With yearly sales of $792 billion in online marketplaces, the United States is the world’s biggest economy and the second-largest e-commerce market (behind China). 14% of all retail sales are made over the Internet.
If consumers must choose between visiting a brick-and-mortar store and purchasing something online, they will likely choose internet shopping.
In 2019, over 1.92 billion consumers are anticipated to make online purchases. Specifically, consumers are going to marketplaces to explore, compare prices, and purchase items due to the ease of shopping in a central location.
Customers like online marketplaces because they are more convenient than department stores, where they spent $1.86 trillion worldwide in 2018.
Clearly, as a merchant, there are several advantages to selling your items on marketplaces.
But with so many at your disposal, how can you choose which ones are best?
Here are eight of the greatest e-commerce marketplaces accessible to aid you in your quest. Use this guide to figure out, based on the features you want, your budget, and your overall e-commerce goals, which marketplace will help you stand out and get a piece of the large amount of money that is out there.
Many of the world’s largest e-commerce giants, notably Amazon and eBay, are American, and the United States continues to lead the world in technology.
A further benefit for the United States is its 328 million-strong population. Americans are ravenous customers, giving domestic businesses with significant development potential.
What does online marketplaces mean?
Think of an e-commerce marketplace as an online bazaar where you can find products from different merchants, companies, or even individuals from different brands all on the same platform.
The company owner advertises and sells his own items, while a third-party provider handles site upkeep and logistics.
Online marketplaces simplify the process of starting a company by providing a single portal through which producers may offer their products directly to customers. thereby removing the risk associated with stock ownership.
Each e-marketplace is unique in its own way, but they all have the same objective: to facilitate online selling. Some achieve this by leveraging their reputation, while others do it by acquiring businesses.
It is not an exaggeration to say that these digital selling platforms have gotten surprisingly close to mastering e-commerce, nearly to the point of having it down to a science.
Amazon is the biggest online retailer in America. The firm’s main client is the consumer, but it also works with retailers, developers, companies, and content providers.
Amazon Prime is an annual membership club that provides consumers with access to free delivery on purchases and immediate streaming of video, among other perks. Amazon’s multiple retail websites and other branded electronic gadgets further engage consumers.
Amazon has marketplaces in fifteen countries worldwide. It also has a specialized business marketplace (Amazon Business).
In 2018, Amazon is projected to generate $258.22 billion in retail sales in the United States alone This accounts for 49.1% of all online retail spending and 5% of total retail sales.
The most recent Ahrefs study reveals that there are over 3 million organic keywords in the United States.
- You get access to countless customers.
- Easy to rank in search engines (with more real estate on the search results page)
- You may increase sales by using marketplace advertisements.
- Email automation is offered for shopping cart abandonment campaigns.
- You often do not get the customer’s information (such as their email address) and are prohibited from retargeting them.
- When switching markets, you must begin from the beginning.
- You must adhere to the specific laws and regulations of each marketplace. On some, you can’t give the buyer your email address, but on others, you can.
- Some marketplaces charge exorbitant listing and/or transaction fees.
Mercari is one of Japan’s most prominent online marketplaces. This Japanese e-commerce site has more than 50 categories, so you can be sure you’ll find the right one for your goods.
This online marketplace provides excellent distribution. There are around 18,500 sites where things may be obtained. In addition, Mercari provides a fulfillment service known as Mercari Fulfillment. You can read more about mercari reviews here
Mercar’s monthly membership price is €39.99, and there is a commission fee on each transaction. The actual commission charge amount depends on the product type.
Cost of Walmart Advertising
- There is no monthly listing fee at Walmart, and listing your items is free.
- Depending on the price of your goods, they will only charge 6–15% of your product’s costs on every transaction.
The Reason for Selling at Walmart
- Walmart makes it very simple for customers to choose and receive deliveries of goods.
- They provide free 2-day delivery, which drives more conversions.
Additionally, since Walmart has at least one shop in every neighborhood, practically everyone is familiar with the firm and trusts its internet merchandise. Also, they do what needs to be done to make sure that the items on their market are of high quality.
eCommerce (DTC) vs. Marketplace Sales
Definitely, it’s important to keep your direct-to-consumer operations on your website, and if you do it right, selling on marketplaces can only help you build your brand and site’s visibility.
Many people ask which one is superior and what the benefits are, so let’s compare them.
- You have complete command over the user experience and brand impression.
- You get client information and may retarget traffic from any channel.
- You will not be charged any additional fees.
- Exposure is more restricted and dependent on marketing expenditures.
- You do not take advantage of the prospects offered by internet marketplaces.
- It is more difficult to enter new areas and markets.
- Utilizing an online marketplace for sales
What is the optimal strategy?
The best way to start selling online is to sell on your own e-Commerce website and spread the word to as many online marketplaces as possible.
Alibaba Group, a worldwide e-commerce corporation, is a popular alternative. It operates many markets under its parent firm, and each has devoted customers.
AliExpress is a retailer online. AliExpress has been around since 2010, and its website has more than 100 million items for sale.
- To begin with, you must be accepted as a vendor on the website.
- AliExpress offers multilingual websites and deliveries to over 200 countries and regions.
- When you sell items on AliExpress, you will be charged a commission of 5% to 8% on each transaction.
- Wholesale merchants on Alibaba can choose between two memberships with different prices and benefits.
- The cost of the basic plan is $2,399, while the premium plan is $4,199.
- There is a payment processing charge applied to every purchase. In addition, orders that cost more than a certain amount are charged a service fee.
- You will be required to adhere to the protocols that eBay has established for handling things like returns, refunds, and customer support.
- You are essentially playing in their backyard, so their rules apply to you. However, keep in mind that these restrictions are in place not just to safeguard eBay but also sellers and customers.
- The best thing to do is learn all the rules, terms, and conditions and figure out how to run your business as close to your values as possible while still following them.