Introduction
In 2025, having a product is not enough—you need the right platform to sell, scale, and stay profitable. With Shopify, Amazon, Etsy, and Walmart Marketplace all pushing for seller attention, the big question is:
Which one is best for your business?
Proven Tip:
Match your platform with your business goals: Do you want control, fast traffic, or low fees? One size never fits all.
Proven Tip: Choose Your Platform Based on Control, Fees, and Customer Data
Let’s break it down:
| Platform | Best For | You Control | Fees | Buyer Data |
|---|---|---|---|---|
| Shopify | Branding, long-term growth | Full control | Monthly + payment gateway | Yes |
| Amazon | Speed, built-in demand | Limited | Referral + FBA + ads | No |
| Etsy | Handmade, creative niches | Moderate | Listing + transaction | Partial |
| Walmart | Budget-conscious shoppers | Limited | Lower than Amazon | No |
In short:
- If you want ownership and email list access → Shopify
- If you want instant traffic and don’t mind fees → Amazon
- If you sell custom, handmade, or vintage → Etsy
- If you’re pricing aggressively → Walmart
IRC Tax Code Relevance
The platform you choose also affects your tax strategy, especially in relation to:
- IRC §162 – Deducting platform fees, advertising, and software subscriptions
- IRC §6050W – Platforms like Amazon and Shopify are required to issue Form 1099-K
- IRC §6001 – Recordkeeping rules apply to all transactions, including fees, refunds, and chargebacks
Relevant IRS Forms
| Form | Purpose |
|---|---|
| Form 1099-K | Reports payment card or third-party network transactions |
| Schedule C (Form 1040) | Profit/loss from online selling (sole proprietors) |
| Form 1120 / 1120-S | For incorporated sellers on any platform |
| Form 4562 | Depreciation on tools, equipment, or software used |
| Form 1040-ES | Estimated quarterly tax payments for platform income |
Example: Right Platform Choice = 2X Profit Margin
A jewelry seller based in Arizona was struggling to scale on Etsy due to listing fees and low control over branding. In early 2024, she moved to Shopify, built a one-product store, ran targeted Facebook ads, and grew her email list.
By mid-2025:
- AOV increased by 40%
- Monthly revenue hit $18,000
- Profit margins nearly doubled due to lower transaction fees and better customer retention
Step-by-Step Guide to Choose the Right Platform in 2025
Step 1: Know Your Product Type
Are you selling mass-market goods, niche handmade items, or customizable kits?
Step 2: Decide What You Want to Control
Do you want your own website, or are you okay with platform restrictions?
Step 3: Compare Fees
Look beyond just listing fees—consider payment processor, shipping, fulfillment, and advertising costs.
Step 4: Test and Measure
Start on one platform, analyze conversions, CAC, and lifetime value. Scale the one that gives you best ROI.
Step 5: Set Up Proper Bookkeeping
Track platform-specific fees, returns, and payouts to avoid underreporting income. Use software integrations for Shopify, Amazon, and Etsy to sync with your accounting tools.
Conclusion
There is no “best” eCommerce platform—only the best one for your product, your audience, and your goals. Choosing smart today saves you time, taxes, and marketing money tomorrow.
Call to Action
Confused about which platform makes sense for your product or tax setup?
Contact Anshul Goyal, CPA EA FCA at anshul@kkca.io to book a consultation. We’ll help align your platform strategy with your business structure and tax goals.
Disclaimer
This article is for educational use only and does not replace professional tax or legal advice. Please consult a certified public accountant for guidance specific to your situation.
FAQs
1. Which platform has the lowest fees?
Walmart and Etsy generally have lower selling fees compared to Amazon.
2. Do I need to report Shopify income to the IRS?
Yes. Shopify income is reportable, and you’ll likely receive Form 1099-K if thresholds are met.
3. Can I use multiple platforms?
Yes, but managing inventory and taxes becomes more complex—use syncing tools and work with a CPA.
4. Which platform gives me access to customer emails?
Only Shopify gives you full control of customer data, including email.
5. Are platform fees deductible?
Yes, under IRC §162, they qualify as ordinary business expenses.
About Our CPA
Anshul Goyal, CPA EA FCA is a Certified Public Accountant in the U.S., an Enrolled Agent authorized to practice before the IRS, and a cross-border tax advisor for eCommerce sellers. Whether you’re on Shopify, Amazon, Etsy, or Walmart, Anshul helps you choose the right structure, track your income, and legally reduce your tax burden.
To book a strategy session, contact anshul@kkca.io.