One of the monopoly of Amazon in eCommerce has been troubled small businesses for years. With the Covid-19 situation forcing some merchants to move online businesses and small retailers battle with Amazon has become more well-known than ever. Shopify has been come out as an effective weapon powering small and medium level businesses globally. This Amazon vs Shopify comparison is promoting new dynamics in the eCommerce.
Earlier the launching of Shopify, small and medium level businesses had to select from either of the two ways. One is to list the products on a marketplace like Amazon or sell directly to the customers (Offline market). Merchants had to rely on advertising and word of mouth. That has been changed with the emergence of Shopify. Now, small-level businesses are striking back at Amazon and other eCommerce stores with Shopify.
Let’s dive deeper to understand the Amazon vs Shopify Battle.
Enabling Omnichannel Commerce
eCommerce platforms like Magento, BigCommerce, and Shopify are increasing the power of small businesses to cope with the growing market. Shopify App Development not only enables you to have your own eCommerce website but also lists the products on top marketplaces. It will permit you to sell your products across mobile apps, web, and social media platforms. All this together is called omnichannel Commerce.
Selecting one of the platforms from these brings a pack of operational benefits. Platforms like Shopify provides you access to third-party and cloud-based services like payment. That means more control over the branding and customer relationship management capabilities than marketplaces like Amazon.
Shopify-powered online eCommerce stores have created frightening competition for other eCommerce like Amazon. While dealing with the eCommerce giants merchants are getting more leverage. They need to hire a professional Shopify expert or a leading Shopify Development Company to build a customized online store as per their business requirements. A competition of small businesses with the enterprise-level eCommerce store like Amazon has boosted a level at which the giant is now offering its own service to building the stores outside its marketplace.
Pandemic-induced eCommerce boom
As the global wave of lockdowns disrupted the businesses and so that’s why most of the merchants were opening online eCommerce stores and selling the products and services to stay floating. This sudden rush in demands for an eCommerce solution has brought a new stream of small and medium-level businesses to the Shopify platforms. Services ranging from store design to Shopify theme customization and maintenance are seeing significant demands.
Most of the customers of Shopify are first-time entrepreneurs according to eCommerce analysts, and it’s a very big global trend. For example; new businesses application hit the highest level on record the last year in the U.S., according to the research organization economic innovation group. Retail trade was the most active sector with a 54% rush in new business formation. That has been a leading driving factor for the rise in demands for custom eCommerce solutions across industries.
Growing eCommerce spending
Global eCommerce spending is now growing and more than 40% in last year (2020) compared with 2019. It was approximately two or three times faster than the annual average growth rate over the past decade, according to the data of the Digital Commerce 360. While more and more small businesses moved online, the year was good for Amazon particularly. The eCommerce grew from roughly more than 30% of all the eCommerce spending in the U.S. in 2019 to more than 35% in 2020.
More eCommerce growth is due to other retail companies expanding their eCommerce spending, it’s due to small businesses joining the eCommerce race. Small retailers are always finding new ways to sell products online from the Shopify App development to creating social media commerce.
Shopify’s meteoric rise
Now Shopify has more than 1.5 million sellers using its eCommerce platform. Shopify offers hosted eCommerce services including technical support, payment gateways, and others. you can hire Shopify experts to build a reliable and customized store as per your business essentials.
Shopify has become the largest provider of software and services to the retailers who set up their own online stores. Shopify’s revenue saw a staggering more than 80% growth in 2020 and reaching to $2.9 billion.
Shopify-based merchants sold more than $100 billion products in the year 2020. The most popular service from Shopify is a cloud-based eCommerce service that allows merchants to quickly build and operate an online eCommerce store. It includes an array of solutions, like Shopify app development and payment gateways.
Diverse offerings, flexible pricing
Shopify has expanded its services to make eCommerce store activities easier for small businesses. The newly added features include warehousing and even small business loans. In the development, in the Black Friday sales last year, total sales of merchants of Shopify exceed the total sales of all Amazon marketplaces in the U.S.
Shopify charges monthly based fees to users between $30 and $2000. You can select pricing plans like Basic Shopify and Advanced Shopify. Depending on the plan you select, the platform charges an additional 0.5% to 2% of each transaction if you are not using Shopify’s own.
Now you have gotten a clear picture of why the Amazon and Shopify battle is growing day by day. The increasing number of small and medium level businesses joining the Shopify eCommerce platform, and it’s obvious to make Amazon feel the risks of losing the dominance. As the trends suggest, Shopify will likely grow more, but experts suggest to get the best of Shopify, you will need a fully personalized online store, instead of relying on the default configurations.