Shopify Fulfillment vs. Amazon FBA

If you sell online, then you’re probably familiar with both these networks. The only thing that you might not be familiar with is the difference between them.

So today, that’s exactly what we are going to solve for you. We are going to compare the Shopify Fulfilment network tool with Amazon’s Fulfilment by Amazon (FBA) program.

We will go through the most important aspects of an online selling platform and see how they compare to each other.

Aspects such as:

We hope that by the end of this guide you’ll have a clear idea of which platform is best for you.

Ready to get started? Let’s go!

The Main Difference between Shopify Fulfilment and Amazon FBA

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So, let's kick off this guide by going through the differences between the Shopify and Amazon platforms.

I mean, I don’t think that I have to talk you through how to use the Amazon platform or what it is. It’s the largest online retailing store in the world, used in over 200 countries. Amazon can easily attract buyers to its marketplace, which gives you access to millions of potential customers from all around the world.

For example, imagine that you have your own stall in a famous booth where tens of thousands of people swarm through and pass your booth looking to buy. You don’t have to market yourself to make plenty of sales.  This is what selling on Amazon is like.

On the other hand, Shopify is less well-known compared to Amazon.

Shopify is a lot more like renting out an entire shop floor to set up your own business, then you have the customers who come into your store to buy items.

Of course, your stream of customers is less stable and consistent but there’s more room to create a unique image that they will feel comfortable with.

This is the critical difference between Amazon and Shopify.Amazon is best suited to small and medium-sized businesses where Shopify is for pretty much anything from small businesses all the way up to some of the biggest brands in the world, such as Tesla for example.

The business model you have, and your business size arecrucial for determining which one is best for you.

Price

For Shopify, this is where it gets a little bit complicated

Now, if you're interested in the Shopify network, you’re going to have to apply to Shopify in order to get a direct quote.

Price is based on the monthly storage fee for each square yard, and additionally, a fee for every shipped item that is sold. 

When it comes to Amazon FBA it’s a similar story.

Everybody who’s selling on Amazon has to choose between two plans, either an individual plan or a professional plan.

If you’re going to use Amazon fulfillment service, then you’re going to have to pick the professional plan that starts at $39 per month.

The price for using FBA depends on the type of goods that you sell. So, for example, you can check out the fulfillment fee breakdown and package size following this link here. These include the following services.

So, when it comes to ordering management, it probably comes as no surprise that Amazon holds the Golden badge here.  Amazon proudly boasts more than 175 centers across the globe operated by a quarter of a million full-time employees in the network.

Best for you is that it is incredibly easy for you to run your water management and inventory systems and Amazon. It’s incredibly easy to do this.

All that you have to do and create your product listings. From there, you’ll create your own shipping plan that includes your description quantity and methods of shipping. After that, you package your Amazon parcels to their requirements and ship them off to the closest fulfillment location. 

So, when it comes to Shopify, it’s a little bit more difficult. They don’t have a fulfillment network that could be compared to that of Amazon. The company recently announced that it plans to spend over a billion dollars in the next five years to build up all the necessary infrastructure.

There’s not much that we can say about what it’s like to use the system since it doesn’t actually exist. But given the ease of use and streamlined services that Shopify offers, it would be pretty safe to say that it won’t be too difficult to operate when it gets up and running.

Shipping + Logistics

Like we mentioned above,

when it comes to shipping with
Amazon, they largely take care of it all.

All you have to do it pack it up and send it to the nearest fulfilment center. Amazon Prime users will even benefit from priority shipping.

With Shopify Fulfilment Network though, it’s still hard to give a clear judgement since the product is still in its infancy. However, recently, Shopify’s Chief Product Officer offered some insights as to what the fulfilment network will hold.

He referenced other large marketplaces and explained how Shopify could be used to improve the merchant experience. Most notably, he referenced missed branding opportunities and unfair marketplace advantages from other retailers.

Whether Shopify will have the edge here remains to be seen. For sure, allowing users to customize their packaging to match the brand has been a long-standing complaint from Amazon users. The only problem which may arise is whether Shopify will use their own delivery services or will hire external courier providers.

Either way, an interesting time is ahead for users of both platforms.

Conclusion

To wrap it up then, there are some subtle differences between Shopify’s fulfillment network and the Amazon FBA program. 

It truly depends on your own business needs and requirements. Like we have discussed earlier, Amazon is best suited for small to medium-sized businesses. Whereas Shopify is geared towards more established businesses, who already have their own present customer base, and want to expand it. 

Shopify’s fulfillment network program hasn’t been finished yet, of course. This means that the version you opt for now may change dramatically in years to come. This is something that you should keep in mind.

However, migrating between the platforms isn’t difficult at all thanks to _____ services. We make the transition as smooth and stress-free as possible, so you can focus on what’s most important for your business.

Ready to expand your success from Amazon to Shopify?

Do it without moving a single finger

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