Shopify and Amazon are often viewed as B2C platforms for selling consumers but each is building out their B2B businesses, viewing them as even larger opportunities for increased revenue.
Business journalist Jasmine Glasheen, writing in The Robin Report retail executive newsletter, recently compared the two platforms, highlighting advantages and disadvantages for companies trying to decide who to work with.
“Shopify and Amazon are very different platforms,” she wrote. “Shopify gives brands the tools to build their own web interface and hosts over 800,000 sellers on the platform. Amazon, on the other hand, is a top-down online marketplace that services over 197 million consumers.”
And while each is often thought to be focused on selling to consumers, Glasheen wrote,” Shopify recently called B2B ‘the biggest ecommerce opportunity for 2024. That’s because B2B sales are over double the size of DTC and they’re expected to grow by 18 percent annually until 2030. Ecommerce has now surpassed all other channels for B2B sales and, by 2030, 80 percent of all B2B sales will take place online.”
Glasheen compares the fee structures: Shopify charges flat monthly rates while most Amazon plans are based on per-item charges. Amazon has far more customer traffic, she writes, while both platforms offer similar inventory management tools.
“In short, the comparison between Shopify and Amazon highlights fundamental differences in approach and offerings,” she writes. “Empowered Shopify sellers, armed with transparent fee structures and innovative marketing suites, stand out in a marketplace that values customization and the ability to create a brand from the ground up. Amazon holds its own with unparalleled customer traffic.”
So, which one is better? “The pivotal question remains: Has Shopify reached a tipping point in its quest to challenge Amazon, or is it still only on the brink of a groundbreaking transformation? My research points toward the former, as Shopify continues to restructure and roll out exciting innovations for DTC and B2B sellers alike. The journey for Shopify is still beginning, and its ability to adapt, innovate, and offer transparency at scale will determine its impact on the future of the ecommerce industry.”
The full study from Glasheen is available on The Robin Report on The Robin Report Website.