Introduction
Launching a new product is one of the most critical moments in an eCommerce business. But where should you launch first—on Amazon, where millions of shoppers already search daily, or on your own website, where you control the customer experience and margin?
This is the ultimate product launch debate. Let’s explore the real costs, pros and cons, and strategies that winning brands use.
Launching on Amazon: The Case For
Pros:
- Massive Traffic: Amazon brings instant visibility without needing to buy traffic.
- Customer Trust: Reviews and Prime eligibility drive conversions.
- FBA Logistics: Amazon handles fulfillment, returns, and customer service.
- Sales Velocity: Strong initial sales can accelerate organic ranking.
Cons:
- Fees: Referral fees, FBA costs, advertising, and storage eat into margins.
- Competition: Competing against established sellers and potential copycats.
- Lack of Customer Data: Amazon owns the relationship—you don’t.
Launching on Your Website: The Case For
Pros:
- Full Control: Branding, messaging, and customer experience are all yours.
- Better Margins (Long-Term): No referral fees, and fulfillment can be optimized.
- Own the Data: Build email lists, run retargeting, and nurture repeat customers.
- Flexibility: More room for subscriptions, bundles, and upsells.
Cons:
- Traffic Costs: You’ll need to buy attention via Meta, Google, TikTok ads.
- Lower Conversion Rates: Customers trust Amazon more than new sites.
- Operational Burden: Fulfillment, support, and logistics rest on you.
Cost Comparison: Amazon vs. Website
- Amazon:
- Referral fees: 8–15%
- FBA fulfillment fees: per unit + storage
- Advertising: 10–25% TACoS typical
- Total “cost load”: 30–50% of revenue
- Website:
- Platform costs: Shopify $39–$399/month + apps
- Payment processing: 2.9% + 30¢ per transaction
- Ads: CAC often $20–$60 per customer
- Fulfillment: 3PL fees or in-house costs
Insight: Amazon takes more per transaction, while websites demand higher upfront ad spend to drive traffic.
Customer Trust and Reviews
- Amazon: Shoppers rely heavily on reviews and ratings. Social proof builds quickly.
- Website: Requires building trust through branding, content, and third-party review integrations.
Hybrid Launch Strategy: The Best of Both
Many brands find success by combining both channels:
- Launch on Amazon for immediate visibility and velocity.
- Build a DTC site to capture repeat orders, subscriptions, and brand loyalty.
- Use inserts and packaging to direct customers toward your website for future purchases.
This hybrid approach balances Amazon’s reach with the profitability and control of DTC.
Case Study Example
A wellness brand launched on Amazon first, using FBA and ads to drive momentum. Within six months, the product ranked organically in the top 10 for key terms. Using inserts and email opt-ins, they funneled repeat buyers to their Shopify site. Within a year:
- 60% of first purchases happened on Amazon.
- 40% of repeat purchases shifted to DTC.
- Overall margins improved by 18%.
Conclusion
There’s no single winner in the Amazon vs. Website launch debate. The right choice depends on your goals, resources, and long-term vision.
- Choose Amazon if you want velocity, visibility, and a ready-made audience.
- Choose your Website if you want control, margin protection, and brand ownership.
- Choose both if you want to maximize reach and build a sustainable business.
The bottom line: Amazon builds momentum. Your website builds longevity. Together, they create lasting growth.
