The one-line difference
A marketplace rents you demand and takes a cut of every order. A hosted store sells you software and leaves demand entirely to you. eBay, Amazon and TikTok Shop hand you buyers on day one and charge roughly 6% to 15% of the order for it. Shopify’s Basic plan is $25/month billed monthly, or $19/month billed annually as of 2026, plus about 2.9% + 30¢ per online card transaction through Shopify Payments, and it sends you no traffic at all. Themes, apps and “winning product” research tools are noise next to that one split. For scale: the U.S. Census Bureau put e-commerce at 16.9% of total U.S. retail sales in the first quarter of 2026, roughly $326.7 billion seasonally adjusted. Nobody fails on these platforms because the platform ran out of buyers.
The rule that falls out of the split: if you cannot acquire a customer for less than the marketplace’s take rate on your average order, the marketplace is your cheaper channel. It almost never feels that way, because the marketplace fee appears as a line item on every single payout, while ad spend arrives once a month as a bill you have already stopped reading closely.
Comparing on cost
All figures below are the published U.S. rates as of 2026. Check them again before you price anything. TikTok Shop’s U.S. referral fee alone has been revised more than once since the marketplace opened to sellers, and not downward.
- Shopify: Basic $25/month ($19/month annual), Grow $65/month ($49 annual), Advanced $399/month ($299 annual). Online card rates start at 2.9% + 30¢ on Basic, 2.7% + 30¢ on Grow, 2.5% + 30¢ on Advanced. If you use a third-party payment gateway instead of Shopify Payments, Shopify adds a transaction fee of 2% on Basic, 1% on Grow, 0.6% on Advanced.
- Amazon: Professional plan $39.99/month, or Individual at $0.99 per item sold. Referral fees run 5% to 45% by category, with most categories between 8% and 15%, and a $0.30 minimum referral fee in most categories.
- eBay: No subscription required. Up to 250 zero-insertion-fee listings per month, then $0.35 per listing. Final value fee is 13.6% in most categories plus $0.40 per order on orders over $10, and eBay calculates that percentage on the full order total: item price plus shipping the buyer pays plus handling plus sales tax, not just your item price.
- TikTok Shop (U.S.): 6% referral fee on most categories, reduced to 5% on select jewelry subcategories. That single fee covers the marketplace cut and payment processing.
- Etsy: $0.20 per listing, 6.5% transaction fee on item price plus shipping and gift wrap, plus 3% + $0.25 U.S. payment processing through Etsy Payments.
Run one $40 order through each and the gap stops being abstract. On eBay you lose about $5.84 (13.6% plus the $0.40 order fee) before any shipping cost, close to 14.6% of the order. On Amazon at a 15% referral fee it’s $6.00, plus the $39.99 monthly that stops mattering after roughly seven orders. On TikTok Shop it’s $2.40. On Shopify it’s about $1.46 in card fees. Now add what you paid to put that buyer in front of the product. At $12 per acquired customer, which is unremarkable for cold traffic on a $40 item, Shopify’s true cost per order is $13.46 and it has quietly become the most expensive channel on the list by more than double.
Comparing on requirements
Fees are what people compare. Eligibility is what actually deletes options from the list, and it usually does so after the store is already built.
Amazon publishes a drop shipping policy that most beginners violate on their first order, generally without noticing. You must be the seller of record, and you must remove any packing slip, invoice, external packaging or insert identifying a third-party shipper before the order reaches the customer. Buying from another online retailer and having that retailer ship direct is prohibited without exception if anyone other than you appears on the paperwork. Amazon expects you to have an agreement with your supplier that they will identify you, and only you, on everything in the box. Violations hit account health and can restrict your ability to fulfill through Merchant Fulfilled Network, which is the fulfillment method every drop shipper depends on.
Etsy is a different kind of no: its marketplace is built around handmade, vintage and craft supplies, so generic reselling of someone else’s mass-produced catalog does not belong there regardless of what fee math says. eBay and TikTok Shop are the most permissive on sourcing, but both hold you to shipping-time and tracking-validity metrics that a slow overseas supplier will quietly wreck. Shopify gatekeeps nothing at all, which is the whole appeal and also the reason it punishes anyone without a traffic plan.
Everywhere in the U.S. you will also need a business entity or sole-proprietor registration, an EIN, a business bank account the platform can verify, and usually a resale certificate so you aren’t paying sales tax on inventory you resell. The EIN is free and the IRS online application takes about fifteen minutes; the resale certificate is the one that stalls people, because plenty of domestic suppliers will not open a wholesale account without one on file. Rules vary by state, and none of this is tax or legal advice. Confirm your setup with a licensed professional before you rely on it.
What only shows up once you commit
Three things I did not understand until orders were actually flowing.
Returns land on you, not the supplier. The customer ships to a domestic address you control, and shipping that unit back overseas usually costs more than the unit is worth. A $14 kitchen gadget comes back to my address and the quote to return it to Guangdong lands between $28 and $40, so it never goes back. In practice you write the item off, relist it locally at cost, or keep a small return buffer at home and reship the good units to the next buyer. I now price with a 5% write-off already baked into margin. Do that arithmetic in month one; discover it in month four and you have mispriced an entire quarter.
A refunded order is not a free order. TikTok Shop, for example, returns the referral fee on a refund but keeps a refund administration fee of 20% of that referral fee, capped at $5 per SKU as of 2026. On 100 orders at $40 with a 12% refund rate, that administration fee totals $5.76, which is not the number that hurts. The number that hurts is that those twelve orders also consumed twelve units, twelve outbound shipping costs and twelve return labels, and the refunded referral fee gives back none of it. Read each platform’s refund-fee clause specifically. The headline take rate never tells you this.
Platform metrics run on rolling windows, so damage lags. A supplier who slips from a two-day dispatch to a six-day dispatch during a holiday period doesn’t get you suspended that week. It shows up 30 to 60 days later as a late-shipment rate you can no longer fix, because the window still contains the bad orders. The operational fix is to track your supplier’s 90th-percentile dispatch time rather than the average, since the average hides exactly the tail that gets accounts restricted. The other one nobody warns you about: suppliers add their own promo inserts to boxes without telling you, usually a folded card offering the buyer a discount for ordering direct next time. On Amazon that card is a policy violation, and you paid to ship it.
Before you commit: who to contact and what to ask
Two conversations, both before you list anything.
Your supplier’s assigned account manager, not the sales rep and not the marketplace chat widget. Ask by email rather than voice chat, so the answers exist as text you can point at later. Get five answers in writing: (1) Will you blind-ship with my business name as the sender on the label and packing slip, and will you confirm that in writing? (2) What is your 90th-percentile dispatch time, not your average? (3) Will you upload valid, carrier-scannable tracking within 24 hours of dispatch? (4) Who pays return shipping, and to which address do returns go? (5) How often is your stock feed updated, in what format, and what happens to an order placed on a SKU that just went out of stock? Any hesitation on question 1 disqualifies them for Amazon entirely.
The platform’s seller support, through the official channel. On Amazon that’s Selling Partner Support via Seller Central’s Help menu; ask them to point you to the current drop shipping policy page and confirm your specific arrangement complies. On eBay use Seller Help in your seller account; on TikTok Shop use the Seller Center support chat. Ask for the answer in the case log rather than verbally, so you have a record with a case number attached. Separately, contact your state’s Department of Revenue about resale-certificate registration and whether your supplier’s state accepts an out-of-state certificate.
Which one to pick
Thresholds, not preferences:
- Testing whether demand exists at all, budget under $100: eBay. No subscription, 250 free listings a month, and a real demand signal inside two weeks. You pay about $5.84 per $40 order for that answer, which beats spending a month of ad budget on a product nobody wanted.
- Product with existing keyword demand and a supplier who agreed in writing to blind-ship: Amazon. The referral fee is high, but the traffic is intent-driven and $39.99/month is trivial past roughly seven orders.
- Visual or impulse product under $50 with a creator angle: TikTok Shop. At 6% including payment processing it is the lowest total take rate of the marketplaces as of 2026. Your constraint is how much content you can ship per week, not fees.
- Repeat-purchase product, gross margin above 45%, and you already have an audience or a working ad account: Shopify. Otherwise you are paying $25/month for an empty room.
Most people running solo should start on a marketplace and add the hosted store once they have a repeat-buyer list worth owning. The fee you can see is almost always cheaper than the customer acquisition cost you can’t.
Related reading: Best Ecommerce Shipping Companies Compared: Which Carrier Fits Your Store