How to Start Selling on Amazon Alongside Your Own Store
Amazon accounts for 37.6% of US ecommerce sales according to eMarketer (2024). Selling on Amazon alongside your own store lets you capture marketplace traffic while building brand equity on your site. This guide covers account setup, listing optimization, pricing strategy, and inventory management for a successful multi-channel approach.
Why Should You Sell on Amazon Alongside Your Own Store?
Amazon captured 37.6% of all US ecommerce sales in 2024, according to eMarketer. That means more than one in three online dollars flows through a single marketplace. Ignoring Amazon means surrendering that share to competitors. However, relying solely on Amazon leaves you vulnerable to fee increases, account suspensions, and algorithm changes. The smartest approach is a dual-channel strategy that leverages Amazon for discovery while your own store builds long-term brand equity and higher margins.
The Discovery Engine Effect
According to Jungle Scout (2024), 56% of consumers begin their product search on Amazon rather than Google. By listing on Amazon, your products appear where buyers are already looking. Your own store then becomes the destination for repeat purchases, subscriptions, and brand-loyal customers who want a direct relationship with you. This funnel effect creates a self-reinforcing growth loop.
Revenue Diversification Benefits
Merchants selling on two or more channels generate 190% more revenue than single-channel sellers, according to Sellbrite (2024). Multi-channel selling reduces your dependence on any single traffic source. If Amazon changes its algorithm or your Google Ads costs spike, the other channel provides stability. Diversification also lets you test pricing and product positioning across different audiences simultaneously.
Pro Tip: Start with your 5-10 best-selling products on Amazon rather than your full catalog. This focuses your effort on listings most likely to succeed and keeps inventory management simple during the learning phase. Many ecommerce platforms offer native Amazon integration that syncs inventory, pricing, and orders between your own store and Amazon in real time, eliminating the risk of overselling.
US Ecommerce Market Share by Platform (2024)
Source: eMarketer, 2024
How Do You Set Up an Amazon Seller Account the Right Way?
Amazon offers two seller plans: Individual at $0.99 per sale and Professional at $39.99 per month with unlimited listings. According to Amazon Seller Central data (2024), Professional accounts access advertising tools, bulk listing features, and the Buy Box — all essential for serious sellers. If you plan to sell more than 40 items per month, the Professional plan pays for itself immediately.
Choosing Between FBA and FBM
Fulfillment by Amazon (FBA) means Amazon stores, picks, packs, and ships your products. Fulfillment by Merchant (FBM) means you handle logistics yourself. According to Marketplace Pulse (2024), 73% of top Amazon sellers use FBA because it grants Prime eligibility and higher Buy Box win rates. However, FBM can be more profitable for heavy, oversized, or slow-moving items where FBA storage fees erode margins.
- FBA advantages: Prime badge, higher Buy Box win rate, Amazon handles customer service and returns
- FBA disadvantages: Storage fees, long-term storage penalties, less control over packaging and inserts
- FBM advantages: Full control over fulfillment, no storage fees, branded packaging opportunities
- FBM disadvantages: No Prime badge (unless you qualify for Seller Fulfilled Prime), lower Buy Box priority
Account Registration Essentials
To register, you need a valid government ID, a credit card with international billing capability, tax information (EIN for businesses or SSN for sole proprietors), and a phone number for verification. Amazon’s verification process typically takes 24-48 hours. Keep your business documentation consistent across your own store and Amazon to avoid verification delays.
Pro Tip: Register your brand with Amazon Brand Registry before listing products. According to Amazon (2024), Brand Registry unlocks A+ Content, Sponsored Brands ads, and IP protection tools that increase conversion rates by an average of 5.6%.
What Is the Best Listing Optimization Strategy for Amazon?
Optimized Amazon listings receive 2-3 times more organic traffic than unoptimized ones, according to Helium 10 (2024). Your Amazon listings need different optimization than your own store because Amazon’s A9 algorithm prioritizes keyword relevance, sales velocity, and conversion rate rather than backlinks or domain authority. Treating Amazon SEO as a separate discipline is essential for visibility.
Title, Bullet Points, and Backend Keywords
Amazon titles should include your primary keyword, brand name, key product attributes, and size or quantity. Keep titles under 200 characters for most categories. According to SellerApp (2024), listings with all five bullet points filled out convert 29% higher than those with fewer. Each bullet should lead with a benefit, then explain the feature that delivers it.
- Research keywords: Use tools like Helium 10 or Jungle Scout to find high-volume, low-competition keywords specific to Amazon search
- Write benefit-led bullets: Start each bullet with a customer benefit in caps, then explain the supporting feature
- Fill backend search terms: Add 250 bytes of additional keywords customers might use but that do not fit naturally in your title or bullets
- Optimize product description: Use A+ Content if Brand Registered; otherwise write a keyword-rich description under 2,000 characters
- Add alt text to images: Amazon uses image metadata for search indexing, so describe each image clearly
Photography and A+ Content
Amazon allows up to nine images per listing. According to a study by Splitly (2023), listings with seven or more images have a 30% higher conversion rate than those with fewer than four. Your main image must have a pure white background. Secondary images should show scale, lifestyle usage, infographics highlighting features, and comparison charts. If you have Brand Registry, A+ Content modules let you add rich media below the fold.
How Should You Handle Pricing Across Amazon and Your Own Store?
Pricing strategy is the trickiest element of multi-channel selling. Amazon’s Fair Pricing Policy penalizes sellers whose Amazon price significantly exceeds their price on other channels, according to Amazon Seller Central (2024). However, you also do not want to undercut your own store where margins are better. The solution is a nuanced approach that accounts for channel-specific costs and perceived value differences.
Cost-Plus Pricing Per Channel
Calculate your true cost per channel. Amazon charges a referral fee (typically 15%), plus FBA fees if applicable. Your own store might have payment processing (2.9% + $0.30), shipping costs, and platform fees. Price each channel to maintain your target margin after all channel-specific costs. This usually means Amazon prices are slightly higher to offset the 15% referral fee, which Amazon allows as long as the difference is reasonable.
MAP Policy and Brand Consistency
A Minimum Advertised Price (MAP) policy protects your brand by setting a floor price across all channels. According to TradeVitality (2024), brands with enforced MAP policies see 18% less channel conflict and 12% higher perceived value. If you sell wholesale to other Amazon sellers, a MAP policy prevents them from racing to the bottom and devaluing your brand.
Typical Fee Breakdown: Amazon FBA vs. Own Store per $50 Product
Source: Amazon Seller Central, 2024; Shopify, 2024
How Do You Manage Inventory Across Multiple Channels?
Overselling is the fastest way to damage your seller metrics on Amazon. According to ChannelAdvisor (2024), merchants using real-time inventory sync tools experience 87% fewer stockout incidents than those managing inventory manually. When you sell on both Amazon and your own store, every unit sold on one channel must instantly reduce available quantity on the other to prevent double-selling.
Multi-Channel Inventory Tools
Dedicated inventory management platforms like Sellbrite, Linnworks, or ChannelAdvisor connect your Amazon account and your ecommerce platform to maintain a single source of truth. These tools sync inventory levels every 15-60 minutes (or in real time for premium tiers). According to Linnworks (2024), merchants who adopt centralized inventory management reduce fulfillment errors by 62% and cut manual data entry time by 30 hours per month.
- Sellbrite: Best for small to mid-size sellers, integrates with LaunchMyStore, Shopify, BigCommerce, and Amazon
- Linnworks: Enterprise-grade with warehouse management features and advanced reporting
- ChannelAdvisor: Full-suite marketplace management for high-volume sellers on 100+ channels
- Inventory Planner: Forecasting-focused tool that predicts restocking needs across channels
Safety Stock and Reorder Points
Set safety stock levels for each channel based on historical sales velocity and lead times. A common formula is: Safety Stock = (Maximum Daily Sales × Maximum Lead Time) − (Average Daily Sales × Average Lead Time). According to Inventory Planner (2024), merchants who maintain proper safety stock levels see 94% order fulfillment rates versus 78% for those who do not buffer inventory.
Pro Tip: Use Amazon’s Multi-Channel Fulfillment (MCF) to let Amazon fulfill orders from your own store. This simplifies logistics to a single warehouse while offering 2-day delivery through your own website, according to Amazon (2024).
What Common Mistakes Should You Avoid When Selling on Amazon?
According to a Jungle Scout survey (2024), 29% of new Amazon sellers fail to turn a profit within their first year. The most common pitfalls are underestimating fees, neglecting product reviews, violating Amazon’s terms of service, and failing to differentiate from competitors. Knowing these mistakes upfront helps you sidestep them entirely and reach profitability faster.
Ignoring Amazon’s Terms of Service
Amazon enforces strict policies on customer communication, review solicitation, and product claims. Violations can result in listing suppression or account suspension. According to eComEngine (2024), 34% of seller suspensions result from policy violations that sellers were unaware of. Read the Seller Code of Conduct thoroughly and subscribe to Amazon’s policy update notifications.
Neglecting Reviews and Ratings
Products with fewer than 15 reviews struggle to convert on Amazon. According to Spiegel Research Center (2023), displaying reviews increases conversion rates by 270%. Use Amazon’s “Request a Review” button and the Vine program (for Brand Registered sellers) to build early review momentum. Never incentivize reviews with discounts or freebies — this violates Amazon policy and risks permanent account suspension.
Failing to Monitor Advertising ROI
Amazon PPC (Sponsored Products, Sponsored Brands) is essential for visibility but can quickly drain budgets without proper management. According to Perpetua (2024), the average Amazon advertising cost of sale (ACoS) is 30%, but top performers maintain ACoS below 20% through careful keyword targeting and negative keyword management. Review your ad campaigns weekly and pause keywords with ACoS above your breakeven threshold.
Frequently Asked Questions
Can I sell the same products on Amazon and my own store?
Yes, you can sell identical products on both channels. Amazon’s Fair Pricing Policy requires that your Amazon price is not significantly higher than other channels, according to Amazon Seller Central (2024). Most sellers price consistently across channels or adjust slightly to account for different fee structures.
How much does it cost to start selling on Amazon?
A Professional Seller account costs $39.99 per month. Referral fees average 15% per sale, and FBA fees range from $3.22 to $10+ per unit depending on size and weight, according to Amazon (2024). Budget at least $500-$1,000 for initial inventory, product photography, and advertising.
Will selling on Amazon cannibalize my own store sales?
Research from Feedvisor (2024) shows that adding Amazon as a channel increases total revenue by 28% on average without reducing direct store sales. Amazon reaches a different customer segment — marketplace-first shoppers who may never have found your independent store organically.
How long does it take to become profitable on Amazon?
According to Jungle Scout (2024), 64% of Amazon sellers become profitable within their first 12 months, with most reaching profitability between months 3 and 6. Success depends on product selection, pricing strategy, advertising efficiency, and review accumulation speed.
Should I use FBA or FBM when I already have a warehouse?
If you already fulfill orders efficiently, FBM saves on FBA fees but sacrifices the Prime badge. According to Marketplace Pulse (2024), FBA sellers win the Buy Box 82% more often than FBM sellers. Consider a hybrid approach: FBA for fast-moving products and FBM for oversized or slow-moving items.
Written by
Nathan Cole
Ecommerce Strategist at LaunchMyStore. Helping online businesses scale with data-driven strategies and the latest ecommerce best practices.
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