Shopify vs Amazon for Australian brands.
It's rarely either-or. Here's the honest economics of each channel for Australian brands, and how to run both without cannibalising yourself.
The question usually arrives as "should we be on Amazon?" The better framing is: what does each channel cost, what does each give you, and what does each take away?
The trade in one line
Shopify gives you control and margin but you must generate every visitor. Amazon gives you demand but takes fees, the customer relationship, and a degree of independence.
| Shopify | Amazon | |
|---|---|---|
| Traffic | You create it, all of it | Built-in demand |
| Fees | Platform + payment | Referral + FBA + storage |
| Customer data | Yours | Amazon's |
| Brand control | Complete | Constrained |
| Repeat purchase | You can market to them | Limited contact |
| Main risk | Acquisition cost rises | Account suspension, policy shifts |
When Shopify-first makes sense
Strong brand identity, a story that needs telling, healthy margins, subscription or high repeat-purchase potential, or products that need explanation. Anything where owning the customer relationship compounds.
When Amazon-first makes sense
Products with existing search demand that don't need explaining, competitive pricing, margins that survive the fees, and simple logistics. If people already search for what you sell, Amazon puts you in front of them without you buying the click.
Why most established brands run both
Diversification, mostly. Amazon captures demand you'd otherwise never see; your own store builds the asset and the margin. The risk is cannibalisation, and that's a pricing and assortment problem, not an inevitability.
Practical rules: don't undercut your own store on Amazon; consider marketplace-specific bundles or pack sizes; keep inventory allocation planned rather than reactive; and use your store for launches, exclusives and community.
The fee reality
Model Amazon's economics before you list, not after. Referral fees, FBA fulfilment, storage (especially long-term), returns and advertising all stack. Plenty of products look healthy at gross margin and turn negative once the full fee load lands.
Deciding between them? We'll model both on your actual margins in the free audit, including telling you when a marketplace isn't worth it. Call 0493 290 352.
Questions owners ask
Can we sell on both without hurting our store?
Yes, with pricing discipline and thought-through assortment. Problems come from selling identical SKUs cheaper on the marketplace.
Which is better for a new brand?
If nobody's searching for you yet, Amazon's built-in demand is attractive. If your product needs explaining or your brand is the differentiator, start with your own store.
What about eBay and Catch?
Both can work for the right categories, usually as secondary channels after Amazon. Same discipline: model the fees before committing.
Rather just get the answer for your business?
The free audit applies all of this to your market, your competitors and your numbers. Thirty minutes; the findings are yours either way.