Updated: Jan 19
Retailers and markets have been trying to chip away at Amazon's online dominance for years. Among the most competitive include Walmart, Shopify, and other merchants building their own websites have gradually entered merchants' vision. With the impact of the coronavirus, merchants have become aware of the risks of excessive dependence on Amazon, and many retailers have turned their attention to Walmart and the latest developments in e-commerce on self-built websites. But what are the differences between these platforms?
To compare the pros and cons of each platform, we first use Amazon's sales model as an analysis basis.
Amazon requires the purchase of a $39.99 sales plan. A "referral fee" of up to 15% is charged on each sale, and no listing fee is charged, but it includes FBA logistics fees and advertising fees. The general product advertising ACOS is about 10% of the product sales value. Calculating the basic cost of a product on the Amazon platform is about 40% of the product value, not including product refunds, holiday discounts, and new product promotions, etc.
Amazon has mandatory referral fee rules for each category. Some categories, such as media, will charge additional service fees or variable closing fees. Storage fees are charged separately, as are many other related services (FBA label services, return processing, and order removal, etc.).
Amazon's login and listing provide a simple and convenient startup process. Once you have purchased a sales plan and set up a Seller Central account, you can create your first item using a variety of options: using Amazon's pre-populated product information, manually entering your own product information, or uploading a spreadsheet of products.
On the other hand, Shopify charges a monthly fee starting at $29 and a transaction fee of 2.9% + 30 cents per sale. Unlike Amazon, Shopify does not charge additional fees for storage or fulfillment. Additionally, Shopify offers a wider range of design and customization options for your online store, and it allows you to sell on multiple sales channels, including social media platforms and marketplaces.
Other website-building options include Wix and WordPress. Wix offers a drag-and-drop website builder, which makes it easy for users to create and design their website without the need of any coding knowledge. It also offers a variety of design templates and a wide range of apps that can enhance the functionality of your website. One of the advantages of Wix is its affordable pricing options, which makes it a cost-effective choice for small businesses and individuals.
WordPress is an open-source platform that allows for more customization options and the use of various plugins, but it may require more technical knowledge to set up and maintain. One of the advantages of WordPress is its flexibility, as it can be used for a variety of purposes such as blogs, e-commerce websites, and portfolios. It also has a large community of developers who continuously work on improving the platform and creating new plugins, which can enhance the functionality of your website.
Walmart, like Amazon, also charges a monthly fee for its marketplace service, but the fee is lower at $29.95. Additionally, Walmart charges a referral fee of 15%, similar to Amazon, but it also charges a storage fee of $40-80 per month, depending on the size of your inventory. Walmart does not have the same level of customization options as Shopify, but it does have a strong reputation for customer trust and a large customer base, which can be a great advantage for sellers.
In conclusion, each platform has its own strengths and weaknesses. Amazon is the most well-known platform and has a large customer base, but it also has high fees and strict rules. Shopify offers more customization options and the flexibility to sell on multiple channels, but it may not have the same level of customer trust as Amazon or Walmart. Walmart has a lower monthly fee and a strong reputation for customer trust, but it also charges a storage fee and may not have as many customization options as Shopify. Each platform has its pros and cons, and it's important for sellers to weigh these factors and choose the one that best suits their business needs.