Is Shopify a Marketplace? What You Need to Know (2025)

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Quick answer: No, Shopify isn't a traditional marketplace like Amazon or Etsy. It's an e-commerce platform that lets you build your own independent online store. You're not listing products in a centralized catalog where millions of shoppers browse. You're creating your own branded website that you control completely.

But there's a twist in 2025. Shopify launched the Shop app, which acts somewhat like a marketplace by letting customers discover products across different Shopify stores. Plus, you can integrate your Shopify store with actual marketplaces. We'll break down exactly what this means for you.

Marketplace vs E-commerce Platform: What's the Real Difference?

Let's clear this up right away because the confusion is understandable.

What Makes a Marketplace a Marketplace?

Online marketplaces like Amazon, eBay, and Etsy share these characteristics:

→ Centralized storefront where thousands of sellers list products together

→ Shared customer base that visits the marketplace site to browse and compare

→ Transaction facilitation by the marketplace (they handle payments, often logistics, and customer service)

→ Commission-based fees on every sale you make

→ Marketplace rules and policies that govern how you sell

When you shop on Amazon, you're seeing products from countless sellers in one place. Amazon coordinates everything from search and discovery to payment processing and fulfillment.

How Shopify Works (And Why It's Different)

Shopify works differently. It's software-as-a-service that gives you the tools to build your own online store on your own domain.

Think of it this way: Shopify doesn't run a store. It gives you the equipment to run your own.

When someone buys from your Shopify store, they're buying directly from your website, not from a Shopify marketplace site. You get your own web address, you design your site how you want, and you decide what products to list. Each Shopify store operates independently.

Here's what that means practically:

• Destination: Customers don't go to "Shopify.com" to shop. They go to your branded store (like yourbrand.com or yourbrand.myshopify.com).

• Discovery: You have to bring customers to your site through your own marketing efforts (SEO, ads, social media, etc.). There's no built-in Shopify traffic.

• Relationship: The customer relationship is between you and them directly. You get their contact info, you handle customer service, you build the loyalty.

• Revenue: You keep your margins (minus payment processing fees). Shopify doesn't take a cut of each sale beyond the monthly subscription fee.

This fundamental difference shapes everything about how you sell online.

Why Do People Think Shopify Is a Marketplace?

The confusion makes sense for a few reasons.

First, both enable online selling. Whether you're on Amazon or using Shopify, you're selling products on the internet. New entrepreneurs often research "how to sell online" and encounter both options without understanding the structural difference.

Second, marketplace features have crept in. Shopify's Shop app (which we'll cover in detail) has added some marketplace-like discovery features that blur the traditional boundaries.

Third, people wonder about the customer acquisition problem. A common question: "If I use Shopify, do I get access to customers like I would on Amazon?" The answer is no, but that's actually by design. You're building your own audience, not renting someone else's.

5 Ways Shopify Is NOT a Marketplace

Let's be crystal clear about what Shopify isn't.

① No centralized shopping destination.

Shopify doesn't operate a website where customers browse products from all Shopify merchants together. Unlike Amazon's single massive storefront, each Shopify store lives at its own URL with its own brand.

② No built-in customer traffic.

Amazon has 300+ million active customers searching for products daily. Your Shopify store starts with zero traffic. You need to drive customers to your site through marketing, which requires effort but gives you ownership of those relationships.

③ No commission structure.

Marketplaces typically charge 8-15% per sale. Shopify charges a monthly subscription (starting around $39 for Basic) plus payment processing fees (roughly 2.9% + 30¢ per transaction). You're not paying a cut of each sale to Shopify as profit.

④ No multi-vendor setup by default.

Shopify is built for single-merchant stores. There's no native way for multiple sellers to manage their own products under one storefront, no vendor dashboards, no automated commission splits.

⑤ You handle everything.

Fulfillment, customer service, returns, and tax compliance are your responsibility. Marketplaces often handle some of these (Amazon FBA ships orders for you; marketplaces collect sales tax in many regions). With Shopify, you're in control, which means more work but also more flexibility.

The bottom line:

Shopify empowers individual merchants to sell under their own brand. Marketplaces aggregate many sellers under one marketplace brand. That's the fundamental split.

Shopify vs Marketplace: Which Is Better for Your Business?

Let's get practical. Here are the differences that will impact your business.

Customer Acquisition: Built-In Traffic vs Building Your Own

Aspect	Marketplaces	Shopify
Built-in audience	Yes (millions search the site daily)	No (you start from zero)
Discovery	Marketplace search and browse	Your marketing, SEO, ads, social
Customer ownership	Marketplace owns the customer	You own the customer relationship
Contact information	Limited or restricted	Full access to customer emails and data

Marketplaces give you immediate access to shoppers actively searching for products. That's powerful. But those customers are loyal to Amazon or Etsy, not necessarily to you. With Shopify, every customer you attract is yours to build a relationship with.

Reality check: If you're just starting out and have no audience, marketplaces can get you sales faster. If you have (or can build) an audience through content, social media, or advertising, your own store gives you much better long-term value.

Cost Comparison: Monthly Fees vs Commission on Every Sale

Marketplaces charge commission on every sale. Amazon's referral fees range from 8-15% depending on category. Etsy charges about 6.5% plus listing fees. eBay takes roughly 10% in many categories. These fees come straight out of your profit margin, every single time you make a sale.

Shopify charges a flat monthly fee plus payment processing. Basic plan costs around $39/month with 2.9% + 30¢ per transaction if you use Shopify Payments. No commission on sales themselves.

Real Numbers: What You Actually Keep

Item	Marketplace (Amazon)	Shopify
Monthly sales	$10,000	$10,000
Gross margin	40% ($4,000 profit)	40% ($4,000 profit)
Platform fees	12% commission = $1,200	$39 subscription
Processing fees	Included in commission	~$290 (2.9% + 30¢)
Total fees	$1,200	$329
You keep	$2,800	$3,671
Difference	-	+$871/month

The tradeoff? Amazon might deliver that $10k in sales easier because of their traffic. With Shopify, you have to generate those sales yourself.

Brand Control: Your Rules vs Marketplace Rules

On your own Shopify store, you control everything:

• Design and user experience tailored to your brand

• Product presentation exactly how you want it

• Checkout flow customization (especially important for smart checkout links)

• Customer data for remarketing and loyalty programs

• Store policies for shipping, returns, and guarantees

On marketplaces, you're stuck with their templates, their rules, and their customer experience. Your branding is minimal. Customers often remember they bought "from Amazon," not from your specific store.

For brand-building businesses, this control is invaluable. For sellers of commodity products, it might matter less.

Competition: Fighting for Visibility vs Owning Your Shelf

Marketplaces get brutal here. Your products sit side-by-side with competitors who might be selling identical or similar items. Customers can compare prices with a single click. The marketplace might even promote competitors' products on your listing page.

On your Shopify site, once a customer arrives, they only see your products. No Amazon algorithm pushing a competitor's listing above yours. No suggestions for "similar items from other sellers." You own the shelf space.

Fulfillment and Logistics: Who Ships Your Orders?

Many marketplaces offer fulfillment services. Amazon FBA stores your inventory and ships orders for you (for a fee). This can simplify operations significantly, especially at scale.

Shopify gives you flexibility to handle fulfillment however you want:

→ Ship orders yourself

→ Use a third-party logistics provider (3PL)

→ Dropship from suppliers

→ Use Shopify Fulfillment Network (their answer to FBA, though not as widespread)

You have more options but also more responsibility for making those operations work smoothly.

Sales Tax Compliance: Who Handles the Paperwork?

Critical difference: Marketplaces typically handle sales tax collection and remittance as "marketplace facilitators." They're legally responsible for collecting the right amount from customers and paying it to states and countries.

With your own Shopify store, you're responsible for sales tax compliance. Shopify provides tools and integrations to help calculate and collect tax, but you handle the remittance and reporting. This can get complex across multiple states or countries.

(One exception: orders through Shopify's Shop app, where Shopify acts as a marketplace facilitator starting in 2025 and handles tax for you.)

Multi-Channel Strategy: Using Both for Maximum Reach

Many successful e-commerce businesses use both.

They list products on Amazon or Etsy for immediate reach and use Shopify for direct sales where margins are higher and customer relationships are stronger.

Shopify makes this easier with integrations. The Marketplace Connect app lets you sync products to Amazon, eBay, Walmart, and more, managing everything from your Shopify admin.

Strategy	Benefit
List on Amazon	Discovery and high-intent search traffic
Run Shopify store	Brand building and direct sales with better margins
Use Marketplace Connect	Manage inventory across channels from Shopify
Send to Shopify	Move marketplace customers to your store for future purchases

You can test products on marketplaces, identify what sells, then drive traffic to your Shopify store where you keep more of the revenue. It's the best of both worlds if you can manage the operational complexity.

What Is the Shop App and How Does It Work?

Things get interesting in 2025.

Shopify launched the Shop app (formerly called Arrive), which is kind of a marketplace. It's a mobile app and website where consumers can discover products across different Shopify stores, follow their favorite brands, and check out using Shop Pay.

Shop App Features: Discovery Across Shopify Stores

The Shop app aggregates products from Shopify merchants into a searchable, browsable experience. Customers can:

• Search for products across all participating Shopify stores

• Follow brands they like for updates

• Track orders from any Shopify store in one place

• Checkout quickly with Shop Pay's saved payment info

This is functionally similar to a marketplace. A customer opens Shop, searches "wireless headphones," and sees products from multiple different Shopify merchants side by side.

In late 2023, Shopify made Shop accessible via web browser, not just mobile. You can go to shop.app/search and browse products (as shown in the screenshot above displaying a product grid from various merchants). That's a significant step toward a true marketplace experience.

Is Shop a Marketplace Facilitator?

Starting January 1, 2025, Shopify acts as a marketplace facilitator for Shop app sales. That means Shopify collects and remits sales tax on orders placed through Shop, just like Amazon does for marketplace sellers.

This officially makes Shop a marketplace channel within the Shopify ecosystem, at least from a legal and tax perspective.

What Shop Means for Your Shopify Store

The good news: If you're on Shopify, you automatically get some marketplace-like exposure through Shop without extra fees. Your products can be discovered by Shop app users, potentially bringing you additional sales you wouldn't get otherwise.

The reality: Shop isn't Amazon. Most of your sales will still come from your own direct channels (your website, your marketing). Shop is a nice bonus, especially for repeat customers who use it to track orders and reorder easily. But it's not (yet) a major traffic driver for most merchants.

The opt-in: To appear in Shop's discovery features, you typically need to enable the Shop channel in your Shopify admin and use Shopify Payments. You can control how much you engage with it.

Will Shopify Become the Next Amazon?

Shopify leadership has repeatedly said they're not trying to become Amazon. Their philosophy is "arming the rebels" by empowering independent brands, not creating a centralized retail empire.

Shop appears to be their way of helping with the hardest part of going independent (customer discovery and trust) without undermining the core premise of merchant independence. It's a careful balance.

Can You Build a Multi-Vendor Marketplace on Shopify?

Different question: Can you use Shopify to create your own multi-vendor marketplace (like your own mini-Amazon)?

Short answer: Yes, but with limitations.

Shopify isn't built for multi-vendor out-of-the-box. But several apps in the Shopify App Store add marketplace functionality:

Shipturtle

Webkul Multi Vendor Marketplace

MarketCube

These apps let you:

① Onboard multiple vendors who can manage their own products

② Split orders between vendors automatically

③ Calculate and manage commissions

④ Give vendors their own dashboards

How Multi-Vendor Shopify Marketplaces Work

You own the Shopify account and storefront. Vendors create accounts within your system (via the app), and their products get tagged to them. All products still live in your single Shopify catalog, but the app tracks which vendor owns what.

When orders come in, the app splits them behind the scenes so each vendor sees only their portion. You as the marketplace operator can take a commission, and many apps automate payouts via PayPal or Stripe Connect.

Limitations of Running a Marketplace on Shopify

Scalability concerns. Shopify's admin wasn't designed for thousands of products from dozens of vendors. Performance can suffer with very large marketplaces.

Complex reporting. Shopify's native analytics won't separate sales by vendor without the app's help, and you'll need to carefully manage this data.

Vendor management overhead. You're running a platform for other sellers, which means vetting vendors, handling disputes, managing combined catalogs, and possibly dealing with customer service for orders involving multiple vendors.

Payment complexity. Usually, all money flows through your account first, then you pay out vendors. This requires careful accounting and trust from your vendors.

When Building a Marketplace on Shopify Makes Sense

Building a marketplace on Shopify works well for:

• Niche or localized marketplaces where you don't need to compete with Amazon's scale

• Testing marketplace concepts before investing in custom platform development

• Industry-specific B2B marketplaces where the audience is defined and limited

There are success stories of Shopify-powered marketplaces in car parts, local food delivery, fashion, and cosmetics. It's doable, just understand the constraints.

If you're serious about running a large-scale marketplace with complex needs, purpose-built marketplace platforms might serve you better. But Shopify plus a marketplace app is a relatively quick, low-code way to test the model.

How Smart Checkout Links Boost Shopify Conversion Rates

Whether you're running a single-merchant Shopify store or managing a Shopify-powered marketplace, one challenge remains constant: converting traffic into sales efficiently.

This is where Checkout Links becomes invaluable.

Checkout Links is a Shopify app that creates smart URLs designed to remove friction from your checkout process. The platform won a 2025 Shopify Build Award, recognizing its integration with Shopify's native systems and proven merchant value.

The Conversion Problem Every Shopify Store Faces

Your Shopify store doesn't have marketplace traffic. Every visitor you get costs time or money to attract. You can't afford to lose them to:

Abandoned carts because the checkout flow felt too long

Discount codes that don't apply automatically

Mobile shoppers who get frustrated entering information

Campaign traffic that doesn't convert because the experience isn't tailored

Traditional marketplaces solve this with one-click buying and saved payment info. Your Shopify store needs something similar.

What Checkout Links Does for Shopify Merchants

Checkout Links creates smart URLs that take shoppers directly to a pre-configured purchase experience. Each link can:

→ Prefill the cart with specific products and quantities

→ Apply discounts or free shipping automatically (no code needed)

→ Personalize for returning customers by prefilling addresses and past purchases

→ Attribute revenue to specific campaigns with built-in UTM tracking

→ Control access with usage limits, schedules, or passcodes

Instead of sending email subscribers or social media followers to your homepage where they have to browse, search, and manually apply a discount code, you send them a Checkout Links URL that drops them directly into a ready-to-buy experience.

The analytics dashboard gives you complete visibility into link performance. You can track sales, orders, sessions, conversion rates, and average order values with 30-day sparkline trends, all integrated directly into Shopify's native analytics. This means your marketing team sees campaign results right in the Shopify admin without switching between tools.

Real-World Checkout Links Use Cases

Abandoned cart recovery:

Create a personalized recovery link with a 10% discount already applied. Drop it into your Klaviyo email flow. The customer clicks, sees their abandoned items with the discount, and completes checkout in seconds.

VIP reorders:

Send high-value customers a Checkout Links URL that prefills their last purchase and shipping address. They can reorder their favorite products with literally two clicks.

Social media campaigns:

Running an Instagram ad? Don't send people to your homepage. Create a Checkout Links URL for the specific product you're promoting, with the campaign discount auto-applied and UTM tags for tracking.

Influencer partnerships:

Give influencers unique Checkout Links URLs with custom discounts and tracking. You'll see exactly which sales came from each influencer, all in Shopify's native analytics.

QR codes for offline events:

Generate a QR code that links to a ready-to-buy bundle. Put it on packaging, at trade shows, or in physical stores. Track how many sales come from offline touchpoints.

Why Shopify Stores Need Checkout Optimization

Marketplaces have solved the "friction problem" with features like Amazon's 1-Click ordering. Your Shopify store needs similar conversion optimization.

Checkout Links bridges that gap. You're competing with marketplaces for customers' attention, and you can't afford checkout experiences that feel clunky compared to Amazon's streamlined flow.

Plus, because Checkout Links integrates with Shopify's native analytics, you see performance data right in your admin dashboard. Revenue, conversion rate, AOV per link, all tracked automatically.

The ROI Is Simple

[Checkout Links costs **25, you need less than one extra order per month to break even.

Most merchants see Checkout Links generate significantly more than that through:

Higher email campaign conversion (no manual discount code entry)

More successful cart recovery (personalized, friction-free reentry)

Better attribution data (so you know what marketing actually works)

Faster mobile checkout (critical since mobile traffic is often 60-70% of visitors)

Try Checkout Links free for 7 days and see the difference in your conversion metrics.

When to Use Shopify, Marketplaces, or Both

Let's make this practical.

Use a Marketplace If...

You want quick validation of product-market fit without building a full website. Marketplaces are great for testing whether people will actually buy what you're selling.

You have a commodity or highly searchable product where people actively look for it (e.g., phone cases, supplements, craft supplies). Marketplace search traffic can find you.

You're okay with lower margins in exchange for infrastructure. Marketplace fees hurt profits, but you might not have to invest as much in advertising, fulfillment, or customer service.

You don't have (or want to build) an audience yet. Marketplaces give you access to their customer base immediately.

Use Shopify If...

You want to build a brand with loyal customers who buy directly from you repeatedly.

You already have (or can build) an audience through content marketing, social media, or advertising. Shopify gives you a place to own that relationship.

You need higher margins and want to avoid paying commission on every single sale.

You want control over the customer experience, from site design to checkout flow to post-purchase communication.

You're selling products or services that don't fit neatly into marketplace categories, or you want to differentiate on experience rather than just price.

Use Both If...

You're smart about multi-channel strategy. Many successful brands:

• List products on Amazon for discovery and high-intent search traffic

• Run a Shopify store for brand building and direct sales with better margins

• Use tools like Marketplace Connect to manage inventory across channels from Shopify

• Send marketplace customers to their Shopify store for future purchases through packaging inserts and follow-up marketing

This approach maximizes reach (marketplaces) while building long-term value (your own store).

The Smart Path: Start Small, Scale Strategically

Start on a marketplace to validate demand and generate initial revenue. Once you prove people want your product, launch a Shopify store and invest in driving traffic there. Use marketplace sales to fund marketing for your own store. Gradually shift the balance toward direct sales as your brand grows.

There's no "right" answer that applies to everyone. It depends on your product, your skills, your resources, and your goals.

What to Watch in E-commerce (2025 and Beyond)

The e-commerce landscape keeps evolving rapidly. Here's what you need to watch:

Shopify keeps adding features. The Shop app will likely continue expanding. New integrations, more AI-powered tools, better mobile experiences. Shopify's goal is making it easier to compete with marketplaces without becoming one.

Marketplace fees might change. Amazon and other platforms regularly adjust their fee structures, often increasing them. Your cost-benefit analysis needs regular updates.

Customer expectations rise. Whether you're on a marketplace or your own store, shoppers expect fast shipping, easy returns, mobile-first experiences, and personalized service. You need tools (like Checkout Links) that help you meet those expectations.

Privacy and data ownership become more valuable. As third-party cookies disappear and ad targeting gets harder, owning your customer relationships and data becomes even more critical. This favors the Shopify model where you have direct access to customer information.

Omnichannel is mandatory. Successful brands sell everywhere customers are: their own website, social media, marketplaces, physical retail if applicable. The winners will be those who manage all these channels coherently.

Final Answer: Is Shopify a Marketplace?

Shopify isn't a marketplace. It's the foundation for building your own direct-to-consumer brand.

Marketplaces offer fast access to customers in exchange for fees and limited control.

The Shop app is Shopify's answer to marketplace discovery, but it's supplementary to your own marketing efforts, not a replacement.

You can build a marketplace on Shopify with apps, though it's not the platform's primary use case.

Most importantly: You don't have to choose just one approach. The most successful e-commerce businesses often use a mix. They capture marketplace traffic where it makes sense and build direct customer relationships through their own Shopify stores.

Whatever path you choose, make sure you're optimizing for conversion. When you work hard to attract traffic (whether through marketplace listings, ads, SEO, or social media), you can't afford to lose sales to checkout friction.

That's exactly why Checkout Links exists. We help Shopify merchants turn more visitors into customers by creating seamless, personalized purchase experiences.

Start your free 7-day trial and see how smart checkout links can improve your conversion rates, no matter which channels you sell through.

Frequently Asked Questions

Is Shopify considered a marketplace facilitator?

For most Shopify stores, no, Shopify is not a marketplace facilitator. As the merchant, you're responsible for collecting and remitting sales tax. But starting January 2025, Shopify does act as a marketplace facilitator for orders placed through the Shop app, where they handle sales tax collection and remittance automatically.

Can I sell on both Shopify and Amazon?

Absolutely. Many merchants sell on both platforms simultaneously. Shopify offers Marketplace Connect, which lets you sync your Shopify products to Amazon, eBay, Walmart, and other marketplaces. You manage inventory and orders from your Shopify admin while selling across multiple channels.

Does Shopify have built-in customer traffic like Amazon?

No. Unlike Amazon's 300+ million customers actively searching for products, Shopify doesn't provide a central marketplace site with built-in traffic. You need to drive customers to your store through your own marketing efforts (SEO, paid ads, social media, email, etc.). The Shop app provides some product discovery, but it's not comparable to marketplace traffic levels.

What's the cost difference between Shopify and selling on marketplaces?

Shopify charges a flat monthly subscription starting around $39 plus payment processing fees (roughly 2.9% + 30¢ per transaction). Marketplaces charge commission per sale, typically 8-15% depending on the platform and category, plus potential monthly fees. At higher sales volumes, Shopify is usually more cost-effective because you're not paying commission on every order.

Can I create a multi-vendor marketplace using Shopify?

Yes, but it requires third-party apps. Shopify doesn't natively support multi-vendor setups, but apps like Shipturtle, Webkul, and MarketCube add marketplace functionality, letting you onboard vendors, split orders, manage commissions, and give vendors their own dashboards. This works well for niche or localized marketplaces, though it has limitations compared to purpose-built marketplace platforms.

Do I own my customer data on Shopify vs. marketplaces?

This is a huge difference. On your Shopify store, you fully own customer relationships. You get their email addresses, purchase history, and contact information, allowing you to build email lists, run loyalty programs, and remarket directly. On marketplaces like Amazon, you don't own the customer relationship. Amazon provides masked emails and restricts how you can contact buyers, making it much harder to build a direct customer base.

What is Shopify's Shop app and how is it different from my Shopify store?

The Shop app is Shopify's consumer-facing mobile app and website where customers can discover products from different Shopify stores, track orders, and checkout with Shop Pay. It's marketplace-like in that it aggregates products across stores. Your regular Shopify store is your own branded website where only your products appear. The Shop app provides bonus discovery traffic, but your store remains your primary sales channel.

How does Checkout Links help Shopify stores compete with marketplaces?

Marketplaces like Amazon have one-click buying and frictionless checkout. Checkout Links brings similar conversion optimization to your Shopify store by creating smart URLs that prefill carts, auto-apply discounts, personalize for customers, and track campaign performance. This helps you convert more of the traffic you work hard to attract, matching the streamlined experience shoppers expect from marketplaces.