Top Online Marketplaces for Sellers

If you use the Internet to sell your product, you belong to the community of online sellers, probably the world’s largest group of merchants. So, it becomes all the more important for you to select the best online marketplaces for sellers as it determines the kind of customers you will have, your costs, and ultimately your profits.

Most successful businesses, whether big or small, have an online presence as it helps them reach out to customers located anywhere in the world. In short, an online marketplace opens up a world of opportunities for anyone who has a product to sell.

Comparison of the Top Online Marketplaces for Sellers 

Visits/
Month
ReportingRegistrationSeller
Tools
FulfillmentSeller
Support
Opportunity
Amazon2.3BExcellentDifficultExcellentMarketplaceBelow
Average
Excellent
Walmart446.4MGoodDifficultPoorMarketplace (beta)AverageAverage
eBay637.9MGoodEasyGoodSelfGoodExcellent
Etsy170.3MPoorEasyBelow
Average
SelfGoodExcellent
Target249.5MAverageEasyPoorSelfAverageGood

What is an eCommerce Marketplace?

An online marketplace is a slightly more sophisticated version of a physical market. The main difference is that a physical market involves a single buyer and seller, whereas online transactions involve a shopper, the marketplace, and the third-party seller.

amazon seller central

Amazon

Amazon clearly tops the list of online marketplaces for sellers, clocking net sales of about $280.5 billion in 2019. The sheer size and scale of its reach make it a favorite listing destination for online retailers. Selling on the platform involves choosing a plan and creating a seller account. Rank high on its search results, and you could see yourself selling thousands of units. Top selling products make as much as $300,000 per month.

Ranking

9 out of 10

Seller Fees

A fee is chargeable under various heads such as a monthly subscription fee, variable closing fee, and referral fee on each item sold. Fees will be more if you are a professional seller and less if you are an individual seller. Professional selling fees is $39.99 per month + a variable per item selling and referral fee. Find out more here.

How to Apply for an Amazon Seller Account?

To apply for a seller account on Amazon, you need to visit the following website and begin the application process – https://sell.amazon.com/sell.html. You will need the following documents / information.

  • Business email address / Amazon customer account
  • Active credit card
  • Relevant tax information
  • Phone number
  • Government issued identification
  • A bank account

Amazon.com ENJOYS 200 million unique visitors per month

Pros

  • The world’s largest online marketplace
  • The Amazon FBA shipping program
  • Super fast transactions
  • Plenty of seller tools
  • Clear reporting

Cons

  • Extremely competitive and saturated
  • Highly reliant on customer reviews
  • Inadequate customer support
  • Payments withheld for 14 – 90 days

Tips to Succeed on Amazon

  • Do thorough keyword research.
  • List your product in the right category.
  • Images are everything. Have a nice mix of white background images and creative images highlighting various features of your product.
  • Run Sponsored Ads on targeted niche keywords.
  • Always have a solid supply chain management strategy. The moment you go out of stock, you lose any ranks gained and literally start from scratch.
  • Try to get more reviews by offering top notch customer service. Reviews can drastically improve your conversion rate.
walmart seller account backend

Walmart

According to research estimates, Walmart.com is visited by 127 million users every month. What’s more, about 57% of shoppers on Amazon.com also buy on Walmart.com. So, listing on both these platforms will get you a large captive audience of buyers. There is a Marketplace Application to be filled out before you can join the online platform.

Ranking

7 out of 10

Seller Fees

Unlike Amazon.com, Walmart.com does not charge a seller fee, only a referral fee when products are sold. The referral fee ranges from 6 – 20%. Find out more here.

How to Apply for a Walmart Seller Account?

Start your application process on https://marketplace-apply.walmart.com/. It takes about 10 minutes to finish your application. You need the following documents to being the process.

  • US Business Tax Id (they don’t accept Social Security Number)
  • W8 or W9 Form
  • EIN
  • US Business Address
  • All relevant product information

Walmart.com has 100 million unique visitors per month

Pros

  • Ease of selling
  • Decent customer service
  • Access to Walmart Fulfillment Services (currently in Beta)
  • Ranks in the top three marketplaces in terms of number of customers

Cons

  • Requires prior approval
  • Decades behind Amazon in terms of seller tools and opportunities.

Tips to Succeed on Walmart

  • Ensure excellent customer service.
  • Create beautiful listings with proper images and content. They go a long way in improving your conversion rate.
  • Enlist the support of a reliable 3pl service such as Deliverr to activate 2-day shipping and rank higher in search.
ebay.com website

eBay

One of the largest online marketplaces for sellers, eBay boasts of 182 million buyers worldwide. Registering yourself on eBay is pretty simple as it has a Quick Start guide book that comes in handy. Ebay is extremely popular as one of the best online stores for sellers because of the hassle-free set up and simplicity that it offers to sellers.

Ranking

8 out of 10

Seller Fees

eBay levies an insertion fee to list your product and a final value fee when your item is bought. Click here to find out more.

How to Apply for an Ebay Seller Account?

Registering an eBay account is extremely easy and hassle-free. Just click here and follow the steps. You will need the following information.

  • Address proof
  • Id proof
  • Purchase bill (to prove you own the products you wish to sell)
  • Bank / PayPal account

eBay.com has 109.4 million unique visitors per month

Pros

  • Ease of selling
  • Good customer service
  • Easy to create seller accounts
  • You can open multiple seller accounts
  • Large number of dropshippers / business buyers
  • Ranks in the top three marketplaces in terms of number of customers
  • Access to international marketplaces and easy shipping solutions for international orders

Cons

  • Complex fees structure
  • Limited seller tools compared to Amazon

Tips to Succeed on eBay

  • Find ways to attract the b2b audience.
  • Have a fully optimized title. The keywords in your title are extremely important.
  • The main image is extremely important. Unlike Amazon, eBay doesn’t restrict you to white background images. Use a mix of text and images to make your main image stand out.
  • Use listing templates to create visual product descriptions.
  • Start with high advertising fees (per conversion) and reduce slowly as you sell. This helps you rank higher.
  • Offer free shipping and returns. This makes your products rank higher.
  • Price your products competitively. Having prices lower than Amazon also sends dropshippers your way.
  • Use a 3pl service such as Deliverr to activate 2-day shipping and rank higher in search.
etsy seller dashboard

Etsy

Known for crafty and DIY goods, Etsy is one of the best online marketplaces for sellers wanting to connect with buyers looking for vintage or handmade items. Designed to support the small seller, Etsy has been the e-commerce marketplace of choice for millions of sellers around the world. With an average traffic volume of 17 million unique monthly visitors in the US, Etsy has no shortage of demand either.

Ranking

9 out of 10

Seller Fees

Etsy charges a monthly fee of $10 for its Etsy Plus subscription. You pay a standard 5% transaction fee on products sold via Etsy. You also pay $0.20 as listing fees each time you list a new product on the marketplace.

How to Apply for an Etsy Seller Account?

Visit https://www.etsy.com/sell. Click on Open Etsy Shop and choose your desired language, currency and country. Choose a shop name and set up billing. You’re ready to sell. You will need the following information.

  • Credit card
  • Identification proof
  • Address proof
  • A name for your Etsy shop

Etsy.com has 10.9 million unique visitors per month

Pros

  • User friendly
  • Extremely interactive
  • Easy to sell products
  • Not saturated like Amazon or Ebay
  • Easy to rank and sell

Cons

  • Limited store customization
  • Limited seller tools

Tips to Succeed on Etsy

  • Focus on images. Having a mix of catchy white background and creative images can do wonders for your Etsy listing.
  • Price your products competitively. Do some research before you list products.
  • Use Pinterest to promote your products. Pinterest works wonders to drive traffic to your Etsy store.
  • Run Etsy ads. All you need to do is set up a daily budget and Etsy does the rest for you.
  • Sell unique products. The more unique the product, the higher your chance of selling.
target.com website

Target

The retailer has both physical stores and a large online presence, with its e-commerce sales clocking a growth of more than 25% for five consecutive years. Target can feel like a marketplace for big brands though. Its stringent application processes means that most private label brands don’t get a chance to sell on the marketplace.

Rating

6 out of 10

Seller Fees

There is limited information available about the fee and pricing structure. However, as a new offering, Target is attracting a lot of attention. With a large retail presence backing its online platform, you can expect Target to drastically improve its eCommerce presence in the coming years. If you’re looking to build online stores like Etsy, Target is one of the best options available.

How to Apply for a Target Seller Account?

You have to go through the online process to submit a proposal with the merchandising team here. If your product is selected, you will be invited to set up an account on their designated online portal.

Target.com has 23.8 million unique visitors per month

Pros

  • Not saturated
  • Easier to rank higher on search results
  • Target manages your returns
  • Ability to set up a customized storefront

Cons

  • Invite only
  • No seller tools available
  • Stringent application process
  • Marketplace dominated by larger brands

Tips to Succeed on Target

  • Use Target promotions such as Free Shipping and In Store Returns to rank higher in search results.
  • Add attractive images to stand out in search results
woman packing product for ecommerce shipment

Other Online Marketplaces for Sellers Worth Considering

Here are a few more niche marketplaces that you might want to consider if you are selling products that belong in those niches.

Kroger

Kroger is by far the largest grocery chain in the United States. Though it is not considered a big e-commerce player, its digital sales increased 58% in 2018 and was ranked 86th on the Top 1000 list of Internet Retailers.

How to Apply

The Kroger website gives the option to register for suppliers and vendors.

chewy.com website

Chewy

Chewy.com, which was acquired by PetSmart, is one of the largest online marketplaces to sell for pet products, giving Amazon a run for its money in the pet products category in 2018. It is renowned for its affordable prices and great customer service.

How to Apply

Send an email on vendor@chewy.com for more information on how to apply as a seller.

Chewy.com gets 600K unique visitors per month

Wayfair

The online marketplace has carved a niche for itself in the furniture, mattress, and home décor category. Wayfair is estimated to have over 11 million active users and is known for its checkout average which amounts to a handsome $230 per transaction. It has a different business model wherein it does not charge a fee from its partners, but pays the cost of items and then sets a higher retail price.

How to Apply

Fill out the registration form and a representative will get back to you with more details.

Wayfair.com gets 39M unique visitors per month

Newegg

Newegg, the online marketplace for hardware and electronics, boasts of over 40 million customers in about 20 countries worldwide. The market leader in the electronics category, this is a niche site for you if you deal with these goods.

How to Apply

You need to fill out a Seller Application to apply. Once approved, you can list your products and start selling. Newegg gives you two shipping options: You can ship orders by yourself or use Newegg’s service. Sellers are paid on a weekly basis.

Newegg.com gets 45M unique visitors per month

Which Online Marketplace is Best?

If you’re looking for a one-word answer, it has to be Amazon. Statistics alone show how it is next to impossible to make a dent in the online world without addressing the elephant in the room. Amazon also has enough seller tools and support that can be used to truly master the platform and become a successful seller. That said, the key here is to identify the marketplace that is most suited for your niche, and dive in. 

The Bottom Line

No matter the size of your business, selling online is clearly the way forward to boost your bottom line. You absolutely must find a way to list your products in the best online marketplaces for sellers, but you should also explore niche marketplaces that are less competitive and offer exciting prospects.

Paul Andrewshttp://optiwiseonline.com
If you are looking to sell on eCommerce or are already selling on the platform but looking to scale up operations, then I am that guy you think you’re not looking for! But if you think again you can let me leverage my years of selling experience on ecommerce platforms to provide hands-on, strategic guidance to your brands or private labels to help set up, grow and scale your business.

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