Shopify SHOP and Amazon AMZN are strong players in the e-commerce industry. While Shopify is growing its presence in the e-commerce domain by offering user-friendly tools and an extensive app marketplace, AMZN is expanding its footprint in the e-commerce space by diversifying its product offerings, enhancing delivery infrastructure and entering new global markets to solidify its dominance.

According to the Morder Intelligence report, the e-commerce market is projected to be worth $10.19 trillion in 2025. It is expected to reach $21.22 trillion by 2030, with a compound annual growth rate of 15.8% over the 2025-2030 period. Both SHOP and AMZN are likely to gain from the massive growth opportunity.

So, Shopify or Amazon— Which of these e-commerce stocks has the greater upside potential? Let’s find out.

The Case for SHOP Stock

Shopify is benefiting from robust growth in its merchant base. In the first quarter of 2025, Merchant Solutions’ revenues were $1.74 billion and accounted for 73.7% of Shopify’s total revenues. Growth was driven by its merchant-friendly tools, including Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. Strong adoption of these solutions holds promise for Shopify’s prospects.

Among these offerings, Shop Pay stands out as a key driver of this momentum. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny were adopted by Shop Pay, enhancing Shopify’s portfolio.

Shopify’s investment in AI-driven tools, such as Shopify Sidekick, tariffguide.ai and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By leveraging AI, Shopify enhances its platform's power and user-friendliness.

An expanding partner base that includes TikTok, Snap, Pinterest, Criteo, IBM, Cognizant, Amazon, PayPal, Roblox, YouTube, Target, Manhattan Associates, COACH, Oracle and Adyen is expected to expand its merchant base further.

The Case for AMZN Stock

Amazon is expanding its footprint in the e-commerce space by continuously expanding its product offerings. The company’s expanding global presence, growing capabilities in grocery, pharmacy, healthcare and autonomous driving are key positives. 

In the first quarter of 2025, the company expanded its product offerings by welcoming well-known brands like Oura Rings, Michael Kors, and The Ordinary, as well as introducing a luxury shopping experience with Saks featuring high-end brands like Dolce&Gabbana and Balmain.

During the first quarter, Amazon held multiple deal events worldwide, helping customers save more than $500 million across the Big Spring Sale in the United States and Canada, Spring Deal Days in Europe, and Ramadan/Eid sales in the Middle East. In the reported quarter, Amazon set new delivery speed records for Prime members and delivered more items same-day or next-day than in any previous quarter.

Amazon’s focus on everyday essentials has been a key catalyst in bolstering its e-commerce growth. Everyday essentials grew more than twice as fast as the rest of Amazon’s business and represented one out of every three units sold in the United States. With more than $100 billion in gross sales from grocery items alone, Amazon solidified its position as one of the largest grocers in the United States.