Amazon vs Shopify: Best Platform for CPG Brands

Choosing between Amazon and Shopify depends on your goals. Amazon offers instant access to millions of shoppers and handles logistics with ease. Shopify, on the other hand, gives you full control over your brand, customer data, and store design.

Quick Comparison

Key Takeaways

• Choose Amazon if you want fast access to a large audience and don’t mind less control over branding and customer data.
• Choose Shopify if building a unique brand and owning customer relationships is your priority.
• Many successful CPG brands use both platforms: Amazon for reach and Shopify for branding.

Your decision should align with your brand’s current needs and growth strategy.

Comparing Amazon and Shopify

Control Over Branding and Customer Experience

Want to build your own online store? Your choice between Shopify and Amazon comes down to a key tradeoff.

Shopify puts YOU in the driver’s seat. You can customize everything – from how your store looks to how customers check out. Just look at brands like Allbirds and Gymshark. They’ve built their own distinct online personalities using Shopify’s tools.

Amazon? It’s different. Your products become part of Amazon’s huge marketplace. You’ll use their standard product pages with basic customization options. While this limits your creative freedom, it makes getting started quick and simple. Plus, you get instant access to Amazon’s massive customer base.

Cost Structures and Fees

Let’s talk money. Amazon and Shopify handle costs in completely different ways:

Here’s a real example: Want to ship a 1-2 pound item through Amazon FBA? That’s $3.48 plus storage fees (starting at $0.75 per cubic foot). With Shopify, you’ll get better rates through Shopify Payments, but watch out – using other payment providers might cost you extra.

Customer Data and Ownership

This is where things get interesting. With Shopify, you’re the boss of your customer relationships. You get everything: email addresses, shopping patterns, purchase history, and what marketing they like.

Amazon? Not so much. Sure, you can see orders, but forget about getting customer contact details or understanding how they shop.

"The ability to retain customer data and build direct relationships has become increasingly crucial for CPG brands. Shopify’s model allows brands to own their customer journey completely, while Amazon’s marketplace approach prioritizes their relationship with the customer over the seller’s."

Bottom line? Pick Shopify if you want to build your brand and own your customer relationships. Choose Amazon if you need immediate reach and don’t mind giving up some control for their built-in logistics network.

Features and Growth Potential

Flexibility and App Integrations

Want to customize your online store? Here’s how Shopify and Amazon stack up:

Shopify gives you access to over 8,000 third-party apps. You can add tools like Klaviyo for email campaigns or Bold for subscription services – perfect for CPG brands looking to build their perfect store.

Amazon takes a different approach. They keep things in-house with their own set of built-in tools. While this means fewer technical headaches, you’ll have to play by Amazon’s rules. Their system includes basic features like inventory tracking and ad management, but you can’t customize much beyond that.

Search Visibility and SEO

When it comes to getting found online, each platform has its pros and cons.

Amazon’s A9 search engine puts your products in front of millions of shoppers who are ready to buy. It’s like having a spot in the world’s biggest shopping mall – but you’ll need to compete with lots of other sellers for attention.

With Shopify, you’re in the driver’s seat. You can tweak every aspect of your SEO strategy, from meta descriptions to URL structures. The catch? You’ll need to build your traffic from the ground up.

"The ability to control SEO elements completely on Shopify allows brands to build long-term organic traffic, while Amazon provides immediate visibility but with intense competition for search rankings."

Marketing and Advertising Options

Each platform offers different ways to reach customers. With Shopify, you’re free to run marketing campaigns however you want. You can send emails, connect with social media, and even manage your Amazon sales right from your Shopify dashboard.

Amazon’s ad system packs a punch, but it’ll cost you. While you can target specific shopping behaviors, you’re always bidding against other sellers for ad spots.

Here’s a smart tip from Jeremy Scott at Poast Ecommerce: Why not use both? Make Shopify your main brand hub while using Amazon to reach more customers. This way, you get to control your brand image AND tap into Amazon’s massive customer base.

Considerations for CPG Brands

Competition and Market Challenges

Selling on Amazon? Get ready to swim in a sea of products. Your KIND Bars will sit next to thousands of other snack options, all fighting for attention. Amazon’s system loves products that sell fast and offer good prices – that’s why brands like KIND focus on smart pricing and targeted ads to stand out.

Shopify’s a different story. Instead of elbowing through a crowded marketplace, you get your own space. It’s like having your own store where you can zero in on specific customers – maybe health nuts who love organic snacks or busy parents looking for quick, healthy options.

Building Trust with Consumers

Here’s the deal with trust: Amazon gives it to you instantly. When you launch a new snack bar or beauty product on Amazon, you’re borrowing their reputation. Customers see those "Verified Purchase" badges and Prime shipping promises, and they feel safe buying.

With Shopify, you’re starting from scratch – but that’s not always bad. You get to write your own story and build real relationships with customers. Every email, every package, every interaction is 100% yours to shape.

Order Fulfillment and Logistics

When it comes to getting products to customers, Amazon’s FBA (Fulfillment by Amazon) is like a well-oiled machine. They store your stuff, pack it, ship it, and handle returns across their massive network of warehouses.

"Amazon excels at catering to buyer habits, leveraging precise customer data to optimize sales."

Shopify lets you call the shots on shipping. You can team up with shipping companies, handle it yourself, or mix and match. Sure, it might cost more and need more attention, but you’re in control.

Here’s a smart move: Why not use both? Many CPG brands use Amazon’s FBA for marketplace orders while running their Shopify store with carefully chosen shipping partners. This way, you get Amazon’s shipping power plus the freedom to run your brand your way.

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Conclusion: Finding the Right Fit for Your Brand

Think of choosing between Amazon and Shopify like picking between a bustling shopping mall and your own standalone store. Each has its perks – and its drawbacks.

Amazon brings you instant access to over 300M shoppers and handles all your logistics through FBA. Shopify puts you in control, letting you build your brand exactly how you want it. Many brands don’t pick just one – they use both to get the best results.

Here’s what each platform brings to the table:

What’s Right for You?

Your choice comes down to what matters most for your brand right now.

Go with Amazon if you:

• Need to get your CPG brand in front of customers fast
• Can compete on price and reviews
• Want ready-made shipping and storage

Pick Shopify if you:

• Want to tell your brand’s story your way
• Focus on building customer connections
• Need control over your prices and promos

"The key to success in today’s CPG market isn’t choosing between platforms – it’s knowing how to use each one strategically", notes Jeremy Scott from Poast Ecommerce.

Look at brands like KIND and RXBar – they started on Amazon to get momentum, then added Shopify to build their brand identity. It’s smart business: use Amazon’s traffic while growing your own direct sales.

Here’s the thing: you’re not stuck with your choice. Start where it makes sense now, then branch out as you grow. The most successful CPG brands use both platforms – they know each one has its strengths, and they make the most of them.

FAQs

Why do people use Shopify instead of Amazon?

Let’s break down why many CPG brands pick Shopify over Amazon (though some use both).

Here’s what sets them apart:

You’re the Boss with Shopify: Want to design your store your way? Shopify lets you do that. Amazon? Not so much. The money side is simple too – Shopify charges a monthly fee ($29-299) plus standard card fees (2.9% + $0.30). Compare that to Amazon’s hefty 15% cut of your sales. Just look at RXBar – they’ve built their own unique shopping experience on Shopify.

"The key difference isn’t just cost – it’s about building lasting customer relationships. With Shopify, you own the customer data and can create personalized marketing strategies that drive drive repeat purchases", explains Jeremy Scott from Poast Ecommerce.

Mix and Match: Here’s a pro tip – you can actually use Amazon’s FBA (Fulfillment by Amazon) with your Shopify store. It’s like getting the best of both worlds: Amazon’s shipping power with Shopify’s brand control.

The bottom line? Pick what matches your goals. Many brands find success using both platforms – Shopify for their main store and Amazon for extra reach.

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