If you’ve ever wondered if it pays off to move from marketplaces to having your own eCommerce store, or if you’re a beginner unsure about choosing between the two, you’re not alone – it’s a tough call many have to make. Today, we’ll delve into it to give you a comprehensive list of pros for branching out with your own website.
In the ever-evolving digital marketplace, entrepreneurs and merch sellers are faced with a difficult choice: should they go for a giant marketplace like Amazon, or take the leap and create their own online store? Amazon stands out as the eCommerce go-to, commanding a whopping 66% of product searches – not to mention, it’s pretty user-friendly and easy to navigate.
However, despite Amazon’s extensive reach and convenience, there are solid reasons why establishing your own online presence with a dedicated store might prove to be a wiser, more lucrative approach. Here are five compelling reasons why setting up your store could potentially outshine selling on Amazon in the long run:
1. Profit margins
Operating your own store gives you the potential to enjoy better profit margins compared to selling on Amazon. This is because you have more control over pricing. Amazon comes with hefty fees and tight profit margins: Seller fees, taxes, FBA fees, and advertising costs all eat into profits per item. This can be a big challenge for new or small-scale sellers.
While there’s an initial investment needed to build and promote your website, you can steer clear of ongoing selling fees, commissions, and the tough competition for visibility that online marketplaces bring. Ultimately, this approach could lead to better profit margins in the long run.
2. Brand control and customer relationships
Creating and managing your custom website to sell products gives you a special edge, especially when it comes to brand control and nurturing meaningful customer connections. Unlike selling on marketplaces, where strict rules and a crowd of rivals can water down your brand’s presence, having your site lets you shape the shopping experience to match your brand’s style and values entirely. This independence covers everything from your storefront’s design to how each product is showcased, ensuring each aspect aligns with your brand and resonates with your customers’ tastes.
Putting work into your website offers unmatched control over the customer journey. It allows you to connect with customers on a personal level, grasp their needs, and really engage with them. While Amazon and similar platforms provide exposure, they often lack in helping brands cultivate a loyal customer base and strengthen brand recognition.
3. Less competition
Competition on Amazon can get pretty tough! With over 6.3 million online sellers globally, ranging from big retailers to smaller businesses, it’s a crowded space. Standing out requires careful product selection and smart positioning.
Selling on Amazon presents the reality that several competitors might have products similar to yours. This calls for a unique selling proposition and a lot of 5-star reviews to keep ahead. It’s crucial to understand that in this expansive marketplace, larger businesses with more resources could overshadow smaller sellers. Achieving visibility often means navigating Amazon’s SEO tactics and investing in ‘Sponsored Category’ placements. However, even with these paid strategies, lasting customer loyalty isn’t guaranteed. Succeeding in this setting requires not just standing out through product differentiation, but also embracing a customer-first approach that centers on their needs and satisfaction.
On the flip side, having your own store bypasses many of the competitive obstacles faced on Amazon. Your products get the chance to stand out based on their own merits, without constant comparisons to numerous competitors. In your own space, the struggle for visibility among many others transforms into the task of attracting traffic to your site — an opportunity for implementing creative strategies that align with your brand.
4. More marketing options
Comparing advertising and revenue between Amazon and your own ecommerce site reveals some interesting distinctions. While Amazon dominates its own ads, which can limit external promotion for sellers, your ecommerce platform provides a variety of advertising options. This shift offers the flexibility to implement comprehensive digital strategies, such as SEO for your online store, targeted social media campaigns, and email marketing.
By focusing on promoting your site directly, you can sidestep competition and have more control over the customer journey. Additionally, this transition opens up new revenue streams beyond just direct sales. Embracing personal ecommerce allows for a deeper dive into digital marketing, turning visibility challenges into exciting growth opportunities.
5. Improved data insights
Embracing your own ecommerce site not only gives you access to a treasure trove of data insights that go beyond Amazon’s analytics capabilities, but also offers a deeper understanding of customer behavior. While Amazon gives a basic overview of metrics like sessions and conversions, the analytics on your website provide a more comprehensive view of customer interactions. This enables you to set and track KPIs, such as transactions, browsing history, average order value, time spent on each page, conversion patterns, and more. Essentially, you get real-time visibility into how customers engage with your site from the moment they land on it.
This detailed data serves as a powerful tool for optimizing your website’s performance and guiding strategic decision-making across your entire business. With insights into customer behavior, you can fine-tune product offerings, tailor marketing campaigns, and enhance the overall user experience to better meet their needs and expectations. Moreover, capturing customer data allows for personalized marketing efforts, improving purchase decisions and boosting conversions.
Embracing your ecommerce site goes beyond just diversifying sales channels. It’s about taking charge of your brand, data, and future. By investing in your platform, you’re setting the stage for long-term success and growth. Understand customer behavior, create a unique brand experience, and stand out from big marketplaces. Launching your own website gives you the power to build a loyal customer base and try out new marketing strategies. Take charge of your platform to boost profitability through pricing control, promotions, and customer connections. Shifting to your website can lower costs and enhance your competitive edge.
Now that you’ve recognized the benefits of having your own website, all you need to gain traction are great designs and products that are up to date with current merch trends and sales leaders, alongside a visually appealing store. Vexels provides ready-made design resources and templates that you can tailor using our exclusive T-shirt Maker. Plus, if you’re in need of engaging photos to showcase your offerings, our Mockup Generator can be your best ally.
Building your ecommerce site is an investment in your business’s future, marking your independence from third-party platforms and creating something uniquely yours.
