Pros and Cons of Selling on Amazon vs Your Own Site

The platform of Amazon doesn’t need any introduction. It’s one of the most trusted upon and prominent marketplace having thousands of sellers under its umbrella. The data of 2016 shows that in the first quarter itself, Amazon had over 300 million active users globally. This brings in a good opportunity for the ecommerce brands to upscale their sales.

However, a survey shows that only 20% of businesses reckon Amazon as a preferred platform for selling, while the majority considers their own website as a selling platform. Despite of being acknowledged as a successful marketplace both – nationally and globally, what’s holding back the businesses from jumping on to Amazon and making money on Amazon marketplace?

 

Let’s have a read about some pros and cons of selling through the Amazon platform!

Pros
Reach – National and International

Amazon helps brands to widen their reach and expand their product offerings to multiple buyers on local as well as global level. There’s an opportunity for sellers to make use of Amazon international marketplaces, increase their product and brand visibility and sales. There’s a huge flock of buyers out there, across the sea buying on Amazon which the business can target easily.

Increased Sales

Considering the enormous users Amazon has, it’s definite to have an increase in graph of sales. If you follow the Amazon guidelines and merchant rules while listing your product, you can definitely witness an increase in your sales with this wide network of a millions users.

And with its systematic and detailed catalogue management, the product inventory is completely taken care of, enabling users to find your product easily. And with Amazon’s investment in paid google search, your business is assisted with every means of increasing the sales.

Customer Acquisitions Ratio

When any customer is using Amazon platform, there’s no specific brand he’s looking for, it’s just the product that matters to him. This increases the probability of your product having new customers. Amazon increases the chances of your products being discovered by various users.

Cons
It comes with a cost

Even though your sales and profit would increase via Amazon, but there’s a cost to sell on Amazon. Irrespective of whether you hold a professional account or FBA (Fulfillment by Amazon); there comes a fee to pay. Your final choice of the fee plan is to be backed with thorough research and understanding of your requirements and business scope.

Competition

It goes without saying that when selling on one of the world’s largest platform, you will have competition to face. With thousands of sellers being listed on Amazon, it becomes a challenge to maintain and upscale your brand over the competition.

Lack of control

If you choose to sell on Amazon, you have no control over your brand’s visibility. Amazon’s goal is to sell products, no matter what brands it belongs to.

 

Before you take a call about Amazon selling, go through some of the many pros and cons of selling on your own website compared to Amazon.

Pros
Visibility – Only for you

Your website only speaks about your products unlike Amazon. When a customer lands on your website, there’s no distraction. A user’s complete focus is on your brand and product without being disturbed by flashy offers and deals from other brands.

Repeat Business through referrals

When people are asked about where they got things from, they always mention the name of the place and not the brand. So, when they buy from Amazon, your brand recall and repeat purchase goes for a toss. By selling from your own website, you’re more likely to earn referrals, as your brand presence is stronger.

Control

When you own a website, you are the decision maker. From content to design to paid google search ads, you’ll have a say and control over everything.

Cons
Technical Assistance

If anything goes wrong on the technical front, you are dependent on the website developer. And if he is unable to offer you technical assistance, then you are stuck.

Restricted Reach

One of the benefits of selling on Amazon marketplace is wider reach, which is not possible to achieve when the selling happens through your individual website. The prospective customer visits are restricted, cutting down a huge market both nationally and globally.

Trust and Credibility

If your business is relatively new, people would hesitate buying from your ecommerce website, as it’s difficult to make people switch their choices and regular buying platforms. Customers trust renowned marketplaces and sellers. Hence, you can get the benefit of acquiring customers through this already existing trusted relationship between the platform and buyers.

 

Final Word

Both the channels have their respective benefits and vices. But if both of them are used strategically, the seller can reap the benefits of both the platforms effectively. Amazon’s quick delivery and mobile-efficient approach helps in increasing your sales, and using this platform you can generate traffic to your website.

Using Amazon in unification with your own website will help you increasing sales at the same time maintaining your brand identity and getting repeat customers. Sellers can use the practice of inserting their flyer in their marketplace orders offering them discount 15%-20% discount on making their next purchase through their own (seller’s) website. In this way, you are not just making money on Amazon marketplace sales but also driving traffic to your website.

Investing time and effort on both the channels – Amazon and your website will help your business grow in the ecommerce industry.