The Great Ecommerce Tug-of-War
Look, if you’re selling products online in Australia right now, you’ve probably had the same argument with yourself a dozen times.
Do I stick my gear on Amazon or eBay and tap into their massive crowd? Or do I build my own Shopify site and keep every cent for myself?
It’s a fair question. Most ‘experts’ will tell you that you absolutely must do one or the other. They’re usually wrong.
I’ve sat down with enough business owners from Fortitude Valley to the Goldie to know that there isn’t a one-size-fits-all answer. What works for a bloke selling custom 4WD snorkels won’t work for a lady selling handmade organic candles.
Let’s pull the curtain back on how this actually works in the real world. No jargon, no fluff—just the honest truth about where your money goes.
The Marketplace Trap: Easy Sales, High Rent
Selling on Amazon or eBay is a bit like setting up a stall at the Eka. The people are already there. They’ve got their wallets out. You don’t have to do much to get them to look at your stuff.
But—and it’s a big 'but'—you’re paying for the privilege. Heavily.
The Pros
- Instant Traffic: You list it, and within hours, someone in Perth can find it. - Trust: People trust Amazon. They know if the package doesn't show up, they’ll get their money back. That trust rubs off on you. - Shipping: If you use their warehouses, they handle the picking, packing, and the midnight 'where is my stuff' emails.The Cons
- The Fees: By the time you pay the referral fee, the storage fee, and the shipping fee, you’re often left with crumbs. - No Loyalty: That customer isn’t your customer. They’re Amazon’s customer. You usually aren't even allowed to send them a thank-you note with your website on it. - The Competition: You’re always one click away from a cheaper, nastier version of your product being suggested right under your listing.Your Own Store: Total Control, Total Responsibility
This is the dream, right? Your own beautiful website. Your brand. No one taking a 15% cut of every sale.
But here’s the reality: Building a website and not marketing it is like opening a shop in the middle of the Simpson Desert. It doesn't matter how good the fit-out is if no one knows you exist.
When we help clients make more sales from Shopify, the biggest hurdle isn't the tech. It's getting people through the door without burning a hole in your pocket with ads.
The Pros
- You Own the Data: You get their email. You can talk to them again. You can build a brand that people actually remember. - Higher Margins: Once the site is built, you aren't paying a 'rent' per sale to a tech giant. - Customisation: You can make the shopping experience exactly what you want it to be.The Cons
- Marketing Costs: You have to pay for every single visitor through Google Ads, Facebook, or SEO. - The Tech: If the site breaks on a Saturday night, it's your problem to fix. - Trust Issues: If no one has heard of you, they might be nervous about putting their credit card details into your site.A Tale of Two Businesses (The Reality Check)
I want to show you how this plays out with two common scenarios we see at Local Marketing Group.
Scenario A: The 'Volume' Play
We worked with a business selling generic phone accessories. High volume, low price. For them, trying to drive traffic to their own site was a suicide mission. The cost to get one person to click a Google Ad was more than the profit on a phone case.The Strategy: We moved them almost entirely to marketplaces. We focused on fixing product pages to make sure they stood out from the 5,000 other identical cases.
The Result: They made less profit per item, but they sold ten times more. They used the marketplace as a giant vending machine.
Scenario B: The 'Brand' Play
Then there’s a local manufacturer making high-end camping gear. Their stuff is expensive, it lasts forever, and it has a story. Selling on Amazon felt 'cheap' to them, and the fees were eating their ability to innovate.The Strategy: We built their own store and focused on making it look like a world-class operation. We worked on ways to get sales without ads by using clever content and showing up in local searches.
The Result: Their profit margins doubled. More importantly, they built a list of 10,000 loyal Aussies they can email every time they launch a new product. That’s an asset you can’t build on eBay.
Which One Is Right For You?
If you’re sitting there wondering which way to jump, ask yourself these three questions:
1. What are my margins? If you’re making less than 30% gross profit, a marketplace will likely bleed you dry. 2. Is my product unique? If you’re the only person selling it, you want your own store. If you’re selling what everyone else is selling, you need the marketplace traffic. 3. Do I have a marketing budget? If you have $0 for ads, start on a marketplace. If you have a few grand a month to invest in building a brand, build your own site.
The 'Hybrid' Approach (What we actually recommend)
Most of the time, the answer isn't 'or'. It's 'and'.
We often tell our clients to use marketplaces as a lead generator. Sell a basic version of your product on Amazon. Get people familiar with the brand. Then, use your own website for the premium stuff, the subscriptions, and the repeat orders.
It’s about not putting all your eggs in one basket. If Amazon decides to change their rules tomorrow (and they do, often), you don't want your entire business to vanish overnight.
The Cost of Doing Nothing
I see a lot of business owners get 'analysis paralysis'. They spend six months debating which platform to use and zero months actually selling anything.
Look, the internet moves fast. Whether you choose a marketplace or your own shop, the most important thing is that the site works perfectly on a phone and it’s easy for people to give you money.
If your website looks like it was built in 2005, it doesn't matter where you're selling—people won't trust you.
My Honest Take
If you’re just starting out, grab a marketplace account. Get some runs on the board. See if people actually want what you’re selling.
But the moment you’ve got a proven product, start building your own 'home' online. Owning your customer list is the only way to build a business that you can eventually sell or retire on. Renting space from Jeff Bezos is a job; owning your own store is an investment.
What Should You Do First?
Stop overcomplicating it.
1. Check your numbers. If you're on a marketplace, calculate exactly what you're paying in fees. It’ll probably scare you. 2. Look at your own site. If you went there as a customer, would you trust it? 3. Pick one channel to master before trying to be everywhere.
If you’re sick of guessing and want to know how to actually get more enquiries and sales without wasting a fortune, let’s have a chat. We do this every day for businesses just like yours.
Talk to the team at Local Marketing Group and let’s sort out a plan that actually makes sense for your bank account.