D2C vs marketplace: where should a new Indian brand sell first?
Marketplaces bring traffic, your own store brings margin and customer data. Compare fees, control and risks to decide where a new Indian brand should start.
By Orvexa TeamUpdated 3 min read
- Marketplaces give you demand but take margin and own the customer
- Your own store gives you data, brand and repeat sales but you must bring traffic
- Most brands do best by testing on a marketplace and building their own store in parallel
New brands often ask whether to list on a marketplace or build their own store. The honest answer is that they solve different problems. Marketplaces solve demand. Your own store solves margin and ownership.
What a marketplace gives you
A marketplace brings shoppers who are already looking to buy. You get traffic, trust, a checkout people know and, often, fulfilment help. That is valuable when nobody has heard of you.
What you give up
- Margin: commissions, fixed fees, shipping charges and advertising add up. Always calculate profit per order after every deduction.
- The customer relationship: the marketplace usually owns the customer. You cannot easily email or WhatsApp them again.
- Control: search ranking, pricing rules and policies can change without your say.
- Brand: your product sits beside direct competitors, often one tap from a cheaper alternative.
What your own store gives you
On your own store you set the price, the story and the experience. You keep the customer's contact details (with consent), which lets you build repeat sales through email and WhatsApp. Your cost is the platform subscription plus payment fees, which is usually far lower than marketplace commission.
What your own store asks of you
Nobody arrives by default. You need to bring traffic through search, social, ads, creators and word of mouth. That takes time and money, and early conversion rates are modest.
A sensible way to combine them
- Start on a marketplace to prove the product sells and learn what customers ask.
- Launch your own store at the same time, even simply.
- Put your store link and a small incentive inside every parcel so marketplace buyers become your customers next time (follow the marketplace's rules on this).
- Move your best-selling products and your marketing budget toward your own store as repeat sales build.
A quick comparison
| Marketplace | Own store | |
|---|---|---|
| Traffic | Built in | You build it |
| Margin | Lower after fees | Higher |
| Customer data | Limited | Yours |
| Brand control | Low | High |
| Time to first sale | Fast | Slower |
A worked example (illustrative numbers)
Imagine a product that sells for ₹1,000 with a cost of ₹450 including packaging. On a marketplace, suppose commission, fixed fees and shipping take ₹280, leaving ₹270 before advertising. On your own store, suppose payment fees and shipping take ₹110, leaving ₹440, but you spend ₹200 on average to acquire a customer, leaving ₹240 on a first order and the full ₹440 on every repeat order.
The point is not that one is always better. It is that your own store can pay back over repeat purchases, while a marketplace can look more profitable on the first sale. If your product is consumable or likely to be bought again, your own store usually wins over time. If it is a one-off purchase, a marketplace may be the better home for the first sale.
Mistakes brands make
- Treating marketplaces as free advertising. Visibility there is often paid, through ads and promotions.
- Pricing the same everywhere. If your own store is cheaper, marketplace buyers will notice. If it is much dearer, shoppers will leave. Decide your price policy before you list.
- Never collecting your own audience. Even on a marketplace, build a channel you own, such as an Instagram page or a WhatsApp community with consent.
What to do next
List the three costs that eat your margin on a marketplace, then estimate your profit per order on your own store with this cost guide. The gap shows how much traffic you can afford to buy.
Frequently asked questions
Can I sell on a marketplace and my own store at the same time?
Yes, and most brands do. Check each marketplace's pricing and promotion rules so that you do not breach them, and keep stock numbers in sync.
Which gives better profit per order?
Usually your own store, because you avoid commission. But a marketplace may sell far more units, so compare total profit, not just profit per order.
Is it worth building my own store before I have customers?
Yes. Building it early costs little, and every marketplace buyer you convert into a direct customer lowers your acquisition cost on future orders.
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