On a humid evening in Jakarta, Rina scrolled anxiously through her phone. Notifications kept popping up—“Your product is now live,” “Flash sale starts in 2 hours,” “Competitor slashed prices by 30%.” She was selling on a popular marketplace, and while the orders trickled in, the profit margins were vanishing like smoke. A week later, she launched her own website, brimming with hope. But the silence was deafening—no visitors, no sales.
This dilemma—selling on marketplaces vs own website—is not just Rina’s struggle. It’s the modern battleground for millions of entrepreneurs worldwide. Should you ride the traffic tsunami of Amazon, Tokopedia, or Shopee, or carve your own digital storefront where you call the shots?
Let’s uncover 7 shocking secrets that separate dreamers from digital winners, and dive deep into the real numbers, insights, and strategies to help you decide the best path for your business.
Selling on Marketplaces vs Own Website
1. Traffic vs Control: The Marketplace Magnetism
Marketplaces like Amazon, eBay, or Shopee attract billions of visits monthly. Amazon alone generated over 2.2 billion monthly visitors in 2024, according to Statista. That’s a traffic stream impossible to ignore. For beginners, this looks like paradise: instant visibility, built-in trust, and ready buyers.
But here’s the catch: you don’t own the audience. Algorithms dictate whether your product appears or vanishes. One sudden policy change, and your store could disappear overnight. Compare that with an own website, where you may start with zero traffic but gain full control over design, SEO, and customer retention.
👉 Tip: If you’re a beginner, marketplaces are perfect to test product demand. But for long-term branding, invest in building your website traffic through SEO and email marketing.
Recent e-commerce statistics reveal that global online retail sales surpassed $6 trillion in 2024, with marketplaces like Amazon and eBay holding the lion’s share of transactions. However, direct-to-consumer (DTC) websites are steadily increasing their market penetration by focusing on customer experience and branding. This proves that the debate between selling on marketplaces vs own website is more relevant than ever. Reliable industry data can help sellers evaluate the right mix of platforms for long-term success.
2. The Branding Trap
A shocking 80% of sellers on major platforms admit that buyers rarely remember their store name—only the marketplace brand (Shopify Insights, 2024). Customers say, “I bought this on Shopee,” not “I bought this from Rina’s Boutique.”
On your own website, branding takes center stage. Every logo placement, product story, and blog post reinforces your unique identity. That builds trust and repeat purchases, which marketplaces often fail to deliver.
👉 Golden Insight: If your vision is to create a lasting brand—like Glossier or Gymshark—you cannot rely solely on marketplaces.
3. Fees That Eat Your Profit
Marketplace commissions can range from 5% to 20% per sale, not including advertising spend. For example, Amazon charges 15% referral fees on most categories, while Shopee and Tokopedia add transaction fees plus promotional costs.
In contrast, an own website using Shopify or WooCommerce might cost you $29–79 per month, plus 2.9% payment fees, but you keep most of the profit. For sellers with high margins or large volume, this difference is massive.
👉 Actionable Tip: Run a cost comparison between marketplace commissions and website expenses. Many sellers discover they’re giving away 30–40% of their revenue without realizing it.
4. Data Ownership: The Hidden Gold
Perhaps the biggest shocking secret is data. On marketplaces, customer emails, browsing behavior, and lifetime value stay locked. You can’t remarket effectively.
Your own website is a data goldmine. With tools like Google Analytics and email marketing, you track buyer journeys, segment audiences, and create targeted campaigns. Research shows businesses that use first-party data generate 1.5x higher ROI than those relying on third-party sources (McKinsey, 2023).
👉 Golden Strategy: Build an email list. Even a list of 1,000 loyal customers can outperform thousands of one-off marketplace buyers.
5. Competition & Price Wars
On marketplaces, you’re just one among thousands. The cheapest price often wins, pushing sellers into a race to the bottom. In 2024, Jungle Scout reported that 63% of Amazon sellers had to lower prices to stay competitive.
Your own website avoids direct price comparison. Instead of competing on cost, you compete on value—unique bundles, storytelling, loyalty programs. Brands like Allbirds grew by emphasizing eco-friendliness and quality, not price.
👉 Tip: If your product is easily copied, consider branding or value-additions before going all-in on marketplaces.
6. Scaling Limitations
Marketplaces are like crowded malls—you rent space, but expansion depends on landlord rules. They decide what products can be sold, how you advertise, and even how you communicate with customers.
With your own website, scaling is limitless. Add upsells, cross-sells, memberships, or digital products without restrictions. Shopify Plus stores scaling to millions in sales prove this flexibility.
👉 Actionable Idea: Use marketplaces for cash flow but channel loyal buyers to your website for premium offers and long-term growth.
7. Long-Term Sustainability
Many sellers who rely only on marketplaces get wiped out by sudden suspensions, policy changes, or algorithm updates. In 2023, Amazon permanently suspended over 600,000 accounts for policy violations.
On your own website, you hold the keys. While traffic building takes time, the sustainability is unmatched. Your domain authority, content, and email list grow in value year after year.
👉 Golden Advice: A hybrid model works best. Start with marketplaces for exposure, then build your website as the ultimate asset.
Wrap It Up: The Hybrid Winning Formula
So, which wins in the battle of selling on marketplaces vs own website?
- Marketplaces = instant traffic, low entry barrier, but low control and high fees.
- Own Website = full control, stronger brand, higher profit margins, but requires patience and marketing.
The smartest entrepreneurs don’t choose one over the other—they combine both. Use marketplaces as the launchpad and your own website as the landing base. That’s the future-proof strategy.
If you’re serious about building a long-term business, stop renting digital space and start owning it. Your brand deserves to be remembered, not buried in someone else’s platform.
