Difference between Amazon Store vs. Ecommerce Store

The year was fantastic for e-commerce and amazon store. The eCommerce industry had a remarkable increase in its proportion of total retail sales last year, going from 16% to 19%, thanks to Covid-19. However, not all stores profited from the expansion.

With sales of $386 billion in 2020, Amazon’s net profit increased by 84%. Because of their logistics and government contracts, the big internet businesses like Amazon and Walmart were preferred and sales undoubtedly got more consolidated.

According to research, online marketplaces account for half of all online expenditure, with that percentage perhaps rising to two-thirds over the next five years. Most eCommerce business owners then have to decide whether to focus on growing to Amazon and other major marketplaces or keep selling straight on their own website.

To answer this query, we compare selling on Amazon with selling on your own website in this article.

Selling on Amazon:

The world’s leading online retailer, Amazon is by far the biggest marketplace. Over 66% of product searches start on Amazon, according to studies. Selling on Amazon is a rather simple process. You must register as an Amazon Consultant Company, list all of your items, and presto, you’re a seller! It’s time for you to sell. You may profit from the price differential whether you sell your own goods or buy them from suppliers online.

According to studies, 89% of US consumers claim they prefer Amazon to other eCommerce sites when making purchases. Amazon is a well-known company in the US with excellent shipping and customer care.

Advantages of selling on Amazon:

Here are a few benefits of using Amazon to sell your goods.

Access to a large consumer base is Simple:

In September 2019, 150.6 million mobile users used Amazon’s app. More than 150 million people presently subscribe to Amazon Prime. This figure has increased even further after the dramatic increase in eCommerce sales last year.

Best Amazon store setup offers a fantastic opportunity to attract new and first-time consumers and expand your audience much more quickly than on your own eCommerce site thanks to its over 197 million monthly visitors.

No up-front Costs :

When selling on Amazon, there are no up-front expenses. You don’t have to build your own website or spend money on hosting, design, or promotional materials. Everything you need to set up your storefront is currently available on Amazon.

All you need to do to start selling is to build your product listings. The membership fee, which is $39.99 a month for the professional selling plan, is the sole upfront cost. Each item sold only costs individual sellers $0.99.

Amazon handles the packaging, storage, and delivery:

Amazon will handle the storage, stocking, and delivery of your items through the Fulfillment by Amazon (FBA) programmed in exchange for a nominal charge. In 2017, Amazon dispatched more than 5 billion packages.

No warehousing or comprehensive packing and shipping services are required. Logistics is one significant issue that you don’t have to worry about thanks to Amazon’s fulfilment centres spread out across the nation.

The FBA programmed is a game-changer for many businesses since it significantly lowers the startup expenses of operating an eCommerce business and eliminates any entrance obstacles that could have previously existed. If you wish to utilize your own fulfilment services or your own home, there is always a possibility. You also have various fulfilment choices.

Built-in Marketing:

You may avoid investing in your marketing infrastructure by having Amazon Marketplace manage your marketing, remarketing, and search engine optimization (SEO) initiatives.

The online marketplace sends out incentives, promotions, and cart abandonment campaigns on your behalf. Thus, you are not required to purchase any outside marketing tools.

Dependable advertising platform:

One of the most advanced advertising platforms in the world is that of Amazon. Amazon offers a wide range of ad formats, including live-streamed advertisements as well as video and audio ads, sponsored brands, display ads, and sponsored products. The Seller Central on Amazon is quite user-friendly and simple.

What is an E-Commerce Website:

An e-commerce website serves as your online storefront. It makes the deal between a buyer and a seller easier. Your items are shown there while your online clients make their selections in a virtual environment. The product racks, salespeople, and cashier of your online commerce channel are represented by your website.

Businesses may develop their own e-commerce website on a dedicated domain, create a branded shop experience on a website like Amazon, or do it all for a multi-channel strategy.

Benefits of E-commerce:

E-commerce for retail is expanding quickly:

Over 3.4 billion goods were sold in Amazon shops by small and medium-sized enterprises in the United States for the year that ended on May 31, 2020, an increase of 2.7 billion from the previous year. In 2020, e-commerce sales increased overall by more than 30%. Although the COVID-19 epidemic is mostly to blame for the current increase in internet spending, analysts believe this trend will persist.

Global reach of Marketing:

In the past, a company’s potential customer base was only as large as the number of individuals who could physically enter through its front doors. Using e-commerce today, you may connect with clients anywhere in the globe. Reaching a varied new consumer base has become simpler for owners of ecommerce businesses because to the increase in internet usage and the expansion of social media.

Reduced operational Expenses:

Running a traditional brick-and-mortar business is more expensive than building and managing a website. You don’t need to rent shop space, hire staff, or have a big warehouse to establish an e-commerce business channel.

These benefits all add up to reduced overhead. You are not responsible for building upkeep or rent. When your business is online, it is always open without the need for personnel or monitoring like a physical store.

You may launch your brand on social media or a website like Amazon rather than establishing a website by using website building tools and services to do it swiftly. Numerous internet sales methods are used by many companies.

Conclusion:

You need to think about your specialty, how much time and money you’re ready to devote, and where you want to market your items. You must examine the benefits and drawbacks of both options before deciding whether to use Amazon or open your own online business.

Who said you had to pick one over the other, anyway? To create a well-balanced eCommerce business, you might take advantage of your success employing both. As your items gain more traction, you may start by selling your private label on Amazon and then move your operation to an eCommerce site.