Selling on Online Marketplaces
1. Amazon marketplace
I think at this point it’s safe to say that Amazon is “THE” online marketplace on which online retailers can sell their products online. Founded in 1994, Amazon now boasts over 300 Million active monthly users and over 8 Million daily users!
Last year, Amazon spent something like $3.4 Billion on advertising. the marketplace features millions of products encompassing categories like decor, fashion, kitchen, appliances, pet care, and everything else that you can think of.
So, whether you’re a brand new company looking to launch a new product and hoping to sell it online, or an existing business who is looking to expand your e-commerce footprint - Amazon NEEDS to be on your list.
The benefits of selling on Amazon:
International Reach - Easily expand to other countries
Low marketing cost - Amazon wants shoppers to buy through their online marketplace. They advertise for you!
Sponsored ads put your products in front of your ideal customer
How to be successful on Amazon?
Optimizing your Amazon listings is important (here’s a blog post about this)
Maintain positive ranks and get lots of positive reviews
Customer service is KEY. Amazon expects their sellers to be 100% Customer-focused and even requires a 24 hour response window from all of it’s online sellers.
Strategically using Amazon PPC advertising can help a lot when used correctly
NEVER underestimate the power of Amazon FBA - if this model works for your product/company - utilize it.
2. Etsy Marketplace
Founded in June 2005, in Brooklyn, New York - Etsy has marked its presence in probably every country around the globe. What sets the marketplace different from the others is that attracts the artists, craftsmen who generally deal in Homemade jewelry, Crafts, housewares and more. If you
The Benefits of selling on Etsy:
The customer based is Targeted
You can create custom orders
The marketplace facilitates wholesale business
Fee structure is more conducive to small startups and home-based creatives
How to be successful on Etsy?
Be Unique - offer products, designs, and options that your competitors don’t/can’t
Make a personal connection with your buyers
High-quality images of your crafts. can make a huge difference!
3. E-Bay marketplace
e-Bay is another (like Amazon) of the pioneers in online shopping. This online marketplace boasts about 160+ million active monthly shoppers. E-bay allows online retailers to sell both new and used products. (Amazon also does this, but most shoppers associate amazon with new products and E-Bay with used products)
Benefits of selling on e-Bay:
Generally shoppers who prefer e-bay, tend to avoid Amazon - coupled with selling your products on amazon, this expands your brand’s reach
E-Bay utilizes Google Shopping fantastically on behalf of it’s sellers
How to be successful on e-Bay?
Know your products well - be specific and honest about the condition of your products
Make sure to use SEO-friendly phrases on the product pages
Keep customers happy and reviews positive
4. Jet marketplace
Jet online marketplace is one of the “youngest” in the industry (established as a marketplace in 2015). However, they’ve quickly grown to be the 4th largest online marketplace internationally.
The benefits of selling on Jet:
4th Largest Online marketplace on the internet
less competition than on Amazon and E-Bay
Owned by Walmart
How to be successful at Jet?
Listing SEO is SUPER Important. Optimized your listings to make sure the right people find them
customer service and product rating/reviews are king here
5. Walmart marketplace
You may have already heard of a little company called Walmart. They had a big year last year, posting revenue of just over $5.3 Billion (about 3 times more than Amazon).
Although thriving in the brick-and-mortar retail space, Walmart opened up their online marketplace to allow online-only sellers to join and utilize their e-commerce power. items appear in search results on Walmart.com alongside other items - putting your products in front of the massive market that Walmart has command over.
The benefits of selling on Walmart.com:
A solid base of over 300,000,000 visitors every month
Excellent customer Service
Built in credibility
Easy to use once you’re through the setup process (we’d recommend hiring a consultant to help w/ Setup)
How to be successful at Walmart?
Walmart requires specific revenue statistics of all it’s sellers- Don’t lie, they know!
You product data should be accurate - again, they know!
Focus on building a good and clean track record, and most importantly (on all marketplaces)
Keep the prices reasonable - that’s how Walmart got to be so successful
6. Newegg marketplace
Newegg, was the second largest online retail store Online. Eventually it turned into a marketplace. With more than 10.5 million products and an award-winning website, Newegg is focused on providing tech-savvy gadgets for the shoppers.
While Newegg does sell other product categories, if the product that you hope to sell is technical in any way, you’ll do well to make sure your products are available on Newegg.
The benefits of selling on Newegg:
Access to the US Tech-Friendly market - Geeks and Nerds alike LOVE newegg
How to be successful on Newegg?
Take advantage of the Newegg seller programs to increase your audience size.
Utilize the built in advertising options offered
7. Bonanza marketplace
Bonanza is an alternative marketplace, sellers create online booths for their items, which are listed at fixed rates. With no cost for listing your products on the marketplace, the sellers have to pay 3.5% closing fee on sales under $500.
While most of our clients don’t see a whole lot of additional revenue, the added search engine optimization and brand awareness that comes with listing your products on marketplaces like Bonanza.
The benefits of selling on Bonanza:
Free listing of the products
Automatic Amazon / e-Bay / Etsy / Shopify / CSV import or sync
Free SEO for your products - that will direct potential customers to your site.
How to be successful at Bonanza?
Abide by their rules
optimize your listings with Search engine optimization
8. Alibaba marketplace
Established in 1999, Alibaba has carved out a MASSIVE niche in the online marketplace industry - catering largely to manufacturers looking to sell their products to companies all over the world.
While we suggest this online marketplace to our clients who are manufacturers and are able to mass-produce product, many of our clients who use Alibaba in their everyday business practices are actually customers. Many… MANY businesses worldwide use Alibaba to facilitate arbitrage businesses (buying products and selling them for a profit).
The benefits of selling on Alibaba:
Largest worldwide market
High-dollar, high quantity wholesale orders
Sell low priced item as well as high dollar items easily
How to be successful at Alibaba?
Low prices are the key to success at Alibaba. (wholesale pricing)
competitor research is ridiculously important to make sure you’re competitive
There are SO MANY marketplaces out there - and there is no “one size fits all” option for every business. Some e-commerce businesses may benefit from listing and selling their products on all marketplaces, while other businesses may find it best to focus primarily on one.
Enlisting the help of an E-commerce consultant can save your countless hours and thousands of dollars in the learning process. Of course, we’d love to help in your endeavors.