Sell on the Marketplace or Build Your Own Store? Run Both Numbers
Short Answer
Amazon.ae lists most referral fees between 4.5% and 15%, while your own store swaps commission for build, marketing and payment costs. A break-even calculation shows when your own store pays off.
Many UAE product businesses start selling on a marketplace because customers are already there and setup is quick. As sales grow, commission bills grow too, and owners start asking whether their own online store would be cheaper. The honest answer depends on margins, order volume and how much it costs to attract customers directly. Running both sets of numbers side by side gives a clearer answer than instinct.
This guide compares selling on a marketplace with running your own online store in the UAE. It covers Amazon.ae's published fees, the real costs of your own store and a break-even example. It also covers control over customer relationships and hybrid approaches. Each section ends with a short answer for business owners.
What does selling on a marketplace cost?
Marketplaces charge a commission on each sale and often extra fees for fulfilment and storage. Amazon.ae's seller pricing page states that most of its referral fees are between 4.5% and 15%. Its examples include 15% for apparel and 7% for consumer electronics.
Fulfilment by Amazon adds a flat fee per unit based on size and weight, starting at AED 5.5 per unit. Storage costs AED 2 per cubic foot each month, before VAT. Amazon.ae also states that Professional accounts are available with no monthly subscription fee for a limited time.
Quick Answer
Amazon.ae lists most referral fees between 4.5% and 15%, including 15% for apparel. Amazon's FBA starts at AED 5.5 per unit, with storage at AED 2 per cubic foot monthly.
What does running your own online store cost?
Your own store removes marketplace commission but adds several other costs instead. You pay for design and development, hosting, maintenance, payment gateway fees, delivery arrangements and customer service. Our guide to ecommerce website costs in the UAE breaks down the setup and running costs.
A major cost is often attracting customers, because nobody visits a new online store automatically. Advertising, search optimisation, email and social media all cost money, staff time or both. Compare your expected cost per order from marketing with the commission you would pay on a marketplace.
Quick Answer
Your own store replaces commission with build, hosting, maintenance, payment, delivery and service costs. Customer acquisition is often a major cost, so estimate your marketing cost per order carefully first.
How do you calculate the break-even point?
Start with the marketplace fees you pay per order, including commission and fulfilment. Subtract what each order would cost on your own store, including payment, delivery and marketing. The difference is your saving per order, which must cover the store's fixed monthly costs.
For illustration, an apparel item sold at AED 200 carries a AED 30 referral fee at 15%. If your store's payment, delivery and marketing costs total AED 20 per order, you save AED 10. With AED 1,500 of monthly fixed costs, you need 150 orders each month.
Quick Answer
Saving per order equals marketplace fees minus your store's payment, delivery and marketing costs. In an illustrative example, saving AED 10 per order covers AED 1,500 monthly at 150 orders.
What do you control with your own store?
Your own store gives you the customer relationship, including contact details, purchase history and permission to market where customers consent. You decide the design, product pages, pricing presentation, bundles and seasonal promotions. Repeat customers can then buy directly, with no commission on each repeat order.
Marketplaces control listing rules, search ranking, buy box decisions and how customers contact sellers. Policy or fee changes can affect your sales and margins almost overnight. Our guide to payment gateways for UAE online stores explains the payment side of running your own store checkout.
Quick Answer
Your own store gives you customer data, design control and commission-free repeat sales. Marketplaces control listing rules, search ranking and customer contact, and policy changes can affect your sales quickly.
Should you run both a marketplace and your own store?
Many businesses use marketplaces for discovery and their own store for repeat customers and higher-margin products. That spreads risk across channels and lets each one do what it does best. Keep pricing consistent enough that marketplace customers do not feel misled when they compare.
Track profit per order by channel, not just revenue, and review the figures every single month. Move marketing spend towards the channel that earns more after all fees and costs. Our guide to running cash on delivery alongside card payments covers a common own-store checkout decision.
Quick Answer
Many businesses use marketplaces for discovery and their own store for repeat, higher-margin sales. Track profit per order by channel monthly, and shift marketing spend towards the more profitable channel.
Main Takeaways
Amazon.ae lists most referral fees between 4.5% and 15%, with Fulfilment by Amazon starting at AED 5.5 per unit. Your own store replaces commission with build, hosting, payment, delivery and marketing costs. Divide monthly fixed costs by your saving per order to find the break-even volume. Many businesses run both channels and track profit per order by channel every month.
Compare profit, not just commission
Commission feels expensive because it appears on every statement, but marketing costs on your own store can be just as high. Gather your real marketplace fees and estimate your own store's costs per order honestly. Calculate the break-even volume using those figures and your current monthly orders. Then decide whether to build now, wait for more volume or run both channels.
Auronix offers ecommerce solutions for UAE online stores, including stores that run alongside marketplace listings. Send us your monthly orders, average order value, product categories and current marketplace fees. We will help you model the break-even point and plan a store that suits your products and budget. Request a quote to start with your best-selling products and best categories.
Sources & References
FAQs
Questions readers usually ask next
These FAQs are written to match the topic of this post and to help readers move from understanding to action.
How much does Amazon.ae charge sellers?
Amazon.ae states that most referral fees are between 4.5% and 15%, depending on the product category. Fulfilment by Amazon adds per-unit fees, starting at AED 5.5, plus monthly storage charges.
What is the Amazon.ae referral fee for apparel?
Amazon.ae's seller pricing page lists a 15% referral fee for apparel, compared with 7% for consumer electronics. Always check the current page before calculating, because fees and categories can change.
Is it cheaper to sell on my own website?
It can be, once your order volume covers the store's fixed costs and marketing spend. Calculate your saving per order and compare it with your store's monthly fixed running costs.
What costs come with running my own online store?
Expect design, development, hosting, maintenance, payment gateway, delivery and customer service costs from the start. Customer acquisition through advertising, search, email and social media can become a major ongoing cost.
How many orders do I need for my own store to break even?
Divide your store's monthly fixed costs by your saving per order after all variable costs. In an illustrative example, AED 1,500 of costs and AED 10 savings need 150 orders.
Do I own customer data on a marketplace?
Marketplaces control how customers contact sellers and what customer data you receive after each sale. Your own store gives you contact details and purchase history, subject to each customer's consent.
Should I sell on both a marketplace and my own website?
Many businesses do, using marketplaces for discovery and their own store for repeat customers and better margins. Track profit per order by channel each month to guide future marketing spend.
Can I charge different prices on my own store?
You can set your own prices, but keep them consistent enough that marketplace customers do not feel misled. Check each marketplace's pricing policies before setting different prices on your store.
What is Fulfilment by Amazon?
It is Amazon's service for storing, packing and delivering your products to customers. Amazon.ae charges a flat per-unit fee based on size and weight, starting at AED 5.5 per unit.
Can Auronix build an online store alongside my marketplace listings?
Yes, Auronix builds online stores for UAE businesses that also sell on Amazon.ae, noon or other marketplaces. We help you plan pricing, product data, payments and delivery for both channels.
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