'Should we focus on Shopify or Amazon?' It's probably the question I get asked most. And it's the wrong question.
I worked with a home goods brand last year doing about $800K on Amazon. Decent reviews, good sell-through, but margins were thin because of Amazon's fees and advertising costs that kept creeping up. They were convinced Amazon was their future and Shopify was a nice-to-have.
Eighteen months later, their Shopify store does $600K, almost as much as Amazon, but with nearly double the profit margin. They're not abandoning Amazon. They're using it differently now, more strategically.
That's the point. It's not about choosing one platform. It's about understanding what each one does well and deploying them for different purposes.
What Amazon Actually Gives You
Amazon has 300 million active customers who already trust the platform. That's the pitch, and it's real. You don't have to convince someone to buy from a site they've never heard of. You don't have to generate traffic. They're already there, searching for products like yours.
For a new brand with no reputation, this is transformative. Someone who's never heard of you will buy because Amazon's returns process makes it low-risk. That trust transfer is worth a lot when you're starting out.
FBA is genuinely excellent logistics. Two-day shipping, easy returns, customer service handled. You ship boxes to a warehouse and Amazon does the rest. Most brands can't match that operationally on their own.
But here's what Amazon takes in return: 15% referral fee on most categories, plus FBA fees that work out to maybe another 15-20% depending on product size. Then there's advertising. Amazon's become essentially pay-to-play, and 15-25% of revenue going to PPC is normal. And you don't get the customer relationship. No email, no data, no ability to build something beyond individual transactions.
Amazon's a landlord. You're renting shelf space in their shop. That can be a great deal, but don't confuse it with building something you own.
What Shopify Actually Gives You
Your own store means you own the customer relationship. You get their email. You can remarket to them. You build a brand that exists independently of any platform.
The margin difference is substantial. Payment processing runs 2-3% on Shopify versus Amazon's 15%+ in fees. On a $50 product, you're keeping about $48 on Shopify versus $35-38 on Amazon after fees and advertising. That compounds.
You also control the experience. Bundles, subscriptions, customisation, upsells, the way products are presented. All things that are either impossible or constrained on Amazon.
The catch is obvious: you have to bring your own traffic. Amazon has 300 million customers walking past your shelf. Your Shopify store has nobody unless you send them there. That means paid acquisition (expensive, getting more so every year), content marketing (slow), influencers, or an existing audience. No traffic strategy, no sales.
Shopify is owning your own shop. You control everything, but you're responsible for everything too, including getting people through the door.
When to Lean Into Each
Amazon makes sense when you're new and need credibility, when you're in a category where people shop Amazon first (electronics, books, commodity products), when you want to test whether a product has demand before building out a full store, or when you're willing to trade margin for volume.
Shopify makes sense when your brand is part of the value proposition, when you have an existing audience or can build one, when your products have the margins to absorb acquisition costs, or when you want to build something long-term rather than just transact.
Most brands doing real scale end up on both. But they use them differently.
I've seen brands use Amazon purely as an acquisition channel with lower prices and thin margins, treating every Amazon sale as a chance to capture an email and convert them to direct buyers. Others use Shopify as their premium channel (exclusive products, better service, loyalty programmes) and Amazon for the mass market.
The mistake is treating them identically. Different platforms, different customers, different strategies.
Will Amazon Cannibalise Your Shopify Sales?
Everyone worries about this. It's usually overblown.
Some customers only buy on Amazon. They have Prime, they trust the platform, they're not interested in visiting individual brand websites. If you're not on Amazon, you don't get these customers. They weren't going to find your Shopify store anyway.
Other customers actively avoid Amazon. They want to support independents, they like the brand experience, they want subscriptions or bundles that Amazon can't offer. These people aren't switching to Amazon because you launched there.
The overlap (customers who would buy from your Shopify store but switch to Amazon if available) is smaller than people fear. Maybe 10-15% in my experience.
That said, you can minimise it. Keep prices the same on both channels. Don't undercut yourself on Amazon. Make some products or bundles Shopify-exclusive. Offer loyalty benefits for direct customers. Use Amazon package inserts (carefully, within their rules) to drive people to your store for their next purchase.
Think of it this way: if launching on Amazon increases total sales by 50% even if 15% of those would have happened on Shopify anyway, you're still way ahead.
Getting Started on Each
If you're Shopify-only and considering Amazon: don't launch your whole catalogue. Start with five to ten bestsellers. The products you know work. Let them prove the channel before you invest more.
Amazon listings require different skills than Shopify product pages. The photography needs to work as thumbnails. Titles are keyword-stuffed in ways that would look bizarre on your own site. Bullet points follow specific patterns. If you're not willing to learn this or hire someone who knows it, your results will suffer.
Budget for advertising. New products on Amazon don't rank organically. You have to spend to get traction. 20% of revenue going to PPC in the first few months is normal.
If you're Amazon-only and considering Shopify: don't half-arse it. A mediocre Shopify store won't compete with Amazon's trust and convenience. Invest in proper design, fast loading, mobile experience. Match or exceed the buying experience people get on Amazon.
And have a traffic strategy before you launch. 'Build it and they will come' doesn't work. How will people find you? Paid social? Email from Amazon customers (carefully)? Influencer marketing? Content? Have an answer.
What the Mix Usually Looks Like
First year running both channels: typically 70-80% Amazon, 20-30% Shopify. Amazon's established, Shopify's still building.
Year two and three: usually moves toward 50/50, sometimes 60/40 in either direction. Shopify builds as email lists grow and customer acquisition improves.
Mature state: hugely variable. I've seen brands where Shopify is 80% of revenue and Amazon is almost an afterthought. Others where Amazon is 80% and Shopify is for VIP customers and special products. Depends on category, brand strength, how well each channel is managed.
What's consistent: profitability per order is almost always higher on Shopify. You're keeping more of each sale, and customer lifetime value is higher because you can remarket. Volume is usually easier on Amazon, at least initially.
The brands that do best are intentional about both. They're not treating Amazon as just another sales channel and Shopify as a vanity project. Each platform has a role in the overall strategy.
Have questions about this topic? Get in touch—we're happy to discuss your specific situation.