If you have started an E-com brand, then you are probably partial to the business platform you have been using. But what if you have to start again?
How well would you do as a seller in 2023, and which platform would you choose?
We are going to breakdown the Do's and 'Do Less Of' as an E-commerce seller, that will allow you to become better equipped with the exact strategies you need to succeed.
If you are struggling to choose between Amazon or Shopify, right off the bat it would have to start with budget. Your budget will allow you to determine how far you can get in the market place, so you'll want to be able to keep an eye out for your cost range.
Starting an Amazon business is often much more expensive off the bat then starting a Shopify store, the obvious reasons being that Amazon requires you to register your business and charges fees in trademarking your brand. While Shopify on the other hand is often only $30-$45 per month and the first 2 weeks are free. Just have to buy the domain.
Why I would say go for Amazon, is because you have a higher chance of succeeding. If you take the time to register a company and build your business out, there can be no telling the true benefits set for your business. With a good balance between PPC campaigns and balanced product listings, there is not much you cannot achieve.
So where do you begin as a starting seller?
Before you even think of listing your first product, you need to understand your market. This involves identifying your competitors, knowing your audience, and learning the ins and outs of your chosen platform. So where do you market to and who are your competitors is something to as yourself when starting off. In 2023, there are often many businesses and models that you can mirror to bring yourself to the next level as a seller.
A winning product more than ever, will allow you to drive and scale more. If you choose to bring in your own brand and ideas, just make sure to note the amount of time it takes to make the goods you are selling. Remember, at the core of your E-commerce store, you will need to put business over the hobby mindset.
So once you have the product idea and chosen business plan, you are going to want to plan out the marketing campaign that you will use to get some initial sales.
Use tools like Jungle Scout or Helium 10 for Amazon to uncover profitable niches.
For Shopify, consider Google Trends to gauge the demand for your product category.
Reach out to existing sellers for firsthand advice on best practices.
When going for advertisements that convert, the best thing that you can get is going to be Amazon marketplace ads. The competition is high for certain niche but at the end of the day, you get so much competition on Shopify and Google that your product may never get to see the light of day if you don't have the right audience.
My store Explore Japan Official was one of the top Japan sellers on social media from 2020-2022 because of my organic social media traffic. I was able to funnel traffic without spending money on advertisements, and that counted for a huge chunk of my initial sales, which allowed me to scale my brand and build my business.
Understanding your own strengths and weaknesses will be another huge E-commerce factor. Amazon is good for the organized and business owners that can discipline themselves to the craft and get really good at the operations, while Shopify relies heavily on your ability to sell an image and build a brand that stands out from the rest, that provides quality outside of a set marketplace. There are no rules with Shopify other than fund your advertisements and funnel traffic to your site.
So if you have a winning product how do you sell on Amazon or Shopify?
Both platforms offer unique advantages, and the choice ultimately depends on your business goals and strategy.
In this guide, we'll break down the pros and cons of selling on Amazon and Shopify, helping you make an informed decision that aligns with your e-commerce vision.
Amazon: The E-commerce Giant
Pros:
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Massive Customer Base: Amazon boasts over 300 million active customers worldwide. Placing your product on this platform instantly exposes it to a vast audience.
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Fulfillment by Amazon (FBA): With FBA, Amazon handles storage, packing, and shipping. It's a convenient solution for sellers who want to focus on product development and marketing.
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Trust and Credibility: Amazon is a trusted e-commerce leader. Many shoppers turn to Amazon for their online purchases due to its reliability and reputation.
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Prime Eligibility: FBA products are often Prime eligible, attracting more buyers with fast and free shipping.
Cons:
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Fierce Competition: The sheer number of sellers on Amazon can lead to intense competition, making it challenging to stand out.
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Strict Guidelines: Amazon enforces stringent policies, and breaking them can result in account suspension.
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Fees: While FBA provides convenience, it comes at a cost. Amazon charges fees for storage, fulfillment, and referral.
Shopify: Your E-commerce Hub
Pros:
Full Control: Shopify offers complete control over your store's design, branding, and customer experience.
Flexibility: You can sell not only physical products but also digital goods and services on Shopify.
Diverse Sales Channels: Besides your online store, you can sell on social media, in physical retail locations, and through third-party marketplaces.
Customization: Shopify's extensive app store allows you to add features and functionality tailored to your business needs.
Cons:
Building from Scratch: Unlike Amazon, where you can tap into an existing customer base, with Shopify, you'll need to invest in marketing to drive traffic to your store.
Managing Everything: While you have control, it also means you're responsible for managing inventory, shipping, and customer support.
Monthly Fees: Shopify charges monthly fees in addition to payment processing fees.
Which Is Right for You?
Choose Amazon if:
- You want access to a massive customer base from day one.
- Convenience is essential, and you're willing to pay for FBA services.
- You prefer a more straightforward setup with fewer decisions about design and branding.
Choose Shopify if:
- You desire full control over your brand and customer experience.
- You're willing to invest in marketing to drive traffic to your store.
- You want the flexibility to sell various types of products and expand to different sales channels.
In Conclusion
Both Amazon and Shopify can be lucrative platforms for e-commerce sellers, but they cater to different approaches. Amazon provides instant access to a vast audience but comes with fierce competition and strict guidelines. Shopify offers complete control and customization but requires more effort in terms of marketing and management.
Ultimately, the right choice depends on your business model and long-term goals. Some sellers even opt for a hybrid approach, leveraging both platforms to maximize their reach. Whichever path you choose, remember that success often depends on factors beyond the platform, such as product quality, marketing strategy, and customer service.