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Pros and Cons of Selling on Amazon vs. Your Own Website

Published on:

Thursday, February 9, 2023

When searching for a new product or solution to a specific problem, at home or in the workplace, a large percentage of the consumer market will head to a marketplace site like Amazon to find what they need. Not only does Amazon in particular offer a competitive array of prices and a reputable fulfilment service, but it also connects buyers with a multitude of products which suit their needs, giving them the flexibility and value of an extensive choice no matter what they need.

From a business point of view, and as a seller yourself, this presents a range of benefits and challenges. While the vast customer recognition of and affinity for Amazon as a marketplace means that the potential audience and exposure for your brand and products is huge, cutting through the competition is no mean feat – requiring high level optimisation to ensure you are making the most of your corner on the marketplace.

With all things considered, Amazon is a good option for retailers – but so is selling your own store. In this blog post, we look at the pros and cons of both options.

The benefits of selling on Amazon

The biggest benefit of selling on Amazon is the incredible exposure that your business will get, due to the high and ever-increasing number of customers who use Amazon as a go-to for products across all sectors. If you, as a business, can optimise your listings and work within the realms of Amazon’s guidelines and regulations then you can see some real traction and get seen by a vast customer base who may otherwise never have found you.

Another benefit of Amazon is that you automatically benefit from the high reputation that Amazon holds in terms of fulfilment and the customer service. Customers trust Amazon, and they trust businesses that sell through Amazon as a result.

Challenges to consider when selling on Amazon

Of course, there is no avenue to selling which doesn’t present challenges of some sort – and Amazon is no different. The competition between your business and likeminded brands is huge, and optimising each listing can be a challenge if you don’t seek the right support.

Here at Social Loop, our Amazon optimisation services help businesses to be seen on the platform by the right customers, localising listings and tapping into all the benefits that Amazon offers to savvy brands.

Finally, every sale on Amazon is managed by the platform which means relinquishing customer journey control, and each sale commands a fee – therefore, the marketplace’s core business model is something else you need to understand before you dive in.

The benefits of selling direct through your website

One of the best ways of promoting your own product or range of products is through your own website – spotlighting your own deals and making sure that your core selling points and benefits take centre stage.

Online shopping

Unlike Amazon, selling through your own website means the entire page and user experience is centred around you and your brand – giving you complete control over everything from presentation to the user journey and beyond. Plus, when you sell directly you own the positive user experiences and testimonials which come in from customers – with reviews integral in driving new and future sales.

Reasons why selling on your website is not always the best solution

While selling on your own site presents more control than working through Amazon’s marketplace platform, the biggest challenge lies in getting your website out there and in the direct eye-line of those who will visit it and use it to find what they are looking for.

With Amazon such a convenient and reputable provider of all sorts of products from different corners of the retail market, competing with that means creating a strong brand proposition and working hard to get it out there on the market – building credibility and using different digital marketing streams and platforms to generate customer interest and conversion.

Which is better: Amazon or direct?

All in all, both Amazon and direct retail websites offer benefits to the businesses that use them, with Amazon combining its vast presence and customer base with tools to help maximise your sales. These tools, combined with optimisation services and support, can help Amazon to become a successful branch of your business which can support sales through your own website or even replace them completely – depending on your business model.

For more advice on using Amazon to boost your business, reach out to us directly.