Own store vs. marketplace: margin, control, and the hybrid strategy

Fernando Kazuo · 2026-10-07

Marketplaces

Marketplaces offer a ready-made setup for selling, but they come with challenges that can impact your margins and control over the business. Here are the main points to consider:

• Commissions

Commissions vary quite a bit across marketplaces, ranging from 5% to 20% of the sale price, depending on the product category and sales volume. For example, commissions tend to be higher in categories like fashion. It’s crucial to calculate whether your product’s profit margin can support these fees. If your margin is too low, consider rethinking your pricing strategy or even switching marketplaces.

• Customer data

One of the biggest downsides of selling on marketplaces is losing access to customer data. When you sell through these platforms, you don’t have direct access to buyers’ information, which limits your ability to run remarketing and personalize the experience. This can affect your retention and repeat purchase strategies. If your focus is building a long-term relationship with the customer, this limitation is something to consider.

• Repeat purchases

Marketplaces can make repeat purchases harder. Customers who buy from you on a marketplace may not remember that you’re the brand behind the product. Without a direct communication channel, it’s harder to encourage repeat purchases. To help with this, consider including a free gift or discount coupon in the package, but keep in mind that this doesn’t solve the lack of customer data.

• Hybrid

A hybrid strategy that combines sales on marketplaces with sales through your own store can be an effective alternative. With this model, you can take advantage of marketplace visibility and traffic while building your own channel to capture customer data. This allows you to manage customer relationships better and increases the chances of repeat purchases.

• When to use each

Use marketplaces when:

• You’re just starting out and need immediate traffic.
• Your product fits well into the marketplace’s high-demand categories.
• You don’t have the resources to invest in your own store.

Going with your own store is ideal when:

• You already have a customer base and want to build a closer relationship.
• Your product has a margin that can support marketplace commissions.
• You want full control over the customer experience and the data you collect.

The choice between your own store and a marketplace should be guided by your business strategy and the type of product you sell. What percentages are you seeing in your sales between your own store and the marketplace?