DOCUMENT TSC-2026/B147 · BLOG POST 145 · CONSUMER COMMERCE · REV. 01
FILED UNDER Consumer Commerce · Channel Strategy · Marketplaces

Shopify vs Amazon
for DTC: own the
store, or rent the crowd.

A head-to-head on fees, margin, and who owns the customer. Plus the reason it is "and" for most brands, not "or."

Author
Taylor Sicard
Published
June 2026
Read
28 min  ·  ~6,700 words
Ring
I · Consumer Commerce
About the author
Taylor Sicard

Early Shopify employee who built the Partner Program. Co-founded WIN Brands Group, scaling individual brands to eight figures and the portfolio to nine-figure revenue across Shopify and marketplaces. Founded and sold getuptime.co to Tiny. Now advises DTC brands, Shopify app founders, and Fortune 500 commerce teams.

Full background →
Key takeaways

Amazon is a demand engine and Shopify is an ownership engine. Amazon supplies high-intent buyers but takes roughly 40% to 50% of the sale all-in once fees and ads are counted, and keeps your customer data. Shopify hands you a few-percent platform take, full data ownership, and the brand, but you fund every visitor yourself. For most brands past a few million in revenue, the answer is both, with a deliberate split.

  • Amazon's stack: ~$39.99/mo seller fee, an 8% to 15% referral fee, FBA fulfillment from about $3.22/unit, monthly storage near $0.78 to $1.02 per cubic foot, plus ads averaging an ACoS around 28% to 32%.
  • Shopify's stack: a flat plan from $39/mo (Plus from about $2,300), processing near 2.9% plus 30 cents, app subscriptions, and the marketing budget that drives your own traffic.
  • Per order, Shopify keeps far more margin, but only after you subtract the customer acquisition cost Amazon largely supplies for you.
  • 66% of US shoppers start product searches on Amazon, which is exactly why ignoring it is expensive even for a strong owned brand.
  • On Amazon you do not own the customer email, the data, or the listing's pricing via the Buy Box; on Shopify you own all of it, which is what compounds lifetime value and exit value.
Source: Taylor Sicard, Taylor Sicard Consulting · Updated June 2026

Here is the honest version, up front. Amazon gives you demand and takes your margin and your customer. Shopify gives you the customer and the margin and makes you go find the demand yourself. Neither is the "right" platform, because they are not really the same kind of thing. Amazon is a marketplace that rents you access to a crowd. Shopify is software that lets you build a store you own. The brands that get this wrong pick a side. The brands that scale pick both, on purpose, with each channel doing the one job it is best at.

I have built brands on both. At WIN Brands Group, we ran a portfolio across Shopify and the marketplaces, and I have sat in the rooms where we argued about how much of a catalog belongs on Amazon, what it does to margin, and whether we were building brand equity or just renting traffic. That experience, plus the years I spent inside Shopify building the Partner Program, is the lens for this whole post. This is not a feature checklist. It is the decision an operator actually has to make.

If you want the framework, jump to section twelve. If you want to understand the economics that drive it, the fee stacks and the margin teardown in sections three through five are where the real argument lives. Let us start with the question almost everyone asks wrong.

"Which is better"
is the wrong question.

The way this gets framed, "Shopify or Amazon," assumes you are choosing a single home for your business. That framing made sense ten years ago. It does not now. Asking whether Shopify is better than Amazon is like asking whether your retail store is better than a shelf at a big-box chain. They are different distribution surfaces with different economics, and a serious brand uses the ones that pay.

What you are actually choosing between is two trades. With Amazon, you trade margin and ownership for demand. The crowd is already there; you pay handsomely to stand in front of it, and you never get to keep the relationship. With Shopify, you trade demand for margin and ownership. You keep almost all of the sale and every byte of customer data, but nobody shows up unless you pay to bring them.

Once you see it as two trades instead of two products, the real questions get sharper. How much demand can Amazon supply you that you could not cheaply get yourself? How much is owning the customer worth to your lifetime value and your eventual exit? What does each channel actually leave on the bottom line after every fee? The rest of this post answers those, in that order.

A marketplace and
a storefront.

Amazon is a marketplace. Its job is to aggregate enormous demand and match it to products, and it is staggeringly good at that. As of early 2026, Amazon held roughly 35% to 38% of all US e-commerce, and combined with Shopify the two now power close to half of US online retail (Nova Data, US e-commerce share, 2026). When you sell on Amazon, you are a tenant inside that machine. The traffic, the trust, the one-click checkout, the Prime delivery promise, all of it belongs to Amazon. You bring a product and a price; Amazon brings the buyer.

Shopify is a storefront platform. It is the software that lets you build and run your own store on your own domain, with your own branding, your own checkout, and your own customer list. Shopify does not bring you a single visitor. It gives you the best toolkit on the market for turning visitors you bring into customers you keep. The traffic problem is entirely yours; the ownership upside is entirely yours too.

That distinction drives everything downstream. A marketplace optimizes for the marketplace, which means your brand is always secondary to Amazon's, your data is Amazon's by default, and your pricing competes inside Amazon's Buy Box algorithm. A storefront optimizes for you, which means the brand, the data, and the pricing are all yours, and so is the cost and risk of generating the demand. Hold that frame as we walk the money.

A note on what this post is and is not. This is a head-to-head on the economics and strategy of marketplace versus owned store for a DTC brand. It is not a setup tutorial, and the exact fees move, so every number here is anchored to a 2026 source or labeled as an operator estimate. Treat the published rates as solid and the all-in ranges as directional, because your category, your size, and your ad efficiency move them.

The Amazon stack,
fee by fee.

Amazon's pricing is not one number. It is a stack, and each layer eats a slice of the same sale. Most "Amazon fees" content quotes the referral fee and stops, which is how sellers get surprised. Here is the whole stack as it stands in 2026.

The seller account. A Professional selling plan is about $39.99 a month, flat, regardless of volume (Amazon, selling plan pricing, 2026). That is the cheap part and the only fixed line.

The referral fee. This is Amazon's commission on each sale, and it ranges from roughly 8% to 15% of the total sale price by category, with most categories sitting at 15% (Feedvisor, Amazon referral fees by category, 2026). Notably, referral fees have not moved since January 2024 and held flat into 2026, so this layer is at least predictable.

FBA fulfillment fees. If you use Fulfillment by Amazon, Amazon picks, packs, and ships each unit for a per-unit fee that starts around $3.22 for a small standard item and climbs to $10 or more for large or heavy products. For 2026, these rose by about $0.08 per unit on average, effective January 15, and Amazon added a 3.5% fuel surcharge on top of fulfillment fees as of April 17 (Amazon, 2026 referral and FBA fee update).

Storage fees. Your inventory pays rent. Monthly storage runs roughly $0.78 to $1.02 per cubic foot for standard-size items in the low season and spikes during the October to December peak, and aged-inventory surcharges now begin biting at 181 days and escalate the longer stock sits (Nova Data, FBA storage fees, 2026). Slow movers get punished twice: monthly storage plus the aged surcharge, every cycle.

Advertising. This is the layer that quietly dominates the math. Organic placement on Amazon is hard to win without ads, so most sellers run Sponsored Products, and the average advertising cost of sales (ACoS) sits around 28% to 32%, meaning roughly 28 to 32 cents of every ad-driven dollar goes back to Amazon as ad spend (Ad Badger, Amazon advertising benchmarks, 2026). On the share of your sales that comes through ads, that is a massive additional take.

FIG. 01, THE AMAZON FEE STACK (FBA SELLER, 2026) PER PROFESSIONAL ACCOUNT · REV. 01
Fee Layer What It Costs How It Applies Type
Professional account
~$39.99 / mo
Flat, any volume
Fixed
Referral fee
~8% – 15% of sale
Per sale, by category
% of sale
FBA fulfillment
From ~$3.22 / unit
Per unit, by size/weight
Per unit
Fuel surcharge
+3.5% on fulfillment
On the FBA fee, not sale
Surcharge
Monthly storage
~$0.78 – $1.02 / cu ft
On stored inventory, peaks in Q4
Carrying
Aged-inventory surcharge
Starts at 181 days
On top of storage, escalates
Carrying
Advertising (ACoS)
~28% – 32%
On ad-driven sales
Variable

Add the slices that hit a typical sale and you understand why operators talk about an Amazon "all-in take rate" in the 40% to 50% range once advertising is included. The referral fee is the headline; the ads, fulfillment, and storage are where the real money goes. None of this means Amazon is a bad deal. It means you have to model the full stack, not the 15%, before you decide what a sale there is worth.

The Shopify stack
is shaped differently.

Shopify's costs are structured the opposite way: a small, predictable platform take, plus whatever you choose to spend acquiring traffic. The platform itself is cheap. The expensive part is the part Amazon hands you for free, namely demand.

The plan. Shopify's standard plans in 2026 run $39 a month (Basic), $105 (Grow), and $399 (Advanced), with Shopify Plus starting around $2,300 a month for larger brands, and roughly 25% off if you pay annually (Shopify, pricing, 2026). For a deeper look at the enterprise line, the Shopify Plus pricing breakdown walks the real all-in cost.

Payment processing. With Shopify Payments, online card rates are about 2.9% + 30 cents on Basic, 2.7% on Grow, 2.5% on Advanced, and roughly 2.15% + 30 cents on Plus (Commerce UI, Shopify pricing, 2026). Use a third-party gateway instead and Shopify adds a surcharge (2% on Basic down to 0.15% on Plus), which is why most brands just use Shopify Payments.

Apps. Shopify's base is intentionally lean, so brands add apps for reviews, email, subscriptions, loyalty, and the rest. This is real money, often a few hundred to a few thousand dollars a month at scale, and it is the line that most resembles Amazon's hidden costs. What belongs in your stack at each stage is its own question; the Shopify ecosystem value map lays out where the spend earns its keep.

Marketing. Here is the line that does not appear on any pricing page and dwarfs everything else: the cost of acquiring traffic. On Shopify, you fund every visitor through paid social, search, content, influencers, and email. Your customer acquisition cost is the real "Shopify fee," and it is the mirror image of Amazon's ad take. The difference is that on Shopify, the audience you pay to acquire becomes yours to keep and re-market to for free, forever.

FIG. 02, THE SHOPIFY FEE STACK (DTC BRAND, 2026) PER OWNED STORE · REV. 01
Cost Layer What It Costs How It Applies Type
Platform plan
$39 – $399 / mo; Plus ~$2,300
Flat, by plan tier
Fixed
Payment processing
~2.9% + 30¢ (lower on higher plans)
Per transaction
% of sale
Third-party gateway surcharge
2% → 0.15% by plan
Only if not using Shopify Payments
Avoidable
Apps
~$100s – $1,000s / mo
By stack, your choice
Variable
Customer acquisition
Your CAC
Every visitor you fund yourself
Dominant

Read the two stacks side by side and the shape is clear. Amazon front-loads its take into per-sale fees and supplies the demand. Shopify keeps the platform take tiny and makes the demand your problem. Whether that trade favors you depends entirely on how cheaply you can acquire customers and how much you keep them, which is exactly what the next section models.

Free tool · No signup to see your number

Model what each channel actually leaves you

Fees are only half the story. The DTC profitability calculator rebuilds your full per-order P&L, so you can compare what an Amazon sale and a Shopify sale really net after the whole stack, including acquisition.

Open the profitability calculator →

One $40 product,
two bottom lines.

Abstractions do not pay rent, so let us run the same product through both machines. Take a $40 consumer product with a $12 landed cost of goods. We will hold COGS constant and let the channel economics do the rest. The numbers below are an operator illustration built on the published 2026 fee rates above; your category and ad efficiency will shift them, but the shape is what matters.

FIG. 03, MARGIN TEARDOWN, $40 PRODUCT, $12 COGS ILLUSTRATIVE · 2026 RATES · REV. 01
Line Amazon (FBA + ads) Shopify (owned)
Sale price
$40.00
$40.00
Cost of goods
– $12.00
– $12.00
Referral fee (15%)
– $6.00
·
FBA fulfillment + fuel
– $4.00
·
Storage (allocated)
– $0.50
·
Payment processing
included above
– $1.46
Pick/pack + shipping (3PL)
·
– $6.50
Ad / acquisition cost
– $11.20 (28% ACoS)
– $10.00 (CAC)
Contribution left
~$6.30
~$10.04

Two things jump out. First, before acquisition, Shopify keeps dramatically more of the sale: the only platform take is the ~$1.46 in processing, versus Amazon's ~$10.50 in referral, fulfillment, and storage. Second, the gap narrows once you load acquisition onto both, because the Shopify sale only happens if you paid the CAC to make it happen, while a meaningful share of Amazon sales come from organic search you did not pay for.

That is the entire argument in one table. Shopify wins on per-order margin. Amazon wins on supplied demand. If your true blended Shopify CAC is low (strong brand, cheap organic, high repeat), Shopify is far more profitable per order. If your CAC is high and Amazon can feed you organic, search-driven sales you would otherwise have to buy, Amazon can be the more efficient channel for that specific demand, even at its brutal take rate. The honest answer is rarely universal; it is per product and per channel, which is why you model it. To judge any of this against the margin you actually keep, start with contribution margin for DTC.

"Shopify keeps the margin and hands you the bill for demand. Amazon hands you the demand and keeps the margin. You are not choosing a platform, you are choosing which problem you would rather own."

On Amazon, the
customer is not yours.

The fee math is the part everyone debates. The data is the part that actually decides what your business is worth, and it gets a fraction of the attention. So here is the blunt version: on Amazon, Amazon owns the customer. On Shopify, you do (eDesk, Amazon vs Shopify customer ownership, 2026).

When someone buys from you on Amazon, you do not get their email address. You cannot freely re-market to them. You do not see their browsing behavior, and the purchase history lives inside Amazon, not your CRM. You made the sale, but Amazon kept the relationship, and Amazon can sell that same customer your competitor's product tomorrow through its own ads. You are, functionally, a wholesaler to Amazon's audience.

On Shopify, every one of those assets is yours. You own the email, the purchase history, the browsing behavior, the consent to remarket, and the domain itself. That is what lets you run the owned email and SMS flows, the loyalty program, the subscription, and the repeat-purchase engine that turns a one-time buyer into lifetime value. Owned data is the raw material of LTV, and LTV is the raw material of a defensible, valuable brand.

+
+
+
+
What you own on Shopify that you do not on Amazon
  • Customer email and consent. The basis of every owned email and SMS flow you run, for free, forever.
  • Full purchase history in your CRM. Segmentation, repeat-purchase triggers, win-backs, and real LTV cohorts.
  • Browsing and on-site behavior. Personalization, retargeting, and conversion-rate work you control.
  • The brand experience end to end. Your domain, your packaging, your post-purchase, no Amazon chrome.
  • The asset itself at exit. An owned customer base is what an acquirer pays a multiple for; an Amazon-only book is fragile.

This is the lever that should weigh heaviest if you are building a brand to last, or to sell. I have sat on the operating side of acquisitions, and the durability of the owned customer relationship is what underwrites the valuation. A business whose entire demand and data live inside a platform it does not control is structurally riskier and worth less per dollar of revenue than one that owns its audience. Amazon revenue is real revenue. It is just not the same quality of revenue as owned revenue, and any honest model prices that difference in.

Amazon has the
crowd. You don't.

Here is the case for Amazon that no amount of margin math erases: the demand is already there, and a huge share of it starts on Amazon. As of 2026, roughly 66% of US shoppers begin product searches on Amazon, ahead of Google and well ahead of any individual brand site (eMarketer, where shoppers start product searches, 2026). When someone is in buy mode and they type your product category into Amazon, you are either there or you are invisible for that search.

That intent is the asset. An Amazon shopper has their card on file, trusts the checkout, and expects fast delivery. The conversion friction is near zero. You are not convincing a stranger to trust a brand they have never heard of with their credit card; you are showing up for a buyer who already decided to buy something in your category. That is why Amazon's take rate can be worth it: it is not just traffic, it is high-intent, low-friction, bottom-of-funnel demand.

On Shopify, none of that is given to you. Every visitor is a visitor you found and paid for, and a cold prospect on your own site has to clear a trust hurdle an Amazon buyer never sees. The upside, again, is ownership: the traffic you build, through brand, content, paid, and repeat, compounds into an audience you keep. But the cold start is real, and underestimating it is the single most common way founders get the Shopify-only bet wrong. Building owned demand is a multi-year project, not a launch.

66%
of US shoppers start their product search on Amazon, not a search engine or brand site
Amazon US e-com share ~35 – 38%
Buyer intent Bottom funnel
Shopify traffic You fund it

So treat Amazon's demand as a real, ownable advantage, not a footnote. For a product with strong search intent, refusing to be on Amazon is not brand purity, it is leaving high-intent buyers to your competitors. The strategic move is not to avoid that demand, it is to capture it on Amazon and then work to migrate the relationship onto your owned channel over time. How you balance that against your other channels is the subject of channel mix strategy for DTC brands.

Who actually sets
your price.

On Shopify, you set your price. Full stop. You run the promotions you want, the bundles you want, the subscription discounts you want, and nobody else can list your product under you. Pricing is a brand lever you control completely.

On Amazon, pricing is a contest you do not fully control, and the contest is the Buy Box. The Buy Box is the "Add to Cart" placement on a listing, and it is awarded by Amazon's Featured Offer algorithm based on price, fulfillment method, seller metrics, and delivery speed. The overwhelming majority of Amazon sales go through the Buy Box, so if you lose it, you effectively lose the sale even on your own product page (Sellerlogic, winning the Buy Box, 2026).

If multiple sellers offer the same product, including unauthorized ones, they compete for that box, and price is a major input. That creates downward price pressure and a race you may not want to run. And here is the part that surprises brands: even Amazon Brand Registry does not protect the Buy Box, a competitor who undercuts your price can take it without violating any policy, because Brand Registry is an intellectual-property tool, not a pricing or distribution one (SentryKit, what Brand Registry does not protect, 2026).

The practical consequence is that on Amazon, your pricing strategy is partly hostage to the algorithm and to whoever else is selling your SKU. You can manage it with controlled distribution, MAP enforcement, and brand-gating, but you are managing a problem Shopify simply does not have. If price control and promotional flexibility are core to your brand, that is a real point in Shopify's column.

The risks you only
carry on Amazon.

Amazon's open marketplace, the thing that makes it powerful, also creates a class of risk you do not face on your own store. Three are worth naming, because they cost real money and they surprise sellers who only modeled the fees.

Hijackers. An unauthorized seller can attach an offer to your listing, sometimes with counterfeit or inferior product, and take the Buy Box within hours. Brand Registry lets you report them after you discover them, but it does not stop them from appearing in the first place and does not alert you when it happens (SentryKit, 2026). The damage, lost sales and one-star reviews from fake product, can land days before you even notice.

Counterfeits and review hijacking. Negative reviews from diverted or fake inventory attach to your ASIN and drag down the listing that represents your brand to millions of shoppers. You are defending a storefront you do not fully control, with tools that are reactive by design.

Account and policy risk. Amazon can change fees, alter policy, or suspend an account with limited notice, and an account suspension can freeze a meaningful share of your revenue overnight. When your demand lives inside someone else's platform, their decisions are your business risk. On Shopify, your store is yours; the platform can change its pricing, but it cannot take your customer list or shut your brand off the way a marketplace suspension can.

+
+
+
+
Risks that are structural on Amazon, absent on Shopify
  • +Listing hijackers and counterfeit sellers attaching to your ASIN
  • +Buy Box loss to undercutting competitors, even with Brand Registry
  • +Account suspension freezing revenue with little warning
  • +Fee and policy changes you do not control and cannot opt out of
  • +Reviews from diverted inventory damaging the brand you do not own there

None of this is a reason to avoid Amazon. It is a reason to treat Amazon as a channel you manage actively and never as your single point of failure. The brands that get burned are the ones doing 80% or more of their volume on Amazon with no owned channel to fall back on. Diversification is not a luxury here; it is risk management.

The whole trade,
on one grid.

Pull every dimension into one place and the personalities of the two platforms are unmistakable. Amazon optimizes for convenience and reach. Shopify optimizes for control and ownership. Read down the column that matters most to your brand and the answer tends to fall out of the grid.

FIG. 04, CONTROL · DATA · DISCOVERY MATRIX MARKETPLACE VS OWNED STORE · 2026
Dimension Amazon (marketplace) Shopify (owned store)
Demand
Built-in, high intent
You drive every visitor
Per-order margin
Low (40–50% all-in take)
High (few-% platform take)
Customer data
Amazon owns it
You own it
Pricing control
Buy Box algorithm
Fully yours
Brand experience
Inside Amazon's chrome
End-to-end yours
Repeat / LTV engine
Weak (no data, no flows)
Strong (owned channels)
Platform risk
Suspension, hijack, fee hikes
Lower, you control the asset
Setup & speed to first sale
Fast (demand is there)
Slower (build the audience)
Value at exit
Discounted (rented audience)
Premium (owned base)

If your priority is speed and reach, Amazon's column reads better. If your priority is margin, data, brand, and durable enterprise value, Shopify's column wins almost every row. That asymmetry is the reason the strategic answer is so rarely "one or the other," and so often "use each for what it is built for." Which brings us to when each one actually wins.

When Amazon wins,
when Shopify wins.

Strip away the ideology and there are clear cases where each platform is the right primary bet. Here is the honest split, based on what I have seen work across a portfolio of brands.

FIG. 05, WHEN EACH PLATFORM IS THE RIGHT PRIMARY BET OPERATOR VIEW · 2026
Lean Amazon-first when… Lean Shopify-first when…
Your product has strong existing search demand in its category
You are building a brand with a story, not just a commodity SKU
It is a low-consideration, replenishment, or gift purchase
Repeat purchase and subscription drive your economics
You need to validate that a product sells, fast and cheap
Owning customer data and LTV is core to your thesis
Your own CAC is high and Amazon's organic demand is cheaper
You can acquire customers efficiently via brand and content
Margins are thin and you cannot fund a traffic engine yet
Pricing control and promotional flexibility matter to the brand
Fulfillment scale (Prime delivery) is a real conversion driver
You are building toward an exit where owned base earns a premium

Notice that almost none of these are permanent. "Validate fast on Amazon" is a phase. "Build owned LTV on Shopify" is a destination. Most brands move along this grid over time, starting where demand is cheapest and migrating toward where ownership compounds. The mistake is treating your current answer as your forever answer. The right channel for a brand at $500K in revenue is often not the right channel at $20M.

Run both, with
defined roles.

For most brands past a few million in revenue, the entire "Shopify vs Amazon" debate resolves into a different sentence: run both, and give each one a job. Roughly half of US online retail now flows through these two platforms combined; pretending you have to pick one is leaving money and risk-coverage on the table. The brands that win do not choose. They orchestrate.

The cleanest version of the framework assigns each channel its native strength. Shopify is your flagship and your brand home. It is where the brand story lives, where you keep the customer relationship, where you run the highest-margin and highest-LTV business, and where your most loyal buyers land. Amazon is your discovery and conversion channel. It is where you capture the high-intent search demand you could not cheaply buy yourself, convert it with near-zero friction, and accept a lower margin in exchange for volume you would not otherwise get.

The connective tissue is the part most brands skip: deliberately working to migrate the relationship onto the owned channel. Use package inserts, warranty registration, and post-purchase touchpoints to invite Amazon buyers into your owned ecosystem where you can actually re-market to them. You will not convert all of them, and Amazon limits what you can do, but every buyer you move from rented to owned permanently improves the quality of your revenue. You can even fulfill Shopify orders from your FBA inventory using Multi-Channel Fulfillment, so you are not carrying stock twice.

+
+
+
+
The "and" framework, in five moves
  • Shopify is the flagship. Brand, owned data, highest-margin and highest-LTV revenue live here.
  • Amazon is the discovery channel. Capture high-intent search demand you cannot cheaply buy yourself.
  • Migrate the relationship. Use inserts and post-purchase to move Amazon buyers into your owned ecosystem.
  • Never single-thread. Avoid running most of your volume through one platform you do not control.
  • Measure by contribution, not revenue. Judge each channel on what it nets after its full stack, every quarter.

The percentages vary by brand, but a common shape is a dominant owned Shopify channel anchoring brand and LTV, with Amazon as a meaningful secondary slice sized to whatever share of your buyers genuinely start their search there. The point is that the split is a decision you make and revisit, not a default you inherit. For the brands chasing the next channel after these two, the dynamics of TikTok Shop as a US channel and retail media for DTC brands are the natural next reads.

Split by job,
not by gut.

Once you accept "both," the operational question becomes which products go where, and how much. The wrong way to answer is to list everything everywhere and hope. The right way is to split your catalog by the job each product does and the demand it actually has.

Send to Amazon the products that earn from Amazon's strengths: high search intent, replenishment and consumable items, gift purchases, and lower-consideration SKUs where the buyer just wants the thing delivered fast. These convert on Amazon's demand and fulfillment without needing your brand story to do the work. Reserve for Shopify the products that earn from ownership: your highest-LTV hero products, subscriptions, bundles, limited editions, and anything where the brand experience and the margin justify keeping the relationship in-house.

Inventory management gets more complex across two channels, and it is where careless operators leak cash. You are now forecasting demand, allocating stock, and watching aged-inventory surcharges on Amazon while running your own fulfillment for Shopify. Getting this wrong means either stockouts on your best channel or storage fees eating your margin on the other. The discipline here is the same discipline that runs any tight DTC supply chain; the Shopify inventory management playbook covers the mechanics.

And then you measure, by contribution margin per channel, not revenue. A channel doing big top-line numbers at a thin or negative contribution after its full fee stack is not a win, it is a liability dressed as growth. Re-run the per-channel margin every quarter, shift the catalog split toward whatever genuinely nets more, and do not get sentimental about a channel just because it is large. The numbers decide.

Free tool · 90-second diagnostic

Find the constraint holding your brand back

Channel mix is one lever. The free DTC Growth Scorecard places your brand at its real inflection point, benchmarks your numbers, and names the single constraint to fix next, so you know whether channel strategy is even your bottleneck.

Run the brand scorecard →
+
+
+
+
Frequently Asked Questions

Is Shopify or Amazon better for a DTC brand?
Neither is strictly better; they do different jobs. Amazon is a demand engine, since 66% of US shoppers start product searches there, but it owns the customer, hides the data, and takes roughly 8% to 15% referral plus FBA fulfillment and storage on every sale. Shopify is an ownership engine: you control the storefront, keep the customer email and purchase history, and pay a flat fee plus about 2.9% plus 30 cents processing, but you drive every visitor. For most brands past a few million in revenue, the answer is both, with a deliberate split.

How much does it cost to sell on Amazon vs Shopify?
Amazon: about $39.99 a month for a Professional account, an 8% to 15% referral fee by category, FBA fulfillment from about $3.22 per unit, monthly storage around $0.78 to $1.02 per cubic foot, and ads averaging an ACoS near 28% to 32%. All-in, Amazon's take on a sold unit is commonly 40% to 50% once ads are counted. Shopify: a flat plan from $39 a month (Plus from about $2,300), processing around 2.9% plus 30 cents, app subscriptions, plus the marketing you fund to drive traffic. Shopify's platform take is low single digits, but you carry the acquisition cost, and how you split that spend is the Meta vs Google Ads decision.

Does Amazon or Shopify give a higher profit margin?
Per order, Shopify almost always leaves more margin, because the platform take is a few percent versus Amazon's 40% to 50% all-in. The catch is that Shopify margin is only real after you subtract customer acquisition cost, which Amazon largely supplies for free through its own search traffic. Amazon trades margin for cheaper, higher-intent demand; Shopify trades demand for higher per-order margin and full data ownership.

Who owns the customer on Amazon vs Shopify?
On Amazon, Amazon owns the customer. You do not get the email, you cannot freely retarget, and the purchase history lives inside Amazon. On Shopify, you own the customer: the email, the purchase history, the browsing behavior, the consent to remarket, and the domain. That ownership controls lifetime value, repeat economics, and what your brand is worth at exit.

Can you sell on both Amazon and Shopify at the same time?
Yes, and most scaled brands do. Run Shopify as your owned flagship and brand home, and Amazon as a discovery and conversion channel for high-intent search demand. You can fulfill Shopify orders from your FBA inventory with Multi-Channel Fulfillment so you are not holding stock twice. Treat them as one strategy with defined roles, not two stores competing on price.

What is the biggest risk of selling on Amazon?
Loss of control. Amazon can change fees, suspend your account, or shift policy with little notice, and your brand always sits inside Amazon's chrome. Unauthorized sellers and hijackers can attach to your listing or undercut your price for the Buy Box, and Brand Registry helps you report them after the fact but does not stop them appearing. You are renting demand on someone else's terms, which is fine as a channel and dangerous as your only channel.

Should a new brand start on Amazon or Shopify first?
It depends on what you need to learn first. To validate that a product sells at all, Amazon's built-in demand lets you test fast with low traffic cost. To build a brand with repeat-purchase economics and own the relationship from day one, start on Shopify and drive the first traffic yourself. A common path is to validate on Amazon, then build the owned Shopify channel in parallel and shift lifetime value onto it.

How do I decide how much of my catalog goes on Amazon vs Shopify?
Split by job, not gut. Put search-intent, gift, and replenishment products where Amazon's demand is strongest, and reserve bundles, subscriptions, limited editions, and your highest-LTV hero products for Shopify where you keep the margin and the data. A common shape is a dominant owned Shopify channel with Amazon as a meaningful secondary slice sized to how many of your buyers actually start there. Re-check the split against per-channel contribution margin, not revenue, every quarter.

Channel strategy, what to put on Amazon, what to keep owned, and how to keep the marketplace from outrunning the brand, is part of the growth work I do with operators. The DTC brand practice is where we work it through. The form takes two minutes: start the conversation.

  Work with Taylor  ·  Consumer Commerce

Scaling a consumer brand?

I work with a deliberately small number of DTC operators. I have run brands at this scale myself, from $5M past $100M, across Shopify and the marketplaces, and argued the channel-split question in real operating rooms. If you are in that range, the form takes two minutes.

Start a conversation More about Taylor →
Commerce Dispatch Free newsletter

Practitioner-level takes on commerce and consumer SaaS. No filler, just signal.