Key takeaways
- Amazon has lower acquisition cost but higher variable fees. Shopify has lower fees but higher acquisition cost.
- Repeat purchases tilt the economics towards Shopify over time.
- Run both: Amazon for discovery, Shopify for margin and retention.
The choice is not Amazon or Shopify. The question is how each channel contributes to profit after all costs. Below is a worked comparison using a Rs 1,000 product. All figures are illustrative: check current fee schedules for your category.
Fee structure comparison
| Cost item | Amazon (example) | Shopify (example) |
|---|---|---|
| Referral or platform fee | 8% to 15% of price (category dependent) | 0% (plan fee fixed monthly) |
| Payment gateway | Included | 2% to 3% |
| Fulfilment | FBA fee Rs 50 to Rs 120 | Courier Rs 60 to Rs 120 |
| Storage and other | Rs 5 to Rs 20 | Warehouse or own cost |
| Advertising (ACoS or CAC) | 10% to 25% of sales | 25% to 40% of first order sales |
| Returns | Often high in apparel | Depends on COD mix |
Worked example for a Rs 1,000 product
| Line | Amazon | Shopify |
|---|---|---|
| Sale price | Rs 1,000 | Rs 1,000 |
| COGS | Rs 300 | Rs 300 |
| Referral fee | Rs 120 | Rs 0 |
| Fulfilment and shipping | Rs 90 | Rs 85 |
| Payment fee | Rs 0 | Rs 25 |
| Advertising | Rs 150 | Rs 280 |
| Packaging and misc | Rs 20 | Rs 30 |
| Profit per order | Rs 320 | Rs 280 |
On the first order Amazon looks better because its ads cost less per sale. Now add repeat purchase.
The repeat purchase effect
If 25% of Shopify customers buy again at near zero acquisition cost through email and WhatsApp, the second order earns about Rs 500 profit. Average profit per customer becomes about Rs 280 + (0.25 x Rs 500) = Rs 405. On Amazon, repeat customers often return via search where you compete again with ads, so the repeat benefit is smaller.
Customer data and lifetime value
On Shopify you can compute CAC, repeat rate and LTV precisely. On Amazon you see limited customer data. Better data allows smarter bidding and creative decisions across Meta and Google. See what is a good ROAS.
Who should prioritise which
| Brand type | Priority |
|---|---|
| New product, no brand | Amazon first for validation |
| Established Amazon brand with reviews | Add Shopify to raise margin |
| Consumables with repeat purchase | Shopify and subscriptions |
| Gifting and giftable bundles | Shopify with bundles |
Practical strategy
- Keep Amazon as your discovery and high intent channel.
- Use Shopify for bundles, new launches and premium positioning.
- Use ads on Meta and Google to grow the store.
- Build email and WhatsApp to lift repeat purchases.
Read the broader story in Amazon seller to Shopify store.
Numbers in this article are indicative working ranges drawn from public industry reports and typical campaign patterns in India. Your results will vary by offer, price point, location, and creative quality. Always validate against your own data.
Frequently Asked Questions
Is Shopify more profitable than Amazon?
On a first order Amazon can be more profitable because of lower acquisition cost. Over a customer's lifetime Shopify can be more profitable thanks to higher repeat purchase and no referral fee.
What are Amazon seller fees in India?
Fees include referral fees that vary by category (commonly 8% to 15%), fulfilment or shipping fees, closing fees and advertising costs. Always check the current Amazon India fee schedule.
Can I sell on both Amazon and Shopify?
Yes. Most scaling brands do, using Amazon for discovery and Shopify for brand building and retention.
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