Selling on Your Own Website vs Etsy, Amazon, and eBay: The Real Cost of Marketplaces

If you sell physical products online, the biggest strategic question is whether to list on marketplaces like Etsy, Amazon, or eBay, or to build your own website. The short answer: selling on your own website gives you full ownership of your customer data, higher margins per sale, and complete control over your brand, but it requires more upfront effort. Marketplaces offer instant access to massive audiences, but they charge significant fees, limit your customer relationships, and commoditise your products. This article breaks down the real costs and benefits, so you can decide what is right for your business.

What Are the Fees on Etsy, Amazon, and eBay vs Your Own Website?

Marketplace fees can eat 15% to 30% of your sale price, depending on the platform and product category. On Etsy, you pay a listing fee, a transaction fee (currently around 6.5%), and a payment processing fee, plus optional off-site ads fees that can add another 12% to 15%. Amazon charges referral fees (typically 8% to 15%) plus fulfilment costs if you use FBA, which can push total costs above 30%. eBay charges insertion fees, final value fees (usually around 12.8% for most categories), and payment processing fees.

With your own website, you pay a fixed monthly cost for hosting, domain, and an e-commerce platform. At Varsuite, we build online stores from £1,000, with a £150 per month care plan that covers hosting, security, and maintenance. You also pay payment processing (typically 1.5% to 3% per transaction), but there are no listing or marketplace fees. On a £50 product, Amazon might take £15 in fees; on your own site, you might pay just £1.50 in payment processing. That difference compounds quickly.

Own Your Customers or Rent Them?

When you sell on Etsy, Amazon, or eBay, you never own the customer relationship. The marketplace controls the data, the communication, and the repeat purchase funnel. You cannot email your buyers directly, you cannot offer them loyalty discounts without platform permission, and you are subject to algorithm changes and policy shifts that can disrupt your sales overnight.

On your own website, every customer who buys is yours forever. You capture their email address, browsing behaviour, and purchase history at checkout. You can build a CRM, run email marketing campaigns, and create a seamless upsell and cross-sell experience. This is why we at Varsuite focus on building e-commerce systems that integrate with your business processes, not just a standalone shop. When you own the relationship, your customer lifetime value goes up, and your marketing costs go down.

Margins: The Hidden Cost of Marketplace Success

It is tempting to focus on marketplace reach, but the economics often work against you. Consider a product with a production cost of £20. On your own website, you sell it for £50. Your gross margin is £30, minus payment processing (say £1.50) and a portion of your monthly hosting (say £2 if you do 25 sales a month). That leaves £26.50, a 53% margin.

On Etsy, selling that same product for £50, you pay a 6.5% transaction fee (£3.25), a payment processing fee (around 3% plus 25p, so about £1.75), and if you use off-site ads, another 12% (£6). Total fees: £11. Your gross margin drops to £19, a 38% margin. On Amazon, after referral and fulfilment fees, your margin might be as low as £10, just 20%.

Marketplaces also encourage price competition. When customers compare similar products across dozens of sellers, they choose the cheapest. On your own website, you control the pricing narrative. You can position your product on value, quality, or brand story, and you need not race to the bottom.

Brand Control: How You Are Seen Matters

Marketplace listings are standardised. Your product sits in a grid with dozens of competitors, with a thumbnail, a price, and a star rating. There is little room for storytelling. Your brand is reduced to a logo and a few bullet points. On Etsy, the storefront layout is slightly more flexible, but it is still constrained by the platform’s design.

On your own website, you control every pixel. You can craft a homepage that explains your mission, use photography that shows your product in real life, and write copy that speaks directly to your ideal customer. You can add video, customer testimonials, and detailed guides that build trust. That trust translates into higher conversion rates and repeat purchases. If brand matters to you, a website is non-negotiable.

Reach: The Real Advantage of Marketplaces

Let’s be honest: marketplaces have one big advantage, reach. Millions of shoppers visit Amazon and eBay every day with purchase intent. Etsy has a loyal audience looking for handmade and unique items. For a new business, that traffic can be life-changing. It costs nothing in advertising to get your first sales, because the platform’s search drives discovery.

But reach is rented. You do not own it. When you stop paying fees or the algorithm changes, the traffic disappears. On your own website, you build your audience through SEO, content marketing, social media, and email. It takes longer to generate traffic, but it is an asset that grows over time. If you combine a website with an effective SEO and content strategy, you can rank for your niche keywords and attract visitors who are actively searching for your products, and they will find you, not a crowded marketplace.

At Varsuite, we help businesses build that owned reach. Our automated SEO and content marketing services (from £100 per month) work to improve your Google rankings, so your website becomes a lead-generation machine. We also build AI agents that handle customer service, inventory updates, and marketing tasks, freeing you to focus on product and brand.

Practical Next Steps: A Hybrid Approach Works Best

Most successful e-commerce businesses do not choose one or the other. They start on marketplaces to validate demand and get early cash flow, then gradually move customers to their own website. You can include a leaflet in your marketplace package pointing customers to your site, or offer a small discount for direct orders. Over time, you shift the balance.

When you are ready to build your own website, consider working with a partner who understands the technical and marketing sides. At Varsuite, we specialise in AI-accelerated, human-perfected e-commerce solutions. Our e-commerce service builds online stores from £1,000, and our business automation services integrate your store with your CRM, inventory, and marketing tools. We also offer custom software if you need a unique feature, and our SEO and content marketing packages help you rank and attract organic traffic.

Frequently Asked Questions

How do marketplace fees compare to running my own website?

Marketplace fees typically range from 15% to 30% of each sale, covering listing, transaction, and payment processing. Running your own website costs a fixed monthly fee plus payment processing of around 1.5% to 3%. For most products, the website works out significantly cheaper per sale.

Can I still sell on Etsy and have my own website?

Yes. Many businesses use marketplaces for discoverability and their own website for full-margin sales and customer ownership. You can drive repeat buyers to your website by including inserts, offering exclusive discounts, or simply providing a better shopping experience.

How long does it take to get traffic to my own website?

It depends. If you invest in SEO and content marketing, you can see meaningful organic traffic within three to six months. Paid ads can bring immediate traffic, but at a cost. Unlike marketplace traffic, the audience you build on your own site is an asset that compounds over time.

What are the best ways to convert website visitors into customers?

A fast, mobile-friendly design, clear product photography, detailed descriptions, and a smooth checkout process are essential. Add trust signals like reviews, guarantees, and a clear returns policy. Use email marketing to follow up with abandoned carts and to upsell to existing customers after the sale.