With Amazon giving other shopping platforms a run for their money, it’s easy to think that this is the haven for almost all e-commerce businesses. The emergence of its FBA service made fulfillment investments even more popular. This is also the same thing with Shopify that allows a businessperson to set up his own site and manage his products. But the question is this: should I sell at Shopify directly or focus on Amazon FBA only?
The Amazon FBA Program
These two modes of e-commerce have its own pros and cons. The Amazon FBA is riskier in terms of investments as you’ll have to purchase inventories of products you intend to sell and store it on Amazon warehouses. Most of the time, the goods are shipped from China and you have to make a way to market it and have it sell out. Upon a placement of order, Amazon will process, pack, and deliver the orders to you. This is easier than buying the inventories and storing it by yourself.
However, the Amazon FBA is a high-risk investment. It’s a retailing process where you have no assurance that you’re going to sell all the products you purchased in bulk. As a multi-billion venture, you have to shell out a bigger amount of money to invest in this e-commerce platform.
It’s important to note that the Amazon FBA program isn’t a drop shipping process. You purchase goods and therefore it’s considered your own products. Dropshipping is a process of selling someone else’s products through your platform. The Amazon FBA is somehow the opposite of this one aside from the fact that they both offer fulfillment of the processing and delivery. So should I sell at Shopify directly or focus on Amazon FBA only? You’ll find out later.
Selling at Shopify
This is why Shopify is sometimes the best option for newbies. It’s an intuitive tool for aspiring businessperson where they can set up their own site and incorporate the products. You can also control the number of inventories you purchase and most of the time, you can start out with a very low capital, say $500.
But the downside here is you have to store your own goods, rent a warehouse, and process all the orders including delivery. This might mean a bigger workforce on your end that you have to pay. But if you’re starting small, you can do everything on your own with the help of a partner or a friend.
You also have to set up your own website and manage the inventory by yourself. It might be too taxing for a beginner but it pays if you want a low-risk start. Although there are tools that you can use to manage the orders, there’s no doubt that Shopify will still entail a lot of work on your part.
What To Choose?
Should I sell at Shopify directly or focus on Amazon FBA only? If you have the money you can afford losing (that’s how it goes with every investment), you can choose the Amazon FBA program. It allows you to have the freedom from processing orders and fulfilling deliveries. The good thing about this program is you have the chance to sell your own products regardless if you are your own manufacturer or you just bought it from a distributor.
The Amazon FBA is also a good choice if you’re yet to establish your brand. Their platform is already packed with continuous traffic, thus your product has higher exposure to potential buyers. It’s added marketing on your part aside from your own promotional strategies.
But before you dive in head first, you should know that there’s high competition in the Amazon FBA program. There are many products similar to yours that will vie for a buyer’s attention. Some say that only the strong survives on this. I have to tell you that there’s some truth to it if you don’t have a plan on how to get through the product-saturated space.
Not to discount Shopify’s selling factor, it’s also a good choice for someone who already has an established clientele. Shopify is basically a shopping cart packed with marketing tools that you have to utilize to make it work. It will take some skills and patience to master together with tons of marketing strategies to catch buyers’ attention.
To cut the confusion, I would recommend that you choose Shopify if you’re willing to shoulder the processing and orders of your buyers. It’s also a must that you’re ready and somehow established in terms of branding and service. So should I sell at Shopify directly or focus on Amazon FBA only? Shopify is just a small sacrifice for a low capital start.
For starters, the Amazon FBA program is a good option. You just have to risk a bigger capital to enjoy the perks of bypassing personal processing and delivery. Amazon warehouses will store your goods with a guarantee so there’s no need to think about maintaining your products’ quality.
The important part here is you weigh the upsides and downsides of each platform. Of course, you have a higher chance of yielding bigger revenue if you choose both. You can have inventories delivered to Amazon warehouses and a few on your own storage area. Will it be feasible? Of course, it will. You just have to prepare a bigger capital and added manpower to cover all your operation. Besides, the Amazon FBA program won’t need much supervision aside from sales monitoring and inventory check.
Just keep in mind that maintaining these two platforms would also incur higher expenses. Amazon FBA charges about $50 per month while Shopify could range from $30-$130 depending on the plan that you avail.
So should I sell at Shopify directly or focus on Amazon FBA only? The points discussed here would surely help you decide if you’re going to explore both platforms. Do you have thoughts about Amazon FBA and Shopify? Let us know below and we’ll discuss it with you!