shopify vs amazon

Shopify vs Amazon: Which platform is better for selling products online?

Shopify vs Amazon, which platform truly holds the most potential for online sellers? While many entrepreneurs believe Amazon is the right choice due to its vast customer base and brand recognition, the benefits of selling on Shopify may quickly change that perspective. With greater control over branding, better profit margins, and flexible store management, Shopify offers unique advantages that are often overlooked. In this guide, Merchize will help you understand the key differences between these two platforms so you can make a well-informed decision based on cost, brand control, and long-term profitability.

Shopify & Amazon overviews

Shopify

Shopify is one of the world’s most widely used eCommerce platforms, founded in 2006 in Ottawa, Canada. As of 2025, it powers over 4.8 million active websites (source: Red Stag Fulfillment) and has facilitated more than $235 billion in merchant sales (Shopify 2022).

shopify platform

Shopify website

Built for businesses of all sizes, Shopify lets users launch fully branded online stores with no coding skills required. Unlike marketplaces, Shopify gives merchants full control over their branding, pricing, customer data, and marketing.

Key highlights:

  • Available in 175+ countries
  • Access to 8,000+ apps for store customization
  • 80+ mobile-optimized themes
  • Supports 100+ payment gateways
  • Fast page load speeds 
  • Seamless integrations with third-party platforms

Shopify also provides a powerful analytics dashboard and built-in SEO tools, making it a top choice for both beginners and global brands.

Amazon

Amazon is widely known as the largest online marketplace in the world, where nearly anything can be bought or sold. Originally launched in 1995 by Jeff Bezos as an online bookstore, it has since grown into a global e-commerce powerhouse.

amazon ecommerce

Amazon e-commerce

As of today, Amazon operates over 18 localized marketplaces, each tailored to local languages, currencies, and logistics infrastructure. These marketplaces collectively serve more than 300 million active customers worldwide (source: Amazon Investor Relations, 2024).

Through Fulfillment by Amazon (FBA), sellers store their inventory in Amazon’s warehouses. Amazon then handles shipping, returns, and customer service, allowing sellers to focus more on sales and marketing.

One of Amazon’s key distinctions lies in its highly controlled shopping environment. The platform manages nearly every stage of the customer journey, from product listing to checkout. In return, sellers gain instant access to a massive, high-intent customer base already active within the Amazon ecosystem.

Key highlights:

  • Over 2.5 million active sellers
  • Supports 20+ localized marketplaces (e.g., Amazon.com, .co.uk, .de, .jp)
  • Massive built-in customer base with 2 billion+ monthly visitors
  • Fulfillment options: FBA (Amazon ships) or FBM (you ship)
  • Trusted logistics network with Amazon Prime shipping
  • Sponsored ads and Amazon DSP for seller marketing
  • Integrated A-to-Z Guarantee to protect buyers

Shopify vs Amazon: side-by-side comparison

Not sure which platform fits your business better? Let’s break down the core differences so you can see exactly how each platform could impact your sales, branding, and long-term growth.

Customization and branding

Shopify offers flexible customization options, allowing sellers to create unique online stores using 70 available themes. In contrast, Amazon limits customization with fixed storefront templates and requires sellers to enroll in Brand Registry to use A+ Content or build a brand page.

Criteria Shopify Amazon
Store customization Full control over layout, functionality, and user experience No customization allowed; products are displayed using Amazon’s predefined templates
Brand-building capability Able to create an independent brand Limited. Brand Registry is available with a registered trademark
Business operations control Full control Limited control

Traffic and reach

In terms of traffic alone, Amazon gives sellers built-in access to over 300 million active users and more than 2 billion monthly visits (Source: Similarweb, 2025). You do not need to search for customers, but if your product cannot compete with others, it will still be difficult to generate sales.

With Shopify, you are responsible for creating your traffic strategy. Everything depends on the actions you take. If you cannot build a customer base for your store, it will be difficult to generate revenue on the platform.

Marketing tools

Because sellers on Shopify are responsible for every aspect of their business, from building the store to driving traffic and generating revenue, the platform provides a wide range of tools to support them. For store management and marketing, sellers can use:

  • SEO tools to edit meta tags and generate automatic sitemaps, helping increase organic traffic.
  • Shopify Email (free for up to 2,500 emails per month) to run personalized campaigns and improve customer retention.
  • Social media integrations (Facebook, Instagram) to sync products and run advertising campaigns.

On the other hand, since Amazon gives sellers immediate access to a large customer base, marketing control is more limited. Most marketing tools focus on advertising:

  • Sponsored products (keyword-based product ads).
  • Sponsored brands (brand-level ads available for registered brands).

However, because Amazon does not share customer data, remarketing is not possible, and sellers rely heavily on the Amazon algorithm (A11).

Order and shipping management

Shopify gives sellers full control over order fulfillment and shipping. You can handle fulfillment yourself, use third-party logistics (3PL), or connect with providers like Merchize for print-on-demand or dropshipping services to fulfill orders globally.

Amazon, on the other hand, operates as a fulfillment provider itself, and most of your orders are handled directly by Amazon through a model known as Fulfillment by Amazon (FBA). If you prefer to manage fulfillment on your own due to shipping time or cost, Amazon also offers Fulfillment by Merchant (FBM). In this case, you or your fulfillment partner will be responsible for the entire fulfillment process. 

However, Amazon enforces strict performance standards. High rates of late deliveries, missing tracking information, or frequent order cancellations can result in penalties, so you must manage operations carefully.

Payments

The Shopify platform supports a wide range of payment gateways for sellers from all over the world. You can use Shopify Payments (no transaction fees), PayPal, Amazon Pay, and more than 100 other gateways to process payments from your customers. However, you will need to pay credit card processing fees, which range from 2.4% to 2.9% plus 30¢ per transaction, depending on your plan.

On Amazon, the main payment method is Amazon Pay. In addition, Amazon also accepts credit and debit cards, but it does not allow integration with third-party payment gateways.

Note that Amazon temporarily holds the customer’s payment until the order is confirmed as successfully delivered. After that, the funds, minus applicable fees based on the product category and selling method, will be transferred to the seller’s registered account every two weeks.

Costs & fees

In terms of cost, selling on Shopify allows better control over expenses and profit margins since you manage every part of the process. However, Amazon is easier to get started with and takes care of payment-related tasks, but the profit margins are generally lower.

Platform Monthly Fees Domain Transaction Frees Referral Fees Fulfillment Costs
Shopify From $39/mo $5/mo 0 – 2% (if not using Shopify Payments) None Optional (if using 3PL or Print-on-Demand)
Amazon – $0.99 per item (Individual plan)

– $39.99/mo (Pro)

None None 8~15% per sale Additional (if using FBA)

Third-party integrations

Both Shopify and Amazon support third-party integrations to enhance their services.

Shopify offers access to over 8,000 apps on its App Store, covering areas such as marketing, inventory management, analytics, and customer service. Each app comes with its own pricing, so sellers can choose to use them based on their specific needs.

Amazon also supports integrations, but to a more limited extent. Most are available through Seller Central, including tools like Amazon DSP or custom APIs for sellers with development resources.

Pros and cons of Shopify vs Amazon

After reviewing the features of Shopify and Amazon, let’s continue by exploring the advantages and disadvantages of each platform for online sellers:

Criteria Amazon Shopify
Brand control ✅ 
Traffic
Conversion rate
Cost and profit margin
Operations and fulfillment
Ease of getting started
Customer data
Scalability
Platform risk
Hidden costs

Shopify vs Amazon market share

Metric Amazon  Shopify
U.S. eCommerce market share ~37.6% ~10.3%
Monthly visits >2.5 billion ~100 million (system-wide average)
Number of buyers >300 million active accounts Not disclosed (DTC model)
Primary selling model Marketplace, B2C, FBA DTC, private label, dropshipping

The market share of the two largest global eCommerce platforms, “Amazon vs Shopify" is considered highly promising for sellers looking to start an online business.

As of 2024, Amazon accounts for over 37.6% of total online retail sales in the U.S. (Statista), far surpassing any other competitor. It remains the top choice for consumers seeking quick product searches, with over 2.5 billion monthly visits and more than 300 million active buyer accounts worldwide (Amazon Investor Relations). In the coming years, Amazon is expected to continue expanding into new markets, creating more opportunities for sellers.

Meanwhile, Shopify holds around 10.3% of the U.S. eCommerce market share but leads the Direct-to-Consumer (DTC) segment and serves as the go-to platform for small to medium-sized businesses looking to maintain full control over their brand (Yaguara). By early 2025, over 4.8 million websites were operating on Shopify, generating more than $235 billion USD in total sales (Shopify Reports, 2022).

Which platform should you choose? Shopify or Amazon?

As a business owner, you’ll always want to understand the different platforms available for selling products online. So, should you choose Shopify or Amazon?

Who is Shopify best for?

Shopify is a great choice for:

  • Businesses looking to build their own brand: You have full control over website design, shopping experience, customer data, and marketing campaigns.
  • Sellers using the Direct-to-Consumer (DTC) model: Ideal for print-on-demand, dropshipping, or exclusive product brands.
  • Businesses aiming for multichannel expansion: Shopify supports sales through websites, physical stores, social media, and marketplaces.
  • Those focused on profit optimization: No per-order commission fees (when using Shopify Payments) and better control over operational costs.

Best suited for sellers who:

  • To grow a sustainable business and manage the entire value chain.
  • Have (or are willing to learn) skills in marketing, SEO, and store management.
  • Prioritize brand growth over just quick sales.

Who is Amazon best for?

Amazon is a good choice if you:

  • Seeking immediate market access: With millions of daily visits, you can start selling and getting orders quickly without heavy upfront investment in marketing.
  • Lack of experience in brand building: Amazon provides a ready-made platform, streamlined operations, and strong brand trust to help you get started with ease.
  • Accept lower profit margins: While Amazon charges higher fees and limits brand control, it gives you access to high-intent buyers and strong conversion rates.
  • Prefer simplified logistics: Fulfillment by Amazon (FBA) lets you hand over storage, packaging, and shipping to Amazon.

Best suited for:

  • Newcomers to online selling.
  • Businesses looking to test new products with lower risk.
  • Sellers focused on generating fast sales rather than building a unique brand.

FAQs

1. Which platform is better for beginners?

Amazon is generally better for beginners who want to start selling quickly without setting up a website or running marketing campaigns. With its massive built-in traffic and trusted brand, new sellers can start getting sales faster. Fulfillment by Amazon (FBA) also simplifies storage, packing, and shipping.

However, Shopify may be a better choice if you’re willing to learn and want full control over your store, branding, and customer data. It requires more effort upfront, but gives you more long-term flexibility and profit potential.

2. What is more profitable: Shopify or Amazon FBA?

Shopify tends to offer higher profit margins because you don’t pay per-sale commissions (if using Shopify Payments), and you can directly control pricing, marketing, and fulfillment strategies.

In contrast, Amazon FBA charges multiple fees – referral fees, fulfillment fees, and storage costs which can cut deeply into your margins. But it can deliver high sales volume due to its reach and trust.

3. Which is better for dropshipping: Shopify or Amazon?

Shopify is generally the better option for dropshipping. It supports popular dropshipping apps like DSers, Spocket, and Print-on-Demand platforms like Merchize, giving you full control over product listings, branding, and customer experience.

Amazon has stricter rules for dropshipping. You must be the seller of record and cannot ship products with third-party branding. This makes it harder to run a compliant dropshipping business on Amazon.

SEO & Content Specialist focused on crafting content that builds brands, drives organic traffic, and boosts conversions. Passionate about leveraging data and storytelling to connect readers with brands.