E-commerce

Your Own E-Commerce Site or a Marketplace? Comparing Operations and Costs

admin 6 min read

“Which one is more profitable?” is the most frequently asked and least useful form of this question. A marketplace takes a commission but brings the customer; your own site takes no commission but you have to find the customer yourself. The right question is this: which stage are you at today, and which problem are you trying to solve?

What is a marketplace actually selling you?

What you get from a marketplace is not infrastructure, it is traffic. The commission is the price of that. The people searching for your product are already there; you simply enter the list.

On your own site you create that traffic yourself — advertising, search engine visibility, social media, email, existing customer relationships. All of these take time or money. So when you avoid the commission, the cost does not disappear; it just moves to a different line.

That is why the sentence “there is no commission on my own site” is incomplete. On your own site there are payment provider fees too, and on top of that comes the cost of acquiring customers. We covered these items in detail in our e-commerce website cost article.

What changes in operations?

The daily workload of the two channels is different. When deciding, look not only at the commission rate but at the rows below as well.

Topic Marketplace Your own site
Who brings the customer The platform You
Price control Platform campaigns and competitive pressure apply Yours
Shipping Usually contracted, rules are set Your own agreement, your own process
Returns You must follow the platform’s rules Your own policy, in line with the regulations
Customer communication Through the platform, time-limited Direct
Delivery performance Measured; affects your score and visibility Affects only customer satisfaction
Customer data Largely on the platform Yours
Product presentation Platform template Free
Risk of rule changes Commission and rules can change unilaterally None

The hidden cost of working on a marketplace is that your score, tied to delivery and return performance, affects your visibility. On your own site there is no such score, but this time you have to generate the traffic yourself.

Same product, two channels: what is left per order?

The way to make the channel decision with numbers is to calculate what the same product leaves you per order in each channel. For each channel, subtract the following from the sale price:

  • Marketplace: product cost, platform commission and any service fees, shipping share, packaging, returns share.
  • Your own site: product cost, payment provider fees, shipping share, packaging, returns share and customer acquisition cost — the per-order share of the advertising budget you spent to bring in that order.

The last item is what makes the comparison realistic, and it is usually left out. If you bring in customers through advertising, the cost of a “commission-free” sale on your own site can even exceed the marketplace commission. On the other hand, with a returning customer this cost approaches zero — this is where the real gain of your own channel appears.

Channel conflict: price consistency

The most common problem when selling on both channels at once is the price difference. Selling cheaper on your own site seems logical, but marketplaces have their own rules and campaign mechanisms regarding price; you need to read the contract of the platform you use from this angle.

There are ways to make your own channel attractive without breaking the rules: product bundles, a variant or colour exclusive to your own channel, gifts, extended warranty, loyalty points, faster delivery. Adding value instead of cutting the price is generally both more sustainable and protects your profit margin.

Moving customers to your own channel

You may want to direct customers who come from the marketplace to your own site, but platforms have rules about this, and methods such as putting advertising inside the box may breach the contract. Check the seller agreement of the platform you use.

The method that works without breaking the rules goes through the product itself: branded packaging, a user guide that comes with the product, warranty registration, the need for spare parts or complementary products. When the customer remembers your brand and searches for it directly, they have arrived at your own channel.

Stock synchronisation

If you sell from the same stock on two channels, a product that sells out on one channel continuing to be sold on the other means both customer dissatisfaction and a loss of points on the marketplace. There are integrations that solve this, but it would not be correct to say it is possible for every platform and every infrastructure: the possibility depends on the connections offered by the relevant marketplace and the e-commerce platform you use. State from the start which channels you use so that technical feasibility can be examined before the project begins.

In which order should you proceed?

There is no single right order, but there are two common and sensible routes:

  • If you have not yet validated demand: Start on a marketplace. With ready traffic you will see whether your product sells, which variant catches on and what your return rate is. This information is directly useful when building your own site.
  • If you have a brand and returning customers: Give priority to your own site. If there is already an audience searching for you, there is less point in pushing that audience through a commissioned channel.

There is a third situation: if your product cannot be sold on marketplaces (custom production, made to measure, products sold together with a service), the decision has already been made. If you sell to dealers rather than end consumers, your need is different; we explained it in our dealer order portal article.

Frequently asked questions

Do I have to sell on both?

No. Two channels mean two operations, and running both well is difficult for small teams. Being good on one channel is better than being mediocre on two.

Is there any point in opening my own site while selling on a marketplace?

Yes. Your own site is what remains in your hands when platform rules or commissions change. It is also where customers will find you when they search for you — on a marketplace listing you are a seller name; on your own site you are a brand.

Will my own site inspire as much trust as a marketplace?

Usually not at the start; trust is built over time. Clear contact details, a clear returns policy, secure payment and genuine customer reviews are the elements that close this gap.

Which channel is more profitable?

There is no single answer. Do the per-order calculation above with your own numbers; the result varies with your product, your margin and your customer acquisition cost.

If I move to my own site, should I close the marketplace?

It is not necessary, and usually not the right move either. The marketplace can remain as a channel for finding new customers; your own site becomes the place for repeat sales.

Let’s look at your own numbers

Share your product group, your current sales channels, your average basket value and the stock method you use; let’s work out together what each channel means for you. You can look at our e-commerce website setup and development service and get in touch — we work in English or Turkish.

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