What this article covers

1. Selling on Amazon – how it works, the benefits of built-in traffic and FBA logistics, and real costs you need to be aware of.
2. Selling on your own website – platform options, the benefits of ownership and customer data, and the challenges of self-driving your business.
3. Strategic comparison – including hybrid approaches and how tools like Koongo can maximize success across both.

By the end, you’ll understand which channel aligns with your goals and how Koongo can simplify running them together.

In 2025, choosing between selling on Amazon or running your own website isn’t just a business decision, it’s a strategic pivot that can determine your brand’s trajectory. With global e-commerce set to exceed $6.86 trillion this year and online sales making up 21% of all retail transactions in the U.S., the digital marketplace has never been more competitive or full of opportunities.

At the same time, Amazon dominates about 40% of U.S. e-commerce market share in 2025, making it virtually a necessity for exposure. But with that dominance comes fierce competition, rising fees, and limited control over your brand and customer data. That’s where owning your own e‑commerce site comes in: you gain complete control over branding, pricing, and customer experience, but now you need to drive your own traffic, handle logistics, and maintain your storefront.

Navigating this landscape effectively means understanding the strengths and limitations of each channel and how they can complement each other. Today, multichannel e-commerce is the gold standard. A unified feed and order management system like Koongo can streamline operations, keep listings consistent, and automate orders, allowing you to leverage Amazon’s reach while building your direct brand ecosystem.

Overview: Selling on Amazon

How Amazon works

Amazon offers multiple seller models, but the most common for businesses is:

• Seller Central: You list products, manage inventory, and choose between fulfilling orders yourself (FBM) or using Fulfillment by Amazon (FBA).
• FBA: You ship inventory to Amazon warehouses. They handle storage, packing, shipping, returns, and even customer service.
• Fees: There’s a monthly subscription ($39.99 for Professional accounts), referral fees (6–45%), and FBA charges for warehousing and fulfillment. Pendding marketing spend on Sponsored Ads, too.

Reach

• ~310 million active customers worldwide
• 2.5 billion monthly visits, half via mobile
• Generates about $1.75 billion in daily sales
• Controls ~40% of U.S. e‑commerce market

That scale makes it an unrivaled platform for instant exposure to purchase-ready shoppers.

Key benefits

1. Massive Traffic & Trust
Amazon’s huge built-in audience means customers often bypass research and comparison, they trust the platform and go straight to buying.

2. Fulfillment by Amazon (FBA)
FBA empowers even small businesses to offer fast, Prime-like shipping without logistics infrastructure. According to Webinterpret, around 80% of sellers opt for FBA in 2024.

3. Customer Service
From returns to complaints, Amazon handles customer interactions professionally—taking that operational burden off your plate.

Drawbacks

1. High Fees
Referral fees of 6–45%, plus monthly subscriptions, FBA logistics, and advertising costs, can slash net margins. Sellers report raising prices to compensate.

2. Limited Branding & Customer Data
Your brand gets boxed into Amazon’s UX. There’s no unique storefront design, limited to basic seller branding. More critically, Amazon caps access to customer contacts, emails, or behavior routes.

3. Risk of Suspensions
Policy violations—intentional or not—can lead to account suspension. Many businesses live with the fear of sudden product delistings or data loss.

Overview: Selling on Your Own Website

Platform options

Popular e-commerce platforms include:

• Shopify – intuitive, hundreds of apps, slightly higher monthly fees.
• WooCommerce – open‑source plugin for WordPress; highly flexible but technically demanding.
• BigCommerce – scalable for larger catalogs, strong SEO features.
  These platforms generally charge hosting, transaction, or subscription fees, but allow full control over design, user experience, and data.

Benefits

1. Branding & Pricing Control
Create a unique storefront that embodies your brand identity: colors, layout, copy, everything. You decide pricing strategies and promotions without Amazon restrictions.

2. Customer Relationships & Data Ownership
Your site captures emails, purchase-related cookies, and buyer behavior. This is gold for retargeting, loyalty campaigns, and personalization .

3. Lower Long-Term Costs
You avoid referral or listing fees. After covering platform subscription and marketing, your profits scale directly with traffic and sales .

Drawbacks

1. You Must Drive Traffic
No built-in audience means marketing efforts are critical: SEO strategy, paid ads (Google, Meta), content marketing, and email campaigns are your engines.

2. Full Operational Responsibility
You manage hosting uptime, security (SSL, GDPR compliance), site speed, customer support, and returns. That also includes shipping logistics unless you integrate a service like ShipBob, or use FBA Multi-Channel Fulfillment.

3. Up-Front Setup & Maintenance
Initial development — design, writing copy, selecting plugins takes time and budget. Ongoing tasks include SEO monitoring, plugin updates, A/B testing, and regular content creation.

Why It Matters

• Amazon is perfect for rapid scale, tapping into a global audience and letting you offload operations, but it means ceding control, paying premium fees, and riding someone else’s policy rollercoaster.
• Your own site gives freedom, ownership, and data-driven growth potential—but success depends on marketing skills, operational systems, and site mastery.

Cost Comparison Table (2025 Updated)

Here’s a straightforward side-by-side cost breakdown to help you visualize the financial differences between selling on Amazon (FBA) versus operating your own e-commerce store.

Cost Factor	Amazon FBA (2025)	Own Store
Subscription	$39.99/month for Professional Seller plan	Shopify – $29–$299/month; WooCommerce (self‑hosted) – ≈ $10–$50/month hosting; BigCommerce – $29.95–$299.95
Referral Fee	6–45% per sale depending on product category	None
FBA Fulfillment Fee	$2.29–$3+ per small item; large/bulky: $5–$25+ per unit	Shipping via carriers: ~$2–$10 per parcel (can vary); can use own fulfillment or third-party logistics
Inbound Placement Fee	-$0.58/unit discount for bulky items; no inbound fee for first 100 units/new ASINs	Not applicable
Advertising & Promotions	$0.10–$3+ per click for Sponsored Ads	Google Ads, Facebook Ads: similar CPC; SEO & content marketing costs vary
Platform and App Costs	Included in FBA; optional tools may cost extra	Shopify Apps $5–$50 each; WooCommerce plugins; theme costs
Payment Processing Fees	Included in referral fee	Shopify Payments: ~2.9% + $0.30/transaction; Stripe/PayPal similar
Design & Development	Standard Amazon template; little design cost	One-time design (~$500–$5,000) + ongoing maintenance/UX/user experience costs
Customer Support	Handled by Amazon (returns, inquiries)	In-house or outsourced support—staff/tools needed
Total Estimated Cost per Sale	~25–40% of sale price (referral + FBA + advertising)	Platform + marketing + shipping ~10–20%, depending on volume and marketing efficiency

Why these numbers matter:

• Amazon streamlines operations: warehousing, shipping, customer care, but costs add up fast.
• Your own site gives control and higher margins, but you bear marketing, logistics, and setup costs.

Long-Term Strategy: Why You Might Need Both

Amazon = Visibility • Your Website = Loyalty

Most high-performance brands adopt a two-pronged approach:

1. Leverage Amazon for immediate exposure to 310+ million active global shoppers, Prime’s fast shipping, and Amazon’s trust factor.
2. Cultivate your own platform for nuanced branding, personalized user experiences, email marketing, and evergreen SEO content.

This dual strategy enables:

• Top-of-funnel sales via Amazon’s massive traffic and built-in authority.
• Bottom-funnel loyalty and higher average order value on your owned site, which fosters strong customer relationships and trust.

The Real Power is in Omnichannel Selling

Modern consumers expect seamless shopping across channels—Amazon, social, search, and your website. Top brands create a cohesive experience regardless of where they make a sale.

• Diversified revenue streams reduce dependency on a single channel.
• Brand equity and trust accumulate more on your own platform, where you control messaging and customer journey.
• You build zero-party data, which is ideal for personalization and future sales.

What the Data Says: Real Stats

Amazon’s E-Commerce Dominance

• Controls ~40.4% of the U.S. online retail market as of 2025.
• Hosts over 310 million active global users, including ~230 million U.S. shoppers.
• Generates approximately $1.75 billion in daily sales .

Customer Search Behavior

• 56% start their product searches on Amazon, making it more potent than search engines like Google (21%) and Walmart (12%).
• Between 51–66% of consumers research on Amazon for new products before purchasing.

Direct Brand Purchases

• About 60% of consumers now prefer buying directly from brands, believing they offer better value and personalization.
• 55% of shoppers say they’d buy from a brand directly if the deal is better than on Amazon .

Brand Trust & Loyalty

• 87% of consumers are willing to pay more for brands they trust.
• 81% require trust to even consider a purchase and once they trust you, loyalty skyrockets.
• 64% of consumers feel more loyal when they’re connected to a brand through shared values.

How to Choose: Key Questions to Ask

When deciding between Amazon and your own website, consider these essential questions:

1. What’s your budget?

• Amazon: A Professional Seller account costs $39.99/month, plus referral fees (6–45% of sale) and FBA fulfillment (≈$2.29–$25+/unit). Advertising (Sponsored Products) adds $0.10–$3 per click.
• Own Site: Hosting ranges from $10–$50/month; Shopify plans between $29–$299 monthly, WooCommerce hosting is similar. Additional costs include marketing tools ($5–$50+/app) and payment processing (~2.9% + $0.30/transaction). Over time, total costs per sale typically range from 10–20%.

2. Do you want to build a brand or just make sales?

• Amazon: Great for converting buyers quickly with impactful visibility, but brand identity is limited by Amazon’s template and policies.
• Your Own Site: Gives full creative control—color schemes, messaging, pricing, UX, and the ability to nurture long-term customer relationships.

3. Are you ready to handle logistics?

• Amazon FBA: Takes care of warehousing, shipping, returns, and customer service—ideal for lean operations.
• Your Own Site: You must manage warehousing or integrate with 3PLs (e.g., ShipBob), handle customer service, returns, shipping costs, and maintain site compliance.

4. Do you sell unique products or high-competition items?

• Unique/Proprietary Products: Often perform well on independent sites, especially with niche marketing and brand storytelling—fewer restrictions and lower fee pressure.
• High-Competition/Commoditized Products: Amazon’s reach and trust help you stand out through pricing, reviews, and featured listing advantages.

Tips for Success in Each Model

Amazon

1. Optimize Listings
   • Title: Include main keywords—brand, product name, size, key attributes.
   • Bullet Points: Address features, benefits, dimensions, materials. Clear, scannable, keyword‑rich.
   • Backend Search Terms: Use all fields, avoid repetition. Include secondary keywords.
2. Manage Reviews
   • Encourage honest reviews via follow-up emails or insert cards (within Amazon policy).
   • Respond to negative reviews professionally and promptly to maintain rating.
3. Use Ads Wisely
   • Start with automated Sponsored Product ads to collect keyword data.
   • Then use manual ads targeting high-performing keywords.
   • Focus on ACoS (Advertising Cost of Sale): aim below 30% in most categories.

Own Website

1. SEO
   • Improve site speed and mobile experience.
   • Publish optimized meta titles, descriptions, headings, and product content.
   • Include blogs, FAQ pages, and topic clusters to attract organic traffic.
2. Email Marketing
   • Implement cart abandonment workflows (e.g., reminders within 1–3 hours).
   • Use personalized promo codes and product recommendations.
   • Abandoned cart emails see average open rates of ~50% and click-to-conversion ~3–7%.
3. Social Proof
   • Display customer reviews, UGC images, trust badges, and case studies.
   • Highlight high-value testimonials and media features to build credibility.
4. Cart Recovery & Content Marketing
   • Automate push notifications and email reminders.
   • Provide incentives for returning customers (e.g., “You left items in your cart—here’s 10% off”).
   • Craft brand-rich content: how-to guides, product videos, and comparisons.

How Koongo Can Help in Both Cases

Streamline Your Multichannel Operations

1. Feed Management
   • Automatically format and syndicate your product data to Amazon, Shopify, Meta, Google Shopping, and 500+ channels.
   • Create custom feed rules per channel to optimize titles, descriptions, attributes, and pricing.
2. Order Synchronization
   • Consolidate Amazon and website orders into your backend system (ERP, accounting, CRM) in real time.
   • Free up time and avoid copying orders manually.
3. Custom Marketplace Feeds
   • Integrate with niche sales channels (e.g., price comparison sites, regional marketplaces) using tailored XML/CSV feeds.
4. Real-Time Data Sync
   • Automatically update inventory levels, pricing, and content across platforms to prevent overselling and maintain consistency.

Result: Scale efficiently, reduce manual errors, boost ROI, and maintain cohesive branding across all your sales channels.

Conclusion

• No one‑size‑fits‑all answer: Choose Amazon for rapid market access and your own site for brand control and long-term value.
• Recommended strategy: Start with Amazon to test markets and fund growth, then broaden to your site to build brand loyalty and higher margin repeat sales.
• Alternatively, launch your own store for niche products where you control perception from day one—while still leveraging Amazon for reach.
• Embrace the hybrid: Combine Amazon’s reach with your site’s personalization for a balanced, scalable business.

Koongo supports whichever path you choose (or both), making it easy to manage listings, inventory, and orders across channels—all from one central platform. Ready to scale smarter? Explore Koongo today to streamline your multichannel e-commerce journey.

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