The Pros and Cons of Launching an Ecommerce Website For Amazon Marketplace Sellers
Many online sellers start out with Amazon as a single distribution channel. After all, Amazon is making it easier and easier for entrepreneurs to start a physical product business. To oversimplify it, all you need to do is find a product, list it for sale, send it to Amazon and they do the rest.
Plus, Amazon is where most buyers start and stop their shopping experience. Data shows 48% of online shoppers begin their search on Amazon versus anywhere else. This makes the Amazon audience unmatched elsewhere on the web. It is why sellers are able to build multiple six and seven figure businesses with an Amazon-only approach.
If you are only selling a product, the Amazon-only approach is perfectly fine. However, if you are building a brand, you need to consider your off-Amazon strategy.
Whether your goal is to build a multi-million dollar brand or just create passive income, expanding your brand beyond Amazon is critical.
Of all U.S. B2C ecommerce sales ($393B), 55% is sold through branded stores vs. 45% via marketplaces. The breakdown of that 45% ($177B) on marketplaces is:
- 36% Amazon
- 8% eBay
- 1% Etsy + other
Selling Amazon-only earns your brand 36% of the 45% of consumer shopping dollars –– but you’re still missing out on 55%. There are plenty of reasons to go with both Amazon and eBay(plus a litany of other marketplace options), but it might not be the fastest track to brand growth.