Amazon vs Shopify: Which Platform is Better for Selling Online in 2026?

Trying to sell your products online? Then there are two ways to proceed. You can either publish the products on a marketplace like Amazon or create your own eCommerce website. For that, you can use a platform like Shopify.

While both Amazon and Shopify can drive revenue, they work in very different ways. Amazon is a ready-made storefront that takes your products to millions around the world every day. Shopify, on the other hand, is a platform for creating your own eCommerce store tailored to your branding specifics.

This blog explores selling on Shopify vs. Amazon, including how they work and how they differ in key aspects of eCommerce. Let’s get straight into it.

What is Amazon?

Amazon is an eCommerce marketplace where shoppers can find, browse, compare, and purchase from millions of products. Businesses can sell their products to a massive, ready-to-buy customer base.

Rather than building your own store, you can easily list the products on Amazon and let it handle the key parts of the selling process.

• Customer discovery (people search and buy directly on Amazon)
• Payment and checkout
• Trust signals (customer reviews, Prime eligibility, and buyer protection)
• Fulfillment and delivery through FBA (Fulfillment by Amazon)
• Customer service and returns (often managed by Amazon)

Sellers just need to pay the commissions on every sale, some annual fees, and follow Amazon’s policies. They compete with other sellers (and sometimes even Amazon with its “Basics” products) for visibility and sales.

How Does Amazon Work?

Amazon is a combination of a product search engine and a marketplace.

• Sellers list products with pricing, inventory, and shipping options.
• Customers discover items through search, ads, and recommendations.
• Amazon ranks listings based on factors such as price, reviews, and relevance.
• Customers add their products to the cart and pay for it at checkout.
• Products get delivered either by the seller or Amazon (FBA).
• Amazon collects fees and releases payouts to the seller after processing.

What is Amazon FBA?

Amazon FBA, or Fulfillment by Amazon, is a service in which Amazon handles the core part of eCommerce operations for a seller. That includes the product storage (in bulk), shipping, returns, and customer service.

How It Works

1.) Set up an FBA account and pay the fees for it.

2.) You send your inventory to Amazon’s fulfillment centers.

3.) When someone orders, Amazon ships it to the customer.

4.) Amazon manages delivery, returns, and support.

Sellers use it to achieve faster shipping and deliveries, reduce operational workload, and improve customer satisfaction.

Benefits & Limitations of Amazon (for the Sellers)

Benefits of Amazon

Limitations of Amazon

✓ Massive Customer Base: Sellers get access to millions of potential customers immediately. ✓ Simplified Operations: Amazon takes care of complex fulfillment, so the seller can focus on the products. ✓ Logistics (FBA): With FBA, sellers can outsource the storage, packaging, deliveries, and returns to Amazon. ✓ Trust & Reputation: Listing on Amazon means a strong reputation for the brand and its products.

✗ High Commission Fees: Sellers have to pay referral fees, ad costs, FBA fees, and more. ✗ Flow: New sellers’ payout cycle is every few weeks, straining their cash flow. ✗ Competitive Profits: Profit margins may stretch thin due to increasingly competitive pricing. ✗ Limited Brand Building: With Amazon, branding will be limited. You can only work on the descriptions and images.

What is Shopify?

Shopify is the most popular eCommerce development platform. Businesses can use them to create and manage their online stores and sell their products online.

It offers the essential tools and features to create a comprehensive eCommerce website. Plus, there are tools for product management, inventory management, marketing, payment processing, and more. That makes Shopify easy to create and manage the store without extensive coding skills.

How Does Shopify Work?

Think of Shopify as a complete DIY eCommerce platform.

1. You sign up for a Shopify account.
2. Select a template and customize the design and brand of your online store.
3. Add your products, set prices, and manage the inventory through Shopify’s dashboard.
4. Process orders and payments (Shopify handles the secure checkout).
5. Use apps and plugins to add features (like loyalty programs or email marketing).

Shopify is the back-end infrastructure, i.e., the hosting, security, payments, and updates. Its modularity means you only add the features necessary for your operations. And since it’s not a marketplace, you can optimize your website for traffic and sales.

Benefits & Limitations of Shopify

Pros of Shopify

Cons of Shopify

✓ Multichannel eCommerce: Offers multichannel e-commerce, including physical stores, online marketplace, POS, social media, etc. ✓ App Store: Shopify’s app store has thousands of applications to add new features and functionalities to the store. ✓ Themes: There are hundreds, if not thousands, of themes available for Shopify. So you can design your store however you want. ✓ Built-in Tools: Offers advanced built-in tools for marketing and automation.

✗ Learning Curve: Shopify has a steeper learning curve for beginners. ✗ Paid Themes for Customization: More customizable apps and themes are often paid, which can add up your costs fairly quickly. ✗ Coding Requirements: Customization beyond built-in tools and apps requires coding know-how. ✗ Transaction Fees: You will have to pay transaction fees unless you use Shopify Payments.

If you find this platform suitable for your eStore requirements, consult our dedicated Shopify development company.

Selling on Amazon vs Shopify

Factor	Shopify	Amazon
What It is	A platform to build your own independent online store.	A marketplace where you list products alongside competitors.
Traffic Source	You drive all traffic (via ads, social media, SEO, etc.).	Amazon’s existing customers (massive built-in audience).
Control & Branding	Full control over branding, design, customer experience, and data.	Limited. You operate within Amazon’s rules and design.
Business Model	Monthly subscription + transaction fees (unless using Shopify Payments)	Transaction-based fees + optional services (FBA, ads).
Key Costs	Monthly plan ($29 to $299+) (when billed yearly)Transaction fees (If not using Shopify Payments)	Referral fee (8-15% per sale), Fulfillment fees (if using FBA), Optional ad costs
Fulfillment	You handle it yourself or use a third-party logistics provider.	Can use FBA (Amazon handles storage, packaging, shipping, and returns).
Customer Data	Limited access (Amazon owns the customer relationship).	You own the customer data (emails, purchase history) for marketing.

Amazon vs Shopify: Costs & Profitability

Both Amazon and Shopify are the most popular platforms in their respective business models. And both of them can help you sell your products online effectively. But what about the costs and profitability?

Amazon: Cost Structure

With Amazon, there is no platform subscription fee. The businesses are charged per sale, and the charges are variable.

• Referral Fee: Typically 8-15% of the sale price (varies by category).
• Fulfillment by Amazon Fees: Amazon may charge 15-30% of the sale price for storage, packing, and shipping. It depends on the product’s size and weight.
• Advertising: It’s optional. CPC ads can account for 10-20% of revenue.
• Monthly Subscription: Individual sellers don’t have to pay any fees. But professional sellers will have to pay $39.99 per month for active listings.

After fees, a typical seller may keep 50-70% of the sale price (before cost of goods and taxes).

Shopify: Cost Structure

Costs are fixed, but sellers will have to pay transaction fees for each sale.

• Monthly Subscription Fees: $29-$299+ per month (when billed yearly) for the platform.
• Transaction Fees: 0.5-2% per sale if not using Shopify Payments.
• Payment Processing: ~2.9% + $0.30 per transaction (via Shopify Payments or gateway).
• Apps & Themes: Can add $20–$200+ per month for additional functionality.
• Marketing Costs: You pay for all traffic (organic and inorganic).

With Amazon, there are lower margins and greater potential volume. You pay for access to Amazon’s traffic. On the other hand, with Shopify, margins are higher, but you still have to pay for traffic. So the profits depend heavily on your marketing efficiency.

Amazon or Shopify: Which Platform is Right for You?

The choice between Amazon and Shopify depends on what kind of business you are building and how you plan to grow. Amazon is the faster route, but Shopify may be the stronger choice for brand-focused eCommerce.

When to Choose Amazon?

Amazon is a strong choice if you want quick exposure and faster sales potential. Choose Amazon if you:

• Want immediate access to millions of ready-to-buy customers.
• Sell high-demand products where price and reviews are key.
• Prefer Amazon to handle storage, shipping, and returns (via FBA).
• Are you comfortable with lower per-sale margins for potentially higher volume?
• Are you okay with less control over branding and customer relationships?

When to Choose Shopify?

Shopify is the better option if you want to build a long-term brand with control over design, CX, and marketing. Choose Shopify if you want to:

• Want to build and own your brand with a unique storefront.
• Value full control over customer data, experience, and marketing.
• Sell niche, custom, or high-margin products with a strong brand story.
• Drive your own traffic through SEO, social media, content, or ads.
• Aim for higher profit margins per sale and customer lifetime value.

But if you want to build the best brand for selling your products online, it’s a good idea to opt for a hybrid model. That means using Amazon with Shopify. Let’s explore it in detail.

Using Amazon With Shopify: A Hybrid Model

A hybrid approach to eCommerce uses Amazon for sales volume and traffic, while Shopify helps build the brand, achieve higher margins, and drive customer ownership. You need to diversify your channels to balance risk and reward.

Multichannel Selling Strategy

The goal of using multichannel eCommerce with Amazon and Shopify is to diversify revenue streams and reduce dependence on a single platform. Here’s how it works:

1. Sell on Amazon: List your products on Amazon and benefit from its massive audience for consistent sales.
2. Build on Shopify: Run your own branded online store to capture direct sales. Your Shopify-based store will act as the home of your brand for customer relationships. It will also control the overall experience.
3. Integrate Them: Use tools and strategies to manage inventory, unify branding, and move customers from Amazon to your own online store.

Inventory Management & Order Sync

Balancing Amazon and Shopify comes with a core challenge. How to prevent overselling and manage stock across two sales channels?

Here’s the solution. You can connect Shopify and Amazon through a third-party multichannel operations app. It ensures that orders from Amazon and Shopify flow into a single system for smoother fulfillment.

It keeps the pricing consistent and simplifies the shipping workflows. Plus, you can easily track performance across channels without manual effort.

This hybrid strategy works best for those trying to build brand equity beyond Amazon’s marketplace with a custom online store.

So, which is Better? Amazon or Shopify?

There’s no single “winner” between Amazon and Shopify. The better platform will depend on what you are selling and how you want to grow your business.

Amazon offers fast exposure and consistent demand since its audience is already shopping there. Shopify is a stronger choice if you want control over branding, customer experience, and long-term retention. You may also try combining both platforms for max impact. Amazon drives volume while Shopify helps build a loyal customer base.

Finally, choose the right platform according to your product type, budget, and growth strategy. Once you’ve explored your options and chosen wisely, the next step is to leverage professional eCommerce web design services to bring your brand’s unique vision to life.

FAQs on Amazon vs Shopify