In this article · 8 sections
- Side-by-side comparison
- The real cost of selling on a marketplace
- The real cost of your own website
- When a marketplace makes more sense
- When your own website makes more sense
- The hybrid strategy most brands use
- Frequently Asked Questions
- Is it cheaper to sell on Amazon or on my own website?
- Do I need GST to sell online in India?
- Which payment gateway is best for a small Indian website?
- How long until my website gets sales?
- Ready to launch your own store?
If you want to sell products online in India, you have two broad paths: list on a marketplace such as Amazon, Flipkart or Meesho, or build your own e-commerce website (often called going D2C — direct to consumer). Both work. The right choice depends on your margins, budget, brand ambitions and how much control you want. Most growing Indian brands end up using both.
Side-by-side comparison
| Factor | Amazon / marketplaces | Your own website |
|---|---|---|
| Setup time | Days (after GST and documents) | 1–4 weeks for a good store |
| Upfront cost | Low | Website build + hosting + domain |
| Traffic | Millions of ready buyers | You must bring visitors (SEO, ads, social) |
| Fees per sale | Referral fee + closing fee + shipping/fulfilment fees | Payment gateway fee (about 2%) + your shipping |
| Pricing control | Limited; price wars common | Full control |
| Customer data | Very limited | Full — name, phone, email, purchase history |
| Branding | Your product sits next to competitors | Your brand, your design, no competitors on the page |
| Returns | Platform policies apply | You set the policy |
| Risk | Account suspension or policy changes | Slower start, marketing effort needed |
The real cost of selling on a marketplace
Marketplace fees vary by category and change from time to time, so always check the current fee schedule in the seller portal. A typical sale includes:
- Referral/commission fee — a percentage of the selling price, which varies widely by category.
- Closing or fixed fee per order.
- Shipping or fulfilment fee based on weight and distance (or FBA fees if the platform stores your stock).
- GST on these fees.
- Advertising — sponsored product ads are often needed to get visibility for new listings.
- Returns — return shipping and damaged items can be significant in categories like fashion.
Add them up and many sellers find that 25–40% of the selling price goes to the platform and logistics. That is fine if your margins are healthy — but painful for low-margin products.
The real cost of your own website
- One-time build: a professional e-commerce site with product catalogue, cart, Razorpay/PhonePe/Cashfree payment gateway, order management and mobile design.
- Yearly: domain, hosting, SSL (often free), maintenance.
- Per order: payment gateway fee (roughly 2% for most methods) and shipping through aggregators like Shiprocket or Delhivery.
- Marketing: the big one. You need SEO, Google Shopping/Search ads, Meta ads, Instagram content and WhatsApp follow-ups to drive traffic.
Your margin per order is higher, but you pay to acquire each customer. The economics improve sharply when customers buy again — and on your own site, you can bring them back through WhatsApp and email at almost no cost.
When a marketplace makes more sense
- You are testing a new product and want quick feedback.
- Your product is a commodity people search for by type ("steel water bottle 1 litre"), not by brand.
- You have no marketing budget or team yet.
- You want access to Prime-style fast delivery without building logistics.
When your own website makes more sense
- You have a brand story, unique designs or handmade/local products (Phulkari, jutti, organic food, Ayurvedic products).
- Repeat purchases are likely (cosmetics, food, supplements, pet products).
- Your margins cannot survive marketplace fees.
- You want to sell B2B or bulk with custom pricing.
- You plan to sell internationally to the Indian diaspora in Canada, UK or USA.
The hybrid strategy most brands use
- Start on a marketplace to validate demand and build initial reviews.
- Launch your own website with the best-selling products, slightly better pricing or exclusive bundles.
- Insert a brand card in every marketplace package with your website, WhatsApp number and a first-order code (check the marketplace's policy on inserts first).
- Build your customer list on the website and use WhatsApp/email for repeat orders.
- Use ads and SEO to grow website sales gradually, while the marketplace continues to bring new customers.
Frequently Asked Questions
Is it cheaper to sell on Amazon or on my own website?
Per order, your own website is usually cheaper because you avoid commission and marketplace fees. But you pay for marketing to bring visitors, so the true cost depends on your customer acquisition cost and repeat purchase rate.
Do I need GST to sell online in India?
Marketplaces generally require GST registration from sellers. For your own website the rules depend on your turnover and whether you sell interstate — confirm with your CA.
Which payment gateway is best for a small Indian website?
Razorpay, Cashfree, PhonePe PG and PayU are widely used. Compare fees, settlement time and support for UPI, cards and wallets.
How long until my website gets sales?
With paid ads, sales can start in the first week. Organic traffic from SEO usually takes three to six months to build.
Ready to launch your own store?
Joboo Web builds fast, mobile-first e-commerce websites with Razorpay integration, WhatsApp order alerts and SEO-ready product pages. See our web development services or read our guide to starting an online store.
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