Own shop system vs. platforms such as Amazon - which is better suited to your product?

You want to sell online - but where? Via your own online shop or on a platform like Amazon? Or maybe both? Many aspiring retailers ask themselves this question and the answer depends on several factors: Your product, your target group and your long-term pricing, marketing and growth strategy.

Advantages of your own online shop

Your own online shop is like your "digital home". Here you have full control over your brand, your products and the customer experience. You can create your own shop design, customise the texts and target your customers specifically. Customer Experience something that is often neglected in marketplaces.

Another major advantage is the Data sovereignty: You have direct access to Customer data, order history and user behaviourwhich provides you with valuable insights for marketing and product development. These through Ecommerce Tracking (with the help of a Web analysis tools) can be used to run personalised campaigns, create retargeting lists or build customer loyalty programmes.

The Margin is often better: you don't pay sales commissions (like Amazon, which charges up to 15-20 % of the sales price, depending on the category) and you can set your prices more freely.

❌ Disadvantages:

Of course, having your own shop is not always the cheapest or easiest option. You have to generate traffic yourself, which often involves SEO, Google Ads, social media or email marketing all disciplines that require time, expertise and budget.

You also have the technical responsibility. This means that you have to take care of Hosting, security, updates and backups or pay someone to do it. 

The legal framework (GDPR, cookie banner, cancellation policy) is also more complex than on a platform.

Advantages of marketplaces like Amazon

Amazon, eBay and Etsy offer the great advantage that you can Immediate access to millions of potential customers without having to do any marketing yourself. 

The platforms have built up trust, offer simple payment solutions and often even fulfilment services such as FBA (Fulfilment by Amazon). This saves you storage and logistics costs.

Amazon is simply the first port of call for many products - from electronics to household goods. If you are listed here, you benefit directly from the huge reach and trust that the Amazon brand enjoys. 

Think about it: How often do you google for products and how often do you look directly and without detours at Amazon because the shipping works quickly and smoothly and you appreciate the comparison offer (prices, reviews) and maybe even have a voucher? Exactly - and many users actually do this.

❌ Shady sides:

Where there is light, there is naturally a shadow. So you give up part of your margin - often quite a lot. Amazon collects sales fees, shipping fees and, in the case of FBA, even storage fees. 

You also have little influence on the customer experience and brand perception. You do not "own" the customer data and are dependent on the rules of the platform - which can change at any time.

Another problem: Price war and fierce competition. There are often many retailers selling the same or very similar products on platforms such as Amazon. Intermediaries quickly lose out to direct suppliers who import or manufacture their products themselves and sell them directly to end customers - often at significantly lower prices. 

But the truth is that the price war also takes place outside of Amazon. The middlemen have long since died out online - at least in many product areas.

Combining the two - is that even possible?

Many successful retailers rely on a combination of their own online shop and platforms such as Amazon, eBay or Etsy. This can make sense, but is not without risk.

What you should look out for:

• Pricing: Platforms charge high fees - you need to take this into account when calculating prices. Your margin is usually smaller on Amazon, so your own shop should generate a better margin.
• Product differentiation: Perhaps you sell your bestsellers on Amazon, but exclusive bundles or limited editions only in your own shop. This way you avoid direct price comparisons.
• Storage and logistics costs: If you use FBA, you will incur double storage costs if you also operate your own warehouse for your shop.
• Brand strategy: Your shop should always be the central point of contact for your brand - platforms serve more as an additional sales channel.
  

Which products are suitable for which channels?

Not every product is suitable for both channels. A few examples:

Ideal for Amazon:

• Standardised products with high demand (e.g. electronics, household goods, accessories)
• Consumer goods with low brand loyalty
• Inexpensive products that are often repurchased (e.g. mobile phone cases, batteries, household goods)

Ideal for your own shop:

• Unique, customisable products (e.g. jewellery, fashion, DIY items)
• Niche products that appeal to specific target groups
• Premium or luxury items where the brand is important
• Products that are subject to Explanation or advice require

Conclusion: pay attention to the margin

If you use both channels, you should calculate your prices precisely. On platforms like Amazon, you have to factor in the high fees - which significantly reduces your margin. Your own shop should therefore Higher margins to make the additional effort worthwhile.

Read more:

• Payment providers for online shops - which solution is right for you?
• A comparison of shipping service providers - which solution is right for you?
• E-commerce tracking - how to keep an overview
• Returns management in e-commerce - how to minimise costs and frustration
• Create an online shop: Your entry into e-commerce