If you’re looking for the top ecommerce marketplaces in 2020, you’ve come to the right place!
Not only am I a hardcore shopper on marketplaces, but I’ve sold on them too! I know both the consumer and business sides of these marketplace businesses.
And today, I’m going to unveil the curtain and tell you everything you should know about these top online marketplaces.
My goal is to help you find the best marketplace for YOU.
So please read this in full, watch the awesome videos included below, and leave a comment telling me if I accomplished my goal. Enjoy!
What Is an Online Marketplace?
As a consumer, you probably know what a marketplace is. An online marketplace is an e-commerce site where potential buyers look for specific goods they are looking for and where sellers can sell their goods/products online without the need for face-to-face interaction.
But as a business owner an online marketplace is a beautiful opportunity. It’s a way to get your products in front of somebody else customers (ie. the marketplace brand) and make them your own!
Every year marketplaces like Amazon grow in popularity and build consumer trust. You get to piggyback on their brand and all of their hard work by simply listing your products on their site! It’s incredible. And a win-win for both you and the marketplace.
The Biggest Benefits of Selling on Online Marketplaces
We are aware that there has been a considerable increase in online shoppers where it has increased to 2.05 billion in 2020. Now that people are advised to stay home, we see an even bigger boom in online marketplaces. This is why it’s the best year to join the bandwagon. These are the biggest benefits of Selling on Online Marketplaces
- New customer potential (marketing is built in!)
- Operate that business anywhere in the world (obviously)
- Lower setup & overhead costs (specific to the platform, details to come)
- Scalability (Incredible marketing scale provided. And you can list on as many as you can, just keep up with fulfillment!)
- Always open (the internet doesn’t sleep!)
Amazon is currently the #1 online marketplace. It has more than 2.5 million sellers currently actively selling on the marketplace (Marketplacepulse, 2019) and more than 300 million customers visiting the website. We’ve listed Amazon number one in our list, because they’re number one in the world in website traffic.
In September of 2018 it was reported they were leading the way, and by far!
How big is Amazon?
Amazon is HUGE. They had over 2.5 BILLION website visitors in May 2020. They have built an incredible brand that most American’s and people globally trust. And with more than 12 million products to choose from and more than 197 million visitors each month, it’s no wonder that it’s considered the nation’s largest online marketplace, and even the world.
How selling on Amazon works
Here’s an example of an Amazon shop and how products listed.
About Amazon marketplace fees
Amazon has two selling plans. There’s the individual selling plan where you are charged $0.99 for each item you sold. And the Professional selling plan where there’s a flat fee of $39.99 per month.
How to get started on Amazon marketplace
To sell on Amazon, you will have to sign-up to the Amazon seller account. You can check out this Beginner’s guide to start selling on Amazon to learn more. There are also a lot of video tutorials you will find on youtube. Here’s an example.
Walmart marketplace gives third party retailers a chance to sell their products to more than 90 million visitors who shop on Walmart.com. Customers can then browse through product sold by third party retailers in Walmart’s online marketplace, walmart.com
How big is Walmart?
Walmart gets more than 90 million unique visitors each month.
How selling on Walmart Marketplace works
Suppliers who are interested to become Walmart’s third suppliers need to fill up the online application form for the qualification process to get started.
Online suppliers fulfill customer’s orders through the following options.
- Ship to Warehouse: The supplier will ship products to a Walmart fulfillment center. Walmart will then house inventory and then ship to customers when orders are received.
- Ship to Customer: The supplier will ship the products directly to the customer (or store), also known as a Drop Ship Vendor (DSV.)
Here’s an example of an Walmart’s online listing supplied by a third party supplier.
About Walmart marketplace fees
Unlike Amazon and others, Walmart does not require an account subscription fee to sell in its market! However, you will be charged a referral fee that ranges from 6% to 20% of the sale price of your product, depending on the category. On their website they say “We simply deduct a reasonable referral fee once a sale occurs on our site”.
How to get started on Walmart marketplace
Here’s some information on Becoming a Supplier for Walmart.
Similar to Amazon, eBay is also an online marketplace where people and businesses buy and sell a wide variety of goods and services worldwide.
How big is eBay?
There are 182 million eBay users worldwide and 1.3 billion product listings.
How selling on eBay works
You have two selling options on eBay. You can list an item for sale in an eBay auction, wherein you choose a starting price, and interested buyers place bids. The starting price will be based on the price the seller sets. The highest bidder wins and will get the product. In a Buy It Now listing, the first buyer willing to pay the seller’s price gets the item.
Here’s an example of a shop page and their product listing.
About eBay marketplace fees
eBay charges depend on what you sell and how much it sells for. Sellers with a basic eBay account pay a 10% final value fee for most items (with a $750 maximum), 12% for books, DVDs, movies, and music (with a $750 maximum), 2% for select business and industrial categories (with a $300 maximum), and 3.5% for musical instruments and gear (with a $350 maximum).
How to get started on eBay marketplace
Here’s how to get started selling in eBay.
- Decide on a good account name
- Create an eBay account (Simply click “Sign In” link
- Set up your payment method
- Build your reputation by buying a few small items.
- Set up your profile page.
You can also check out this youtube video for a step-by-step guide on how to get started selling on eBay.
Etsy is also a global online marketplace where people come together to create, sell, buy and collect unique products. It is focused on vintage, handmade, and craft products. Recently, the company has made recent changes designed to increase sales.
How big is Etsy?
There are 46.35 million active users in Etsy and 2.8 sellers with 60 million products listed.
How selling on Etsy works
Artisans, crafters, dealers used to sell their items & products in fairs, open markets and consignment stores. Etsy gives them a chance to set up an online shop which give them access to a worldwide customer base.
Here’s an example of an Etsy shop and their product listing.
About Etsy marketplace fees
When selling in Etsy, you may be required to pay the following fees.
- Listing Fee – a listing fee of $0.20 USD will be charged for each item that you list for sale on the website.
- Transaction Fee – there is a transaction fee of 5% of the price you display for each listing
- Ads Fees (if you purchase paid advertising on Etsy)
- Subscription Fees – You may opt to avail of the Montly Etsy Plus subscription of $10 USD if you want to get an expanded set of tools.
How to get started on Etsy marketplace
You will find a lot of helpful tips on how to get started on Etsy marketplace. Check out this guide to 7 Steps to a Successful Start on Etsy.
Here’s also a video on how to get started.
5. Facebook Marketplace.
Facebook Marketplace is Facebook’s very own online marketplace where users can arrange to buy and sell new and pre-owned items near their area.
How big is Facebook?
Facebook has 300 million users daily.
How selling on Facebook Marketplace works
Anyone can post any products they want to sell and be able to have access to all users near their area.
Users can simply go to the Marketplace browse/search items they are looking for, select categories, check-in on groups, or go directly to stores they like.
Here is a sample of a product listing.
About Facebook marketplace fees
Unlike other online marketplaces, Facebook Marketplace charges no listing fees.
How to get started on Facebook marketplace
It’s very easy to start selling in the Facebook marketplace. Simply use your existing personal account. You do not need to create a separate Marketplace account to start—you can make your first sale through your personal.
Check out this Facebook marketer’s guide for more information.
Cratejoy is a platform where businesses can launch their subscription box business.
How big is Cratejoy?
There are 3,972 websites using Cratejoy.
How selling on Cratejoy works
Cratejoy allows you to create/design a beautiful website with features including built-in subscription Included payment options, an analytics dashboard, subscription CRM and more.
Here’s a sample cratejoy store and their listing.
About Cratejoy marketplace fees
Cratejoy currently offers 3 subscription plans.
- Sell on the Marketplace Only is free.
- Checkout Only is $19/month
- All-in-One plan is $39/month
They also charge you with transaction fees. Marketplace orders are charged 10% plus platform transaction fees (1.25% + $0.10) for the total cost of the order.
How to get started on Cratejoy marketplace
To help you get started, here’s a video showing a step-by-step guide on how to setup your cratejoy store.
Newegg has established themselves as PC components and electronics retailer since 2001. They took advantage of their loyal and savvy clientele that they have built and created a platform where third-party sellers can use their platform and sell to their existing customers.
How big is Newegg?
Newweg has over 40 million tech-savvy customers in 20 countries.
How selling on Newegg works?
There are two ways to sell on Newegg.
- By manual selling (through the Seller Panel)
- By using API Integration Extension (through Third Party Provider)
Here is a sample Newegg store and product listing.
About Newegg marketplace fees
Newegg charges based on commission rates. Here’s a list of the commission rates.
|Product Category||Type of Products||Commission Rates|
|Apparel & Accessories||Sunglasses, shoes, wallets||14%|
|Appliances||Refrigerators, vacuums, coffee machines||12%|
|Arts & Crafts||General crafts, printmaking, pottery, ceramics & sculpting||13%|
|Auto & Hardware||Car electronics, parts & accessories, tires||10%|
|Baby||Health & safety, strollers, apparel||12%|
|Bags & Luggage||Travel, business cases, backpacks||14%|
|Beauty||Shavers, skincare, fragrance||12%|
|Books, Media & Entertainment||Textbooks, new & used books||13%|
|Camera & Photo||DSLR, point & shoot, lenses & accessories||9%|
|Cell Phone Accessories||Cases, cables, wired headsets & speakers||13%|
|Health & Personal care||Vitamins, supplements, hygiene||12%|
|Home & Living||Vacuums, furniture, cookware||12%|
|Home Improvement||Home automation, portable generators, power tools||12%|
|Jewelry||Necklaces & pendants, earrings, men’s accessories||12%|
|Motorcycles & Powersports||Vehicles, parts, riding gear||10%|
|Musical Instruments||Microphones, PA speakers, electric guitars||10%|
|Office Supplies||Gaming chairs, office furniture, ink & toner||13%|
|Outdoor & Garden||Grills, pool supplies, outdoor heaters||12%|
|Pet Supplies||Dog training aids, fish care, cat furniture & scratchers||11%|
|Software||Business & personal finance, operating systems, PC games||15%|
|Sporting Goods||Cardio equipment, bikes, binoculars & telescopes||12%|
|Toys Games & Hobbies||Drones, RC, learning & educational||12%|
|Unlocked Cell Phones||iOS, Android, Windows||8%|
|Video Game Consoles||Xbox One, PlayStation 4, Nintendo Wii||8%|
|Warranty & Service||Replacement, installation, parts & labor||13%|
|Watches||Men’s, women’s, smart watches||12%|
How to get started on Cratejoy marketplace
Here’s some information on Best Ways to Sell on Newegg Marketplace: A complete Guide.
Jet.com is an online marketplace that sells just about everything. It’s a small ecommerce start up that was launched in 2015 and it got acquired by Walmart on August 8, 2016 for $3.3 billion.
Since it’s been acquired by Walmart, when you try to visit Jet.com, you will be directed to Walmart.com. This is because on June 4, 2020 Walmart shut down the website which they initially announced they would on May 19, 2020.
Rakuten is a Japanese online marketplace. It is the largest e-commerce website in Japan.
In 2010, Rakuten purchased Buy.com for $250 million in cash and was rebranded as Rakuten.com in 2013.
How big is Rakuten?
Rakuten currently has 90 million registered users and 40,000 sellers. (DMR)
How selling on Rakuten works?
Since Rakuten has expanded its network in 29 countries, it’s become easier to apply as a seller in the Rakuten marketplace as long as your company is based in the country you’re selling to.
For example, the setup process in Rakuten USA is quite simple:
- Register a Rakuten marketplace seller account.
- Complete your application by filling up the form with your company’s details: ID, telephone number and credit card (If you are based outside USA, you’ll need a US address, checking account, credit card and telephone number).
- Wait for confirmation from the Rakuten team while they analyze the seller and the brand to verify its authenticity. (it takes from 3-10 business days)
- Once verified, you’ll then be able to list your products!
Here’s a sample shop in Rakuten and their product listing.
About Rakuten marketplace fees
The marketplace has some commissions and it also gives the possibility for product placement on the website and in promotional emails.
Monthly seller fee: $ 33 (billed quarterly)
Product category fee: 8% – 15%
Per item fee: $ 0.99
How to get started on Rakuten marketplace
For an overview on how to start selling in Rakuten, here’s an Inside-Out guide to sell in Rakuten in 2020
Essential Steps for Online Marketplace Success
Year 2020 so far has been such a difficult year for all businesses. As a result of the COVID-19 pandemic, the e-commerce field was thrown for a loop, with shipping and consumer buying behaviour changing, it has become even more challenging to be successful in online marketplaces.
Here are some essential steps for online marketplace success:
- Choose a suitable marketplace to market your products
Consider the following when choosing a suitable marketplace for your business:
- Type of product – Handmade, one of a kind, or products that can easily be found online
- Target customers
- Optimise content – We all know that you will have a lot of competitors on online marketplaces. You need to have your product shine by giving detailed information of your products with great images to help customers find you.
- Excellent customer service – Focus on building a personal relationship with your customers which will get customers to keep coming back.
- Advertise – Advertising allows you to reach customers that otherwise may not be aware of your product.
- Competitive Pricing – Provide competitive price by analyzing the market and also checking out your competitors
- Keep track of your inventory
- Check your calendar – Know the different holidays that are important to your customers and give them unique offerings.
Top 5 ecommerce marketplace in 2020 (Our pick)
Top 5 ecommerce marketplace in Europe
- Not on the highstreet (NOTHS)
Top 5 ecommerce marketplace India
- Amazon India
Should i sell on amazon or my own website?
Amazon and similar websites are what we call rented platforms. We recommend that you do both. If you do not have a huge customer base when you start, then it’s best that you sell on Amazon because you will then have access to more than 300 million customers. Once you have established your customer base, then you can start selling on your own website.
Is eBay dying?
eBay is indeed dying. Or at least losing momentum. It seems that every single alteration that the management has made the platform worse not better. Management has made a lot of changes to the platform which has made a lot of sellers angry and dismayed. Such changes include: removing the ability to sell digital products, ability for sellers to leave negative feedback, and the rising fees.
Is Rakuten better than Amazon?
Rakuten is the Amazon of Japan. Both are challenging each other’s home countries Turf. Rakuten is better in a way that sellers are treated like partners in the business. Business owners are able to manage certain aspects of their shop like inventory, logistics and customer service. Whereas, Amazon manages all of these aspects within the platform.