Shopee vs. Amazon: Which E-Commerce Platform Should New Entrepreneurs Choose in 2025?

In the rapidly evolving world of e-commerce, choosing the right platform is crucial for new entrepreneurs. Shopee and Amazon are two dominant players, each offering unique advantages and challenges. This guide provides an in-depth comparison to help you decide which platform aligns with your business objectives in 2025.

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Shopee: Southeast Asia's E-Commerce Giant

Pros

• Low Entry Barriers: Registering as a seller on Shopee is straightforward, requiring minimal documentation and no upfront fees.
• High Traffic Volume: Shopee boasts significant user traffic in Southeast Asia, providing sellers with access to a vast customer base.
• User-Friendly Interface: The platform offers a localized, intuitive interface, making it accessible for sellers with varying levels of technical expertise.

Cons

• Intense Price Competition: The market is saturated with sellers, leading to aggressive pricing strategies that can erode profit margins.
• Manual Fulfillment Responsibilities: Sellers are responsible for storage, packaging, and shipping, which can be time-consuming and logistically challenging.
• Demanding Customer Service Expectations: Buyers often expect prompt responses, requiring sellers to be constantly available to address inquiries.

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Amazon: The Global Marketplace Leader

Pros

• Fulfillment by Amazon (FBA): Amazon handles storage, packaging, and shipping, allowing sellers to focus on other aspects of their business.
• Extensive Customer Base: With a global reach, Amazon provides access to a diverse and expansive customer demographic.
• Higher Profit Potential: Products can often be sold at higher price points, especially in markets like the U.S., leading to increased profit margins.

Cons

• Complex Registration Process: Setting up a seller account requires more documentation and compliance with stricter regulations.
• Monthly Subscription Fees: Sellers must pay a monthly fee, which can be a barrier for those just starting.
• Language and Cultural Barriers: Navigating the platform and understanding customer expectations may be challenging for non-native English speakers.

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Case Study: Bohemian Wall Hangings

A comparison of selling bohemian-style wall hangings on both platforms reveals distinct differences:

• Shopee: Products are typically priced between $5 to $10, with high competition and lower profit margins.
• Amazon: Similar items sell for $20 to $60, with monthly sales volumes ranging from 500 to 2,000 units, indicating higher revenue potential

Conclusion

Choosing between Shopee and Amazon depends on your business goals, resources, and target market:

• Shopee: Ideal for entrepreneurs targeting Southeast Asian markets with limited initial investment.
• Amazon: Suitable for those aiming for a global audience and willing to navigate a more complex setup for potentially higher returns.