Traffic on Amazon

Amazon provides massive built-in traffic:

Organic Discovery:

• 310+ million active customers
• Customers come to Amazon ready to buy
• Search and category browsing
• Recommendation algorithms
• Buy Box wins drive organic traffic

Amazon Advertising:

• Sponsored Products
• Sponsored Brands
• Sponsored Display
• Amazon DSP

Average Advertising Cost:

• ACoS (Advertising Cost of Sale): 15-30% typical
• Varies significantly by category and competition

The Trade-off: Amazon provides traffic, but you pay for it through higher fees and advertising costs. You're also competing directly with Amazon's own products and millions of other sellers.

When to Choose Shopify

Shopify is the better choice when:

You're Building a Brand

If your goal is to build a recognizable brand with loyal customers, Shopify is essential. You need to own the customer experience and relationship to build brand equity.

Examples:

• Direct-to-consumer brands (Allbirds, Glossier, Warby Parker started here)
• Artisan and craft businesses
• Lifestyle and fashion brands
• Premium and luxury products

You Have Unique Products

Products that can't easily be price-compared benefit from Shopify:

• Custom or personalized items
• Proprietary formulations
• Original designs
• Handmade products
• Niche items without direct competitors

You Can Drive Traffic

If you have existing audiences or marketing capabilities:

• Established social media presence
• Email list from previous business
• Content marketing expertise
• Influencer relationships
• Strong SEO knowledge
• Advertising experience

You Want Higher Margins

With lower per-transaction fees, Shopify allows higher margins once you've optimized customer acquisition costs.

You're Planning for Exit

Shopify businesses with owned customer lists and brand equity sell for higher multiples than Amazon-dependent businesses.

When to Choose Amazon

Amazon is the better choice when:

You Need Immediate Sales

Amazon provides instant access to customers. If you need revenue quickly:

• Testing product-market fit
• Funding initial inventory
• Validating pricing
• Building reviews and social proof

You Have Commoditized Products

Products where brand matters less and price/convenience matter more:

• Phone accessories
• Basic home goods
• Generic consumables
• Commoditized electronics

You Lack Marketing Resources

If you don't have marketing expertise or budget:

• No experience with paid advertising
• Limited content creation capability
• No existing audience
• Minimal marketing budget

You Want Simple Operations

Amazon FBA handles complex logistics:

• No warehouse or shipping staff needed
• Returns managed by Amazon
• Customer service handled
• International fulfillment simplified

Your Competitors Are Already There

If customers search for your product category on Amazon and you're not there, you're invisible to a massive buyer pool.

The Multi-Channel Strategy: Using Both Platforms

The most successful e-commerce businesses don't choose between Shopify and Amazon—they use both strategically.

Why Multi-Channel Works

Risk Diversification: Amazon policy changes, account suspensions, or algorithm shifts can devastate Amazon-only businesses. Multi-channel sellers have fallback revenue streams.

Customer Journey Coverage: Some customers discover on Amazon but prefer buying direct. Others find your brand through content but want Amazon's convenience. Cover both paths.

Maximizing Lifetime Value: Use Amazon for discovery, then move customers to your Shopify store for repeat purchases with higher margins and full relationship ownership.

The Multi-Channel Framework

Amazon's Role:

• Product discovery and awareness
• Reaching Prime-dependent customers
• Building initial reviews and social proof
• Accessing Amazon's traffic during peak seasons
• Testing new products with built-in audience

Shopify's Role:

• Brand building and storytelling
• Customer relationship ownership
• Higher-margin repeat purchases
• Product bundling and subscriptions
• Premium customer experience
• Building business equity

Implementation Strategy

Step 1: Establish on Both Platforms

• Set up Shopify store with full branding
• List core products on Amazon
• Use Shopify's Amazon sales channel for inventory sync

Step 2: Differentiate Offerings

• Amazon: Best-sellers, single units, competitive pricing
• Shopify: Bundles, exclusives, subscriptions, personalization

Step 3: Drive Customer Migration

• Include Shopify URL on Amazon packaging inserts (within Amazon's guidelines)
• Offer Shopify-exclusive products or variants
• Build email list from Shopify customers for retention

Step 4: Optimize by Channel

• Amazon: Focus on ranking, reviews, advertising efficiency
• Shopify: Focus on conversion rate, email marketing, customer lifetime value

Multi-Channel Tools and Integration

Inventory Management:

• Shopify's native Amazon channel
• Sellbrite
• ChannelAdvisor
• Linnworks

Order Management:

• ShipStation
• Skubana
• Ordoro

Fulfillment:

• Use FBA for Amazon orders
• Use 3PL or Shopify Fulfillment for Shopify orders
• Some 3PLs can fulfill both channels

Platform Comparison Summary

Making Your Decision

Consider these questions:

What's your timeline?

• Need revenue in 30 days? Amazon
• Building for 3+ years? Shopify (or both)

What's your product?

• Unique and brandable? Shopify
• Commoditized? Amazon

What's your marketing capability?

• Can drive traffic? Shopify
• Need built-in customers? Amazon

What's your goal?

• Build an asset to sell? Shopify
• Generate income quickly? Amazon

What's your risk tolerance?

• Want diversification? Multi-channel
• Okay with platform dependency? Single channel

Key Takeaways

1. Amazon takes 2-4x more per sale than Shopify, but includes traffic that Shopify requires you to generate

2. Customer ownership is the critical difference—Shopify lets you build marketing lists and customer relationships; Amazon does not

3. Brand building requires Shopify—you cannot build meaningful brand equity within Amazon's ecosystem

4. Multi-channel is the optimal strategy for most serious e-commerce businesses—use Amazon for discovery and Shopify for relationship building

5. Your decision should match your goals—quick revenue and simple operations favor Amazon; brand building and long-term value favor Shopify

6. The platforms aren't mutually exclusive—start where it makes sense, then expand to cover both customer acquisition channels

Ready to launch your Shopify store? Start your free trial and build your brand on your own terms. For AI visibility optimization across all your e-commerce channels, run a free audit to see how AI shopping assistants currently recommend products in your category.

Further Reading

• Amazon Rufus Optimization Guide
• AI Shopping Assistants Comparison
• Converting AI Shopping Traffic
• DTC Brand AI Visibility Playbook