If you're looking to start an e-commerce business, one of the biggest decisions you'll face is whether to sell on Amazon or through your website. Both options have advantages and drawbacks; the right choice depends on your business goals, budget, and long-term vision.
In this article, we’ll break down the pros and cons of each platform to help you decide which route is best for your brand.
Selling on Amazon
Amazon is the world's largest online marketplace, with millions of customers actively searching for products every day. Selling on Amazon can provide instant exposure and access to a ready-made audience, but it comes with competition and certain restrictions.
Pros of Selling on Amazon
Massive Customer Base – Amazon attracts millions of shoppers, giving your products instant visibility without extensive marketing.
Trust & Credibility – Customers trust Amazon, and new brands can benefit from this credibility without building their reputation from scratch.
Fulfilment by Amazon (FBA) – With FBA, Amazon handles storage, packaging, and shipping, making order fulfilment hassle-free. This also makes products eligible for Prime shipping, increasing conversion rates.
SEO & Organic Traffic – Amazon's search engine (A9) helps customers find your products, meaning you can generate sales without investing heavily in paid ads.
Cons of Selling on Amazon
High Fees & Commissions - Amazon charges referral fees (typically 8–15%) and additional costs for FBA, which can reduce profit margins.
Intense Competition – With thousands of sellers in most categories, standing out can be challenging, especially against established brands and Amazon’s private-label products.
Limited Brand Control – Amazon owns the customer relationship, meaning you have minimal access to customer data and limited storefront customisation.
Policy Restrictions – Amazon’s strict selling policies and algorithm updates can impact your sales, and sudden account suspensions are risky.
Selling on Your Website
Launching your e-commerce website (through platforms like Shopify, WooCommerce, or BigCommerce) gives you complete control over branding, pricing, and customer interactions. However, you must put in effort to attract traffic and manage operations.
Pros of Selling on Your Website
Full Control Over Branding – You design your store, set your prices, and create a unique shopping experience tailored to your brand.
Better Profit Margins—Since Amazon does not charge commissions, you keep more of each sale and only pay for website hosting and payment processing fees.
Ownership of Customer Data – Collect customer emails, build long-term relationships, and retarget with email marketing, leading to repeat sales.
No Marketplace Competition – You won’t have to compete directly with other sellers appearing on the same page, reducing price wars.
Cons of Selling on Your Website
Traffic & Marketing Costs – Unlike Amazon, where shoppers actively search for products, you’ll need to invest in SEO, ads, and social media to drive visitors to your site.
Logistics & Fulfilment: You are responsible for storing, packing, and shipping products unless you use third-party fulfilment services.
Trust and Credibility Challenges: New websites take time to build credibility, and customers may hesitate to buy from an unknown brand.
Which Option Is Right for You?
The decision depends on your business goals and resources. Here’s a quick guide to help you decide:
- Choose Amazon if:
- You want instant access to a large customer base.
- You prefer a hands-off fulfilment approach with FBA.
- You’re comfortable with marketplace fees in exchange for visibility.
- Choose Your Website if:
- You want full control over branding, pricing, and customer relationships.
- You’re willing to invest in long-term marketing strategies.
- You want to build a business that isn’t dependent on a third-party platform.
Best of Both Worlds: A Hybrid Approach
Many successful brands sell on both Amazon and their website. Amazon can serve as a high-traffic sales channel, while your website can help establish brand identity and customer loyalty. You can even use Amazon as a testing ground before launching an independent store.
There’s no one-size-fits-all answer. Amazon is a great choice if you want quick sales and easy fulfilment. If you’re building a long-term brand with full control, your website may be better. And if you want to scale effectively, combining both strategies could be the ultimate solution.
