Do you know that online marketplaces account for more than 50% of all online sales?
If you're starting an e-commerce business, marketplaces can offer more opportunities than individual online stores. The reason is that customers find it convenient to compare prices at the marketplace online instead of visiting different online stores.
Online marketplaces can expand your business. However, the success of your e-commerce business relies heavily on the marketplace you'll choose. Do you need help with that?
Don't fret! Read this article and find out the best online marketplace for your business.
What Makes a Good Online Marketplace?
An online marketplace platform connects buyers with sellers. You can think of it as a mediator between customers and businesses, where the website itself manages all transactions. All you need to do is to register on one or more marketplaces, list your catalog, and start selling your products.
An excellent online marketplace has a clear set of rules that buyers and sellers must follow. Security and trust are the two most important features of a good marketplace. It makes the listing and selling process quick, offers streamlined product management, and enables a business to communicate with the buyers easily.
Online marketplaces have a large and reliable customer base. They also offer programs to get your products in front of customers quickly. However, keep in mind you can get penalized if you don't follow the rules of the marketplace.
All online marketplaces have their own set of requirements, fees, and commissions.
Top 10 Online Marketplaces
Most marketplaces charge different commissions or fees. Still, some marketplaces don't charge any fees or commissions. The two common fee structures are commissions by transaction and commissions by listing. In addition, the rules and requirements vary depending on the kind of marketplace you're choosing.
With the sheer number of online marketplaces, you need to weigh your options carefully. I’ve compiled a list of top online marketplaces to help you find the right one for your business.
1. Amazon
The largest and most popular online marketplace is Amazon. By listing your products on Amazon, your business gets exposure to millions of customers. Since you're just getting started, the individual selling plan will be best for you, in which you only have to pay $0.99 per sale. However, the professional selling plan charges $39.99 a month.
2. eBay
eBay is another powerful online marketplace with millions of global users. It was the first marketplace to introduce the process of buying and selling via bids. eBay offers different plans for sellers; Standard plan, Plus plan, and Premium plan. All three plans have different listing fees and commissions.
3. Walmart
Walmart marketplace is perfect for medium to large sellers. While you have to pay sales commissions, there is no annual or monthly setup fee involved. Walmart marketplace is invite-only, and you need to have high-quality products, quick fulfillment practices, and competitive pricing to get approved. Plus! Walmart allows you to sell as a drop shipper also.
4. Alibaba
Alibaba is the biggest online marketplace in Asia. The best thing about Alibaba is that there are no hidden fees or commissions. But you will be charged an initial membership fee. The Alibaba Group owns other Asian marketplaces, including AliExpress. Alibaba charges marketing fees on other Asian marketplaces of the group.
5. Etsy
If you're selling handmade, vintage, or other unique products, Etsy is the ideal online marketplace for you. It preserves your brand identity and allows you to build brand awareness. Etsy also helps you with online advertising. You will be charged only $0.20 per product for listing, but transaction fees and processing fees also exist.
6. Facebook Marketplace
Facebook marketplace online is the best local online marketplace. There are no listing fees and commissions for selling your products on Facebook. Selling on the Facebook marketplace is pretty easy, but you'll have to arrange the delivery and payments. It is the best marketplace online yard sale option for you.
7. Rakuten
Japan's biggest marketplace, Rakuten, is one of the top marketplaces that help grow your business internationally. The website charges you $0.99 for every item you sell. Also, the commissions are a bit high. You have to pay 15% of the sale price of each product, along with shipping and processing costs.
8. Jet
Launched in 2015, Jet is a relatively new online marketplace. But it has a higher repeat buyer rate compared to Amazon and eBay. If you want to target a particular customer segment, Jet is the best you can choose. Your products are listed based on location and other factors.
9. Newegg
Newegg is a major marketplace for selling tech products. Shipped by Newegg is a fulfillment option offered by Newegg that helps to make shipping more convenient for you. It is also an excellent marketplace for seasonal sellers. The sales commissions range from 8-14%, depending on the kind of product you're selling.
10. Flipkart
Flipkart connects you with the buyers easily. It is a popular Indian marketplace that charges fees according to the products. With up to 15% of sales commissions, Flipkart charges shipping and other fees as well.
Dropshipping Business for Online Sellers
Dropshipping business is an amazing option for online sellers. It is an order fulfillment method that doesn't require brick and mortar stores to keep products in stock or deliver them to consumers. If customers want to buy your products, you simply have to purchase the required products from dropshipping suppliers.
The dropshipping supplier is a wholesaler or third-party manufacturer that supplies the products and then ships them to the customers. Hence, you don't need to invest in a store.
While there might be many dropshipping platforms available, but SaleYee.com is the best Dropshipping Platform. It is a safe and trustworthy wholesaler that can help you run your dropshipping business smoothly. SaleYee dropshipping platform offers a wide variety of high-quality products, including sporting and household equipment, fashion and beauty products, toys, electronics, and more, that you can sell to make money easily.
SaleYee.com makes it easier to start a dropshipping business. You won’t need to invest a lot of money and the business risk is also considerably lower. What’s more is that SaleYee.com offers greater flexibility and enables you to scale your dropshipping business.
Conclusion
Starting an eCommerce business is not exactly a piece of cake, but online marketplaces a great way to get your products in front of consumers. Choose one or more online marketplaces out of the ten top marketplaces mentioned in this article. Compare the features of each marketplace and find out the ones that will help you in achieving your business goals.
