DTC vs Amazon: Which is RIGHT for YOUR Ecommerce Business? (Expert Tips)

Here are some top tips from an Amazon marketing agency founder, @thejonwillbanks, for e-commerce businesses trying to choose between selling directly to consumers (DTC) or selling on Amazon ????

???? Tip #1 - Understand the pros and cons of both channels

DTC offers more control over customer relationships and upgrades, but shipping costs may be higher than Amazon fees.

On the other hand, Amazon offers access to a large audience and helps young brands establish trust. Their advertising ecosystem is robust, but it can be difficult to navigate.

???? Tip # 2- Conduct a detailed contribution margin analysis of both your unit margin and overall margin economic for both DTC and Amazon.

This should include calculating the product COGS, pick pack, and ship costs.

Factor in CAC and compare the value of acquiring a recurring revenue subscriber on your DTC website versus a one-time customer on Amazon.

Analyzing the costs and ROI of different channels helps determine the best fit for your brand.

???? Tip # 3 - Try to align your channels, products, and margins to optimize performance across both Amazon and your DTC website.

This can help you reach customers effectively and maximize your contribution margin.

Follow these expert tips to increase your sales and decide on the right sales channels for your brand!

Listen to the full Podcast on ????

Apple Podcast: https://podcasts.apple.com/us/podcast/make-your-brand-successful-on-amazon-with-jon/id1737518718?i=1000653403895

Spotify Podcast: https://podcasters.spotify.com/pod/show/pet-friendly-growth-club/episodes/Make-Your-Brand-Successful-on-Amazon-With-Jon-Willbanks--Choosing-the-Right-Sales-Channel-for-Your-Pet-E-Commerce-Business-e2iq1l9
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