Is it better to sell on Amazon or on your own E-Commerce site?

Sell only through your own e-commerce or also on Amazon?

Advantages of selling on Amazon compared to your own E-commerce

The benefits of an e-commerce

Amazon VS E-commerce: disadvantages compared

Conclusions

When deciding to start selling your products online, you cannot help but think of the Seattle giant. The advantages of the Amazon marketplace compared to your own e-commerce are many. However, every brand can only fully express its identity through its own custom-made site, specifically designed to maximize customer loyalty.

E-commerce is experiencing a real explosion, which saw an even greater surge starting in March 2020. The level of digitalization in Italy is still low, and many companies are racing to bridge the gap with those who, with foresight, started working and investing in new communication and sales channels some time ago.

Sell only through your own e-commerce or also on Amazon?

To answer this question, a series of evaluations must be made. The world of online sales is constantly evolving and, in times of crisis, it is important to find the right formula to keep up with the times.

Amazon is certainly a fixed point; no one is able to offer such high visibility and such simple accessibility. It has revolutionized online shopping with its wide range of products and services (Prime, Echo, Alexa). Almost 50% of daily online sales are made through Amazon.

Low barriers to entry inevitably lead to a higher number of rivals to compete against. For this reason, in order to quickly bridge this gap, it is essential to have an adequate strategy. The safest and fastest way to do this is to rely on professionals who already know the sector in depth.

Advantages of selling on Amazon compared to your own e-commerce

Let's answer the main question right away: what are the advantages of selling on Amazon compared to your own e-commerce?

The advantages are several:

• you don't need to create a site, therefore a minimal initial investment will be required;

• Amazon enjoys unparalleled trust in the eyes of consumers, which you can leverage;

• Amazon appears on the first page of Google for every product-related search;

• it has very high visibility, which is difficult to compete against;

• you can count on a solid back-end. Amazon Seller Central is a complete management software that allows you to handle a very high number of operations including: inventory, advertising, accounting, reports, product listings, and much more;

• the platform is configured for the seller. Technically, you won't have to worry about anything except working on your product listings and managing the marketing side;

• it allows you to reach millions of people everywhere, at any time.

The advantages of an e-commerce

On the other hand, owning your own e-commerce can also lead to several benefits:

• Maximum level of customization. You can present the brand and display products exactly how you want;

• High product margins, as all the commissions imposed by Amazon are removed;

• competition comparison will be less direct;

• there is the possibility to establish a relationship with your customers, collecting information and understanding their needs more deeply;

• You can run selective advertising for your products showing bestsellers, reviews, and special promotions.

Amazon VS E-commerce: disadvantages compared

To complete the comparison, it is also right to highlight the disadvantages of both channels:

Amazon has some disadvantages for the seller:

• competition is high and increasingly fierce. A price war can break out, minimizing margins and the possibility for error;

• sales commissions: Amazon takes a percentage on every sale made;

• the relationship with customers is less direct compared to your own site;

• advertising campaigns can have, especially in the initial phase, rather high costs.

Owning your e-commerce allows you to operate with total freedom, without having to follow all the rules imposed by another platform. Freedom, however, comes at a price. Fixed costs increase: site creation and management, SEO, maintenance, advertising. Furthermore, the timeframe to improve your ranking on search engines is on average much longer.

Gaining visibility requires time, effort, promotions, advertising, and paid ads.

Conclusions

Summarizing everything, the ideal solution would naturally be to try and work on both fronts.

Unfortunately, this is not always possible, especially for start-up businesses. For those who want to minimize initial investments and quickly obtain the first results, Amazon certainly represents an excellent springboard, as well as an excellent tool to validate their products. E-commerce, on the other hand, is definitely the ideal tool for those aiming for long-term growth.

To understand how to take your first steps in the world of e-commerce contact us without obligation, otherwise:

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