The Great Online Sales Myth
I see it every week here in Brisbane. A business owner has a great product—maybe it's custom furniture from a workshop in Geebung or boutique skincare from a shop in Paddington—and they think, "I’ll just put it on Amazon or eBay and the money will roll in."
Then, six months later, they’re sitting in my office wondering why they’ve sold thousands of dollars worth of stock but have almost no profit left in the bank.
There is a massive misconception that selling on a marketplace like Amazon, eBay, or Catch is the "easy" way to grow. People think it’s a shortcut to success because the customers are already there.
I’m going to be blunt: for most small business owners, relying solely on marketplaces is like renting a house on a week-to-week lease while the landlord keeps raising the rent and stealing your mail. You’re doing all the work, but you don't own anything.
In this guide, I’m going to pull back the curtain on the "Marketplace vs. Own Store" debate. I’ll show you where the hidden costs are, why your own website is your most valuable asset, and how to use both to actually put more money in your pocket.
Part 1: The Marketplace Trap (Why It’s Not as Easy as It Looks)
Marketplaces love to tell you how many millions of shoppers they have. And it’s true. Amazon Australia has grown massively. But what they don't tell you is that those aren't your customers. They are Amazon’s customers.
You Are Competing on Price, Not Value
When you list a product on a marketplace, you are placed side-by-side with fifty other people selling something similar. The marketplace design forces the customer to look at one thing: the price.If you’re a local business owner who prides yourself on quality, you can’t win a race to the bottom on price. There will always be someone willing to sell a cheaper, nastier version of what you make for 50 cents less. On your own website, you can tell your story and show why your product is better. On a marketplace, you’re just a row of text and a price tag.
The Fees Eat Your Profit Alive
By the time you pay the referral fee (usually 8% to 15%), the closing fee, the shipping fee, and the advertising fee just to get seen, your margins are gone. I’ve seen businesses in South East Queensland lose 30-40% of their sale price just to the marketplace platform.If you sell a product for $100, and it costs you $40 to make/buy, and the marketplace takes $35 in various fees... you’re left with $25 to cover your rent, your staff, and your own wage. That’s not a business; that’s a hobby that makes Jeff Bezos richer.
They Can Turn You Off Tomorrow
This is the scariest part. I knew a bloke running a successful car parts business on eBay. He was doing $50k a month. One day, eBay’s automated system flagged a policy violation he didn't even commit. They froze his account. No phone number to call, no human to talk to. Just like that, his income vanished for three weeks while he fought a robot to get his shop back.When you own your website, nobody can turn you off. You own the "digital real estate."
Part 2: Why Your Own Website is a Goldmine
If you want a business that lasts for ten years, not ten months, you need your own online store (like a Shopify or WooCommerce site). Here’s why this is where the real money is made.
You Own the Data
When someone buys from you on your website, you get their email address and their phone number. You can then get repeat sales by sending them a simple email or text when you have a new product or a sale.On Amazon, they hide the customer’s email from you. You can’t contact them again. You have to pay Amazon again to reach that same person. That is a massive waste of money. The real profit in retail comes from the second, third, and fourth purchase.
You Control the Experience
Your website allows you to show off your brand. You can use high-quality videos, explain your Brisbane roots, and show off your local team. This builds trust. When people trust you, they are happy to pay a premium.One of the best ways to build this trust and drive sales is by showing what other locals think of you. If you use customer reviews correctly on your own site, you’ll see people buy much more quickly because they see your business is legitimate and reliable.
Higher Profit Per Sale
Yes, you have to pay for your website hosting and maybe some tools, but these are small, fixed costs. They don't scale up and eat your profits as you grow. If you sell $10,000 worth of stock on your site vs. $10,000 on a marketplace, you will almost always keep significantly more of that money when it’s through your own store.Part 3: The "Hybrid" Strategy (The Smart Way to Grow)
I’m not saying marketplaces are completely useless. They have a purpose, but you have to use them correctly. The smartest Brisbane businesses use a "Hybrid" approach.
Use Marketplaces for "Customer Acquisition"
Think of Amazon or eBay as a billboard. Use it to get your products in front of ready-to-buy shoppers who have never heard of you.But here is the trick: include a flyer or a coupon in the box that gives them a discount if they buy their next order directly from your website. You pay the marketplace fee once to find the customer, then you move them to your own platform where you keep all the profit for every future sale.
Protect Your Brand
Even if you don't want to sell much on marketplaces, you should probably have a presence there just so someone else doesn't pretend to be you. It’s about being where people are looking, but always trying to lead them back to your "home base" (your website).Part 4: The Costs – Being Realistic
Let’s talk turkey. How much does this actually cost?
Marketplace Costs: - Setup: Almost $0. - Ongoing: 10-20% of every single dollar you make. Forever. - Ads: You often have to pay extra to show up at the top of the search results.
Own Website Costs: - Setup: For a professional, high-performing site, you might spend $3,000 to $10,000 depending on how many products you have. - Ongoing: About $50-$150 a month for hosting and basic tools. - Marketing: You need to spend money on Google or Social Media to get people to the site.
The Verdict: The marketplace is cheaper to start, but vastly more expensive as you grow. Your own website is an investment upfront that pays for itself by saving you thousands in commissions over the long run.
Part 5: Common Myths Debunked
Myth 1: "If I build a website, people will just find it."
Rubbish. Building a website and not marketing it is like opening a shop in a back alley in Logan and not putting up a sign. You have to tell people you exist. This is why many owners run back to marketplaces—they forget that they need to actually drive traffic to their own site.Myth 2: "Marketplaces handle all my shipping, so it’s easier."
True, but expensive. Programs like "Fulfilled by Amazon" are convenient, but they charge you for storage, picking, packing, and shipping. If you’re a small business, you can often find a local 3rd party warehouse in Brisbane that will do it for less, or just do it yourself until you hit a certain volume.Myth 3: "I need to be on every platform."
No, you don't. If you try to manage an eBay store, an Amazon store, a Facebook shop, and your own website, you’ll do a mediocre job at all of them. Pick your own website first, then pick one marketplace where your customers actually hang out.What Should You Do First?
If you are just starting out, or if you’ve been stuck on marketplaces and want to break free, here is your game plan:
1. Build your own home base. Get a website that works perfectly on mobile phones and makes it easy for people to pay you. Use Shopify or a similar reliable platform. 2. Focus on your existing customers. It is five times cheaper to sell to someone who has already bought from you than to find a new person. Stop chasing new customers and start looking after the ones you have. Send them a "Thank You" email. Give them a reason to come back. 3. Use a marketplace for one specific product. Pick your best-seller and put it on Amazon. Use it as a lead generator to find new people, then move them to your site. 4. Watch your numbers. Don't look at "Total Sales." Look at "Profit in Bank After Fees." If your marketplace is taking most of your profit, it’s time to pivot.
Summary: Own Your Future
At the end of the day, do you want to be a "Vendor" or a "Business Owner"?
Vendors are at the mercy of the platforms. They can have their prices undercut, their accounts banned, and their margins squeezed. Business Owners own their website, own their customer list, and own their brand.
In Brisbane’s competitive market, the businesses that thrive are the ones that build a direct relationship with their customers.
If you’re tired of giving away a huge chunk of your sales to big tech companies and you want to start building an asset you actually own, we can help. At Local Marketing Group, we specialise in helping Brisbane small businesses get more phone calls, more website orders, and more profit without the technical headache.
Ready to grow your own online store? Contact us today and let’s talk about a plan that actually makes you money.