Online marketplaces are an excellent way for online e-commerce sellers to expand their customer base and increase sales. However, each platform comes with its own requirements, fees, and target audience. So, before you start selling, you have to first distinguish which the best online marketplaces for your brand are.
Let’s take a look at a few of the most popular ones and identify their distinctive features, requirements, and benefits.
What’s an Online Marketplace?
An online marketplace is a third-party e-commerce platform that allows customers to purchase a wide variety of products from different sellers.
Nowadays, there are approximately 150 different marketplaces across the world. However, to achieve success selling online, there is no need to offer your products on all of them. Focusing on one or a few can help you reach a wide number of potential buyers without spreading your efforts and finances thin.
So, let’s take a look at a few of the best online marketplaces where you can sell your goods and well as the benefits that they can offer.
5 Best Online Marketplaces
With over 5 billion monthly visits, Amazon is not only one of the most popular websites in the world but also the largest and one of the best online marketplaces for sellers. Amazon currently dominates the American e-commerce market. In 2020, over 49% of all online sales made in the country were done through the marketplace.
About 65% of customers who shop on Amazon are Prime members, and nearly half of them shop on the marketplace at least once a week. The numbers spent on Amazon are impressive, too. An average non-Prime Amazon user spends about $600 each year whereas an average Prime member spends approximately $1,400 a year, over twice the amount.
Selling on Amazon requires a plan. You can either opt for an Individual Plan that has no monthly subscription fee but charges $0.99 for each unit sold or the Professional Plan which charges $39.99 per month in exchange for a range of benefits and no fee per unit sold. So, there are options for new as well as established sellers.
Giving vendors access to approximately 185 million active buyers, eBay is another great option for online sellers to expand their reach and grow their sales.
While its popularity dropped in 2019, due to changed consumer behaviors following the COVID-19 pandemic, Amazon has not only recovered but also accelerated its growth, maintaining it among one of the best online marketplaces.
eBay also keeps evolving along with the e-commerce trends. In fall 2020, the platform launched a product authentication program for expensive and luxury items such as watches over $2000 and speakers worth at least $100. This makes it harder for counterfeits to infiltrate the marketplace, making it more trustworthy for buyers.
Selling on eBay does not require set-up or monthly fees. You can either choose an insertion fee that you pay upon creating a listing or a final value fee charged when your product is sold. Due to this, eBay can be one of the best online marketplaces for new vendors as well as established ones who’d like to test the waters on this platform without huge investments or considerable financial risks.
Walmart is no longer just a huge grocery store and hypermarket chain where you can shop on a budget. It’s also one of the best online marketplaces, allowing third-party sellers to gain access to millions of buyers.
Like eBay, Walmart does not require set-up or monthly fees but, instead, charges a referral fee for the items sold.
Starting out on Walmart, however, isn’t as straightforward as it is on Amazon or eBay. You need to request to sell and get approved by the marketplace after which you will be invited to create a seller account on the platform. So, not all online sellers may qualify.
4. Facebook Marketplace
Facebook can be another great alternative for new and establish online sellers alike. It’s among the best online marketplaces for merchants as it allows access to the users of the largest social media platform in the world.
Facebook Marketplace does not require any fees or change commission. It can be suitable for both individual and professional sellers. However, professional sellers must first go through a review process before being able to sell. You must sync your inventory with Facebook and the platform will decide whether they are suitable to sell on the marketplace.
Etsy has become the go-to place for finding unique high-quality handcrafted artisan goods. So, if you specialize in selling handmade items, Etsy can be one of the best online marketplaces for you. All you need is to create appealing photos of your inventory, unload them to your Etsy store along with appealing product descriptions, and you are in business.
As per fees, Etsy charges a listing fee, transaction fee, and payment processing fee. While it may seem more than what other surface requires, these fees are uniform for all online sellers. Etsy processes payments through a secure platform and offers fraud protection, making it trustworthy and safe for both merchants and customers.
Are These Best Online Marketplaces Not Enough?
If you’d like to expand your horizons and gain more customers through other online marketplaces, you have plenty of options. From global marketplaces like Rakuten and AliExpress to region-specific Zalando and Mercado Libre, simply define your e-commerce business’ goals and select one that can help you achieve them.
E-Commerce Seller Financing Can Help You Grown on Online Marketplaces
If you are an established online seller who’s looking for ways to expand and grow their business, E-Commerce Seller Financing would be happy to help. We offer financing options for established sellers like you. Our rates are flat, terms straightforward, and there are no hidden fees to trick you into paying more than you have agreed to. Learn more here.