If you’re considering selling a product, you should consider marketplace websites. Some are globally focused and can offer a vast array of opportunities. For example, the online selling giant Amazon has an enormous reach and visitor market share across many regions, and Amazon’s mobile app reached more than 150 million users in September 2019.
Selling on Amazon is a great way to reach millions of customers without investing in a storefront. With 350 million active users in 2019, Amazon is the world’s most popular online Marketplace. Its low-fee listing fees and application features make it an excellent option for sellers looking to boost their sales. Besides the low-cost listing fees, Amazon offers powerful sales tools for professionals and a variety of business applications.
The key to Amazon’s success lies in its ability to leverage massive data. The company gathers this information through its affiliate program. The affiliate program offers several options, including direct links to product pages and dynamic banners with different content. The company’s affiliate program helps promote products by offering discounts and free shipping in certain countries. For example, it has a loyalty program called Amazon Prime for those who regularly buy products on its site.
In addition to measuring the revenue per visit, Amazon measures customer satisfaction. The company monitors its sites, stock service availability, and download speeds. In addition, the company monitors the upper and lower bounds of revenue on each page. If income falls below $10,000 per minute, an alarm system sounds. For example, the site is monitored by internal performance service-level agreements, which require the pages to return within X seconds.
Amazon’s omnichannel strategy offers an opportunity to reach a large audience and tap into an existing consumer base. But Amazon is not the only Marketplace worth considering. Consumers also know many other popular marketplaces. Small businesses can’t compete with Amazon regarding price and shipping times. Amazon has a vast logistics network and can source products at low prices in large quantities. But small businesses can outpace them by bringing unique products to the market.
In online marketplaces, Amazon and Etsy are two of the most popular, but the latter is also a favorite among small businesses. Both websites are dedicated to selling unique handmade items, from personalized dog portraits to custom men’s lingerie, and both have become the holy grail of small businesses. And while Amazon has become an online retail giant, Etsy remains a niche marketplace for handmade and vintage goods.
Although Etsy is a viral site for handmade products, it is still highly competitive. It has recently raised its transaction fee from 5% to 6.5%. The small fee is applied to the total transaction amount and is a small percentage of your complete sale. Therefore, if you sell $50 worth of handmade goods, Etsy will take USD 3.25 in fees. While this is still significantly lower than average, it is still a significant expense that many online entrepreneurs may find difficult to afford.
If you’re an individual with a niche product, you should start small and expand to Etsy. Etsy’s features and product restrictions make it better suited to small-scale sellers than larger businesses. But if you’re already selling on Amazon, consider expanding to Etsy. Although there are costs associated with both websites, the transaction fee is lower than Amazon. That means you can afford to quit your day job and focus on growing your business online.
Shopify is another mind-bending alternative for small businesses. Shopify is less expensive and allows for more customization, but both provide many features and long-term scalability. Regardless of which of these marketplace websites you choose, you must note that you’ll need a website and payment gateway to make money. Shopify has several different payment options and its payment gateway. While Etsy does not charge transaction fees, Shopify offers a payment gateway and no transaction fees.
3. Target Plus
The Target Plus website is a growing marketplace for third-party sellers. The site was launched in February 2019 with just 30 merchants, and it has since grown to more than a hundred and twenty-seven sellers selling more than sixteen thousand different products. Targets aim to distinguish itself from Walmart and Amazon by hand-picking quality vendors and products. This new marketplace website also allows consumers to save time and money by browsing through its large selection of products.
To sell on Target+, you need to meet specific criteria. First, you need to be approved. Target will not approve your listing unless you meet specific criteria. You should ensure that the product you want to sell is of the right size and fits the category of items they sell. Second, you should ensure that your product fits Target’s mission and brand image. Third-party sellers may have different goals than you do.
Target has been selective in onboarding strategic partners per category, but once they are accepted, they must have a presence in the U.S. and ship their products within 24 hours. You shouldn’t list the same UPC on more than one Marketplace, and this helps eliminate multiple distributors and allows the brand to capture market share. According to Kevin Lamb, marketplace manager at Pattern, Target’s 1P growth will outpace the development of its 3P offerings.
Compared to Walmart and Amazon, Target is one of the top marketplace websites in the U.S. Its online retail site has more specialized niche markets than the others. In the U.S., over half of the leading six marketplaces focus on a specific product category, and you’ll find marketplaces specializing in homeware, fashion, music, and sports. Amazon also dominates the U.S. market, receiving two billion visits per month.
4. Facebook Marketplace
Facebook’s Marketplace lets you sell products and services like eBay and Craigslist, and you can sell just about anything you own. Check out 10 other websites like Craigslist. Facebook is not only for people with a lot of extra stuff but also for businesses, Amazon sellers, and brick-and-mortar stores looking to get exposure. But it is essential to know how to use it safely, and here are some tips to ensure your transactions go as smoothly as possible.
The first tip to maximize the benefits of Facebook Marketplace is to create ads relevant to your product. People who are searching for your product will see your product if it’s related to their interests. You can even retarget past customers by posting ads related to your products, increasing your ROI and sales. The great thing about Facebook Marketplace ads is that they allow you to retarget past customers. In addition, if someone likes your page or follows it, your ads can target them with advertisements.
When selling on Facebook Marketplace, make sure to keep the price competitive. While niche items can sell quickly, high-demand items may take longer to sell. Once the first few weeks pass, you can try lowering the price. Alternatively, you can renew your listing periodically, and continuing it every two weeks will ensure you get the best exposure possible for your items. Make sure to drop the price by five to ten percent every time.
Use tags to describe your product in the best possible way. The Facebook Marketplace allows sellers to label their listings using keywords that people use to find products. For example, you might sell a vintage mirror, and Facebook lets you add as many as 20 tags per listing. To maximize sales, include tags relevant to vintage mirrors or other similar items, making your product visible to potential customers. So, don’t hesitate to take advantage of Facebook’s Marketplace today.
If you have been selling goods on the Internet, you may have noticed the presence of Rakuten. This Japanese Marketplace is home to 28,000+ merchants. They are paid a fixed virtual real estate fee and a commission of 2.6% of the total sale amount. There are ample amount of benefits to being a member of Rakuten. There is a referral program, too, which allows you to earn $25 for every referral you send their way.
While membership is free, there are many other perks and extras offered by Rakuten, like cash back on purchases. You can even get paid to shop! Previously known as Ebates, Rakuten combines an e-commerce company and an affiliate marketing business. Members of Rakuten can shop through its affiliate links and earn cashback for every purchase. Despite the many benefits, some users find Rakuten challenging to use and feel it will lead to impulse purchases.
Rakuten has continued to grow in Japan and has recently acquired LOB, a company that develops advertising platforms. This acquisition was part of the company’s growth strategy and added technology and advertising services to its online Marketplace. The purchase terms were kept closed, but Rakuten surpassed its initial $1 billion valuation and has now opened offices in Taiwan and the United States. These acquisitions prove Rakuten’s international ambitions and ability to adapt to changing markets.
While Rakuten is doing well in Japan, the world is another story. Amazon and Alibaba dominate their respective markets, while Taobao is home to 120 million users in China. Despite Rakuten’s strong market position in Japan, it will have a tough time competing in international markets. The bottom line is that it has the potential to become one of the top marketplace websites.