Quick answer
Marketplaces such as Amazon and Flipkart bring ready shoppers but take fees, set the rules and keep the customer relationship. Your own online store means finding buyers yourself, but you keep more of each sale, own your customer list and control your brand. Many sellers use marketplaces for discovery and their own store for repeat customers.
Marketplaces such as Amazon and Flipkart give you instant access to shoppers who are already searching, but they charge fees on every sale, set the rules on returns and pricing, and keep the relationship with the customer. Your own online store gives you higher margins, your own customer list and full control of your brand, but you have to bring the visitors yourself. For most growing businesses the answer is not one or the other: use marketplaces to be found and your own store to be remembered.
This guide compares the two honestly, so you can decide where to put your time and money. Amazon and Flipkart are trademarks of their owners; this is general guidance, not a review of either.
What does a marketplace really cost?
Marketplace fees usually combine several parts: a referral or commission fee that varies by category, fixed closing or collection fees, shipping or fulfilment fees, and sometimes charges for storage, advertising or returns. The rate cards change and differ by category and price band, so we will not quote numbers here. Before you list, download the current fee card for your category and work out what is left from a typical order.
A simple way to see it: take the selling price, subtract every marketplace fee, GST, your product cost and packaging, and look at the rupees left. Then do the same for your own store, where the deductions are your plan price spread across orders, gateway fees and courier charges. The profit margin calculator makes this quick.
Who owns the customer?
This is the biggest difference, and it is easy to underrate. On a marketplace, the shopper is the marketplace's customer. You usually cannot email them about a new collection or invite them back for Diwali. If a competitor lists a similar item for slightly less, the next order may go there.
On your own store, every buyer can join your email list, follow you on WhatsApp and Instagram, collect loyalty points and leave reviews on your site. A customer who buys three times a year from you directly is worth far more than a one-off marketplace sale. Our guide to winning repeat customers shows how.
How do the two compare side by side?
| Marketplace | Your own store | |
|---|---|---|
| Shoppers | Already there, searching | You bring them: Instagram, WhatsApp, Google, ads |
| Fees | Commission and other fees per order | Plan price plus gateway fees; no commission on some platforms |
| Customer data | Limited | Yours: emails, order history, preferences |
| Pricing | Under pressure from similar listings | You set it; no price comparison on the page |
| Brand | Your listing inside their design | Your look, story, photos and policies |
| Returns | Marketplace policy applies | Your policy, within consumer law |
| Trust with new buyers | Borrowed from the marketplace | Built through reviews, clear policies and service |
When is a marketplace the right choice?
Marketplaces make most sense when:
- Your product is something people search for by name or type ("steel water bottle 1 litre") and compare on price.
- You have little or no audience yet and need early sales and reviews.
- You can compete on price and still make a margin after all fees.
- You want access to the marketplace's own fulfilment and delivery network.
They are harder when your product's value lies in its story, craft or design, when your margins are thin, or when returns are high in your category.
When is your own store the right choice?
Your own store works best when you have, or can build, a reason for people to come to you: a recognisable style, a niche, a local following, or products people reorder. Handloom, jewellery, skincare, food, gifts and anything made in small batches often fit this. It also suits businesses that sell through Instagram and WhatsApp and want a proper checkout instead of collecting screenshots of UPI payments. See Instagram shop versus your own website for that comparison.
Your own store also lets you sell beyond India on your terms. With UpMinutes, delivery zones can include other countries and visitors abroad see guide prices in up to 12 currencies, while orders are charged in rupees through your own Razorpay account.
Can you sell on both without chaos?
Yes, and many brands do. A few habits keep it manageable:
- Keep one source of truth for stock. If the same item sells on both, update counts promptly so you do not oversell. Some sellers keep a separate stock allocation for each channel to be safe. Note that UpMinutes does not sync stock with Amazon, Flipkart or other marketplaces, so this is a manual step.
- Differentiate the offer. Put your full range, bundles, gift wrapping and exclusive colours on your own store. List bestsellers on marketplaces.
- Price thoughtfully. Your own store does not carry marketplace commission, so you can offer the same price with a better margin, or add a small perk like a free gift.
- Bring marketplace buyers home, within the rules. Marketplaces restrict what you can put in a parcel or message, so read their seller policies. A well-made product and recognisable brand name do much of the work.
- Keep GST records clean. Marketplace sales and own-store sales are reported differently in some respects, and tax collected at source can apply to marketplace sales. Our guide to GST on your own website versus a marketplace explains the basics; confirm with your CA.
How do you get traffic to your own store?
This is the honest challenge. A new store will not get visitors by itself. The most reliable sources for small brands are:
- Instagram and WhatsApp, where many of your buyers already follow you.
- Google: free product listings through Merchant Center, and search results for your product pages. UpMinutes sets up product structured data, sitemaps with photos and a product feed for free listings.
- Repeat buyers via email, loyalty points and back-in-stock alerts.
- Small, measured ads once you know which product sells.
Our first 100 customers guide covers this step by step.
What about returns and customer complaints?
On a marketplace, the return window and process are set for you, and in some categories buyers can return items for reasons you might not accept on your own store. Disputes are decided under the marketplace's rules. On your own store you write the returns and exchange policy, as long as it is fair, clearly published and within consumer protection law. You can offer exchanges or store credit instead of refunds where that suits your product, and you see the reasons customers give, which helps you fix sizing charts, photos or descriptions. A clear returns and exchange policy is worth writing before your first order.
What does a sensible plan look like?
If you are starting from zero, list a few bestsellers on a marketplace to learn what sells while you build your own store and audience. If you already have a following on Instagram or WhatsApp, start with your own store and add marketplaces later for reach. Either way, measure margin per order on each channel every month and move effort to where it pays.
If you are also weighing store platforms, see UpMinutes vs Shopify and the other guides in the comparisons category.
Frequently asked questions
Can I sell the same products on Amazon and my own website?
Generally yes, as long as you follow the marketplace's seller policies and keep stock counts accurate on both so you do not oversell.
Is it cheaper to sell on my own website than on a marketplace?
Per order, often yes, because there is no marketplace commission. But you pay to attract visitors yourself, through time, content or ads, so compare total cost per sale, not just fees.
Do I need a GST number to sell on my own website?
Rules on GST registration for online sellers depend on what you sell, your turnover and where you sell. Ask a CA about your case before you start.
Will customers trust a small brand website as much as a marketplace?
They can, if the store has clear contact details, honest photos, real reviews, a readable returns policy and familiar payment options like UPI and cash on delivery.
