Shopify vs Amazon: Where Should You Sell?

Should you build your own Shopify store or sell on Amazon? It is one of the first big decisions new online sellers face. In this Shopify vs Amazon guide, I will explain how each option works, the real differences in control, traffic and costs, and how to choose the right starting point for your business. I will also cover where eBay and Etsy fit in.

I have worked hands-on with both Amazon Seller Central and Shopify for many years. My honest view: neither is “better” for everyone. The right choice depends on your product, your budget and how much marketing you are ready to do.

Shopify vs Amazon business model: the core difference

The biggest difference is simple:

• Amazon is a marketplace. It is like renting a stall in a huge, busy shopping centre. Millions of shoppers are already there, but you follow the centre’s rules and compete with the stall next to you.
• Shopify is a platform for your own store. It is like opening your own shop on your own street. You choose the design, the rules and the experience, but you have to bring the customers yourself.

Everything else, from fees to branding to customer data, comes from this one difference.

Selling on Amazon vs Shopify: traffic and customers

Amazon: built-in demand

On Amazon, shoppers arrive ready to buy. They search for a product, compare a few listings and purchase. If your product matches what people search for and your listing is strong, you can get sales without building an audience first. That is why a well-optimised listing matters so much. My Amazon listing optimization guide explains how to improve titles, bullets and images.

Shopify: you bring the traffic

A new Shopify store starts with no visitors. You need to drive traffic through SEO, social media, email, content or paid ads. This takes more work at the start. The upside is that every customer you bring is yours, and you can market to them again later.

Control, branding and customer data

This is where Shopify has a clear advantage.

• Branding: on Shopify you control the whole store design, your story and the full customer experience. On Amazon, your listing sits inside Amazon’s layout and your brand is less visible.
• Customer relationship: on Shopify you can build an email list and contact your customers directly. On Amazon, the customer relationship belongs mostly to Amazon, and there are strict rules about how you can contact buyers.
• Rules and account health: Amazon has detailed seller policies. Breaking them, even by mistake, can lead to listing removals or account suspension. Shopify has its own terms too, but you have more freedom in how you sell and market.

If building a long-term brand is your goal, owning your store gives you more control over your future.

Fees and costs compared

I won’t list exact fees here because both companies change their pricing and it differs by country and plan. Instead, here is how the costs work.

Amazon costs

• A selling plan fee (Amazon offers different plans for low-volume and higher-volume sellers).
• Referral fees, usually a percentage of each sale, which vary by category.
• Fulfilment fees if you use Fulfillment by Amazon (FBA), plus storage fees for inventory in Amazon’s warehouses.
• Advertising costs if you run Amazon PPC campaigns.

Always check the current fee pages in Amazon Seller Central for your marketplace before you calculate profit.

Shopify costs

• A monthly subscription plan.
• Payment processing fees on each transaction.
• Possible costs for a paid theme, apps and a domain name.
• Marketing costs, which are often your biggest expense because you need to create your own traffic.

My advice: compare total cost per sale, not just headline fees. Amazon may take more per order, but your Shopify marketing cost per order can be high too, especially in the early months.

Shopify vs Amazon FBA: fulfilment options

With Amazon FBA, you send stock to Amazon’s warehouses and Amazon picks, packs, ships and handles many customer service tasks. Eligible products can show fast delivery badges, which helps conversion. You can also choose to ship orders yourself, known as Fulfilled by Merchant (FBM).

With Shopify, you choose how to fulfil orders. You can pack and ship yourself, use a third-party logistics company, or connect apps for print on demand or dropshipping. You have more flexibility, but you also have more to organise yourself.

Shopify vs Amazon dropshipping

Dropshipping means selling products that a supplier ships directly to your customer. This model is common on Shopify because you control the store and can connect supplier apps.

Amazon is much stricter. Amazon has a dropshipping policy, and it generally requires that you are the seller of record, that your name appears on packing slips and invoices, and that you take responsibility for returns. Ordering from another retailer and having them ship directly to your Amazon customer is not allowed. Read Amazon’s current dropshipping policy in Seller Central before you try this model.

For most beginners who want to dropship, Shopify is the more practical place to start.

Shopify vs eBay and Shopify vs Etsy

Amazon is not the only marketplace. Here is a quick view of two others.

Shopify vs eBay

eBay is a marketplace known for new and used goods, collectibles, refurbished items and auctions as well as fixed-price listings. It can suit resellers and people selling one-off or second-hand items. Like Amazon, it brings shoppers to you but gives you less brand control than your own Shopify store.

Shopify vs Etsy for selling

Etsy focuses on handmade items, vintage goods, craft supplies and creative products. It suits makers, artists and print-on-demand sellers with original designs. When you compare Shopify vs Etsy fees, remember that Etsy charges listing and transaction-related fees, while Shopify charges a subscription and payment processing. Check each platform’s current fee page, because these change.

Shopify vs Amazon vs Etsy: a simple way to decide

• Amazon: best for products people already search for, especially everyday and branded products.
• Etsy: best for handmade, personalised and creative items.
• eBay: good for used, refurbished and collectible items.
• Shopify: best for building your own brand and long-term customer relationships.

How to choose: Shopify vs Amazon for your situation

Ask yourself these questions:

1. Do people already search for my product? If yes, Amazon can bring faster early sales.
2. Is my brand and story a big part of the value? If yes, Shopify lets you show that properly.
3. Am I ready to do marketing every week? If not, a marketplace is easier at the start.
4. Do I want to own my customer list? If yes, you need your own store at some point.
5. Can I meet Amazon’s requirements? Some categories need approval, and Amazon has strict rules on product safety and documentation.

Many successful sellers end up using both. They use Amazon for reach and Shopify for brand building, repeat customers and higher control. If you go that way, start with one channel, get it working, then add the second.

If you choose Shopify, my Shopify beginner guide walks you through setting up your first store, and my Shopify SEO process shows how to bring free search traffic over time. If you sell in the Gulf region, my Amazon UAE seller guide is a useful local example.

Key takeaways

• Amazon is a marketplace with built-in shoppers; Shopify is your own store where you bring the traffic.
• Shopify gives you more control over branding and customer data.
• Amazon can give faster early sales but has strict policies and per-sale fees.
• Dropshipping is much easier on Shopify; Amazon has a strict dropshipping policy.
• Etsy suits handmade and creative products; eBay suits used and collectible items.
• Compare total cost per sale, including marketing, not just platform fees.
• Using both channels is common once your first one is working.

Frequently asked questions

Is Shopify or Amazon better for beginners?

If your product already has search demand and you prefer less marketing work at the start, Amazon can be easier. If you want to build a brand and you are willing to learn marketing, Shopify is a strong choice. Your product and your time matter more than the platform itself.

Can I sell on both Shopify and Amazon?

Yes. Many sellers do. Some connect their Shopify store to marketplaces using sales channel apps so they can manage products and stock in one place. Just make sure your inventory stays in sync so you don’t sell items you don’t have.

Is Shopify vs Amazon FBA cheaper?

There is no single answer. FBA bundles storage, shipping and customer service into fees, while on Shopify you pay for fulfilment and marketing separately. Calculate your full cost per order on both, using current official fee pages for your country.

Can I dropship on Amazon like on Shopify?

Not in the same way. Amazon allows dropshipping only under its policy, where you must be the seller of record and handle returns. Buying from another online retailer to ship directly to Amazon customers is not allowed. Always read the current policy in Seller Central.

Conclusion: pick the channel that fits your product

The Shopify vs Amazon question is really a question about your business. Amazon gives you access to ready buyers in exchange for less control and more rules. Shopify gives you full control in exchange for doing your own marketing. Start with the channel that best fits your product and your skills today, learn it well, and add the other when you are ready to grow.