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Amazon vs Shopify for your side hustle (fees explained)
Introduction
When deciding whether to sell on Amazon or Shopify, it's important to understand the fee structures associated with each platform. This article will cover the fee differences to help you make an informed decision.
Amazon Fees
On Amazon, you essentially pay two types of fees: a fee for every sale and a monthly fee for using their services. These fees cover various aspects, including shipping and packaging for Amazon Prime.
- Per-Sale Fee: A fee is charged for each sale you make.
- Monthly Subscription Fee: A recurring fee for using Amazon's seller services.
- Fulfillment Fees: These include shipping and packing costs for Amazon Prime.
Shopify Fees
Shopify operates differently. Here, you pay a fee based on a percentage of each transaction. This means the higher the product price, the more you pay in fees. Additionally, Shopify has its own monthly fee for maintaining your online store.
- Transaction Fee: A percentage of each transaction.
- Monthly Subscription Fee: A fee for hosting and using Shopify's platform.
- Fulfillment: Shopify does not offer its own fulfillment service. You will need to either handle shipping yourself or hire a third-party logistics company, both of which come with their own costs.
If you need more information on the shipping process for either platform, feel free to follow us for our next video where we will cover this in more detail.