Lab

Sell in your own store or on Amazon?

You've got a product to sell and the big question everyone starting out faces: do I set up my own online store or jump onto a marketplace like Amazon, where there are already millions of buyers? Both options make sense, and both have their price. Here we tell you the advantages and drawbacks of each, what it really costs you to sell in one place or the other, and why for many businesses the best answer is «both».

FAQ

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Is it better to sell on Amazon or on your own website?
It depends what you're after. Amazon gives you customers and sales from day one, in exchange for fees, fierce competition and not keeping the customer. Your own site gives you more margin, the customer's details and a brand that's yours, in exchange for having to bring the traffic yourself. For many businesses, the ideal is to combine the two.
How much does Amazon take on each sale?
Amazon charges a fee on each sale, which varies by product category, plus possible charges and logistics costs if you use their storage and shipping service. The exact percentage changes by category, so it's worth checking the official fees for your product and doing the sum before setting a price.
If I sell on Amazon, why do I want my own store?
Because it's the only ground you fully control. In your store you have a better margin, you keep the customer's details to build loyalty and you build your brand. On top of that, it protects you the day Amazon changes the rules or suspends your account. The usual approach is to use the marketplace to attract and the site to build loyalty.
I'm starting out with a small budget. Where do I begin?
If you need sales now and your product is in demand, Amazon gives a quick outlet without building a site. If your priority is to build a solid, branded business, start with a well-made own store and bring in traffic bit by bit. First do the margin sum for each option: sometimes cheap works out expensive.
Can I sell the same thing in both places at once?
Yes, and it's very common. You can have your products on Amazon so people discover you and in your own store to build loyalty with a better margin. You just need to manage stock and prices well in both places so you don't sell what you don't have or compete against yourself by accident.

Own store, Amazon or both? Let's look at it with your numbers.

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