Magento vs. Amazon FBA

While advanced development knowledge is required to run the open-source and paid enterprise version of Magento, the management dashboard itself is pretty intuitive. That said, Magento does have a very large feature-set, so there’s a learning curve for new users.

The small business version has a page-builder for ease-of-use and assistance is available for getting set up. Smaller retailers interested in Magento should try the free trial to see if it fits with their needs.

"Powerful e-commerce platform - if you are willing to get your hands dirty.”

“It's a great and versatile eCommerce platform, which gives plenty of flexibility and has support for a vast amount of features and products.”

“I like the security features that Magento offers. It is one of the more secure options out there. The support community is very large so if you need help or have questions, you can usually find an answer quick.”

Amazon FBA is managed through “Seller Central”, an online dashboard that all Amazon merchants use to manage their inventory, product listings, storefronts, and analytics.

The interface is very user-friendly, and you can add and configure products quickly. There is a substantial amount of help documentation online through the “Seller Central” portal and Amazon also offers an “Amazon Seller App” for mobile devices. All in all, it’s a very good option for beginners, along with retailers who have limited technical expertise.

Configuring fulfillment options is also a straightforward, linear process and is completed within the “Seller Central” area once products have been added to a catalog.

Finally, you can manage your own independent store, which will show all your Amazon listings, via the “Stores” tab.

"This website is good for beginners who want to earn."

"This platform is the most solid on the web to sell products online."

"They have never failed to pay me and they have been supportive when deviant customers have tried to steal from me."

Magento is arguably the most customizable ecommerce platform on the market. But there’s a big caveat. To make design changes to the open-source and enterprise solutions, development skills are a must.

Magento only comes with one built-in storefront theme but a range of third-party templates are available. The downside is that these can be very expensive.

Small and medium retailers that want access to a user-friendly site-builder and library of free templates will likely prefer solutions like Shopify, Squarespace, Weebly and Wix.

If, as a small retailer, you’re drawn to Magento because of its wide array of features, “implementation plans” are available.

Amazon doesn’t offer much in the way of design freedom. Sellers can only customize specific product page elements, such as the title and description, images, and in-depth “body copy”. The layout and overall page design cannot be altered.

Once they have registered their brand, sellers can also open their own Amazon storefront, which affords a greater (albeit still limited) level of design flexibility.

If you’re looking for complete control over your store, you will likely find that a self-managed ecommerce solution like Shopify or WooCommerce better fits your needs.

It’s always difficult to fault a free solution. What’s more, Magento comes with an extensive feature-set that would cost a significant amount of money on a similar plan from another provider. Open-source features include support for multiple languages, promotional tools, content management, order and shipping processing, customer service, and more.

But there are a few important points to keep in mind. For larger enterprises, the cost of maintaining secure servers and the need for an in-house development team will be high. And extensions often cost hundreds of dollars. Pricing for fully-hosted Magento plans is not published. The enterprise-level options, however, are reported to cost tens of thousands of dollars every month. Small business plans are advertised as “affordable”.

“Value for money” is a slightly mixed bag when it comes to Amazon FBA. It’s important to stress that all serious Amazon FBA sellers will have to purchase a subscription to an Amazon Seller account. There are two plans available. The “Individual” plan is free, but a charge of $0.99 per item sold is collected. The “Professional” plan is $39.99 per month.

On the surface, these figures don’t seem significant. It’s when you get down to the nitty-gritty of item fees that a more precise picture starts to emerge. FBA sellers have to account for several charges: a referral fee (which can be up to 15% of the item sale price, a storage fee), storage costs, and a fulfillment fee. All of these can quickly add up, so it’s essential to familiarize yourself with the fine print and do all your calculations to ensure you can make a sustainable profit.

Technical support is limited on all plans on Magento. Users that have subscribed to a paid plan can submit support tickets. Additional support options - such as the “implementation package” for small businesses and “Magento Services” for enterprises - can be purchased for an additional cost.

If you decide to run Magento Open Source, you will need in-house IT support or an outsourced solution with an agency.

Amazon provides support to sellers through online tickets and has published extensive online documentation and training for new users. There is also an active community forum where it’s possible to get answers to questions.

While the support options are reasonable, we would like to have seen phone and email support in conjunction with the options already on offer.

Magento has an exhaustive of features. Enterprise-level stores should definitely consider it as a solution. Medium-sized retailers will also find Magento to be an excellent choice that scales as their store grows. The virtually unlimited scope for customization is another big plus.

Retail companies that don’t want to take care of hosting in-house can also opt for one of Magento’s paid plans. Just keep in mind that development knowledge is a must and that the cost of extensions and additional support packages can quickly add up.

For smaller retailers, there is a plan that provides full access to Magento’s features at a lower price. A free trial is available and well worth checking out. Just remember that simpler entry-level solutions - which are easier to use for people without any coding skills or access to developers - may be more viable.

The FBA (Fulfilment by Amazon) program has done a lot to open up Amazon’s sizable marketplace to new sellers and streamline the often-complex process of storing items and fulfilling purchases.

If you are starting out in the ecommerce space, and find the prospect of running an independent store daunting, then Amazon is a viable option. Equally, if you already have an established online presence and want to reach new customers, selling your top-performing products through Amazon is also worth considering.

Just keep in mind that running a profitable Amazon FBA business is different from running your own online store. It requires a unique skill-set and the ability to evaluate competition and find gaps in the market.