Is it better to sell on Amazon or to run your own store?

Q&A • Strategy

Is it better to sell on Amazon or to run your own store?

It is not an all-or-nothing decision. The useful question is not which one wins, but how much margin each channel leaves you and who owns the customer in the end.

Short answer

  1. Amazon brings traffic from day one, but charges a referral fee per sale plus a subscription if you sell on a professional plan.
  2. Your own store has a fixed monthly cost and takes no percentage of each order beyond the payment gateway.
  3. On a marketplace the customer belongs to the marketplace: you get no email address and cannot build loyalty directly.
  4. Your own store requires investment in acquisition: SEO, content, social media or advertising.
  5. The most common combination is using the marketplace as a shop window and your own store as the margin channel.

Comparing the two channels

Marketplace versus your own store

AspectMarketplaceYour own store
Main costReferral fee per sale plus monthly planFixed platform fee
TrafficImmediate, but with internal competitionYou have to build it
Customer dataThe marketplace'sYours
BrandDiluted in the product listingFull control of design and message
RiskAccount suspension or rule changesDepending on your own acquisition

Practical example

Example: you sell a product at €40 with a €22 cost. On a marketplace charging a 15% referral fee you pay €6 per sale, so from around 40 orders a month the percentage already exceeds a fixed platform fee. The maths changes if those 40 orders only exist because the marketplace brings the traffic: then your own store does not replace the channel, it complements it.

Common mistakes

  • Comparing only the referral fee and forgetting the monthly plan, logistics and internal advertising.
  • Relying on a single channel: one account suspension takes the business to zero.
  • Copying the marketplace listing descriptions verbatim into your own store.
  • Launching your own store with no acquisition plan and expecting sales in week one.

How 4shopy helps

  • The cost is a fixed monthly fee, with no percentage on each order.
  • Customer and order data are yours and can be exported.
  • The catalogue is managed in one place even if you keep selling on the marketplace too.
  • Product pages are built to rank and to be cited by AI-powered search engines.