When you’re just starting out with dropshipping, it can be difficult to find the best way to jump into the market and start making money. Shopify and Amazon are two of the most popular e-commerce platforms, both offering their own ways to help you sell products and make money from the comfort of your home or coffee shop. This article covers some of the key differences between Shopify and Amazon dropshipping, so you can make an informed decision about which platform is best for you and your business.
About dropshipping with Amazon
Dropshipping on Amazon only requires you create a seller account. Once your account is approved by Amazon, you can begin selling on one of the largest marketplaces in the world.
Sounds great, right?
The only difference is that we haven’t gone through Amazon’s drop shipping policy.
In order to dropship on Amazon, you have to adhere to their guidelines for acceptable products, otherwise Amazon will ban you from selling on their site.
Another important thing to mention is that when dropshipping on Amazon, you should use their FBA program (fulfilled by Amazon).
As a result, all you have to do is let Amazon handle your orders, returns, customer service, and tracking.
Nevertheless, it is not free. Keep that in mind.
In addition, you might want to consider dropshipping from Amazon as an alternative way of dropshipping with Amazon.
By doing this, you’re listing a product on a different site such as shopify, but you are buying the product from amazon. That allows them to take care of all the hard work, like shipping the product to the customer.
About dropshipping with Shopify
As well as dropshipping and marketing tools, Shopify allows you to open an online store and offers you all the tools you can think of.
Founded in 2009, their mission is to make starting and running an online business simple and easy.
To sell on Shopify, you need a Shopify account, a website and promotion.
The best thing about dropshipping with Shopify is their large diversity of dropshipping apps and suppliers.
In terms of getting an Amazon seller account, there are two available options:
Individual – with this plan, each time an item is sold, you are charged $0.99. In contrast to a monthly subscription fee, you’ll only be able to sell 40 items with this plan. Moreover, you do not have access to Amazon’s advertising, nor their advanced selling tools.
Professional – the subscription plan costs $39.99/month. You are not limited to a number of items or Amazon’s tools. You can also take advantage of their features such as API integration, advertising, and setting your own shipping fees.
Let’s take a look at the fees,
There are three types of Amazon fees:
Referral fees – these fees are applied after every sale, and their value varies based on the product type. The minimal referral fee is generally $0.30, and the percentage is usually between 8% and 15%, but can reach up to 45%.
Fulfillment fees – in other words, these are shipping fees. They depend on whether you are going to ship the goods yourself or use Amazon’s fulfillment by Amazon service (FBA). FBA’s services include packing and shipping, customer support, and returns.
Additional fees – FBA fees, inventory fees, high volume listing fees, refund administration fees, and high volume listing fees are included in this category.
Comparatively, Shopify’s fees are much more straightforward.
Basic Shopify Plan: $29 /Month
Regular Shopify Plan: $79 /Month
Advanced Shopify Plan: $299 /Month
Shopify Plus (enterprise) Plan: starting at $2000 /Month
All of these plans offer various ecommerce tools, which make them equally great at managing your store.
Once you create an account, you are given instant access to the following features: customizable templates, abandoned cart recovery, SSL certificate, and gift cards.
With Shopify, one can choose to have a free 14-day trial of one of these three plans.
Additionally, there are transaction and credit card fees.
Prices vary depending on which payment gateways you’re using and your Shopify plan.
Higher priced plans result in lower interest rates.
Amazon is easier to use as an online store because Amazon controls almost everything.
On the one hand, this can be a good thing; on the other hand, it can be a bad thing, depending on what you want.
There is no need to create your own website when you sell through Amazon, but you need to go through Amazon and all its hassle.
You do not have any control over the store design and are limited in areas such as branding, marketing, and advertising.
Moreover, all of the items you sell in your store will use Amazon’s design, not your own. There are very few templates available, but they are all in the same “amazon” style.
As a result, customers are more likely to recognize your products as Amazon’s instead of your own.
Therefore, if you care about branding and want customers to recognize your store, Amazon would not be the best option for you.
When you run a business with Shopify, you are the boss.
As opposed to amazon, shopify gives you more control over the experience of your store.
Shopify’s dashboard provides you with control over many aspects of your store, such as templates and themes, apps, and a variety of tools.
The look of your store tells a lot about you and your brand, so customizing the look of your store is especially important to attracting the right customers.
All due to the Shopify theme editor, there’s a lot of flexibility to change around anything and everything you see.
Apart from what you think your website should look like, you also get to decide how you want to market and sell your products, and more.
Pros & cons
The image below summarizes the pros and cons of Shopify vs Amazon.
Shopify allows you to create your own online store, while Amazon is an online store.
With shopify, you sell products in your own store, while with amazon, you sell a product in their store.
This is the main thing you should consider when choosing which one is right for you.
If you do dropshipping through Amazon, you won’t have to worry about developing a brand, web design, or advertising.
Shopify is a great option for merchants who wish to drop ship because it has so many app options and tools to help make the site what you want it to be. You can customize your business so that it becomes the one you want it to be, giving you much more freedom.
Thank you for reading this article. I hope it has been helpful.