Get to know more about our upcoming product releases and its features.
Selling on Amazon vs Your own eCommerce website
27 Aug 2020
Amazon is a great place to showcase your business, no doubt, but if you have an option and enough financial room, you should try to establish your own eCommerce website. It is always best for direct to customers (DTC) brands to generate maximum revenue from their own website as it helps in maintaining a closer relationship with customers resulting in more sales.
Even if you are not generating 100% business from your own website at least try to take that figure upto 60-70%. In the case of popular brands which have a wide reach across the nation, the ratio of how you should distribute your split depends on the category of your product. For instance if your product falls under the category like toothbrushes or toilet paper, that is the commodity type, then your split should be 10 to 20% on your own website whereas in the case of luxury items where customers are more brand sensitive the percentage should be around 50 on your own website.
If your brand falls under the commoditized bracket and is generating 40% of your revenue from your own website then it is time to introspect as it might not be doing well on other eCommerce channels.
In case of startup brands, it#34sigs always best to conduct the first 1000 sales on your own website. The 1000 true fans theory by Kevin Kelly is a perfect one to adopt as it is important to build a rapport with your first 1000 customers for getting genuine reviews and thereby improve your products.
You can also utilize the facility provided by Amazon like Launchpad to reach where the buyers are. The giveaway feature of Amazon is also a good platform to gain some perspective and improve your product management as this feature allows sellers to sell their products for free or for a high discount in return for some quick initial sales and genuine reviews by customers.
But once you have crossed the 1000 customers sale and ideally upto your 10,000 mark, you should start focussing on building at least 70% of your sales from your own website as it is the only way to build a strong brand identity among customers. This will help you to make your marketing practices more concrete and acquire more customer loyalty. It is also the ideal way to reduce your cost of customer acquisition. You can start your own eCommerce website and see the change it brings about to your business.
Advantages of generating more sales from your own website
Building an audience through your own website comes with its own set of challenges but it is definitely advantageous. Let us see how
1. More control over customers
You are dealing with customers directly and the perks that come with it are too many. You can acquire necessary customer details like email id and phone numbers to send messages and promotional content related to your product. You have the freedom to remarket and convert your customers into repeat buyers but with Amazon, this is a thing outside the possibility realm
2. Reduced cost
Having your own website means a commission free business leading to cost cutting and also the relationship that you have built in the first place with the customer can be renewed by contacting them multiple times meaning a lifetime business and not one time like Amazon.
3. Say no to private label
There are plenty of online scam sellers who will clone your products listing on amazon. By selling through your own website you are completely eliminating the chances of fake selling. Rather than using amazon’s private label service, get your own white label eCommerce solutions so that your customers are at advantage when they buy directly from you, and also they will not be exposed to fake products leading to a reliable and trustworthy bond between you and your customers
4. Better choice for customers
When a customer sees your product in a third party portal he has many options to choose from. Due to this your product does not get the attention it needs, as customers are confused with many other similar products. By having your own website you can display and showcase your product without any disturbance due to competition and help customers take a wise decision.
5. You can express your brand in a better way
With your own website in place there is no limitation on how you want to express your brand story, as you are the king there. You can put your brand in the best light possible to enhance the brand experience for customers
6. No threat of losing business
Many Amazon accounts have been suspended without any prior notifications in the past but with your own website there is absolutely no such risk involved enabling you to conduct business smoothly, efficiently and with continuity
To sum up
Having your own website does not mean completely avoiding Amazon. Striking the right balance between the two is the need of the hour and having your own eCommerce website will definitely play an important part in your sales especially if you are just starting out on your journey in the world of eCommerce.