Short answer: It depends on your goals. Use Amazon if you want the largest built‑in audience and turn‑key fulfillment scale; use Shopify if you want brand control, better margins long‑term, and to own your customer relationship. Many successful sellers use both.

Key differences (with current context and sources)

• Reach & demand

  • Amazon = massive marketplace and traffic, especially for commodity and search‑driven purchases. Great for volume, product discovery, and fast trust via Prime. (sellingpartners.aboutamazon.com)
  • Shopify = your own storefront — you must drive traffic (ads, SEO, social) but you own the brand, data, email list and customer experience. Shopify merchants accounted for a notable share of U.S. e‑commerce and Shopify emphasizes independent stores. (FT.com)

• Fees & pricing (high level)

  • Amazon = referral fees (a percent of each sale), plus variable FBA fulfillment and storage fees if you use FBA; fee structure and programs change over time (Amazon announced no referral/FBA increases in 2025 but modest updates in 2026). Expect category referral fees typically ~8–45% depending on category; FBA adds per‑unit fulfillment and storage. (sellingpartners.aboutamazon.com)
  • Shopify = subscription + payment processing fees (Shopify’s Basic plan starts at $29/mo; card rates ~2.9% + $0.30 if using Shopify Payments; other plans raise monthly cost but reduce some fees). You’ll also pay for apps, themes, and marketing. Shopify lists current plan pricing and card rates. (Shopify.com)

• Brand, customer data & control

  • Amazon controls listing formatting, reviews, and customer data; you have limited control over branding and post‑purchase contact. Good for fast scale but harder to build a brand identity.
  • Shopify gives full control of site design, checkout, customer email lists, promotions and loyalty — important if you want repeat customers and higher lifetime value.

• Fulfillment & operations

  • Amazon FBA solves fulfillment, returns, and fast shipping (Prime), which boosts conversion but adds FBA costs and inventory planning complexity.
  • Shopify integrates with many fulfillment options (Shopify Fulfillment Network, third‑party logistics, or self‑fulfill). Recently Shopify and Amazon added integrations (e.g., Buy with Prime) to let Shopify merchants use Prime delivery for some orders. (Investopedia.com)

• Customer acquisition costs (CAC)

  • Amazon often has lower acquisition friction because buyers are on the platform searching to buy, but competition and ad costs (Sponsored Products) can be high.
  • Shopify requires paid marketing (ads, influencers, SEO). CAC can be higher initially but you capture the customer and can earn higher lifetime value.

Which to choose — practical guidance

• Sell on Amazon if:
  • You want fast demand and scale with minimal setup.
  • You sell commodity, price‑competitive, or discovery items where search ranking matters.
  • You prefer to outsource fulfillment to FBA/Prime.
• Use Shopify if:
  • Building a brand, higher margins, and owning customer data is a priority.
  • Your product benefits from storytelling, design, subscription/LTV strategies, or customized checkout.
  • You’re willing to invest in marketing to drive traffic.
• Best‑of‑both (common for scaling sellers):
  • Launch on Amazon to validate demand and get volume, then build a Shopify store to capture customers and increase margins. Use integrations like Buy with Prime where it fits. (Investopedia.com)

Cost example (illustrative; confirm for your product)

• Amazon: referral fee (category % of sale) + FBA fulfillment per unit + storage fees. Small, low‑priced items can have a large percent taken by fees; Amazon published 2025/2026 fee updates—check Seller Central for exact rates for your category. (sellingpartners.aboutamazon.com)
• Shopify: Basic plan $29/mo + payment processing ~2.9% + $0.30 per transaction (Shopify Payments) — plus apps, theme, marketing. Shopify’s published pricing is current on their site. (Shopify.com)

Quick decision checklist

• Need fast orders today with minimal marketing → Amazon
• Want to build brand, own customers & improve margins long‑term → Shopify
• Unsure? Test both: validate on Amazon, then drive repeat customers to your Shopify site.

If you want, tell me: 1) what you sell (product type/price), 2) monthly sales goal, and I’ll run numbers (fees, margin comparisons) for Amazon vs Shopify for your exact case.