You’re probably familiar with the Amazon marketplace in some way, shape, or form by now. E-commerce grew by several years in just a few months as a result of COVID-19 and the consequent 2020 lifestyle transformation, which we are all aware of.
With the onset of the e-commerce age, sellers worldwide are met with one common dilemma. Which is better – selling on Amazon or selling on your own website? If you are one of those people stuck at such a crossroad, worry not. Read on to make the best decision for your business.
Selling on Amazon – Pros and Cons
Thousands of digital customers use Amazon every day, making it the most well-known international online marketplace. Companies who want to become professional sellers on Amazon can take advantage of several benefits that the website offers:
An unmatched international outreach
Amazon allows companies to expand their products into new markets since it is a globally trusted brand. It allows your company to expand its reach beyond its current geographic region and into other parts of the world where there are swaths of clients willing to buy from UK-based vendors.
A matter of convenience
When compared to selling on their own websites, Amazon is also more convenient for many businesses. All of the upkeep, expenditures, and management that come with owning an ecommerce site are taken care of by Amazon. There’s no need to be concerned about web hosting or redesigns.
You may even delegate work to Amazon, using FBA (Fulfillment by Amazon) for Amazon Professional Sellers.
With FBA, you can entrust the fulfilment and delivery of purchases, as well as the process of processing returns, to Amazon. Marketing and advertising are other to-dos that you may outsource to an Amazon agency.
If you’ve followed Amazon’s regulations and listed your items according to their specifications, your sales and earnings will certainly grow. The site’s millions of monthly visitors represent such a massive number of potential customers that it’s nearly difficult not to notice the advantages of the widespread exposure.
Choosing to sell through Amazon rather than your own website can help safeguard your brand. Your organisation may acquire protection against knock-off copies of your items using Amazon Brand Registry. You may also file a complaint against vendors who are duplicating you.
Figures and statistics demonstrate that Amazon is a tremendously successful sales channel – both locally and globally – so what’s keeping ecommerce companies from investing on Amazon?
Remember how Amazon has over a million additional sellers? That is also a disadvantage of the website. Depending on your market and items, you may have a large number of competitors, making profiting on the platform more challenging.
Loss of control
By joining a marketplace, you agree to follow its rules. Amazon is more concerned with the items than with the vendors. This implies you have extremely limited options for promoting your company.
Because Amazon is a rented platform, your firm does not own it. Instead, you “rent” the site and use it to make money online. You have less control over your company’s online visibility if you rent rather than own.
Although being on Amazon will almost certainly enhance your earnings, it will come at a cost. Whether you have a professional account or use FBA, you will still be charged fees.
If you’re considering about selling on Amazon, you’ll want to think about the fees. Calculating your Amazon fees can assist you in determining whether selling on Amazon can provide a profit and a good return on investment (ROI).
It is not true that just because everyone is doing something, it is the greatest thing to do. Perhaps you’d be better off running your own website, given the fees and regulatory requirement on Amazon. But, before you make your decision, consider the advantages and disadvantages of having your own website as your primary selling platform.
Selling on your own website – Pros and Cons
Let’s look at some of the ways that having your own website might make your internet business more appealing.
You get to have things your own way
Unlike Amazon, your website is entirely dedicated to you and your online venture. Customers will be less distracted if you make your website the go-to spot for them to buy from you. Because the site visitor will only be exposed to your items, there are no ‘others viewed this’ or ‘today’s bargain’ options.
You approve everything, from the design of your product page to the checkout procedure. You also avoid the competition that comes with rental platforms like Amazon, Walmart Marketplace, and others as the owner of your website.
You get to improve your brand identity
When you run your company on your own website, you have more control over consumer targeting and retargeting. This is really significant if you’re thinking about growing your firm any time soon. Because your brand exposure is larger when customers buy through your website, you’re more likely to acquire more referrals.
To capture client contact information and retain them in your ecosystem, use tactics like customised email lists or focused social media marketing campaigns.
Now let’s look at some of the reasons why Amazon can actually turn out to be a more profitable option for your business instead of selling on your own website.
Having a smaller audience
Marketplaces may help you expand your reach and increase the visibility of your products. By concentrating just on your website (and only your website), you are ignoring a large market that you could be addressing — not only locally, but also worldwide. Marketplaces allow you to reach a wider audience than your website can.
Because you have complete authority over your website, you will be without help if something goes wrong. Depending on whether or not your website developer offers technical help, you might be trapped if a technical issue happens.
Most websites don’t have their own development staff, which might result in a neglected website and customer dissatisfaction
The choice to sell on your website vs Amazon needs a quick and large commitment. This is because you must build your website from scratch. This fee is much greater than launching an Amazon Store. However, you should weigh that initial investment against the benefits of selling on your website.
So, which is better – selling on Amazon or selling on your own website?
Where you sell online is determined by your company, market, and items. Some businesses may benefit from selling on Amazon, while others may see the value in selling on their own website.
You must think about what would work best for your company. Examine the benefits, drawbacks, and costs, and solicit feedback from your team.
There are various reasons why using the Amazon marketplace is preferable for people wishing to establish their own business, most of them have to do with an immediate benefit. As a young internet business, momentum is difficult to come by. Amazon is the place to be if visibility, ease, and growth are important to you.
With this in mind, you should consider incorporating the use of both Amazon and your own website. This will not only help you reach a wider audience internationally, but it will also allow you to maintain control over your own website. Because your website handles client acquisition, Amazon will raise your sales without affecting your consumer acquisition.
Putting time and effort into Amazon as well as your own website will ensure that you stay competitive in the eCommerce sector.
Now that you have learned about the pros and cons of both, hurry up and make up your mind about what is the best for your business.