Who this is for
Sellers deciding between Amazon and Shopify—or considering selling on both. Whether you're launching a new brand, scaling an existing business, or trying to reduce platform dependency, understanding these fundamentally different models helps you make better decisions.
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
The goal
Understand the core tradeoffs between marketplace selling (Amazon) and owning your own store (Shopify). By the end of this guide, you'll know which platform fits your products, budget, and long-term goals—and when it makes sense to use both.
Quick comparison: Amazon vs Shopify
| Factor | Amazon | Shopify |
|---|---|---|
| Total fees | 20-30% (with FBA) | $29-39/mo + ~3.2% |
| Monthly traffic | 2.4B+ visits | None — you drive it |
| Built-in buyers | 200M+ Prime members | Your audience only |
| Brand control | Limited | Complete |
| Customer data | Restricted | You own it |
| Fulfillment | FBA handles everything | You arrange it |
| Best for | Commodity products, scale | Brand builders, DTC |
The core tradeoff: Amazon gives you instant access to millions of buyers but takes a significant cut and controls the customer relationship. Shopify lets you build a brand you own, but every customer must come from your own marketing efforts.
Fee comparison: The real cost of each platform
Understanding total costs is essential because fees directly impact your profit margins.
Amazon fee structure
Amazon charges multiple fees that add up quickly:
| Fee Type | Amount |
|---|---|
| Referral fee | 8-15% (most categories 15%) |
| FBA fulfillment | $3-7+ per unit |
| Monthly storage | $0.78-2.40/cubic foot |
| Professional account | $39.99/month |
| Typical total (FBA) | 20-30% of sale price |
Merchant-fulfilled (FBM) sellers skip FBA fees but lose the Prime badge—a significant competitive disadvantage in most categories.
For detailed breakdowns by category and size tier, see our Amazon FBA Fees Explained guide.
Shopify fee structure (Basic plan)
| Fee Type | Amount |
|---|---|
| Monthly subscription | $29 (annual) or $39 (monthly) |
| Transaction fee | 0% with Shopify Payments |
| Payment processing | 2.9% + $0.30 per transaction |
| Third-party gateway fee | 2% if not using Shopify Payments |
| Typical total | $29/mo + ~3.2% per transaction |
Shopify's percentage-based fees are dramatically lower, but you're paying the subscription whether you sell anything or not.
For complete plan comparisons, see our Shopify Pricing Plans guide.
Side-by-side cost comparison
Assuming $50 average order value, Shopify Basic (annual billing), and Shopify Payments:
| Monthly Revenue | Amazon Fees (FBA) | Shopify Total Cost | Difference |
|---|---|---|---|
| $1,000 (20 orders) | ~$250 | ~$63 | Shopify saves $187 |
| $5,000 (100 orders) | ~$1,250 | ~$199 | Shopify saves $1,051 |
| $10,000 (200 orders) | ~$2,500 | ~$369 | Shopify saves $2,131 |
| $50,000 (1,000 orders) | ~$12,500 | ~$1,899 | Shopify saves $10,601 |
At every revenue level, Shopify costs less in pure fees. But fees tell only part of the story.
Why sellers still choose Amazon despite higher fees
Amazon's higher fees include:
- Instant access to 200M+ Prime members actively searching for products
- FBA handles storage, picking, packing, and shipping — you send inventory and Amazon does the rest
- Customer service and returns management — Amazon handles buyer issues
- Prime badge increases conversion 20-40% compared to non-Prime offers
- Built-in trust — buyers trust Amazon even if they've never heard of your brand
With Shopify, you keep more per sale but must invest significantly in acquiring each customer. The true cost comparison requires factoring in customer acquisition cost (CAC).
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
Traffic: Built-in vs drive your own
This is the fundamental difference between Amazon and Shopify—and the most misunderstood.
Amazon's massive marketplace
Amazon processes over 2.4 billion monthly visits and has 200+ million Prime members worldwide. When you list a product on Amazon:
- It's immediately searchable by millions of buyers
- Amazon's algorithm handles product discovery
- Buyers arrive with purchase intent and payment method saved
- The Prime badge signals fast, free shipping and easy returns
You don't need to build an audience. You optimize your listing for Amazon's A10 algorithm, and qualified buyers find you.
Shopify: You build the audience
Shopify gives you a professional storefront, but zero built-in traffic. Every visitor must come from:
- Google organic search — requires SEO investment and 6-12+ months to rank
- Paid advertising — Google Ads, Facebook/Instagram, TikTok (often $20-100+ per customer acquired)
- Social media — organic content, influencer partnerships
- Email marketing — requires building a list first
- Content marketing — blog posts, guides, videos
- Affiliate marketing — paying others to promote you
Traffic acquisition is expensive. Most Shopify stores spend 15-30% of revenue on marketing—which closes the gap with Amazon's fees while adding significant operational complexity.
The traffic math
Consider launching a new product:
On Amazon:
- List the product with optimized title, bullets, and images
- Product appears in search results within days
- Early reviews + competitive pricing drive initial sales
- Advertising (Amazon PPC) accelerates visibility
- Time to first sale: Days to weeks
On Shopify:
- Build product page with descriptions, images, SEO metadata
- Create content to rank in Google (takes months)
- Run paid ads to drive traffic (~$1-5 per click in competitive niches)
- Build social presence and email list
- Time to first sale: Weeks to months (unless you already have an audience)
For new sellers without an existing audience, Amazon's built-in traffic is enormously valuable—even at higher fees.
Branding and customer ownership
What Amazon controls
On Amazon, you're renting shelf space in their store:
- Customers buy "from Amazon," not from you
- No direct customer contact — you can't email buyers or add them to marketing lists
- Limited storefront customization — Brand Registry helps but options are constrained
- Competitor products shown alongside yours on every listing
- Reviews belong to the ASIN — if you share the Buy Box, competitors benefit from your reviews
- Amazon can suspend your account — your entire business can disappear overnight
Amazon owns the customer relationship. Every sale strengthens Amazon, not your brand.
What Shopify gives you
On Shopify, you own everything:
- Your domain (yourbrand.com) — customers remember you
- Complete design control — customize every pixel of the experience
- Full customer data — email, address, purchase history, browsing behavior
- No competitors on your site — every visitor sees only your products
- Build an email list — market to customers directly, forever
- Retargeting data — re-engage visitors who didn't purchase
- Your business asset — a valuable customer list can be sold
Long-term, owning customer relationships is often more valuable than any individual transaction.
Fulfillment options compared
Amazon FBA (Fulfillment by Amazon)
FBA is Amazon's killer feature for sellers:
How it works:
- Ship inventory to Amazon fulfillment centers
- Amazon stores your products
- When orders come in, Amazon picks, packs, and ships
- Amazon handles customer service and returns
Benefits:
- Prime eligibility — the badge that wins the Buy Box
- Hands-off fulfillment — scale without warehouse headaches
- Multi-channel fulfillment — use FBA inventory for orders from other channels
- Return handling — Amazon manages the entire process
Costs:
- $3-7+ per unit fulfillment fee
- $0.78-2.40 per cubic foot monthly storage
- Additional fees for oversized, long-term storage, removals
FBA is nearly essential for competitive Amazon selling. The Prime badge alone increases conversion significantly.
Shopify fulfillment options
Shopify doesn't fulfill orders—you choose how:
Self-fulfillment:
- Store inventory yourself
- Pack and ship each order
- Handle returns and customer service
- Use Shopify's discounted shipping labels (up to 88% off)
Third-party logistics (3PL):
- Partner with fulfillment companies (ShipBob, Deliverr, etc.)
- They store, pick, pack, and ship
- Costs vary but typically $3-5 per order plus storage
Dropshipping:
- No inventory — suppliers ship directly to customers
- Lower margins but zero inventory risk
- Limited quality control
Shopify Fulfillment Network:
- Shopify's fulfillment service (limited availability)
- Competitive with 3PLs on pricing
- Integrates directly with your store
Fulfillment comparison table
| Aspect | Amazon FBA | Shopify (3PL) | Shopify (Self) |
|---|---|---|---|
| Your time investment | Low | Low | High |
| Cost per order | $3-7+ | $3-5+ | Shipping only |
| Prime shipping | Yes | No | No |
| Setup complexity | Moderate | Moderate | Low |
| Quality control | Limited | Moderate | Full |
| Returns handling | Amazon | You or 3PL | You |
| Geographic reach | Nationwide/global | Depends on 3PL | Limited |
Scalability: Which grows better?
Scaling on Amazon
Advantages:
- Infrastructure scales automatically — Amazon handles fulfillment at any volume
- Adding products is straightforward
- Expand to international Amazon marketplaces (UK, DE, JP, etc.)
- Advertising scales with budget
- No technology bottlenecks
Limitations:
- More sales = more fees (percentage-based)
- Increasing competition in successful niches
- Account health metrics become critical at scale
- Platform risk remains regardless of size
- Category approval and gating can block expansion
What scales well: Commodity products, private label brands, variations of successful products
Scaling on Shopify
Advantages:
- Fixed subscription fee doesn't grow with revenue
- Build valuable brand equity and customer relationships
- Add sales channels (social, wholesale, retail) from one platform
- Data ownership enables sophisticated marketing
- No platform taking a percentage of growth
Limitations:
- Marketing costs often increase as easy wins deplete
- Technology complexity grows (apps, integrations, customizations)
- Fulfillment becomes a challenge at high volume
- Requires more operational sophistication
- Customer acquisition cost often rises over time
What scales well: Brands with repeat purchase potential, products with high lifetime value, businesses with strong content/community
Revenue scaling comparison
| Monthly Revenue | Amazon Fees | Shopify Fees | Who's Winning |
|---|---|---|---|
| $10,000 | ~$2,500 | ~$370 | Shopify (on paper) |
| $50,000 | ~$12,500 | ~$1,900 | Shopify (on paper) |
| $100,000 | ~$25,000 | ~$3,800 | Shopify (on paper) |
But consider: A Shopify store at $100K/month likely spends $15,000-30,000 on marketing. Amazon's $25,000 in fees includes customer acquisition. The real cost difference narrows significantly.
When to choose Amazon
Amazon is the better choice when:
- Your products compete on price and convenience — commodity items buyers search for by name
- You want hands-off fulfillment — FBA handles everything after you ship inventory
- You don't want to build an audience — leverage Amazon's existing traffic
- Speed to market matters — list and sell within days
- You're comfortable with platform dependency — Amazon can change rules anytime
- Your products benefit from Prime — fast shipping expectations
- You have capital for inventory and advertising — Amazon rewards investment
Best product types for Amazon:
- Private label products in categories with search demand
- Wholesale products with distribution rights
- Arbitrage (retail or online)
- Commodity items where Prime shipping is a differentiator
- Products with repeat purchase potential (consumables, refills)
When to choose Shopify
Shopify is the better choice when:
- Brand identity is core to your value proposition — custom design and customer experience matter
- You want to own customer relationships — build an email list and market directly
- Your products have unique appeal — not competing purely on price
- You have an existing audience — social following, email list, content platform
- Long-term business value matters — customer data is an asset you can sell
- You sell high-consideration products — buyers research before purchasing
- You want multi-channel control — sell through your site, social, wholesale, and marketplaces from one place
Best product types for Shopify:
- DTC brands with strong visual identity
- Products with stories (handmade, sustainable, mission-driven)
- High-margin items that support marketing spend
- Products requiring education or content
- Subscription products
- B2B and wholesale alongside consumer sales
The hybrid strategy: Use both
The most successful sellers often don't choose—they use both platforms strategically.
How the hybrid approach works
-
Amazon for customer acquisition
- List products on Amazon to reach new customers
- Use Amazon's traffic without paying for ads elsewhere
- Treat Amazon fees as customer acquisition cost
-
Shopify for brand building
- Create your own store with full brand experience
- Build email list and direct customer relationships
- Capture higher margins on repeat purchases
-
Bridge the platforms
- Include branded inserts in Amazon packages (within TOS)
- Offer exclusive products or bundles on your Shopify store
- Use post-purchase email sequences to bring Amazon customers to your site
Practical hybrid implementation
On Amazon:
- Focus on best-sellers with proven search demand
- Optimize for Amazon's algorithm and Buy Box
- Use FBA for fulfillment efficiency
- Accept the higher fees as marketing cost
On Shopify:
- Carry your full product catalog
- Offer exclusive products or variants
- Build content that ranks in Google
- Nurture email subscribers with exclusive offers
Inventory management:
- Use Shopify's Amazon integration or third-party tools
- Sync inventory to prevent overselling
- Fulfill Amazon orders from your own stock or use FBA for both
Hybrid economics example
Imagine a product with $30 COGS selling for $60:
Amazon-only (FBA):
- Sale price: $60
- Amazon fees (~25%): $15
- FBA fulfillment: $5
- COGS: $30
- Profit per sale: $10
Shopify-only:
- Sale price: $60
- Shopify fees (~3.2%): $1.92
- Shipping/fulfillment: $5
- COGS: $30
- Customer acquisition cost: $15 (Facebook ads)
- Profit per sale: $8.08
Hybrid (acquire on Amazon, retain on Shopify):
- First sale on Amazon: $10 profit (acquisition)
- Second sale on Shopify: $60 - $1.92 - $5 - $30 = $23.08 profit (email marketing cost: ~$0.50)
- Combined profit: $32.58 vs. $20 Amazon-only
The hybrid model captures the best of both platforms.
FAQ
Is Amazon or Shopify better for beginners?
For true beginners with no existing audience, Amazon is often easier because you don't need to drive your own traffic. List a product, optimize the listing, and potential buyers can find you immediately. Shopify requires marketing knowledge and budget to generate any sales.
Which platform has lower fees?
Shopify has dramatically lower percentage-based fees (3.2% vs. 20-30%). However, Shopify stores must pay for customer acquisition separately. When you add marketing costs, the total cost often approaches Amazon's fee structure.
Can I sell on both Amazon and Shopify?
Yes, and many successful sellers do. Use Amazon for customer acquisition and visibility, then build relationships through your Shopify store. Tools like Shopify's Amazon integration help sync inventory and orders.
Do I need to drive my own traffic to Shopify?
Yes. Shopify provides the store infrastructure but zero built-in traffic. You must invest in SEO, paid advertising, social media, email marketing, or other channels to bring visitors to your site.
Is it worth paying Amazon's higher fees?
For many products, yes. Amazon's fees include access to 200M+ Prime members, FBA fulfillment, and established buyer trust. The true comparison requires calculating your customer acquisition cost on Shopify.
Which platform is better for brand building?
Shopify, unquestionably. You own the customer relationship, control the experience, and build an email list. Amazon limits branding and keeps customer data for themselves.
Can I move from Amazon to Shopify?
Yes, but you can't take Amazon customer data with you. The transition requires building your own audience through content, advertising, and gradually shifting sales. Many sellers maintain both platforms indefinitely.
What about selling on eBay instead?
eBay is another marketplace option with different strengths (auctions, used items, collectibles). See our Amazon vs eBay comparison for details.
Next steps
- Calculate Amazon costs with our Amazon FBA Calculator — see your exact fees by product size and category
- Understand Shopify pricing with our Shopify Pricing Plans guide
- Explore Amazon tools on our Amazon seller hub
- Explore Shopify tools on our Shopify seller hub
- Create optimized listings with our AI Listing Generator — works for both platforms
Compare fees across marketplaces
See which platform gives you the best profit: Etsy, Amazon, or eBay.
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