The big question: should you sell on a marketplace like Amazon, Etsy or eBay or build and sell through your own website using Shopify or WooCommerce?
The quick answer:
- Marketplaces give you instant traffic but come with fees and competition.
- Your own website gives you full control but requires effort to drive traffic.
- The best strategy? Use both. Start with a marketplace for quick sales, then build your website for long-term growth.
Both have pros and cons and it all depends on your goals, resources and what you sell. Let’s break it down.
Summary
- Selling on marketplaces is easy and instant exposure but comes with fees and competition.
- Building your own website gives you full control over branding and customer relationships but requires effort to drive traffic.
- A hybrid approach, using both marketplaces and a website, might be the best of both worlds.
Selling on Marketplaces
What Is Selling on Marketplaces?
If you’ve ever shopped on Amazon, eBay or Etsy you’ve already seen what selling on marketplaces looks like.
These platforms are like online malls, hosting thousands of sellers under one roof. They’re super popular because they attract tons of traffic making them a great option for anyone who wants to start selling.
For example Amazon gets over 2.5 billion visitors a month, from 310 million active users from around the globe!
That means your products are in front of millions of potential customers without you having to build a website, host a website or spend months learning digital marketing.
Pros and Cons of Selling on Marketiplaces
Quick Overview
Pros of Selling on Marketplaces | Cons of Selling on Marketplaces |
---|---|
Instant Traffic – Millions of buyers are already searching for products. Amazon alone gets 2.5 billion monthly visitors. | High Fees – Amazon takes 15-40% of every sale, plus additional fulfillment fees. Etsy charges listing and transaction fees. |
Easy Setup – No need to design a website. You can list products in under an hour. | Tough Competition – Thousands of sellers offer the same products. Worse, Amazon often competes with you using its private-label brands. |
Built-in Trust – Marketplaces handle payment security, customer protection, and reviews, increasing buyer confidence. | No Customer Ownership – You don’t get customer emails, meaning you can’t build a loyal audience or retarget buyers. |
Logistics Support – Services like Amazon FBA and eBay Global Shipping manage fulfillment, making it easier to scale. | Risk of Dependency – If your account gets suspended or platform policies change, your income disappears overnight. |
Pros of Selling on Marketplaces
1. Instant Traffic
One of the biggest benefits is the built in audience. These platforms are already trusted by shoppers so you don’t have to spend a fortune on marketing.
Customers go to Amazon or Etsy with their wallet ready to buy so your product is more likely to be seen and bought.
2. Easy Setup
Listing on a marketplace is easy. I’ve seen people set up a shop in under an hour! Marketplaces handle the technical heavy lifting like payment processing and logistics so you can focus on selling.
3. Trust Factor
Customers are more likely to buy from a well known marketplace than an unknown website. Marketplaces often have robust buyer protections which gives shoppers peace of mind.
4. Logistics Support
Amazon for example has Fulfillment by Amazon (FBA) where they store, pack and ship your products. This is a lifesaver if you don’t want to deal with inventory and shipping yourself.
Cons of Selling on Marketplaces
1. Fees and Commissions
Here’s the catch: marketplaces charge fees. Amazon takes 15-40% of your sales depending on your product category and Etsy charges listing fees and transaction fees. These can add up fast and eat into your profit.
2. Limited Brand Control
You’re basically renting space on someone else’s platform. Your branding takes a backseat to the marketplace’s design and policies which can make it harder to build a loyal customer base.
3. Competition
You’re competing with other sellers offering similar products and sometimes even with the marketplace itself! Amazon for example has its own private label products that compete with third party sellers.
4. Risk of Dependency
Relying too much on a marketplace can be risky. Account suspensions, policy changes or new competitors can kill your business overnight. It’s like building a house on rented land.
When to Choose a Marketplace
Marketplaces are perfect if you’re just starting out and want to get your feet wet without a big investment.
They’re also great for products that are already in high demand like tech gadgets or unique handmade goods.
If you don’t have the time or expertise to build a website marketplaces offer a quick and low risk way to start selling.
Selling on Your Own Website
What’s Involved in Selling on Your Own Website?
Selling on your own website means building your digital storefront from scratch. You’ll need to choose an eCommerce platform like Shopify, WooCommerce or BigCommerce.
These platforms give you full control over your site’s design, branding and functionality.
While this route takes more upfront work it’s incredibly rewarding. You’re not just selling products you’re building a brand.
What It Involves
Selling on your own website means you own your brand, set your pricing, and control the customer experience. Unlike marketplaces, you’re not just another seller on a massive platform—you’re building a long-term business.
This requires choosing an eCommerce platform and setting up your store.
Best eCommerce Platforms to Consider
Shopify – Best for beginners and fast-growing brands. Easy to use, integrates with marketplaces, and has built-in marketing tools.
Shopify Magic AI Builder – Uses AI to generate product descriptions, automate design, and optimize your store in minutes.
WooCommerce – Best for WordPress users. Completely customizable but requires more setup.
Wix eCommerce – Best for small businesses and creative sellers. Drag-and-drop builder with strong design flexibility.
BigCommerce – Best for scaling businesses. More powerful features than Shopify but requires technical knowledge.
Each platform has different pricing, features, and customization levels, so pick one that fits your business needs.
Pros and Cons of Selling on Your Website
Quick Overview
Pros of Selling on Your Own Website | Cons of Selling on Your Own Website |
---|---|
Full Brand Control – Customize everything, from branding and product pages to marketing and customer communication. | You Must Drive Traffic – Unlike Amazon, you have to attract visitors yourself using SEO, ads, and social media. |
Higher Profit Margins – No platform commissions. Just payment processing fees (2-3%), which are much lower than Amazon’s cut. | Upfront Costs – Website hosting, themes, and marketing can add up. Shopify starts at $29/month, while WooCommerce and Wix can be cheaper but may require add-ons. |
Customer Ownership – Collect emails, build a loyal customer base, and retarget buyers with special offers. | Technical Learning Curve – Managing a store means handling plugins, updates, and analytics, which can be overwhelming if you’re not tech-savvy. |
Scalability – You can grow your business through SEO, content marketing, email marketing, and paid ads, making sales more predictable over time. |
Pros of Selling on Your Own Website
1. Full Brand Control
Your website is your online home. You control the layout, the colors and the messaging. Want a unique logo? Done. Need to create a blog? Easy. You’re not limited by someone else’s rules.
2. Better Profit Margins
No middleman means no commission fees. Sure you’ll have hosting and payment processing costs but those are usually a fraction of what marketplaces charge.
3. Ownership of Customer Data
This is huge. When you sell on a marketplace you don’t own the customer relationship. But on your website you collect email addresses, track customer behavior and build a loyal audience. This makes it easier to retarget customers and drive repeat sales.
4. Scalability
Your website can grow with your business. Want to add a blog, loyalty program or membership area? It’s all possible and you’re in control.
Cons of Selling on Your Own Website
1. Traffic Generation
Unlike marketplaces you’re responsible for driving traffic to your website. This means investing in SEO, social media marketing or paid ads. It can take months to build up enough traffic to see consistent sales.
2. Higher Upfront Costs
Building a professional website isn’t free. You’ll need to pay for hosting, a domain name and possibly even a designer if you want a nice looking site.
3. Technical Knowledge Required
While platforms like Shopify make it easier, you’ll still need to learn how to manage your website. Things like plugins, updates and analytics can be overwhelming if you’re not tech savvy.
4. Trust Takes Time
If you’re an unknown brand getting customers to trust you can be a challenge. This is where reviews, testimonials and high quality product images come into play.
When to Choose Your Own Website
If you’re serious about building a long term business and want full control over your brand selling on your own website is the way to go. It’s ideal for niche products or businesses that rely on repeat customers.
Which One is More Profitable?
Profitability depends on your strategy. Let’s break it down:
Factor | Marketplaces | Own Website |
---|---|---|
Profit Margins | Lower (15-40% fees) | Higher (keep most of the revenue) |
Traffic Source | Built-in audience | You drive traffic via SEO, ads, social media |
Brand Control | Limited (platform controls everything) | Full control (branding, messaging, layout) |
Customer Data | No access | You own customer info for email marketing |
Long-Term Growth | Risky (policy changes, competition) | Scalable (build authority, own audience) |
Key Takeaway:
- If you want fast sales, start on a marketplace.
- If you want long-term, high-margin sales, build your own website.
- Best strategy? Use marketplaces to get exposure, then drive traffic to your site for repeat business.
The Hybrid Approach: Best of Both Worlds
Why choose between marketplaces and your own website when you can leverage both? A hybrid strategy allows you to take advantage of marketplace traffic for quick sales while building your brand and customer base through your own website. This approach gives you the best of both worlds:
- Immediate exposure on platforms like Amazon and Etsy.
- Long-term profitability and customer retention through your website.
The goal is to use marketplaces as a launchpad while gradually transitioning customers to your website where you own the relationship and increase profit margins.
How to Transition from Marketplaces to Your Own Website
Step 1. Start on a Marketplace for Quick Sales & Brand Awareness
Selling on platforms like Amazon, Etsy, or eBay allows you to test demand, validate your products, and generate revenue quickly. These platforms already have an audience, so you don’t need to worry about traffic at first.
Pro Tip: Choose products with high demand but moderate competition to gain traction faster.
Step 2. Collect Emails to Build a Customer List
Since marketplaces don’t give you access to customer emails, you need to creatively capture customer data. Some ways to do this include:
Offering discount codes or freebies that require customers to visit your website.
Including a QR code inside your packaging that directs buyers to an exclusive offer on your site.
Running a VIP membership or loyalty program with benefits only available through your website.
Example: A skincare brand could include a “Join our VIP club for 10% off your next purchase” flyer in Amazon packages, leading customers to a landing page where they enter their email.
Step 3. Drive Marketplace Buyers to Your Website with Inserts & Bonuses
Since Amazon and Etsy don’t allow you to directly market to customers, use product inserts and packaging to encourage them to visit your website.
Add discount flyers with a promo code redeemable only on your website.
Offer exclusive bonuses (e.g., downloadable guides, extra accessories, or early access to new products).
Use branded packaging and custom thank-you notes to create a personal touch and direct them to your online store.
Example: A fitness brand selling on Amazon can include a QR code linking to a free “30-Day Workout Plan” available only on their website.
Step 4. Build Organic Traffic with SEO, Blogging, and Social Media
Once you’ve captured marketplace customers, it’s time to generate your own traffic. The key is to rank on Google, engage on social media, and create content that drives visitors to your site.
SEO: Optimize your website with keyword-rich product descriptions, category pages, and blog content.
Blogging: Create helpful articles related to your niche (e.g., “Best Skincare Routine for Dry Skin” if you sell beauty products).
YouTube & Pinterest: These platforms are search engines in disguise. Video tutorials and Pinterest pins can bring thousands of visitors to your website over time.
Influencer Marketing: Work with micro-influencers to promote your website instead of just your marketplace listings.
Example: A home decor brand selling on Etsy can start a Pinterest strategy, driving organic traffic to their Shopify store.
Step 5. Offer Exclusive Deals & Perks on Your Website
To incentivize repeat purchases, make your website the better buying option. Give customers reasons to shop directly from you instead of going back to the marketplace.
Offer website-only discounts and bundles (e.g., “Buy 2, Get 1 Free – Only on Our Website”).
Give early access to new products, limited editions, or members-only sales.
Provide subscription options for repeat customers (e.g., monthly coffee deliveries or skincare subscriptions).
Example: A candle brand that started on Amazon could introduce a “Candle of the Month” subscription available only on their website.
Examples of Brands That Successfully Transitioned
Gymshark – Started selling on eBay but now does $500M+ in direct-to-consumer sales through their own website. They used social media marketing, influencer partnerships, and exclusive website deals to shift customers away from marketplaces.
Beardbrand – Launched on Amazon but gradually redirected traffic to their Shopify store. They built a blog, created YouTube content, and ran email marketing campaigns, making their website the primary sales channel.
MVMT Watches – Sold on marketplaces initially but used Facebook ads, influencer marketing, and website exclusives to drive customers to their Shopify store. They later sold their brand for $100M+.
FAQs
Should I sell on multiple marketplaces?
Yes, if you can manage inventory and fees. Selling on multiple platforms increases your reach but complicates logistics.
How can I promote my own website?
Drive traffic through SEO, social media, email marketing and PPC ads.
What sells well on marketplaces?
High demand, low competition products usually do well. Think unique handmade items, trending gadgets or niche products.
Conclusion
Which is best? It depends.
If you want quick, easy sales, start on marketplaces.
If you want higher profits and long-term control, build your own site.
But the best approach? Use both. Start with a marketplace, then build your brand and website for long-term success.
Your move. Ready to scale your business?