#006. Why Smart Ecommerce Founders Don’t Build Only on Amazon
Hi there, Rebecca here…
If you ask the average “Amazon Guru” where to start your e‑commerce journey, they’ll point to the 300 million active customers on Jeff Bezos’s platform. They’ll talk about “high intent” and “one‑click checkouts.”
They’re half right. Amazon is the biggest elephant in the room. But for a direct‑response marketer looking to build a sustainable, scalable brand, Amazon is the last place you should start.
This is one of the biggest differences between struggling operators and founders.
Struggling operators chase traffic.
Founders think about ownership, leverage, and control.
Because if you do not own the customer relationship, you do not fully own the business.
I learned this the hard way selling detox tea. I spent six months grinding, burning cash on Amazon PPC, and fighting for visibility. Just as the profit started rolling in, the lights went out. Amazon shut me down. Overnight, my revenue hit zero.
But the revenue wasn’t the biggest loss. The biggest loss was that I had no way to talk to my customers.
I had no list. I had no data. I had nothing but a warehouse full of tea and a dead URL.
If you want to win in e‑commerce, you have to be in control. Here is why you must build your funnel first and treat Amazon as a secondary distribution channel only.
1. The PPC “Breakeven” Mirage
On Amazon, you are fighting in a gladiator pit. Because it is a bottom‑of‑the‑funnel platform, everyone is bidding on the same high‑intent keywords.
When I was selling tea, the cost of Amazon PPC meant I was lucky to break even for the first six months. You aren’t “buying customers”; you are renting visibility.
And because Amazon dictates the layout, you can’t use the “Bridge” strategies we talked about last week. You can’t use a long‑form advertorial to explain why your tea is better than the 500 other brands — you’re stuck in a direct‑to‑listing war where the only levers are:
- price
- reviews
That is an incredibly difficult environment to build a differentiated brand long-term.
2. Who Owns the Relationship? (Spoiler: Not You)
This is the Hidden Tax of Amazon.
When someone buys your product on Amazon, they aren’t your customer. They are Amazon’s customer.
You can’t email them to cross‑sell a new product. You can’t retarget them with a specific funnel. You can’t survey them to find out what they want next.
You are building inside somebody else’s ecosystem under somebody else’s rules!
If Amazon decides to change their Terms of Service (TOS) or shut your account down – as they did to me – you are left with a business that has zero heartbeat.
3. The “Funnel First” Strategy: Building on Solid Ground
The best DTC brands don’t start on Amazon. They start by building owned acquisition systems first.
Because founders understand that the real asset is not the platform.
It is the relationship.
By driving traffic from Meta, TikTok, or Google to your own funnel, you gain three things Amazon will never give you:
The List
Every opt‑in and every buyer is yours. This list is your ultimate insurance policy. If your store goes down, your list stays. You can launch a new product or move to a new domain in 24 hours if you own the email list.
The Data
You can test:
- angles
- hooks
- offers
- advertorials
- VSLs
You can see exactly where people drop off. You can optimize for Lifetime Value (LTV), not just a one‑time transaction.
The Control
You decide the narrative. You aren’t a thumbnail in a search result; you are a brand with a story.
4. When to Use the “Elephant”: Amazon as a Distribution Channel
I’m not saying never use Amazon. I’m saying use it on your terms.
Once you have:
- a winning funnel
- a validated offer
- a growing email list
…then you open an Amazon account.
The Pro Move
Drive warm traffic from your existing email list to your Amazon listing.
Use a launch discount to trigger Amazon’s ranking algorithm.
Because this traffic is warm, your conversion rate will skyrocket – and you’ll rank for organic keywords much faster (and cheaper) than you ever could with Amazon PPC.
The Hard Lesson
My revenue stopped overnight because I built my business on someone else’s platform. It was painful, but it changed how I do e‑commerce forever.
Don’t build Amazon’s business. Build your own.
Start with a funnel. Test your angles. Build your list. Control your cash flow.
Because once you control the relationship, you control the business.
And only then should platforms like Amazon become part of your scaling strategy – not the entire foundation underneath it.
Want to Talk About It?
Got questions about this post? Let me know about it, and help you out.
Until next week,
Rebecca
Next up, you might enjoy these…
#007. You don’t scale a store. You scale a viable offer
#002. Why Branding Too Early Destroys Most Ecommerce Businesses
#001. Stop Chasing Winning Products. Start Thinking Like a Founder.
