Selling on Amazon vs Your Magento Site

When you think of setting up an online selling business, two platforms likely come to mind: Amazon and your own website. But which one is better for you? 

It’s best to explore the pros and cons of each option so you can make the best decision for your new business. They require different approaches, resources, and mindsets.

This guide digs deep into the difference between selling on Amazon and your website and how to make the most of either option. 

Differences Between Selling on Amazon and Your Own Website

1. Ease and Accessibility for First-timers

If you’re waffling between signing up as a seller on Amazon or building your own eCommerce website, you can rest assured that both approaches are easy and accessible. First-time entrepreneurs don’t need much to set up a successful venture on either platform.

Contrary to popular belief, you don’t need advanced coding skills to build your website. Templates and other resources are readily available online.

2. Setting Up Your Store

Amazon

If you’re looking forward to becoming a seller on Amazon, the first thing you need to do is set up your store. Just enter the required information to open a seller account and put together photos and detailed information to create product listings. 

Your Own Site

Setting up your website with the help of Magento is a breeze. The platform has everything you need to create and manage your eCommerce website, from a simple interface to advanced features like catalog management and order processing.

You can get started with a basic store and add more features and functionality as you need them. The platform is fully customizable, so you can make your store look and feel precisely the way you want it to.

3. Costs

Amazon

Amazon charges a referral fee for connecting sellers and buyers on its platform—up to 15% of the product price. 

Amazon also charges sellers a subscription fee, which is now $39.99 per month. This fee can vary depending on how many countries and platforms you want to sell your products. 

Fulfillment by Amazon (FBA) also charges fulfillment fees, depending on the size and weight of your product.

Your Own Site

If you build an eCommerce website, you only need to consider web hosting expenses. You can integrate logistics, storage, and delivery fees into your product prices.

4. Traffic and Sales

Amazon

It is no secret that Amazon is the world’s largest online retailer. In 2021, it generated $469 billion in revenue, and exponential growth is projected for years to come. Once you set up your storefront, you can connect with many potential customers: the platform gets 2 billion desktop and mobile visits per month. The downside is that you’ll be competing against millions of sellers. 

Advertising on Amazon is a breeze to set up—you can have an ad campaign up and running with just a few clicks.

Your Own Site

On your own eCommerce site, you will start at zero website visits and build your audience from scratch. 

To boost website traffic and widen audience reach, you need to leverage digital marketing strategies such as search engine optimization (SEO). The goal of SEO is to boost the ranking of a website on search engine results to generate clicks. 

SEO strategies focus on optimizing website content, structure, and on-page elements, such as webpage titles, metatags, and anchor text.

Other marketing options include social media marketing, email marketing, and pay-per-click ads.

5. Fulfillment and Shipping

Amazon

Fulfillment By Amazon provides customers with a seamless shopping experience. It is a system that automates the packaging and shipping of all orders from Amazon, and provides same-day shipping, Prime shipping, and more.

FBA is a key part of Amazon’s business model and has helped the company become the eCommerce giant it is today. It provides customers with a level of service that is unmatched by other retailers. If you want to sell on Amazon, using FBA is a no-brainer.

FBA is a popular option for sellers on Amazon because it offers these benefits:

  • FBA products are eligible for Prime shipping and are more likely to be featured on the Amazon front page, increasing visibility and sales.
  • Amazon can ship products at lower prices due to its volume discounts with shipping carriers.

Your Own Site

Ecommerce websites must have a well-oiled order fulfillment process in place to ensure that customers receive their orders promptly and without any issues. 

  • Choose a fulfillment method. There are two main types of fulfillment: dropshipping and warehousing. With dropshipping, you can partner with a supplier that will ship products to customers on your behalf. With warehousing, you store products in your own facility and send them to customers as orders come in.
  • Set up your fulfillment center and create a packing and shipping process. You can do all this yourself or hire a third-party shipping and packing company for maximum efficiency.
  • Track orders and answer customer service inquiries. You need to set up a system to easily track orders and inquiries. Inventory management software and customer relationship management tools will help you oversee the movement of goods and ensure customers are happy with your order fulfillment process.

You Can Succeed in Both Options

Choosing between an Amazon storefront and building your own website can be quite challenging. The good news is that whichever selling option you choose, you are most likely to succeed. Just make sure your choice suits your resources, business model, and preferred setup. 

Each option has its pros and cons, and it is up to the individual seller to choose the one in which they can set themselves up for success. You must consider what will work for your enterprise and the audience you want to target. 

And when you have made your choice, use everything you have at your disposal to launch your products successfully and generate consistent revenue for months and years to come.

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Adam Roger

CEO and Founder of Magetop. A friend, a husband and a dad of two children. Adam loves to travel to experience new cultures and discover what is happening with ecommerce all around the world.

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