How to Pick the Best Option When Comparing Shopify Dropshipping and Amazon FBA

 As a digital business owner, one of the most important decisions that you need to make is to determine what eCommerce platform you should use to sell your products online — and, as two of the biggest names in eCommerce, you're likely to end up having to choose between Shopify and Amazon.

Before we delve into a detailed comparison of Shopify vs. Amazon, let's establish the real distinction between these platforms. Shopify is an all-inclusive eCommerce store platform that allows users to create, customize, and fully manage their own bespoke online stores.

Amazon, on the other hand, is a platform that aggregates sellers from around the world. Therefore, you will be granted a spot on the Amazon marketplace to sell your products. However, you will not have as much control over your brand, management, customer relationships, and delivery as you would with Shopify.

Now we will go into the details of each platform!

An Overview of Shopify

Shopify is a robust cloud-based eCommerce store platform that makes it simple for online retailers to create and manage independent digital stores. Shopify is also scalable: Kylie Cosmetics, Tesla, Budweiser, and Nestle all use Shopify to manage and operate their online stores, but the platform's simple pricing packages are also suitable for one-person businesses.

Users can choose from over 70 professionally designed templates that they can modify as they see fit, and accept online payments through Shopify Payments, the platform's integrated payment processor powered by Stripe, or via third-party payment processors such as PayPal.

You can then utilize Shopify's vast array of store- and customer-management features, such as social media integration, discounts, gift cards, secure customer information storage, and links to success centers (including Amazon).

The Shopify App Store contains thousands of applications that are compatible with your Shopify Store and will help you further streamline your processes if Shopify lacks the desired functionality. You can also use Shopify POS, the physical point-of-sale hardware app, if you choose to sell your products offline in addition to online.

An Overview of Amazon FBA

As you already know, Amazon is the largest online retailer in the world, and if you sell your products on Amazon (or offer your services through Amazon Home Services), you have the potential to reach millions of consumers worldwide.

In this regard, selling on Amazon is incredibly beneficial for new or very small businesses that do not yet have sufficient inventory to establish a standalone online store and build a customer base. Amazon is equally beneficial to existing online businesses as a source of external revenue and as a means of luring new customers back to their dedicated online stores. While it may take time to catch up with selling on Amazon, and you will need to ensure compliance with Amazon's policies, creating a vendor profile and listing your products is relatively simple.

You can take advantage of Fulfillment by Amazon (FBA), which allows Amazon to store your inventory and handle only packaging and shipping when orders are placed. However, if you're only selling a few items, you can choose to do it yourself.) Check out our comprehensive Amazon sales guide for step-by-step instructions on how to become an Amazon seller.

Amazon FBA vs Shopify: Pros and Cons

Shopify Pros/Cons

So, what are Shopify's essential features? What do you desire and what do you not desire? Both of these will assist you in making a decision. Shopify is a high-quality platform designed to provide you with your own marketplace.

On your Shopify website, you don't have to compete with anyone because it's all about you and the products you're selling. However, Shopify offers a variety of benefits, as well as a few pitfalls that you'll want to avoid.

Pros:

• Easy to use
• Easy to design
• Variety of app integrations
• Flexible design
• Pricing levels/options
• High level of security
• Quality customer support
• High level of reliability
• Fast loading speed
• Quality seller support
• Variety of website features
• Great value for the money
• Variety of sales features
• Wide range of apps
• 24/7 customer support
• Easy mobile responsiveness
• Variety of eCommerce tools
• Quality sales features
• Ability to create your own brand

Cons:

• Monthly fees and app store
• Images show in varying aspect ratios
• No built-in marketing
• Adding customization is difficult/costly
• 3 option limit per product
• Only 1 abandoned cart follow-up
• Transaction fees for third-party payments
• Phone support is difficult outside certain areas
• Apps required for many features
• Some integrations have been removed
• Low tier plan does not offer full online store
• No professional reporting with basic package
• Selling is only allowed from certain countries

Amazon FBA Pros/Cons

You may believe that Amazon provides you with numerous benefits. After all, virtually everyone has heard of Amazon, correct? Consequently, the idea of working with Amazon is very appealing, but is it necessarily your best option? We'll examine some of the benefits and drawbacks associated with Amazon FBA.

If you're utilizing this service, it's not the same as simply posting and selling items on Amazon. The process will be slightly different and slightly more involved moving forward. Let's examine some of the essential information.

Pros:

• High volume of traffic
• Packing and shipping included
• Inventory storage included
• Easy to use
• Easy to set up
• Possibility to get in the buy box
• Individual plan great for small-scale sellers
• Quick to start the first sale
• Qualify for Amazon Prime
• Easy to find customers
• Multi-Channel fulfillment
• Finding customers is automatic
• Higher selling ability than non-FBA

Cons:

• Huge competition
• Few layout/design options
• Difficult to create your own branding
• Customer support is not as user friendly
• Few payment options
• Charges transaction fees
• Not as much variety on selling
• Difficult to track inventory
• Prepping for shipping is difficult
• Returns can be too easy
• Difficult to budget for fees

Shopify vs Amazon FBA: Understand the best and the worst of each platform

The Best Parts Of Shopify Dropshipping

The greatest benefit of Shopify Dropshipping is that it is extremely risk-free. There is almost no danger. This business can be started with virtually no capital, making it an attractive option for a wide range of individuals.

Even though it is a low-risk company, the potential returns are extremely high. You may not initially invest millions of dollars in this company, but you could easily earn six figures or more in the first year. There are not many business models similar to that.

And half the battle is won if you can create an amazing, useful online store that attracts customers. Not only is it inexpensive to launch this business, but if you know what you're doing, you can get it up and running in a matter of hours.

The Worst Parts Of Shopify Dropshipping

Since you are so reliant on manufacturers in the dropshipping environment, you must be on the lookout for potentially dangerous and/or dangerous sources of danger. It is very simple to be defrauded in this industry. Numerous individuals are currently attempting to defraud those who are new to this industry. It is of the utmost importance that you keep an eye out for these criminals.

The best strategies involve collaborating with reputable brands and businesses. However, they can be difficult to find and even more difficult to deal with. The industry is also highly competitive. There are numerous people attempting to do the same thing as you, so you must be intelligent to succeed.

Additionally, Shopify Dropshipping can have a negative reputation in certain circles. Some Shopify Dropshipping veterans state that you should not even use the term " Dropshipping " when searching for potential offers and social connections.

The Best Parts Of FBA

By far, the best aspect of running a successful FBA business is earning money while you sleep. Believe the hype; if you set up your business correctly, FBA can generate passive income.

Certainly, you will have to work extremely hard in the beginning. But once you've conquered the market and your business is selling like hotcakes, you can relax. The most successful FBA sellers are always looking for ways to increase their profits, which can be accomplished through a variety of marketing strategies. Giveaways, Facebook advertisements, and social media campaigns are all effective. Yet, even in such cases, Giveaways, Facebook Advertising, and Social Media Campaigns can be extraordinarily effective. However, even this should only require a few hours per week.

Amazon FBA also facilitates the creation of your own brand. A profit of this magnitude cannot be ignored. Creating a brand signifies that you have something with genuine potential. Certainly, Shopify Dropshipping could be regarded as a brand. However, it is not the same as producing one's own goods.

Nothing prevents you from building your own online store or selling on other platforms with FBA. You're not confined to Amazon. Thus, you can enjoy all the benefits of Shopify Dropshipping while creating your own products and brand.

Amazon FBA can be difficult to comprehend, but it still offers numerous opportunities. If you can secure a niche that no one else is targeting, it is relatively simple to build a brand around it.

The Worst Parts Of FBA

Previously, we stated that the Amazon FBA requires minimal effort once the ball is rolling. However, occasionally it can also be a disadvantage. Since Amazon is dominating a significant portion of your market, there is little you can do to alter certain aspects. Simply put, you have no authority.

In actuality, Amazon does not provide the best data for measuring revenue and increasing numbers. There are indeed numbers. However, you do not know how Amazon obtained the figures. In the end, Amazon often appears to have a glass ceiling.

There are, however, additional disadvantages to consider. Amazon's FBA, unlike Shopify Dropshipping, requires a substantial initial investment. The majority of FBA veterans recommend beginning with at least $5,000 in cash. This means that you are taking a significant risk, especially if you are a complete novice in the world of eCommerce. And to succeed in the world of FBA, you must be capable of extensive planning and analysis. It is essential in any business, but FBA requires a highly analytical mindset.

Before deciding on a product, you must break down the numbers, assess the data, and identify the trends. Expect to examine numerous graphs and charts. You would also need to engage in extensive negotiations with suppliers to determine prices, shipping costs, product weight, etc.

Last Words

After comparing Shopify vs. Amazon FBA, it is clear that both platforms are viable options for any eCommerce business; however, the extent to which you intend to grow your business is a crucial factor in your decision. Shopify is required if you want to create a brand that will stand out and over which you have complete control. Amazon's Fulfillment by Amazon (FBA) is ideal if you want to get a product on the market quickly to a vast pool of eager buyers.