Back to the blog

Amazon Vs Branded Commerce Experiences - Pros and Cons

author image

Manish Parasher

Technology | April 05, 2022

hero image

If you're a business owner who's considering whether or not to either start a new e-commerce site or transition your existing brand to the online world, you're likely weighing the pros and cons of an online presence or considering the options. For example, you might be asking yourself the following questions: What are the most effective e-commerce platforms? What are the benefits of selling online? What are the best strategies to grow my business? What do I need to know before launching an e-commerce store?

We will take a look at the differences between Amazon and your own ecommerce channels and how to leverage your brand strengths to maximize customer satisfaction and sales. With more people shopping online, it's important that your e-commerce strategies are up-to-date and ready to capitalize on this growing market.

When it comes to online shopping and brand recognition, it can be a challenge to create your own e-commerce experience to stand out from the competition. However, if you do it right, you can surpass and stand out from your competitors.

Let’s look at the pros and cons of having your own ecommerce store

Pros

  • Flexibility with End to End Control

    With an eCommerce site, you have full control of the customer purchasing journey. You can also determine how you offer customer service, every aspect of how you interact with your customers. eCommerce gives businesses the ability to adapt to any situation.

  • Competition

    When customers search for any product on Amazon, they list hundreds of products. But, in the case of your own ecommerce store, customers will purchase the items from your store directly. You directly eliminate the competition. It is a bonus to be able to present your product where it doesn’t share space with competitors

  • Analytics

    You can set up analytics on your ecommerce store, to track the user behavior and optimize the product accordingly.

  • Brand Recall & Customer Retention

    Once the customers get acquainted with your brand, there is a very high chance that they will recall your product and visit your store again and again.

Cons

  • Less Reach

    If you haven’t established your brand yet, your reach will be very less in the initial phase.

  • Credibility

    If your ecommerce site is relatively new, niche, or not well-known, consumers may doubt your credibility and shop elsewhere, from sites they know and trust.

  • Late Delivery

    This is probably the most common disadvantage of owning your own ecommerce store.Since you won’t be omnipresent, your products are bound to deliver later than usual.

Now let’s look at the pros and cons of having your product on a huge marketplace like Amazon

Props

  • Huge Customer Base

    Amazon has 200M unique monthly customers, making it the most favorite marketplace for many businesses. Amazon gives businesses the chance to expand their offerings into different markets

  • More Sales and Customer Acquisition

    More customers is directly proportional to more sales. Increased chances of attracting new and unique customers because the likelihood of them ‘discovering’ your business is increased

  • Ease of use

    You can set up your Amazon store in less than 24 hours.

  • Credibility and Trust

    Customers are likely to purchase a product from the place they have heard of, rather than going out of their way to try something new.

  • Help you gain new customers Amazon can help you build a loyal customer base because of it’s huge market place

Cons

  • High Competition

    There might be 1000’s of sellers just like you trying to promote their own product. There is a high probability that your store will get lost in the competition.

  • Fees

    Amazon charges a certain percentage of commission when you make a sale.

  • Lack of Control

    You have to abide by Amazon’s rules and regulations.

Conclusion

There are both pros and cons of having your own ecommerce store as well as listing your product on Amazon. However, you need to understand your company’s vision and goals and make an informed decision.

Browse all categories