Own E-commerce Website vs. Amazon & Other Marketplaces: Which is Better for Your Business?

Starting an online store is an exciting opportunity, but one major decision every business owner faces is whether to sell through their own e-commerce website or use platforms like Amazon, Flipkart, and Myntra. Each option has its own advantages and challenges. Let’s compare both approaches to help you decide what’s best for your business.

1. Control Over Branding & Customer Experience

Own E-commerce Website

When you sell on your own website, you have complete control over branding, website design, and customer interactions. You can personalize the shopping experience, build trust, and create a unique brand identity.

Amazon & Other Marketplaces

Marketplaces have strict branding guidelines, limiting your ability to stand out. Your products are listed alongside competitors, making it harder to build long-term customer loyalty.

2. Customer Data & Retention

Own E-commerce Website

You own all customer data, including email addresses and purchase history. This allows you to retarget customers with offers, personalized recommendations, and loyalty programs, increasing repeat purchases.

Amazon & Other Marketplaces

Amazon and other platforms do not share customer data with sellers. You can't directly reach out to buyers, making it difficult to build long-term relationships.

3. Profit Margins & Fees

Own E-commerce Website

You keep more of your profits since there are no marketplace commissions. While you may have costs for website development, hosting, and marketing, these can be optimized over time.

Amazon & Other Marketplaces

Marketplaces charge listing fees, referral fees, and commissions on every sale (ranging from 10% to 25%). These costs eat into your profits, making it harder to scale profitably.

4. Marketing & Traffic

Own E-commerce Website

You need to invest in SEO, paid ads, and social media to drive traffic. While this requires effort, it also allows you to build a loyal customer base and scale at your own pace.

Amazon & Other Marketplaces

Marketplaces already have millions of shoppers searching for products daily. You can benefit from this traffic but must compete with other sellers, often leading to price wars.

5. Logistics & Fulfillment

Own E-commerce Website

You handle storage, packaging, and shipping, either in-house or via third-party logistics (3PL). This gives you control over shipping times and packaging quality.

Amazon & Other Marketplaces

Marketplaces like Amazon offer fulfillment services (FBA), making shipping easier. However, this comes with additional costs and restrictions on how inventory is managed.

6. Trust & Credibility

Own E-commerce Website

Building trust takes time. You need customer reviews, secure payment gateways, and strong branding to gain credibility. Offering video shopping and excellent service can help.

Amazon & Other Marketplaces

Marketplaces have built-in trust with customers. Buyers feel more secure shopping on established platforms, which can help increase conversions.

Which One Should You Choose?

• If you want full control over your brand, higher profit margins, and long-term customer relationships, your own e-commerce website is the better choice.

• If you want immediate access to a large customer base with minimal marketing efforts, selling on Amazon and other marketplaces is a good option.

Best Strategy: Use both! Start with marketplaces to gain visibility and sales, while gradually driving traffic to your own website for sustainable growth.