The Dilemma Every MSME Faces
You're ready to take your business online. But should you sell on Amazon or Flipkart, or try to build your own direct channel through WhatsApp, Instagram, or your own website?
This guide breaks it down in simple language—no jargon, no bias—so you can take a clear decision based on your business type, product category, margins, and control preferences.
Target Audience: Indian MSMEs, shop owners, and home-based sellers trying to decide between online marketplaces and independent selling channels.
Understand the Two Models
Pros & Cons of Amazon/Flipkart for MSMEs
Pros:
Ready customer base
Easy logistics via FBA (Fulfilled by Amazon) or Flipkart Advantage
National reach
Payment assurance (after deductions)
Cons:
High commission (8–22% depending on product)
Competitive pricing pressure
Delayed payouts (7–15 days)
Returns & refunds handled in platform’s favor
Branding is limited—you become just another seller
Best For: Standardized products with good margins (toys, electronics accessories, kitchen items)
Pros & Cons of Independent Selling
Pros:
Higher profit margins (no commission)
Direct customer relationships
Flexible pricing & offers
Control over branding and service
Cons:
You need to generate your own traffic
Manage payments, shipping, and support
Initial trust-building is slower
Time-consuming if you don’t use the right tools
Best For: Custom, local, or unique products (handicrafts, niche fashion, B2B items, bulk packs)
How to Decide ?
You Sell Mass-Market Products (e.g., Earphones, Toys, Home Tools)
Recommendation: Start with Amazon/Flipkart. Test demand and pricing. Then gradually create your own catalog and build a repeat buyer base via WhatsApp or email.
You Sell Custom/Niche Products (e.g., Pickles, Wooden Decor, Wholesale T-Shirts)
Recommendation: Use WhatsApp Business + Instagram or Facebook Page. Grow slowly, collect reviews, and only explore marketplaces after proof of demand.
You Are a Manufacturer or Bulk Seller
Recommendation: Focus on B2B via platforms like IndiaMART, Sumvaad Bazaar, or direct distributorship. Marketplaces are rarely profitable unless selling D2C (direct to consumer).
Don’t Choose—Do Both, Smartly
Hybrid Strategy (Best of Both Worlds):
Use Amazon/Flipkart to gain traffic, reviews, and exposure.
Use inserts in your packaging (like "reorder directly via WhatsApp") to build your own customer base.
Offer better prices or exclusive bundles on your independent channel.
Tip: Many Indian sellers now treat Amazon as a lead generator—not their only source of orders.
Tools to Get Started
SEO Tip for Independent Sellers
Use keywords your customers might search on Google. Example: Instead of “Eco Yoga Mat”, use “Buy Cotton Yoga Mat in Indore” on your page/WhatsApp Catalog.
Our Verdict
