Amazon vs Shopify for Cross-border Sellers
Compare Amazon FBA and Shopify for cross-border selling: fees, compliance obligations, tax handling, and market reach.
Platform Overview
Amazon FBA
Amazon's fulfillment service handles storage, packing, shipping, and customer service. Sellers list products on Amazon marketplace.
Pros
- ✓Built-in traffic and trust
- ✓FBA handles fulfillment
- ✓Marketplace facilitator tax collection in US
- ✓Prime badge
Cons
- ✗High fees (15-45%)
- ✗Limited brand control
- ✗Amazon owns customer data
- ✗Strict policies
Best for: Sellers who want quick market access with minimal setup
Cost: Referral fee 8-15% + FBA fees $3-10/item
Setup: 1-2 weeks
Shopify
Independent e-commerce platform where sellers build their own branded online store. Sellers handle their own fulfillment or use 3PL.
Pros
- ✓Full brand control
- ✓Own customer data
- ✓Lower transaction fees
- ✓Flexible customization
Cons
- ✗No built-in traffic
- ✗Must handle tax compliance yourself
- ✗Requires marketing investment
- ✗Fulfillment complexity
Best for: Sellers who want to build a brand and own their customer relationships
Cost: Monthly fee $29-299 + payment processing 2.9% + 30¢
Setup: 2-4 weeks
Tax & Compliance
Amazon Tax Handling
Amazon collects sales tax as marketplace facilitator in US states. In EU/UK, Amazon may be deemed supplier for VAT on qualifying sales.
Pros
- ✓Automatic tax collection in many markets
- ✓Reduces seller compliance burden
- ✓Tax reports provided
Cons
- ✗Seller may still need to register/file
- ✗Doesn't cover DTC sales
- ✗Platform controls tax settings
Best for: Sellers who want simplified tax handling
Cost: Included in platform fees
Setup: Automatic
Shopify Tax Handling
Sellers must configure tax settings, register for VAT/GST/sales tax, and file returns. Shopify Tax provides automated calculations but registration is seller's responsibility.
Pros
- ✓Full control over tax strategy
- ✓Shopify Tax automates calculations
- ✓Can optimize for each market
Cons
- ✗Must register in each market
- ✗Must file returns yourself
- ✗More compliance work
Best for: Sellers with established tax compliance infrastructure
Cost: Shopify Tax: 0.35-0.6% per transaction
Setup: Ongoing
FAQ
Can I use both Amazon and Shopify?+
Yes, many sellers use Amazon for marketplace sales and Shopify for DTC/brand building. This multi-channel approach requires separate compliance reviews for each channel.
Does Amazon's tax collection cover my Shopify sales?+
No. Amazon's marketplace facilitator tax collection only applies to Amazon marketplace orders. Your Shopify sales require separate tax compliance.
Related Comparisons
Related Guides
Primary Sources
- Amazon Seller Central: Tax collection
- Shopify Tax documentation
- Streamlined Sales Tax: Marketplace seller guidance