Overview

New Amazon sellers and entrepreneurs launching a standalone e‑commerce store face a pivotal decision: which channel to open first. The choice influences acquisition costs, control over branding, and long‑term profit margins. Understanding the trade‑offs helps sellers allocate resources wisely from day one.

Key Points

• Built‑in shopper base — Amazon’s platform reaches more than 300 million active buyers, allowing a fresh product to appear in search results instantly.
• Initial outlay — Creating a personal website typically requires purchasing a domain, securing hosting, and using a design tool, often costing between $100 and $500 before any revenue is generated.
• Fee comparison — Amazon charges referral and fulfillment fees that can total 15 %‑30 % of each sale, whereas a self‑hosted store usually only pays a payment‑processor fee of roughly 2.9 % + $0.30 per transaction.
• Brand expression — On a private site sellers dictate layout, messaging, and email capture, enabling tactics such as limited‑time bundles; Amazon limits storefront design to preset templates.
• Data ownership — Amazon shares only basic order details, while a dedicated site provides full access to buyer emails, purchase histories, and browsing patterns for remarketing.
• Fulfillment flexibility — Fulfilment by Amazon (FBA) manages storage, packing, and Prime shipping but adds warehousing fees; a personal store lets sellers pick third‑party logistics or ship directly, affecting speed and cost.

How Selling on Amazon vs. Your Own Site Works

1. Assess market concentration — Determine where target customers spend time; for instance, a Bluetooth speaker may thrive on Amazon’s tech‑savvy audience, whereas a handcrafted pottery line could perform better on a niche boutique website.
2. Calculate total expenses — Itemize every charge for each channel; a $45 scented candle sold on Amazon might leave the seller with $30 after a 15 % referral fee and a $5 FBA charge, while the same sale on a personal site could net $42 after a $0.30 processor fee.