Both Amazon and Shopify offer eCommerce business owners a different set of features and advantages. Knowing what criteria to use to make the best selection is essential, and we’re here to help.
Setting up your eCommerce shop can feel like deciding between opening a small standalone store on a city street and opening the same store in a mega mall. The first offers a unique and personal experience, the second provides enhanced visibility and ease of setup. Each has its advantages and setbacks that can impact the success of your business.
With so many features on either platform and so many considerations to keep in mind it can be hard to know where to start. In order to make that choice easier we’ve looked at the most important criteria.
Pricing, Transaction Fees & Profit Margins
As an eCommerce business founder and owner you likely want the freedom to set the prices for the products being offered yourself. The ability to do so and make other choices is part of why you set out to start your own business and not work for someone else.
Setting an appropriate price point for the products you’re selling is dependent on a few factors, including what your competitors are selling a similar product for, what transaction fees are being taken by the storefront platform and what operating expenses you have. All those will determine first what price you set and your subsequent profit margins.
First, what kind of fees can you expect to pay to do business on Amazon and Shopify?
- Amazon’s Professional Selling Plan costs $39.99/month. The Individual Plan, for those who are selling fewer than 40 items monthly, has no subscription fee but pay $0.99 per each item sold.
- Shopify has three tiers of business memberships, ranging from $29/month to $299/month. Each one offers a different set of features, including reporting, customer support and more. There’s also Shopify Lite for just $9/month that comes without a standalone storefront but allows the seller to add products to and accept credit card payments from Facebook and blog posts.