Amazon FBA vs Shopify – What’s Best for Success in eCommerce?
If you’re a small-scale business who wants to sell their products online, or are considering the idea of starting an eCommerce company in Amazon or Shopify, it’s essential to choose the right platform.
We’ll take a look into two well-known platforms: Amazon FBA vs Shopify.
What exactly does FBA mean? Amazon FBA is “Amazon – Fulfilled By Amazon” that gives you insight into one of the main distinctions between these platforms. One of the options Amazon provides sellers is the ability to deliver your products to customers directly on behalf of you.
Amazon FBA vs Shopify — What’s the Difference?
The two platforms Amazon as well as Shopify are major players in the eCommerce world and both of them make it simple to sell online. It’s possible to think that they’re alike, but I’m here to say that’s not real.
So what is the difference between these eCommerce giants? What is the most effective marketplace for you to choose to start an eCommerce business?
Amazon FBA
The selling process on Amazon is similar to leasing or owning a booth at fairs and you’re among the many stallholders who are selling their goods to thousands of curious people who are looking around.
The sheer amount of people who visit the fair guarantees that a lot of visitors will see what you have on showcase at your stall. For Amazon the number of people who visit your stall could be millions.
Shopify
Selling on Shopify On the contrary it’s a lot like renting or having a tiny brick and mortar store (or van, as in the picture below). The store is yours to run and you decide what the look of it will be and how you’ll present your products, and everything else in between.
The problem is that there could be fewer people seeking your business unless you promote it. Therefore, social media marketing and other strategies for marketing should be a top priority to ensure prospective customers know where to locate your business.
Amazon FBA vs Shopify
As stated, Amazon is an online marketplace that offers products by a variety of sellers all at the same time. If you’ve bought something on Amazon you’ll appreciate how simple it is for shoppers… You can go through the shelves.
However, Amazon makes it simple for sellers to create an account and you’ll be ready to go to market. They’ll even handle the shipping if you choose to use Amazon FBA.
Amazon PROS
Sign up is simple and begin selling almost immediately
Amazon offers a 30 day free trial, so sign up for a free trial and set an “stall” almost immediately. It’s easy to use, even for people who do not have any technical expertise.
Amazon handles shipping when you choose FBA
A majority of Amazon sellers prefer to utilize Amazon FBA. In simple terms all you need to do is bring your items to Amazon’s warehouse, and they’ll manage the rest, such as the storage of your items, maintaining your inventory and even shipping for you.
Costing help is simple from Amazon
The cost of maintenance for FBA will depend on the amount you are using. Amazon provides clear guidelines regarding the costs and includes a calculator to assist you in estimating expenses. Fulfillment is a crucial element that determines the choice of which eCommerce platform is the best one for your company.
Amazon FBA also takes care of customer support, including refunds and returns
Amazon FBA comes with built-in customer service , too. They will handle all refunds or returns that make it easier for you to sell your products. As a seller on Amazon You are assured that their support for customers will be top-notch and will help you with your reviews.
You don’t have to worry about marketing because the customer database of Amazon is vast
We’ve touched on this issue briefly previously however, selling your product on Amazon could place your product in front of thousands of prospective buyers. This is a great option if you’re just beginning your journey and aren’t quite sure about the basics of marketing.
If you’ve seen a glimpse of the issues that sellers have to face when selling on Amazon You might think the Amazon pros are the perfect solution.
Amazon fees
Based on the plan you select depending on the plan you choose, there are Amazon fba costs that you’ll have to pay, which could ultimately eat away at the profits you earn.
If you choose to go with the Professional Selling Plan, you are required to make payments of USD $39.99 each month after you have listings that are active. If you opt for an Individual Selling Plan you will not be charged subscription fees per month but you’ll need to pay Amazon an amount for each item sold (USD$0.99 for each item).
Additionally, Amazon charges you referral fees, fulfillment charges (if you select Amazon FBA) in addition to certain sellers may also charge additional charges based on the retailer. Amazon also charges a fee for returns and makes it extremely easy for customers to return their purchase (even if there’s no problem about it). Amazon always prefers its customers, and occasionally as the seller the returns could be expensive for you.
Shopify PROS
Sign up for free and begin building your online store today
Similar to Amazon, Shopify makes it easy to sign up. The service offers a free 14-day trial, and no credit card is needed. It’s easy to begin designing your site and establishing your store in a matter of moments.
You can create your brand using the creation of your website as well as an an online store
A strong brand is crucial in order to build an effective business. Shopify’s user-friendly tools as well as templates and an extensive help section make this simple for users.
Shopify offers a variety of payment options and reasonable costs.
After having tried Shopify for 14 days you’ll then choose the payment plan which is the most effective for your company. The base plan starts at $29/month, and can go up to $299/month.
In the case of Shopify transactions, transaction costs can be up to 2% of their cost however, which isn’t too bad.
Shopify provides support 24 hours a day, as well as a full help center
If you are stuck, just contact customer support or look up for the help center that is comprehensive.
The community is also active. Shopify Community. In case you’ve got a query you’re unable to find an answer to, you can submit your question to the community and they’ll provide you with their knowledge and expertise.
Amazon FBA vs Shopify — Which Platform is Best for Your Business?
Shopify along with Amazon are both fantastic. It’s all in the way you would like things to take shape. If you’re looking to make an image for your business and become “famous” then Shopify is the most effective eCommerce platform that can help you reach your goals at a constant rate.
It is important to take your budget into consideration , as well as your knowledge of marketing and the effort you’re willing to invest when you’re launching your own eCommerce business.
If you’re not interested in branding and need access to your clients and customers, then Amazon is the top marketplace online. Be aware that you’ll need to make sure you know and comply with Amazon’s guidelines.
Read More : The Biggest Mistakes That Ecommerce Businesses Make on Amazon
