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How to Choose the Right Marketplace for Your Business

When it comes to running a successful online business, choosing the right marketplace can make or break your ecommerce strategy. Online marketplaces have become an essential tool for businesses to reach new customers, grow sales, and expand their footprint. But how do you decide which are the best marketplaces to sell on?

Whether you’re just starting out or looking to scale, this blog post will help you evaluate your options and choose the ideal platform for your goals. Plus, we’ll show you how a tool like Ecwid by Lightspeed can make managing your multi-marketplace presence a breeze.

How to sell online
Tips from e-commerce experts for small business owners and aspiring entrepreneurs.
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Pros and Cons of Selling on Marketplaces

Let’s start with the basics: what is a marketplace in business? It’s an online platform that connects buyers and sellers, allowing them to conduct transactions. Marketplaces offer a variety of products from different sellers in one convenient location for shoppers.

Before choosing a marketplace, it’s important to weigh the pros and cons of entering these platforms. Here’s a closer look:

Pros of Selling on Marketplaces

Let’s begin by exploring what makes digital marketplace platforms so compelling:

  • Massive visibility: Marketplaces attract millions of customers each month. Selling on a marketplace gives your products instant exposure to a huge, built-in customer base.
  • Lower marketing costs: Rather than running extensive ads, marketplaces handle much of the marketing for you, which can help cut costs.
  • Trust and credibility: Shoppers already trust established marketplaces, which gives your products an added layer of legitimacy.
  • Simplified logistics: Marketplaces often offer streamlined processes for shipping, payments, and customer service, reducing operational headaches.

Cons of Selling on Marketplaces

Every advantage comes with its challenges—let’s explore what can make selling on marketplaces more difficult:

  • Heavy competition: While there are more customers, there are also more competitors. Standing out can be a challenge.
  • Marketplace fees: Listing, selling, and fulfillment fees can eat into your profits.
  • Limited branding control: Marketplaces control much of how your storefront looks, impacting your ability to establish a strong, unique brand identity.
  • Policy risks: Violating marketplace policies (intentionally or unintentionally) can lead to account suspensions or bans.

The world’s most popular online marketplaces in 2024, ranked by gross merchandise value (Source: Statista)

When Does It Make Sense to Sell on a Marketplace?

Selling on a digital marketplace platform isn’t always the right strategy for every business, but in these scenarios, it can be incredibly effective.

Testing New Products or Markets

Marketplaces are a great way to test the demand for a product before investing a lot of time, money, and resources into a full launch.

Using a marketplace lets you learn about customer preferences, pricing, and overall interest in your product. This helps you make smarter decisions before scaling up.

Supplementing Existing Sales Channels

Whether you already have a website or a physical store, selling on marketplaces can serve as an additional revenue stream. Consider this option if you want to diversify your sales channels.

Reaching a Wider Audience Quickly

Marketplaces give businesses easy access to large, diverse audiences, making it simpler to boost visibility and help more people discover their brand.

In March 2024, Amazon.com received around 2.2 billion total website visits (Source: Statista)

Specialized or Niche Products

Exclusive platforms like Etsy (for handmade goods) or Decathlon (for sports gear) can help you target niche audiences more effectively. Listing your products on specialized platforms helps you connect with a more focused and engaged customer base.

Is Your Business Ready to Succeed in a Marketplace?

Selling on marketplaces can be a great opportunity, but it’s important to make sure your business is “marketplace-ready.” Here’s how you can do it:

  • Assess your product range: First, evaluate if your products are suitable for selling on a marketplace. If you offer specialized or niche products, it may be easier to find success on a platform that caters to those specific items.
  • Analyze your competition: Research who else is selling similar products on the marketplace and how they are pricing their goods. This can give you an idea of what price point will work best for your business.
  • Calculate fees and margins: Consider the fees associated with selling on a marketplace, such as listing fees and commission rates. Make sure you have enough margin in your product pricing to cover these costs and still make a profit.

How to Choose the Right Marketplace for Your Business: Overview of Popular Platforms

There are various trusted marketplaces for business sales, and each has unique features and audiences. Understanding each platform’s strengths will help you decide where your products are most likely to thrive.

Here’s a breakdown to help you identify the right fit for your business:

Amazon

Amazon is the largest and most popular marketplace, making it a great starting point for many businesses. It has a wide range of product categories and offers fulfillment services, meaning you can store your inventory in Amazon’s warehouses and have them handle shipping and customer service.

  • Audience: General consumers. Perfect for high-demand or commodity items.
  • Pros: Unmatched reach, fulfillment support with FBA (Fulfilled by Amazon).
  • Cons: Heavy competition, high fees, and strict policies.

eBay

eBay is a popular international marketplace where small businesses can sell their products alongside larger retailers. It also offers auction-style listings, letting customers bid on items and adding an element of excitement.

  • Audience: Bargain hunters and collectors. Great for second-hand and rare items.
  • Pros: Global reach, auction format for unique listings.
  • Cons: Lower trust compared to Amazon, and fees add up over time.

Etsy

Etsy is a popular marketplace focused on handmade, vintage, and unique items. It offers a platform for small businesses and independent artists to sell their products to a global audience.

  • Audience: Creative shoppers looking for handmade, custom, or vintage goods.
  • Pros: Niche audience, supportive seller community.
  • Cons: Limited appeal for mass-market products, various types of high fees.

Walmart

Walmart is a retail corporation known for its wide range of products at affordable prices. It has both physical stores and an online marketplace.

  • Audience: U.S.-based everyday shoppers. Ideal for established brands.
  • Pros: Credibility and a large customer base.
  • Cons: Selective seller approval process.

European Marketplaces (e.g., Bol, Miinto)

If you’d like to expand to the European market, there are several online marketplaces available. Each country may have its own dominant platform, so it’s worth doing research to determine which marketplace will be most successful for your products.

  • Audience: European consumers.
  • Pros: Regional focus, fewer competitors than Amazon for certain products.
  • Cons: May require understanding of local markets and logistics.

Niche Marketplaces (e.g., Decathlon, Leroy Merlin, Wayfair)

Niche marketplaces are online platforms that cater to specific product categories or industries. These marketplaces can allow businesses with specialized products or services to reach their target audience.

In Europe, there are several popular niche marketplaces such as Decathlon for sports equipment and apparel, Leroy Merlin for home improvement and DIY products, and Wayfair for furniture and home goods.

  • Audience: Industry-specific customers.
  • Pros: Direct access to niche markets, tailored audiences.
  • Cons: Less traffic than general marketplaces, specialized category requirements.

Can You Sell on Multiple Marketplaces at Once?

Now that you know how to choose the right marketplace for your business, you might be wondering if you can sell on multiple platforms.

Yes, you can sell on multiple marketplaces at once. However, before deciding to sell on multiple marketplaces, there are some important considerations to remember.

Consider the Target Audience

Firstly, consider the target audience of each marketplace and whether your products align with their needs and preferences. This will increase your chances of success on that particular platform.

Simply put, it doesn’t make sense to sell both on Etsy and Amazon if your product is specifically geared towards a niche audience that only shops on Etsy.

Consider Inventory Management

Secondly, having a strong inventory management system in place is crucial when selling on multiple marketplaces. This will ensure that you don’t run out of stock and disappoint customers who are shopping on your different platforms. It can also help with tracking sales and profits from each marketplace separately.

Consider Your Resources

Thirdly, make sure you have the resources and capabilities to manage orders and fulfill them efficiently across all marketplaces. This includes listing products, managing inventory levels, fulfilling orders, providing customer service, and handling returns or disputes.

Selling on multiple marketplaces requires a lot of effort and time commitment, so it’s important to assess whether your team can handle the workload.

Consider the Fees

Another factor to consider is the fees associated with selling on different marketplaces. While some may have lower listing fees, they may charge higher commission rates per sale. It’s important to weigh these costs against potential sales volume to determine which marketplace is the most profitable for your business.

If you want to learn about multichannel selling, check out our podcast with an expert on the topic. We cover selling on big platforms like Amazon and branching out to smaller, niche marketplaces for a more focused strategy.

How to Streamline Selling on Marketplaces

No matter how many marketplaces you decide to sell on, keeping track of inventory, orders, and listings across multiple platforms can feel overwhelming. That’s where Ecwid by Lightspeed comes in.

With Ecwid, you can create a beautiful, professional online store and sell on marketplaces like Amazon, eBay, Etsy, and Walmart. You can also sell on various regional and niche marketplaces, like Miinto, Bol, Decathlon, and Leroy Merlin.

Here’s how Ecwid simplifies your operations:

  • Integrations with top platforms: Ecwid connects with major marketplaces like Amazon, eBay, Walmart, as well as a variety of regional and specialized platforms.
  • Centralized product and order management: Manage inventory, pricing, and orders for all your marketplaces from a single dashboard. No more switching between platforms!
  • Streamlined listings: List your products on multiple marketplaces with just a few clicks, saving you hours of manual work.

If managing your sales channels has been holding you back, Ecwid is the answer. It provides the tools you need to run a multi-marketplace business all in one place, leaving you free to focus on scaling your brand.

Check out this Help Center article to start selling on marketplaces with Ecwid.

Choose the Best Marketplace for Your Business

Choosing the right marketplace for your business is key to unlocking growth and connecting with the right customers. Weigh the pros and cons, understand the audiences of popular platforms, and use tools like Ecwid by Lightspeed to craft a winning strategy that sets your business up for success.

Curious how Ecwid can transform your ecommerce strategy? Sign up today and see how easy it is to manage your ecommerce and marketplace sales from a single platform.

Start selling smarter, not harder.

Do you want to learn more about selling on marketplaces?

The post How to Choose the Right Marketplace for Your Business first appeared on Ecwid | E-Commerce Shopping Cart.

 

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