Amazon vs. Shopify: Which Marketplace is Better for Your Business?
Gursharan Singh
Updated: April 23
Gursharan Singh
Updated: April 23
Things are finally looking up because you’ve decided to take your business online. Congratulations!
Now, the biggest question is, “Which marketplace is best for selling?” You did some online research (good job!) and found that Amazon and Shopify are the top two contenders for your business needs. But which is better?
On one hand, you’ve the Amazon marketplace with an estimated 2.43 billion daily visits in the United States alone. On the other hand, you’ve Shopify, known for its ease of use and features for every business’s needs.
This is your ultimate guide to know which option is better for you: Amazon or Shopify.
Key Takeaways
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What is Amazon?
Founded by Jeff Bezos on July 5, 1994, Amazon is one of the largest online marketplaces in the entire world, where anyone can sell their products.
Did you know that US-based sellers sold over 4.5 billion items on Amazon in 2023?
What is Shopify?
Unlike Amazon, Shopify is an e-commerce platform that helps business owners create an online marketplace and sell their products online. It was founded in 2006 by Tobias Lütke and Scott Lake.
How are things on the green corner? Well, there are over 5 million websites on Shopify!
In essence, think of Amazon like a huge department store, where different branded products are sold under one roof. As for Shopify, it is more like a rental space in the mall, where you can set up your own shop however you want.
What are the Key Differences between Amazon and Shopify?
| Platform | Amazon | Shopify |
| Business Model | Amazon acts as a platform where sellers can list and sell products.
However, Amazon handles all the warehousing, logistics, and customer service aspects. |
Shopify is an e-commerce platform on which business owners can create their very own online store.
In this, owners have full control over their online store, branding, customer experience, and sales process. |
| Ownership and Control | Sellers will feel restricted on Amazon, as it limits how they can present their products. Not to mention strict policies and guidelines. | Business owners will feel more freedom on Shopify, as it offers a customizable storefront and the ability to control the customer journey. |
| Target Audience | Amazon targets consumers looking for a broad, one-stop shopping experience. | Shopify targets startups and small-to-medium businesses wanting to establish their own independent online store. |
| Ease of Use | Ideal for beginners.
Well, Amazon is already established, i.e., it provides a ready-made marketplace experience, and all you have to do is set up your profile and start selling. |
Ideal for customizability.
On Shopify, you do need to set up everything, from website to design. With that said, it offers more control. Do keep in mind that the learning curve might seem steep to some. |
Amazon vs Shopify Pricing Comparison
Let’s answer the real question: “Which is cheaper, Amazon or Shopify?” Well, the answer may surprise you. Let’s break down the fee structure for both platforms.
How Much Does it Cost to Sell on Amazon in 2025?
As of 2025, Amazon offers two seller plans starting at $0.99: Individual and Professional. Seems very budget-friendly, right? Not quite.
You see, you’d be paying $0.99 per item sold. On top of that, there are referral fees.
| Plan | Individual | Professional |
| Fee | $0.99/per item sold | $39.99 monthly (no item sold charge) |
| Ideal for | Start-ups and sellers who sell under 40 items per month. | Businesses that sell more than 40 items per month. |
| Advertising | No option to run ads | Option to advertise with Amazon ads |
NOTE: Both come with the Fulfillment by Amazon (FBA) program, but you do need to pay extra for it based on the weight of your product.
What is Fulfillment by Amazon?
With the FBA program, you can provide your customers free, two-day shipping via Amazon Prime. In the FBA program, you can send your products to Amazon’s fulfillment centers, where they will be packaged and shipped, along with handling returns.
Is Fulfillment by Amazon Mandatory?
No, FBA is not mandatory. If you wish, you can sell on Amazon without fulfillment services.
However, unless you are a seasoned business owner who understands all the know-how of dropshipping, we highly recommend you opt for FBA.
Pricing for Fulfillment by Amazon (FBA)
Amazon charges fulfillment costs based on the size and type of product.
| Type of Product | Non-apparel | Apparel | Low-Price FBA: Non-apparel | Low-Price FBA: Apparel |
| Small standard (less than 2 oz to 16 oz) | $3.06 to $3.65 | $3.27 to $3.98 | $2.29 to $2.88 | $2.50 to $3.21 |
| Large standard (less than 4 oz to 20 lb) | $3.68 to $6.92 | $4.25 to $6.92 | $2.91 to $6.15 | $3.48 to $6.15 |
| Large bulky to Extra Large (less than 50 oz to 150+ lb) | $9.61 to $194.95 | $9.61 to $194.95 | $8.84 to $194.18 | $8.84 to $194.18 |
NOTE: You need to pay anywhere from $0.16 to $0.75/lb in addition to crossing the weight limit in each size tier.
What is the Amazon Referral Fee?
In addition to FBA and standard selling plan fees, Amazon also charges sellers a Referral Fee on each product sold (well, now you know how Bezos became a billionaire).
This fee is a percentage of the total sales price, and as you can expect, it is different for every item. However, it also covers any shipping, gift wrap, or other charges paid by the buyer. Please also note that the referral fee percentage varies depending on the product category.
But wait, there’s more! Amazon also charges a closing fee of $1.80 for every media item sold, i.e., e-books, DVDs, music, software, and movies.
So, How Much Do You Actually Need to Pay to Amazon?
Now, as a seller, you must have genuine questions like “How much does Amazon take from sellers?” or “Does Amazon really take 40%?”
Let’s answer that question by going over an example and breaking down each fee for Amazon.
Here, we have Sarah, who is planning to sell phone covers (non-apparel) on Amazon. She decided to opt for the Individual Plan, as she plans to sell fewer than 40 items a month.
Sarah’s Setup:
- Plan: Individual (charges $0.99 per item sold)
- Products: Non-apparel items, each weighing 1 lb
- FBA: She will use Fulfillment by Amazon (FBA) for handling storage, packing, and shipping.
Here, we’ll assume that her product qualifies as a standard small item.
Breakdown of Costs:
- Individual Seller Plan Fee:
- Fee: $0.99 per item sold
- If Sarah sells 30 items in a month, her total plan fee is $0.99 x 30 = $29.70/month
- Referral Fee:
- Referral fees vary depending on the product category. But since she’s selling electronics, we’ll add a referral fee of 8%.
- If Sarah sells each item for $50, the referral fee per item = 8% of $50 = $4.00.
- For 30 items sold, the total referral fee = $4.00 x 30 = $120.00.
- Fulfillment by Amazon (FBA) Fee:
- As mentioned above, Sarah’s product weighs 1 lb and is a standard small item (under 2 oz to 16 oz), the FBA fee ranges between $3.06 and $3.65 per unit.
- Let’s assume Sarah pays $3.50 per unit for FBA.
- For 30 items, the total FBA fee = $3.50 x 30 = $105.00.
- Closing Fee (only applies to media items):
- Sarah is not selling media items (like DVDs or books), so this fee does not apply.
So, how much is Amazon taking from this seller each month?
| Cost Item | Amount |
| Seller Plan Fee | $29.70 |
| Referral Fee (30 items) | $120.00 |
| Fulfillment Fee (FBA) | $105.00 |
| Total to Amazon | $254.70 |
Sarah will be making $1,500 in revenue; however, after Amazon’s deductions of $254.70, she’ll earn $1,245.30 per month.
NOTE: This Amazon pricing breakdown is for the Individual Plan. If you opt for the Professional Plan and add advertising costs, your dedications will vary.
How Much Does it Cost to Sell on Shopify in 2025?
Much like Amazon, Shopify offers three different plans: Basic Shopify, Shopify, and Advanced Shopify.
| Plan | Basic Shopify | Shopify | Advanced Shopify |
| Fee (billed annually) | $29/month | $79/month | $299/month |
| Ideal for | Start-ups and small businesses | Seasoned e-commerce business owners | Large online businesses |
| Advertising | Online marketplaces (Amazon, Walmart, Target+, and more) and Social media (Instagram, Facebook, and more) | Online marketplaces (Amazon, Walmart, Target+, and more) and Social media (Instagram, Facebook, and more) | Online marketplaces (Amazon, Walmart, Target+, and more) and Social media (Instagram, Facebook, and more) |
How Much Does Shopify Take from Sellers?
Similar to Amazon, selling on Shopify will also have you paying additional fees in the form of:
- Transaction Fee
- Domain Fee (for custom domain name)
- Shopify Apps
- Shopify Tax Fee
- Shopify Design and Theme
If you want to know exactly how much it will cost you to run a Shopify Store, here’s an in-depth pricing breakdown.
Which One Offers Better Tools: Amazon or Shopify?
Tools Offered by Amazon
| Tool | Description |
| Amazon Seller Central | Centralized dashboard for managing listings, orders, and customer messages. |
| Fulfillment by Amazon (FBA) | Amazon handles storage, packing, and shipping of products, including customer service and returns. |
| Amazon Advertising | Pay-per-click advertising to promote products within Amazon’s marketplace. |
| Amazon Stores | Customizable multi-page storefronts within Amazon to showcase a brand’s products. |
| Amazon Brand Registry | Protects registered trademarks and provides enhanced marketing features. |
| Amazon Business Analytics | Provides insights into sales performance, customer behavior, and inventory management. |
Tools Offered by Shopify
| Tool | Description |
| Shopify Admin | Centralized dashboard for managing products, orders, and customer information. |
| Shopify Payments | Integrated payment gateway to accept credit card payments without additional transaction fees. |
| Shopify POS | Point of Sale system for selling in-person and syncing with the online store. |
| Shopify Marketing | Tools to create and manage email campaigns, social media ads, and discounts. |
| Shopify Themes | Customizable store templates to design the online storefront. |
| Shopify Apps | Third-party applications to extend store functionality, including SEO, inventory management, and analytics. |
| Abandoned Cart Recovery Tool | Automated system to recover abandoned carts through email and SMS reminders, boosting conversion rates |
While both platforms offer great tools for sellers, our money is on Shopify as it is more cohesive, and one can choose or opt out of tools as per their business needs.
Reasons to Choose Amazon Over Shopify
Other than platform fees and usability, here are some of the reasons why you should choose Amazon to sell your products:
Immediate Access to over 200 Million Customers
Amazon has millions of active shoppers already on its platform, providing new sellers with instant exposure to a large audience without needing to drive traffic.
Low-effort Initiation
Amazon’s marketplace setup is relatively easy, especially for beginners. Sellers don’t need to worry about website design or marketing to attract customers—Amazon handles these aspects.
Fulfillment by Amazon (FBA)
Sellers can leverage FBA, which takes care of storage, packing, shipping, and customer service, including returns. This simplifies logistics and allows sellers to benefit from Amazon Prime shipping.
Comprehensive Advertising Tools
Amazon offers various advertising options like Sponsored Products, Sponsored Brands, and Sponsored Display ads. With these, sellers can target customers within Amazon’s ecosystem and benefit from built-in traffic.
Lower Barrier for Entry
For sellers with fewer than 40 items a month, Amazon’s Individual plan offers a cost-effective entry point with a fee of $0.99 per item, rather than a monthly subscription.
Global Reach and Amazon Business
Amazon allows sellers to expand globally and offers the ability to sell to business customers through Amazon Business, increasing the potential customer base.
Reasons to Choose Shopify Over Amazon
Full Control Over Branding and Storefront Design
Shopify gives sellers complete control over their store’s design, allowing them to create a unique, branded shopping experience. Sellers can customize themes, layouts, and even the checkout process.
Comprehensive Marketing Tools
Shopify provides a wide array of marketing tools, including email marketing, social media integrations, SEO features, and advertising options through Google and Meta platforms.
No Referral Fees
Shopify doesn’t charge referral fees like Amazon. Sellers only need to pay a monthly subscription fee and transaction fees (if they don’t use Shopify Payments), providing more predictable costs.
Customizable Payment Options
Shopify supports multiple payment gateways (e.g., PayPal, Stripe, Shopify Payments), giving sellers flexibility to choose the most suitable payment processing solution for their needs.
Better for Brand Development
Since Shopify allows for a fully customized online store, it is ideal for sellers looking to build a long-term brand identity, as opposed to selling within Amazon’s standardized marketplace.
Shopify Apps and Integrations
Shopify’s app ecosystem offers a wide range of apps that extend store functionality, from marketing automation to advanced shipping options, allowing sellers to tailor the platform to their specific needs.
Scalability with Control
Shopify’s plans grow with your business, offering more advanced features and lower transaction fees as your sales volume increases. Sellers have greater control over their business as it scales.
Why NOT to sell on Amazon? Unnecessary Frustration
If you do not enjoy cluster headaches and frustration as a seller, then we recommend that you not choose Amazon, and instead, focus on building your brand on Shopify.
Here’s one Amazon seller sharing their experience on Reddit regarding the international account manager, titled “Is there anything more frustrating than selling on Amazon?”
Another business owner, new to selling online, decided to rant on Amazon’s seller central regarding their overall terrible experience.
Why NOT to sell on Shopify? Limitation
Shopify also has its fair share of frustrated business owners. However, all the frustration on Shopify comes from the technicalities of running a business online, like migrating from a different platform, combining orders, and more.
PS If you’re looking for more information on Shopify migration and Shopify compared to other platforms, check here.
Which is Better, Amazon or Shopify?
So, which one to choose for your business? The largest online marketplace or the top-rated CMS platform?
Well, both are great in their own sense; however, it comes down to your business needs and what goals you have for your brand.
Choose Amazon if you want to access a huge customer base without having to invest in branding and online presence.
Choose Shopify if you want to create a highly personalized brand and control the user journey.