[Music][Music]tell me what your number one question isgoing to be hey Fred I'm here andwelcome to our Shopify masterclassseries now in today's topic I want tohave a real comparison between Shopifyand Amazon now before I first go intothe actual comparison I'm going to givea brutal honest comparison I'm not gonnabash either Shopify or Amazon I reallywant to let you know for those of youthat want to start an online businesswhich routes you really wanted to takenow again if you love any of my shuffleflight masterclass series make sure youclick the subscribe button right belowthis video and click that notificationbell so that each time I released abrand new video training you are gonnaget notified right away so like I saidfor those of you that are reallystarting out in the world ecommercethere are two ways for you to actuallyget startedone is Shopify which I do on a regularbasis and the other is Amazon now bothare greats I'm not saying one is betterthan the other but I what I wanted to dois give you a genuine feedback on yourdecision or on helping you figuring outwhich way you can go when you arewanting to create an online businessselling physical products so when youlook at this over here you'll see thecomparison Shopify versus Amazon and themodel a stands for Amazon S stands forShopify so the first thing that we wantto look at is the website right when youwant to sell something the first thingthat you need is obviously a webpresence now when it comes to a webpresence there's a big comparisonbetween Amazon and Shopify so I'm gonnaput website over here now when it comesto website I gotta be honest with youwhen it comes to Amazon you don't reallyhave to doanything okay so I'm not gonna put an Xbecause that is a perk when it comes toAmazon so I will actually put a circleright so for Amazon you don't reallyhave to create your own website youdon't worry I have to worry aboutputting in images or coding and puttingup a webpage because you're essentiallyjust listing on Amazon now when it comesto Shopify what you got to do is you'vegot to actually create it right you'vegot to basically create your owne-commerce sitesyou got to basically have your images upthere you got to have your logo allthose other non fun stuff that we allneed in order for us to actually startselling so in this case I would have tosay Amazon really wins when it comes tothe website because you don't reallyneed one so that's his first part nowlet's look at the second one over herewhich is the most important thing whichis inventory now when you are selling onAmazon okay you have to have yourinventory you got to do your productresearch you got to go and source theproducts you got to get a minimumquantity ordered for that product andship it to Amazon's warehouse and thatwill take around 30 days okay let's behonest it will take 30 days but youwould actually need to invest a goodamount of money in order for you to getstarted maybe 500 all the way to severalthousand dollars to actually have thatproduct shipped to Amazon so that youcan actually take advantage of theirfulfillment by Amazon which is how youget a better ranking when it comes toAmazon all right so now when it comes toShopify here's the beauty you don't haveto worry about inventory right you cansimply arbitrage inventory of defendersall you got to do is just put in theimages put in the products and that's itand when someone buys it then youfulfill the order with defender soessentially when we look at theinventory Shopify there's not really anyinvestment that you need up front inorder for youget started and Amazon you do now here'sthe downfall when it comes to Amazonwhat if that product doesn't sell rightif you think that oh I did all myresearch I think it is going to sell butwhat have you actually entered into avery competitive product listing what ifthat products are sudden it's notselling anymore right that will put youat risk and very vulnerable to actuallyhave you just having money here sittingand collect or having I mean money ininventory and collecting dust so in thiscase I would have to say X spread Amazonand a checkmark for Shopify alright soagain it's either/or now let's look atthe next thing okay the next part that Iwanted to actually have a very genuinecomparison is advertising now I do haveto say I'm gonna give an X for both ofthese and I'll give you a reason whyeven if you have an Amazon listing upand running okayyou still need to advertise okay you'relike huh I thought I'd just put myproduct up no in order for ad actuallygain traction for your products youactually need to advertise on Amazonsponsor listing that's how you actuallyget the UMP and the more sales and themore traffic to your listing whichobviously will help you with yourorganic listing as well if yourconversion rate is going to be highnow as for Shopify again you need toadvertise you need to advertise onFacebook you need to advertise on Googleetc etc etc now the only majordifference between advertising on thesetwo is that Amazon advertising it'seasier because all you're doing is justbidding on the keyword or letting Amazonalgorithm to really take do to work withShopify you got to basically create yourFacebook Ads you go to create yourGoogle Adsetc etc so with both platform you haveto ourin order for you to actually get trafficso that's why I'm giving you both an Xover here now let's talk about one keything that a lot of people don't reallymention and talk about in the industryespecially when they are creatingcomparison which is margins or I shouldsay fees okay fees this is a massive oneall right and I do have to say when itcomes to fees Amazon it's much moreexpensive than Shopify okay let'sexclude out the cost of advertising foran app let's say that you are alreadygetting traffic and they're both gettingthe same amount of traffic at the samecost what happens is that for Amazon itwill actually cost you more money inorder for you to actually fulfill theorder whybecause you got to pay for fulfillmentby Amazon you got to basically pay forAmazon on obviously anytime you made apurchase and that is going to be prettybig of a fee that you got to pay and I'mexcluding advertising right now but withShopify you're essentially just needingto be $29 a month for your websites andevery time that someone actually buysyou actually pay a merchant processingfee which is for Visa card MasterCardAmerican Express PayPal etc etc and thathovers around three percentage dependingon your plans and depending on yoursetup that you have so when it comes tofees Amazon is actually a lot moreexpensive than obviously Shopify allright so again you want to look at thatnow here's one thing though Amazon it'sa great platform for one reason becauseanyone that actually goes on Amazon theyare obviously buyers right you just goon Amazon just to just do nothing youlike you are ready to buy a product sothat's a very big advantage when itcomes to Amazon now shut by on the otherhand you got to worry about advertisinga lot but again like I said the fees aregonna be a lot more on Amazon then onShopify now there if I any continue onit can continue on to talk a lot aboutcomparesbut I want to actually have one morecomparison to actually talk about toactually have you thinking and decidingwhich route you want to take and my lastone is simply longevity now what do Imean by longevity when you are sellingon Amazon okay the problem is you don'town the customer let me repeat thatif you sell on Amazon you don't own thecustomer you would not know what theemail address is you cannot contact thembecause essentially they're Amazoncustomers not yours so when a customeractually bought a product from you foryou to actually generate back endprofits it is going to be tough reallytough because you don't have topoint-to-point connection with yourcustomerswhereas for Shopify you're building yourbrand you are now having customerscontact information their shippinginformation their email addresses sothat you can build a relationship withthem and continue to actually sell themother products that you have in yourstore or you can actually build arelationship with them and sell themdigital products affiliate products etcetc now the other downfall with Amazonagain I'm just being brutally honest andI could be wrong because I don't doAmazon but I know a lot of people thatmakes a lot of money on Amazon and I'mon the sidelines looking at it andwatching what happens with them and allthose other stuff that's why I'm able toactually come over these now thelongevity side is here's the challengepart when it comes to Amazon pricing isking if you guys really look atbusinesses as a whole Amazon reallycreates something called the flywheeland with a flywheel one of the mostimportant thing is lower costs for thecustomer now what if all of a sudden youhave a listing that is absolutelycrushing it but then all of a suddensomeone came in with a far lessexpensive product than you that it'sidentical to yours then you essentiallyyou're gonna be wiped outbecause Amazon's gonna favor the onesthat is gonna be at the lowest cost ofthe highs of abuse so in a nutshell notonly are you not able to actuallycontinue to build a relationship yourcustomers but you can be taken out bycompetitors quite quickly all right sothat's why I will give longevity andeggs for Amazon and a check marks forShopify now again I'm not being biasedon either you should go with Shopify ordo you go with Amazon but Shopify haswhat been what I've been using to becomesuccessful and also well my students areusing to become successful as well soagain there is a lot of people that makea lot of money on Amazon but I want togive you a genuine comparison from myperspective on the comparison for thesetwo so if you're looking to starting anonline business and you're like I justwant to get my feet wet and I want tolearn more about it listen I've got afree course for you where you canactually get your feet wet startexperiencing the process of creating aShopify store step by step findingproducts and start advertising and ifyou are really wanting to actually getstarted with that again there's a linkright below in the video description orsomewhere in this video you can actuallyget access for free all right now againif you're into Amazon by all means go doyour research there's a lot of otherYouTube videos out there that teachesall about this but in my perspective Iwould say start with either-or okayyou start with one first master it andthen go with the other one so if youthink that Shopify is the way that youwant to go go ahead and get my freecourse and start going at it everybodylooking at Amazon then go ahead go watchanother YouTube video that's all aboutAmazon but I want you to actually startwith one business at a time this is achallenge to a lot of people that wantto actually get started to become anentrepreneur is not focusing on the onebusiness model first so again it's up toyou on what you decide either or oververy lucrative business both can make alot of money but again you got a staketo it alright so again this is my honestfeedback in comparison if youor disagree of any of it let me knowwrite in the comment box below and againif you want to have any other videotraining or specific topic that you wantme to share about let me know write inthe comment box right below and makesure you subscribe to my youtube channelclick that notification bell and I willsee you in our next episode bye
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