It's one of the most common questions when starting to sell online: is it more worthwhile to be on a marketplace like Amazon, or to invest in your own online store? The short answer is they're not mutually exclusive, but it's worth understanding clearly what each one offers and demands before splitting your effort.
What a marketplace gives you: existing traffic
Amazon (or marketplaces like eBay or Etsy, depending on the sector) already has millions of buyers actively searching for products. The advantage is huge: no need to build traffic from zero. The downside: you compete directly next to your competitors, with less control over price, brand and customer data.
What your own store gives you: full control
On your own website, you decide the design, the price, the entire purchase experience, and (this is key) you keep the customer data to sell to them again without paying anyone a commission. The cost: you have to generate the traffic yourself, through SEO, advertising or social media.
Commissions change the real margin significantly
Marketplaces charge per-sale commissions that usually range between 8% and 15% depending on category, plus possible storage or managed shipping fees. That margin lost to commissions is exactly what stays in-house when the sale happens through your own store.
The strategy that usually works best
Using the marketplace to capture new customers and gain product visibility, while working on your own store in parallel to build loyalty, increase margin and avoid depending entirely on the rules (and fees) of a third party who can change them whenever they want.
Frequently asked questions
Can I sell on Amazon and my own store at the same time?
Yes, and it's actually the most common strategy among brands that sell online seriously: both channels complement each other well.
Does selling on Amazon hurt my own store's sales?
Not necessarily, if managed well: each channel attracts a somewhat different type of buyer (some look for Amazon's convenience, others prefer buying directly from the brand).
Which channel should I start with on a limited budget?
If budget is very tight, the marketplace usually gives faster initial results, precisely because you don't need to generate your own traffic from scratch.