Amazon’s near-monopoly in eCommerce has troubled small businesses for years. With the coronavirus forcing countless merchants to maneuver online, small retailers’ battle with Amazon has become more prominent than ever. Amid this, Shopify has emerged as an efficient weapon powering small and medium enterprises worldwide. And this Shopify vs Amazon faceoff is prompting new dynamics in digital commerce.
Before the increase of Shopify, small and medium sellers had to settle on either of the two paths: list products on marketplaces like Amazon or sell on to customers. Choosing the latter meant fewer sales. Besides, merchants had to believe in advertising and word of mouth. But that changed with the emergence of Shopify. With Shopify, small businesses are now striking back at Amazon and other eCommerce giants, The Wall Street Journal reported. Let’s dive deeper to know the now-global Amazon vs Shopify battle.
Enabling Omnichannel Commerce – (Shopify vs Amazon)
eCommerce platforms like Shopify, Magento, and BigCommerce are increasingly powering small retailers to deal with the evolving market. Services like Shopify app development enable you to possess your eCommerce site and list products on top marketplaces. More importantly, it allows you to sell goods across the online, mobile app, and social media platforms – together called omnichannel commerce.
Choosing one among these platforms brings a swarm of operational advantages. Platforms like Shopify offer you access to cloud-based third-party services like payment and fulfillment. It means more control over your branding and customer relationship management capabilities than marketplaces like Amazon.
Shopify-powered online stores have now created formidable competition for the likes of Amazon. Merchants are becoming more leverage while handling eCommerce giants. They only got to hire professionals like Shopify developers and build customized online stores. Small businesses’ competition with Amazon has intensified to A level at which the enormous is now offering its service for building stores outside its marketplace.
Pandemic-induced eCommerce boom
As the global wave of lockdowns disrupted businesses, more merchants opened online stores and sold goods and services to remain afloat. This sudden surge in demands for eCommerce solutions has brought a replacement stream of small and medium businesses to the Shopify platform. Services starting from store design to Shopify theme customization and maintenance are seeing significant demands.
According to eCommerce analysts, most of Shopify’s quite a million customers are first-time entrepreneurs. And it’s a broader global trend. For example, in the U.S., new business applications hit the very best level on record last year, consistent with the research organization Economic Innovation Group. Interestingly, retail trade was the major active sector with a 54% surge in new business formation. That has also been a number one driving factor for the increase in demands for custom eCommerce solutions across industries.
Growing eCommerce spending in Shopify vs Amazon
Global eCommerce spending grew 44% in 2020 compared with 2019. it had been three times faster than the annual average growth rate over the past decade, consistent with Digital Commerce 360. While more and more small businesses moved online, the year was particularly good for Amazon. The eCommerce goliath grew from roughly 36% of all eCommerce spending within the U.S. in 2019 to 38% within the pandemic year.
While much of the Commerce growth is thanks to other retail companies expanding their eCommerce spending, it’s also thanks to small businesses joining the eCommerce race. From Shopify app development to making social media commerce, small retailers are finding new ways to sell goods online.
Shopify’s meteoric rise
The 14-year-old eCommerce platform has become far and away from the most important provider of software and services to retailers who found out their online stores. Shopify’s revenue saw a staggering 86% growth in 2020., reaching $2.9 billion.
Shopify now has quite 1.7 million sellers using its eCommerce platform. It offers hosted eCommerce services, including payment gateways and tech support, among others. Besides, you’ll hire Shopify developers from third-party vendors and build personalized Shopify stores.
In the pandemic year, Shopify-based merchants sold $119.6 billion in goods. It’s a whopping 40% of the entire value of merchandise sold on Amazon’s third-party marketplace. The foremost popular offering from Shopify may be a cloud-based eCommerce service that permits merchants to build and operate a web store quickly. It comprises an array of solutions, like Shopify app development and payment gateways.
Diverse offerings, flexible pricing
Over the years, Shopify has remarkably expanded its services to form eCommerce operations easier for small businesses. These newly added areas include fulfillment, warehousing, and even small business loans. During a stark development, within the Black Friday sales last year, total sales of Shopify’s merchants surpassed the entire sales of all Amazon marketplaces within the U.S.
Shopify charges users a monthly fee between $30 and $2000. you’ll choose between pricing plans like Basic Shopify and Advanced Shopify. counting on which plan you select, the platform charges a further 0.5% to twenty of every transaction if you employ payment gateways aside from Shopify’s own.
Wrapping up
By now, you want to have gotten a transparent picture of why this Amazon vs Shopify battle is growing. An increasing number of small and medium businesses are joining the Shopify-powered eCommerce space. And it’s obvious to form Amazon feel the risks of losing dominance. But, because the trends suggest, Shopify will likely grow more. But experts suggest, get the simplest of Shopify, you would like a totally personalized online store, rather than counting on the default configurations. That’s where the role of custom eCommerce solutions providers like OrangeMantra comes into play.
Frequently Asked Questions on Shopify vs Amazon
Which platform will make my business more profitable, Shopify vs Amazon?
There’s no predefined way of telling whether Shopify vs Amazon will make your business more profitable. However, if you run a little or medium business, Shopify will likely benefit you more by providing your online store. Shopify also enables you to make your own brand identity.
How much does it cost to develop a Shopify online store?
The costs of building a Shopify online store vary widely consistent with your requirements. If you would like a straightforward website with basic features and a storefront, costs are comparatively lower. OrangeMantra offers reliable Shopify eCommerce solutions at a competitive price.
How long does it fancy to develop a Shopify online store?
Shopify’s development time usually takes a noticeably short time since most templates and elements can use. However, the event time depends on your requirements. If your needs are limited and predefined, it takes comparatively less time.
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