what is better for dropshipping amazon or shopify

amazon and shopify are two of the most,popular ways to start generating income,online and for most new sellers choosing,between selling products on amazon or,shopify is one of the earliest decisions,you'll need to make as an online,entrepreneur there are some important,differences between both platforms that,may make one option better for you so in,this video i'll be going over the pros,and the cons of selling on each amazon,and shopify and what platform i'd,recommend for most sellers for those of,you new to the channel my name is,michael and it's my passion to help make,starting your first online business as,straightforward as possible so first off,i'll start by doing a quick overview of,each platform then i'll get into the,pros and cons of each amazon fba and,shopify drop shipping so first up is,amazon fba using amazon's fulfilled by,amazon program,you'll be selling on amazon's website,and you'll need to create a listing,using amazon's listing format so this,basically means that you'll need to,follow all of amazon's listing rules in,order to list products for sale when,selling products on amazon,chances are most of your customers will,come from the amazon site itself as,opposed to from a different website and,when shopping on amazon products show up,based on search terms that customers,search as opposed to needing to place,ads on google instagram facebook and,other platforms to generate awareness,when selling through the fba program,you'll also ship your products to the,amazon warehouse before you make any,sales,and amazon will manage your fulfillment,your shipping and things like returns,for you this means less work over time,but it also means that you'll need to,purchase your inventory up front which,could mean higher startup costs so next,up we have shopify drop shipping when,selling on shopify you have your own,website and you're in charge of shipping,your own orders so generally speaking,you'll have more customization options,on shopify and basically that means,having more control over what your,product page branding and marketing look,like,however since you'll be selling products,from your own website on shopify you can,expect to put in more effort to attract,customers to your own website versus,finding them already ready to purchase,on amazon so while you can save on,certain seller fees by operating your,own website you'll need to set up more,processes that amazon streamlines for,you as part of that seller central,program shopify is also a great way to,have more control over all aspects of,your business,but this does come at a cost,namely the time and effort it takes to,create your own website and to fill your,orders among other things so now that we,have a quick overview of what it means,to get started on each platform,let's double click on the pros and cons,of each,so first the pros of selling on amazon,first off amazon has a larger audience,that already trusts amazon's platform so,if you think about it if you're a brand,new customer and you stumble upon a new,shopify page chances are you're going to,be a little skeptical before making your,first purchase second amazon customers,are warmer leads and they're on amazon,for a reason to make a purchase so,versus just browsing on google or,facebook and coming across your shopify,ad amazon customers are generally,speaking a little bit closer to making,their final purchasing decision third,amazon handles shipping and returns for,you now this can be a really big benefit,for a lot of new sellers because,fulfillment and returns and managing all,those processes can be quite time,consuming next amazon also has very,reliable fast shipping so if you're,aware of the amazon prime program you'll,know that a lot of items are available,for one to two day shipping and this is,really helpful in helping push customers,to make that purchasing decision that,kind of quicker gratification of fast,shipping next the potential to scale is,quite huge on amazon especially if you,find the right products with enough,demand because amazon has so many,customers and because so many people are,going to amazon for a lot of their,purchases if you find the right product,and put it on amazon and scale it the,chances are you can actually reach a lot,of customers quite quickly and lastly,amazon prime members spend more on,average than regular customers so,another thing that people don't think,about too often is the buyer psychology,behind buying and having a prime,membership so as a prime member you want,to make sure that your amazon prime,membership is worth it it's over a,hundred dollars per year and the more,purchases you make on amazon the more,you get out of that prime membership in,the first place so prime members on,amazon will generally spend more than,their regular member counterparts next,up we have the pros of shopify drop,shipping the first pro of shopify drop,shipping is that there's very low,startup cost so with amazon what you'd,have to do most of the time is,purchase all of your inventory up front,or a big chunk of it send it all to the,amazon warehouse before you can even,start selling your products but on,shopify especially shopify drop shipping,what you can do is actually receive,certain orders and fulfill them once,you've received them and a lot of this,will depend on the connections that you,have with third parties or manufacturers,in order to make that happen but,generally speaking the startup costs on,shopify are a lot cheaper than on amazon,next when you're on shopify you,basically own your customer base and all,of that customer data and their,preferences are yours to analyze and if,you compare that to amazon where amazon,is giving you certain metrics that you,can use to help improve your listing on,shopify because you have total control,over your website and what your listing,looks like,and the ads that you're running there's,a little bit more control and a little,bit more creativity that you can add to,the process lastly a benefit of shopify,drop shipping is that seller fees can be,a lot lower so if you think about being,on amazon because you're using their,website you're putting your listing on,their website you're using their,warehouse and their fulfillment methods,they can afford to charge you a little,bit more for their services because,you're creating those processes yourself,on shopify generally speaking those fees,will be a lot lower now let's get into,the cons of amazon so the first count of,amazon is that you don't really own your,customer relationships so it's harder to,contact your customers tell them about a,new product it's harder to understand,specifically why someone did not choose,to purchase your product and you're kind,of using the tools that amazon gives you,in order to help make your product as,good as possible second amazon can,change their fees at any time meaning,big changes can impact your,profitability so let's just say that the,seller fees increase tomorrow and,suddenly your profits decrease those are,things that can actually happen on,amazon so just being completely up to,date with amazon's terms of service is,going to help you a lot in terms of,planning your business and understanding,how much profit you're actually,generating over time so let's get into,the cons of shopify so shopify generally,speaking you're going to be working with,a pretty cold audience so the leads,aren't quite as warm meaning that people,aren't as ready or willing to purchase,as they are on amazon also on shopify,especially when drop shipping you could,experience longer shipping times so,because with drop shipping you're making,these connections and partnerships with,people overseas and manufacturers you,can ultimately fulfill your order,because a lot of these partners are,overseas or farther from your customer,sometimes that shipping period can be a,little bit longer and some customers can,be a little annoyed by that also on,shopify targeting customers is a little,bit more difficult meaning that you'll,need to run ads on your own to drive,traffic to your website as opposed to,people being on amazon already and just,stumbling across your listing and lastly,the fulfillment of shopify is a wild,card so depending on if you could find,and establish a partnership with a,fulfillment partner or a manufacturer,who is able to ship your products for,you,you'll need to create your own processes,in order to make that fulfillment,process work for your customer so with,that what is my recommendation,so if you want to get in front of your,customers as quickly as possible i'd,recommend starting with amazon,not only does amazon have the best,logistics around fulfillment and,shipping but the ease and reliability of,amazon's platform makes it the easiest,place to start and once you begin,establishing your brand on amazon you,can eventually improve your products,over time and move your business onto,shopify where you can take advantage of,lower fees and a little bit more,ownership over your customer base,however something to note is that if,you're looking to create a premium brand,you may want to think twice about,starting on the amazon platform for,example for luxury items some shoppers,may consider brands that start on amazon,to be slightly cheaper than their luxury,counterparts and also because you need,to abide by all of amazon's listing,templates and guidelines you have a,little bit less freedom as a premium,brand to communicate how your product is,more premium or higher quality than the,competition so,in most cases i'd recommend starting out,with amazon fba when starting your first,online business,but there are some fringe cases where,you may want to reconsider what platform,you start on depending on branding needs,and business goals so there you go that,was my quick overview of amazon fba,versus shopify drop shipping based on,the pros and cons of each which platform,will you start with leave those in the,comments below and if you found any of,this content helpful please hit the like,button it helps me out a ton and if,you'd like to see any more content make,sure to subscribe to my channel for more,actionable videos just like this one,thanks

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