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The Pros And Cons Of Amazon E-Commerce

Selling on Amazon vs. Running Your eCommerce Store

The Pros And Cons Of Amazon E-Commerce

More than half of the online spending takes place in online marketplaces, and it may increase to two-thirds in the next five years. Amazon ecommerce is a platform that sells many product lines, including media, apparel, baby products, groceries, and more.

It has benefited those who want to sell products online and earn easily while sitting at home. We will be putting our heads together about the pros and cons of selling on Amazon versus building your own e-commerce store to settle any doubts about which is best.

Selling On Amazon:

To become a seller on Amazon, you need to create your Amazon seller account and list all your products there. By this, you will be able to sell your own products or source products and make money on the difference in prices. 

To read more about FBA, you can read this blog follow these 5 steps to make your FBA shipping plan 

Pros Of Selling On Amazon:

Here are some advantages that you get from selling on Amazon.

0 Upfront Cost

Amazon already has the marketing tools so you just need to set up your storefront there are no upfront costs when selling on Amazon.

You don’t need to set up your own site, pay for hosting, or any other thing like designing etc. 

All you need to do is create your product listing and start selling. The only thing that you need to pay for is the membership fee which is $14.99/month for individuals and $39.99/month for the professional seller plan.

Built-In Marketing

Amazon’s e-commerce marketplace runs marketing and retargeting campaigns for you and does all the search engine optimization(SEO) for you so you don’t have to invest in your marketing infrastructure. 

For more complex projects, you can also hire an Amazon marketing agency 

Amazon Does The Storing, Packaging And Delivering

Through fulfillment by Amazon (FBA), Amazon stores your products, packs them, and delivers them to your customers’ doorsteps for a small fee. Amazon shipped more than 10 million items in 2023.

You don’t need a warehouse or full-fledged shipping and packaging services because logistics is one big problem that Amazon does not need to worry about with its fulfillment centers. 

Cons Of Selling On Amazon:

High Competition:

The platform has more than 6.3 million active sellers so the competition on Amazon is very high. Many giant retailers and companies sell their products on Amazon. If you do not choose your product wisely and you are not careful with your product selection then your product may end up never being seen by customers.

Amazon Business Account Fees:

Understanding Amazon marketing services is quite simple, but there are also a few tricky parts like Amazon charges CPA fees of 8-10% for each sale. The percentage varies depending on the product category, and it can be as low as 8% or as high as 45%. 

After the seller fees, you must pay the FBA if you’re using it for advertising. Then, you are left with a small profit margin.

Violating Rules Can Get You Suspended:

Amazon has clear rules in place to maintain a safe and enjoyable experience for buyers. The company will suspend online sellers if they violate any of their five community rules and you can lose your entire Amazon business. 

Sometimes these violations can be out of your control.

Selling On Your E-commerce Store

Building your eCommerce store can be a big step in the right direction to grow your business. It might sound intimidating, but it doesn’t have to be. You can use an eCommerce platform like Shopify or BigCommerce and set up your store in minutes.

Pros Of Selling On Your E-commerce Store

Here are some of the top benefits of selling on your own eCommerce store.

Build Your Brand Awareness

A professional website can help in building your brand’s credibility. It builds trust with customers and makes them feel more comfortable buying your products. Additionally, you can tell your brand’s story on your website to create a positive image that resonates with your customers. 

Also, read; how to find the best amazon trends and free tools

Less Pesky Competitors

A huge advantage to having an eCommerce store is that visitors to your website can only buy your products. You won’t lose sales to competitors who could be selling that item for a lesser price, like on Amazon. You also have control over your prices, which results in higher profits over time.

More Advertising Options And Revenue Streams

When you’re selling on Amazon you can’t advertise your Amazon listings anywhere. The eCommerce giant already does their advertising on Google through things like Google Ads and Google Shopping. 

Cons Of Selling On Your E-Commerce Store:

Costly Advertising:

PPC ads can boost your online business, but they can also be expensive. Ads targeting a broader audience on search engines like Yahoo or Google often have lower conversion rates. 

Need For Customer Service

Customer service is super important for the success of any eCommerce brand and if you are running your own store then you will have to invest more time and resources to build your customer success team.  

Lack Of Traffic In The Initial Days

When you start, your eCommerce website will have low traffic. It takes time and effort to rank high on search engines like Google. 


All in all, selling on Amazon or having your own e-commerce store has its advantages and disadvantages. While being a seller at Amazon has its conveniences and traffic, an independent store allows for control over branding and can be more profitable. 

Whatever approach you decide to take, integrate Amazon’s online marketing services into your strategy to achieve the best results.

Take A Step

From setting up your Shopify store or any e-commerce store to managing it professionally, Run Marketing is here to assist with the best ROI strategies and expert marketing skills.

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