Navigating the E-commerce Landscape: From Amazon to Your Own Website

Starting and running an e-commerce business can be both exciting and challenging. There are many ways for you to start distributing your goods and services over the Internet, however, each option has a lot for you to consider. While you can move between options over time, choosing how you run your E-commerce business will affect the different strategies you may have to employ to manage it.

Amazon

Amazon is one of the largest E-commerce marketplaces in the world. They offer a seller portal where for a monthly fee and a percentage of the sale (plus shipping if you want Amazon fulfilment) you can start listing and selling your products. There are many pros to selling on Amazon such as:

  • Large customer base: Many people use Amazon so there are many potential customers.
  • Low marketing cost: If your products get placed favourably on Amazon’s rankings you may not need to spend as much marketing your product per sale.

However, Amazon also has some important cons to consider:

  • Price: It may end up being more expensive depending on what you are selling after fees.
  • Little differentiation and high competition: All Amazon pages look similar, and Amazon will show related products that may drive potential customers to competitors due to undercutting or having more reviews.

Depending on the product using a marketplace such as Amazon may or may not be right for you.

Building a Website

If your E-commerce shop is your storefront, it makes sense for you to want to have control over your brand’s image. Building your own E-commerce website is a daunting task and will likely be a bigger initial investment than using Amazon. However, the extra control you get and lower long-term fees you get may be worth it.

Using professionals such as LocalTeam Australia will allow you to have creative control over how customers see your brand, give you the flexibility to run specific promotions and we can provide long-term support for your e-commerce store. Some major pros of building an E-commerce website are:

  • No percentage cuts of sales.
  • Better support for your store’s page.
  • Control over your brand’s image, and funnels to lead your customers to buy.

Building your own website does have some minor drawbacks, however:

  • Need to find a partner (such as AusPost) to handle fulfilment.
  • Will need to keep stock on hand.
  • May need more marketing to gain more customers.

Depending on your brand’s needs, and resources it can be well worth taking the extra step to develop an e-commerce website.

Running an E-commerce Site and an Amazon Page

If you want both access to a larger customer base, but also the ability to advertise users to your own website where your margins are higher, and you have more control over your image. It may be worth building out a website and an Amazon page. At LocalTeam we have the tools to help you mirror your products on both your website and Amazon page. This has some significant advantages:

  • Larger reach: You still have the potential for customers to find your Amazon product without much marketing.
  • You can push fans, repeat buyers, and people who find your product to use your website, increasing the potential profit from each item sold.

However, there are some major drawbacks to this approach:

  • While the Amazon monthly seller fee is relatively cheap, and hosting plus a domain for your website is relatively cheap, you will need to pay for all of them.
  • You will still have to find your own fulfilment for your own store.

This option is the most flexible and depending on your needs, and your product this could be the right option for you.

Conclusion

There are many ways you can run an e-commerce store and lots of different factors you must manage to run one well. If you are still confused, would like help building a professional website for your business or want to work out what the best e-commerce solution is for you then don’t hesitate, to get in touch. We specialise in all things software related and are in this business to help people.  Shoot us an email at info@localteam.com.au or call us at (07) 4599 7300 Mon-Fri: 9 am-4 pm.

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