Shopify vs Marketplace Margin
Shopify stores and marketplaces have different cost profiles. Marketplaces may bring demand but charge marketplace fees. Shopify can offer more control, but sellers must usually pay more attention to advertising, conversion rate, apps, and retention.
Compare the same product both ways
Start with the Shopify profit calculator, then compare against Amazon FBA, eBay, or Etsy. Use the same sale price, product cost, shipping cost, and return reserve so the comparison is fair.
Key tradeoffs
- Marketplaces: built-in intent, more marketplace rules and fees.
- Shopify: more brand control, more responsibility for traffic and conversion.
- Marketplaces: faster testing for some categories.
- Shopify: stronger long-term customer ownership if retention works.