Amazon FBA vs. Shopify: Which Platform Is Better for Sellers?

Find out all the details in the Shopify vs. Amazon FBA debate

If you’re thinking of launching an e-commerce business in 2025, there are two names that have probably already crossed your mind. Shopify and Amazon FBA are two options sellers should look at. The ready-to-go platform Amazon FBA vs. ground-level Shopify both have their benefits and drawbacks.  

Naturally, Amazon FBA would seem like the clear favourite among the two. The world’s biggest online marketplace services over 75 million shoppers per day (US), many of whom are probably already actively searching for the products you aim to sell. However, you will be facing a lot of rules, fees, and fierce competition that accompany the opportunities of selling on a platform this large.

Let’s take a look at Shopify. The platform that enables you to build your own online store from scratch gives you full control over your brand, customers, and how you grow. Not only has Shopify itself grown from a startup built for a single ski gear store into an e‑commerce powerhouse, its annual revenue has also skyrocketed from around $24 million in 2012 to approximately $8.9 billion in 2024, reflecting more than 360× growth over 12 years. 

In this guide, we’ll address all the pertinent questions, including:

  • Which one of the two is more profitable?
  • When does it make sense to use both?
  • What are the hidden costs no one talks about?
  • Which model scales better long-term – and what traps are out there that should be avoided?

By the end, you’ll know exactly where you stand in the Amazon FBA vs. Shopify debate – and which journey is more suitable for you and your business model.

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Shopify or Amazon FBA? Why Not Both? 

Why limit yourself to one, when you can use both? It is definitely possible, in many cases even recommended. Let’s take a look at both platforms in detail and then assess whether you can leverage both – and what you should watch out for when you do. 

What is Amazon FBA?

Fulfillment by Amazon (FBA) is a service that lets you sell your products on Amazon’s marketplace while Amazon itself takes care of storage, shipping, customer service, and even returns. You send your inventory to their warehouses, and Amazon handles the rest.

The biggest advantage of Amazon FBA? First, instant access to over 300 million active Amazon customers. The opportunities this kind of traffic presents are huge, especially if you’re just starting out. Second, you take advantage of an already built logistical system that ranks as one of the best in the world.

But there’s a tradeoff. Selling on Amazon means you’re playing by their rules. As an example, selling over FBA means you are also not in charge of your own customer relationship, and building a memorable brand is tougher when your product is surrounded by similar listings. And what’s more, there are the Amazon FBA fees that have to be taken into account that have been increasing gradually over the years. 

What is Shopify?

Shopify is an e-commerce platform that lets you build your own fully customizable online store. It’s your website, your branding, your customer list. You choose how it looks, how it feels, and where you sell.

Its biggest strength? It offers you a lot of control as a seller. You get direct access to your customers, which enables you to build long-term loyalty easier, and shape a brand that stands out.

However, when it comes to visibility, you’re on your own. You’re also responsible for driving your own traffic. This means that without ads, SEO, email marketing, or social media, your products, no matter how high the quality, could remain best-kept secret on the internet. In addition, Shopify sellers have to set up their own logistics, including shipping (expensive), storage space (more expensive), and manpower (most expensive). 

Shopify is like opening a boutique in a quiet side alley – you’ll need to work to get people to see you. But once they do, they’ll take a closer look.

Amazon FBA is like renting shelf space in Times Square – great foot traffic, but your brand might get lost in the crowd.

Amazon FBA vs. Shopify, or Amazon FBA & Shopify?

At first glance, comparing Amazon FBA and Shopify might feel like comparing apples to oranges. After all:

  • Amazon FBA is a fulfillment method – it handles how your products are stored, packed, and shipped.
  • Shopify is an e-commerce platform – it helps you build and manage your own online store.

So why do sellers constantly weigh these two against each other? Because in practice, the comparison goes far beyond logistics or web design. It’s about choosing a business model, and ultimately, your growth path as an e-commerce entrepreneur. 

Mixing the two – using FBA to fulfill Shopify orders – works well, as both platforms complement each other nicely. This approach is common among experienced sellers, while those just starting out often choose to focus on one platform at a time. Mixing the two comes with its own pros and cons: 

Pros:

  • Fast shipping through Amazon
  • You own your brand and customer data
  • Scales easily as you grow

Cons:

  • Amazon charges fees for MCF (Multi-Channel Fulfillment)
  • You don’t get Prime badges on your Shopify store
  • Slightly more complex to set up and manage

Key Comparison Table

Here are all the key factors at a glance.

Feature / FactorAmazon FBAShopify
Platform TypeMarketplace with built-in audienceWebsite builder for your own store
Traffic🟢 High – millions of daily shoppers🔴 Low – you must drive traffic via ads, SEO, etc.
Customer Acquisition✅ Built-in (Amazon brings the customers)🚧 You’re responsible for all customer acquisition
Fulfillment✅ Done for you (store, pack, ship via FBA)❌ Must handle yourself or integrate with FBA/3PLs
Fees🟡 High – Referral + FBA + storage fees🟢 Lower – Monthly subscription + payment processor fees
Brand Control🔴 Low – Amazon controls the storefront and customer relationship🟢 Full – You design the brand, own customer data
Customer Data Access🔴 Limited – No email or retargeting access🟢 Full – Own email list, use retargeting and CRM
Startup Complexity🟢 Simple – List product, send to FBA🟡 Medium – Build site, choose fulfillment, set up marketing
Scalability🟢 High – Easily scale with Amazon logistics🟢 High – If you crack marketing and fulfillment
Advertising🟡 Optional – Amazon PPC, competitive🔴 Essential – FB/IG Ads, Google Ads, SEO, email
International Selling✅ Supported via Amazon Global Selling🔄 Manual setup per region (unless using Shopify Markets or similar tools)
Returns & Customer Service✅ Handled by Amazon❌ You’re responsible unless outsourced
The discussion around Shopify vs. Amazon often revolves around hidden costs of both platforms.

Hidden Costs 

At first glance, both Shopify and Amazon FBA seem pretty straightforward – pay your fee, sell your products, and grow your business. But as most experienced sellers quickly learn, there’s a layer of hidden costs that can quietly chip away at your profits.

Let’s take a closer look at the less obvious expenses that come with each platform, so you can go in fully informed.

Hidden Costs of Amazon FBA

FBA definitely makes things easier on the logistics side – you send your products in, and Amazon handles the rest. But that convenience comes with a few strings attached:

  • Long-term storage fees: If your inventory sits too long in the warehouse, Amazon charges extra to keep it there.
  • Labeling and prep fees: Not following Amazon’s guidelines in regard to preparation? They’ll do it for you – for some extra money.
  • Returns and lost inventory: Returns are inevitable when you sell on Amazon or via Shopify, but the costs can add up. This is particularly unfortunate when inventory goes missing or is damaged in an Amazon FBA warehouse and you have to file for reimbursement.
  • Suspension risks: Even veteran sellers can get hit with a policy violation, causing your account to become suspended. While you wait for resolution, storage fees and lost sales continue to pile up.
  • PPC competition: Getting seen on Amazon often means running ads — and those ad costs are only going up, especially in crowded categories.

Hidden Costs of Shopify

Shopify gives you a lot more freedom – you’re building your own brand, on your own terms. But with that independence comes more responsibility (and more potential expenses):

  • App fees: Most sellers end up using third-party apps for things like upsells, email marketing, and reviews. Those monthly subscriptions can easily cross the $100 mark.
  • Themes and development: While there are free themes, many of the more polished options come at a cost – and custom changes might require a developer.
  • Traffic is on you: There’s no built-in audience like on Amazon. If you want visitors, you’ll need to invest in SEO, social media, or paid ads.
  • Payment fees: Shopify Payments helps avoid extra charges, but if you go with a different provider, expect additional transaction fees on top.

When you’re deciding whether selling on Shopify vs. selling on Amazon is the right option for you, keep in mind that the costs shown above make neither platform a bad choice. They’re just part of the reality of running an online business. And if you’re aware of them early, you can plan around them and avoid nasty surprises down the line.

In the next chapter, we’ll look at scalability and long-term growth – which platform gives you the most room to expand as your business grows?

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Profitability – Which Platform Makes You More Money?

The discussion around Shopify vs. Amazon often revolves around this question: Which platform actually puts more money in your pocket? The answer depends on how quickly you want to see results – and how you plan to grow over time.

Short-Term Profits

If you’re looking for fast sales, Amazon FBA usually delivers. With millions of active shoppers already searching for products, you can start generating orders within days of launching. However, the tradeoff is lower margins — once you factor in FBA fees, referral fees, and PPC, the profit per unit can shrink quickly.

Shopify, in contrast, tends to be slower out of the gate. There’s no built-in audience, so you’ll need to attract traffic through ads, SEO, or social media. But if you get it right, your profit margins are higher — no marketplace fees, more control over pricing, and fewer middlemen.

Example:
Let’s say you’re selling a $30 phone case.

  • On Amazon, you might make a sale on Day 1, but after FBA, referral, and ad costs, you’re left with maybe $8–10 in profit.
  • On Shopify, you may need a few days (or weeks) to drive traffic, but once you convert, your profit could be closer to $18–20 per unit.

It’s a question of speed versus control — and how much you’re willing to invest upfront in customer acquisition and logistics.

Long-Term Profits

Shopify gives you full control over branding and customer relationships. With tools like email marketing and loyalty programs, you can build a direct, high-LTV business that scales on your terms.

Amazon FBA is also a platform which enables long-term growth really – especially if you optimize operations and pricing.

The three founders of AMZ SmartSell started with just €900. By refining their pricing strategy using tools like SELLERLOGIC Repricer, they scaled to over €100,000/month in revenue. Their growth shows that, with the right approach, FBA can absolutely support a profitable, long-term business.

Of course, risks remain: account suspensions, limited customer access, and competition from Amazon’s own labels. But with smart systems in place, those challenges can be managed.

Here’s the bottom line when it comes to growing your business on Amazon vs. growing on Shopify:

Shopify gives you more ownership, Amazon gives you scale – and yes, real long-term growth potential if you play it right.

Shopify Fulfillment vs Amazon FBA fulfillment? FBA wins 10 times out of ten. Due to automation.

Customer Support & Seller Experience

When comparing FBA and Shopify, it’s not just about profits – how you’re treated as a seller matters. Whether you’re resolving an issue or planning for growth, having responsive support can make or break your experience.

Amazon Seller Support

Amazon’s seller support, due to the large scale at which they operate, is known to be ticket-based, rigid, and often frustrating. Many sellers report long wait times, repeated explanations, and support agents who rely heavily on scripted responses.

If you’re a high-volume seller, such delays can result in lost revenue and negatively impact performance metrics – often due to issues that are beyond your control. This is particularly true when requesting reimbursements for FBA-related errors, where support processes can be time-consuming and are typically more efficient when automated.

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Shopify Support

Shopify’s support system is consistently rated as more approachable and responsive. Sellers get access to 24/7 live chat and email support, and the platform is known for proactively helping with store setup, troubleshooting, and integrations.

In addition to in-house support, Shopify offers a rich ecosystem of developers, agencies, and freelancers through its Shopify Experts directory. If you are looking to grow or customize your store, help is readily available on Shopify.

The Shopify Community is also heavily underrated – a global forum where experienced store owners share advice, templates, and practical solutions to common issues.

Overall, Shopify offers a smoother, more human experience – especially if you plan to build out your brand. Amazon’s scale is unmatched, but the seller experience can feel impersonal and reactive.

Amazon FBA vs. Shopify – Who Should Use What?

Selling on Amazon vs. selling on Shopify also boils down to what your goals are. If you’re looking to get up and running fast, Amazon FBA is hard to beat. You tap into an existing customer base of over 300 million, with logistics and fulfillment handled for you. It’s a great fit if you’re selling high-demand or commoditized products where brand isn’t the factor that sets you apart from your competition.

FBA is especially powerful when paired with the right tools. A smart repricer keeps your listings competitive without racing to the bottom, while automated reimbursement services ensure you don’t lose money to FBA errors –  a common and often overlooked drain on profits.

Use Amazon FBA if:

  • You want sales momentum quickly.
  • You’re selling proven products with broad appeal.
  • You’re willing to sacrifice some brand visibility for scale.

Shopify, on the other hand, is ideal if you’re building your own brand. You get full control over your store, customer data, and messaging – this means that you also have to carry the burden of driving traffic and managing fulfillment from scratch.

Use Shopify if:

  • You want to grow a distinct brand and customer base.
  • You’re ready to invest in marketing and community-building.
  • You value owning your data and storefront.

Final Thoughts – Amazon FBA vs Shopify: What’s Right for You?

Both platforms will lead you to success, but in different ways. Amazon offers convenience, reach, and speed – especially powerful when supported with the right automations. Shopify gives you control, flexibility, and ownership. 

FAQs

How does Amazon FBA fare vs. Shopify dropshipping?

Amazon FBA offers fast fulfillment and built-in traffic but limits brand control. Shopify dropshipping gives full branding freedom and higher margins but requires your own traffic generation. FBA suits those seeking scale and simplicity, while Shopify is ideal for entrepreneurs focused on brand-building and long-term customer relationships.

Is Shopify or FBA better for beginners?

For beginners, Amazon FBA is often better due to its built-in traffic, streamlined logistics, and easier path to early sales. Shopify offers full control but requires learning marketing, driving traffic, and managing customer service. FBA simplifies setup, while Shopify suits those willing to invest time building a brand from scratch.

Does Spotify dropshipping from Amazon work?

Shopify dropshipping from Amazon technically works, but it’s risky and not recommended. Amazon’s terms forbid reselling its products without permission, and shipping times, branding, and packaging may violate Shopify’s policies. Plus, customers may get confused by Amazon-branded deliveries. While some try it as a low-cost entry, it can lead to account bans or customer dissatisfaction. Safer alternatives include sourcing from verified dropshipping suppliers like AliExpress or private suppliers.

How does Shopify fulfillment work vs. Amazon FBA?

Shopify fulfillment relies on third-party logistics (3PLs) or self-shipping, giving you full control but also full responsibility. Amazon FBA stores, packs, and ships your products with Prime-speed delivery and customer service. FBA simplifies operations but limits flexibility, while Shopify allows customization but requires managing logistics and support independently.

Image credits in the order of the images: © monsterstudio – stock.adobe.com / © marog-pixcells – stock.adobe.com / © IgorVetushko – stock.adobe.com

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