Guide · Shopify to Amazon
Amazon vs Shopify margins: real numbers after fees and ads
Amazon usually takes more per order than Shopify through its referral fee (15% in most categories) and FBA fee, but Shopify orders carry their own customer acquisition, payment and shipping costs. Brands that pay a lot to acquire Shopify customers often keep more per order on Amazon; brands with mostly repeat Shopify buyers usually keep less. Compare both per SKU.
What costs belong in the comparison?
| Cost | Shopify | Amazon |
|---|---|---|
| Platform fee per order | None beyond the monthly plan if you use Shopify Payments | Referral fee, 15% in most categories (8% to 17% range in many) |
| Payment processing | Around 2.5% to 2.9% plus a fixed fee, depending on plan and country | Included in the referral fee |
| Fulfillment | Your 3PL or in-house pick, pack and shipping | FBA fee by size and weight, plus storage |
| Marketing per order | Meta, Google, email, influencers: often the biggest cost | Sponsored ads, usually lower per sale once ranked |
| Returns | Your return policy and costs | Amazon's policy; some categories have high return rates |
| Monthly fees | Shopify plan and apps | Professional seller plan ($39.99 a month in the US) |
A worked example
These numbers are an illustration, not quotes. Use Amazon's FBA revenue calculator and your own data for real figures.
| Per order, $40 product, $10 landed cost | Shopify | Amazon (FBA) |
|---|---|---|
| Price | $40.00 | $40.00 |
| Product cost | -$10.00 | -$10.00 |
| Payment or referral fee | -$1.46 (2.9% + $0.30) | -$6.00 (15%) |
| Fulfillment and shipping | -$8.00 (3PL + label) | -$5.50 (example FBA fee) |
| Marketing per order | -$12.00 | -$6.00 (ads at 15% of sales) |
| Returns allowance | -$0.80 | -$1.20 |
| Contribution per order | $7.74 (19%) | $11.30 (28%) |
In this example Amazon wins because the brand pays a lot to acquire each Shopify customer. If your Shopify traffic is mostly repeat customers and email, Shopify will usually win per order. That is why the comparison has to be done per SKU with your own marketing cost.
Where Amazon margins go wrong
- Light, low-priced products: the FBA fee is a large share of a $12 item.
- Oversized items: FBA fees and storage jump in larger size tiers.
- Launch ad spend: the first two to three months often run at a high ad cost per sale while ranking builds.
- Slow sellers: storage fees and low-inventory or aged-inventory fees add up.
How to improve your Amazon margin
- Sell bundles or multipacks so the fixed fulfillment fee is spread over a higher price.
- Check your packaging dimensions; a few millimetres can move a product into a cheaper size tier.
- Use Brand Referral Bonus when you send your own traffic to Amazon, which credits back part of the referral fee.
- Launch only the SKUs that work and keep the rest on Shopify.
Will lower Amazon prices hurt Shopify?
Only if you let them. Keep price parity on shared products, and keep bundles, exclusive colours and loyalty perks on Shopify. See brand and price protection.
Get the numbers for your products
Our free readiness check runs this comparison for your top SKUs, with current Amazon fees for your category.
Questions
Frequently asked questions
What percentage does Amazon take from a sale?
The referral fee is 15% in most categories, with lower and higher rates in some. FBA fees are on top if Amazon ships the order.
Is it cheaper to sell on Amazon or Shopify?
Amazon charges more per order in fees, Shopify usually costs more to acquire each customer. Which is cheaper depends on your product size, price and marketing costs.
Related
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