Top Global Online Shopping Marketplaces

Online shopping marketplaces are swarming with people. In 2021, there were around 2.14 billion (over 25% of the global population) unique shoppers. In terms of revenue, worldwide eCommerce sales were at $4.9 trillion in 2021 and are estimated to go up to $5.54 trillion by the end of 2022.

Whether it’s groceries, electronics, clothing, or cars, the possibilities are almost limitless when it comes to online shopping. The convenience of sitting comfortably in your home or at work and ordering something is amazing. You click away and are able to have it delivered to your doorstep, even on the same day! This is one contributing factor to the skyrocketed popularity of online marketplaces such as Amazon, eBay, and Walmart.

With this in mind, you may want to consider becoming an online seller. Online shopping marketplaces are a great way to increase your brand awareness, cater to the convenience mindset of buyers, save them time, tap into a larger international market, and increase the profitability of your business.

We know that making the move to sell online isn’t always easy, especially when thinking about selling to a global market. One of the first important but also difficult choices to make is where to sell. Here we will review some of the top online marketplaces to assist you in making that decision.

Amazon

When talking about online selling, chances are the first eCommerce platform to come to mind is Amazon. This eCommerce giant is the most popular online marketplace. From shopping on this eCommerce platform all the way to shipping and order fulfilment, Amazon has got the online shopping experience almost down to a science. With 38% of all product searches happening on Amazon and over 2.44 billion monthly visits, this place is a consumer magnet.

Benefits of selling on Amazon:

• Amazon is one of the best places to grow your brand visibility.
• Your Amazon store can be used to funnel customers to your personal website. Running an Amazon store alongside your own personal site store can benefit your sales.
• Businesses selling on Amazon can rank higher in SERPs.
• FBA (Fulfillment By Amazon) is one of the services that brought Amazon great success. FBA allows businesses to outsource their packaging and shipping needs to Amazon.

Challenges of selling on Amazon:

• Amazon’s commission fees can be high for some sellers. They can range from 8% on every sale all the way up to 20%. They also have other fees.
• Order management is not the easiest for multi-channel selling. Stocks only update after order fulfilment, meaning sellers may need to rely on 3rd party tools for real-time stock management to avoid overselling. Sellers also go through two different fulfilment processes.

eBay

Originally known as AuctionWeb, eBay has grown from just being an internet auction site and is now a global eCommerce staple. Contrary to what some people may think, eBay is not just a glorified second-hand store. While you can sell used items and antique items on this eCommerce platform, most of what they sell is brand new. It is this versatility that has brought eBay to where it is today. In the second quarter of 2022, eBay earned $2.5 billion dollars with 138 million active users.

Benefits of selling on eBay:

• eBay’s global presence means it’s a great place for building your brand awareness.
• You can reach a wider customer base because eBay integrates seamlessly with Shopify. This gives you access to this eCommerce platform’s 182 million users who frequent eBay fixed-price listings.
• eBay is available in the US, Canada, Australia, the UK, and Germany
• You can sell as long as shoppers can find your listings because they don’t need to start their search within your unique store.
• It’s easy to get started on eBay.
• Their Global Shipping Program makes it easier to sell abroad.

Challenges of selling on eBay:

• Like Amazon, multi-channel selling and inventory management requires 3rd party software.
• It can be challenging to price your products competitively.
• eBay has subscription fees for professional sellers, commission fees, and other additional fees
• You cannot migrate your data from eBay to another eCommerce platform.

JingDong (JD)

Also known as Joybuy internationally, they are the largest online retailer in China. If you are a seller looking to target the Chinese population specifically, JingDong looks to assist both local and international sellers in tapping into the Chinese market. JD had $149,3 billion in revenue in 2021 and has over 580 million users annually. Their fulfilment network and the logistics and technology involved is not only the nation’s best but is also unparalleled internationally. They are a company that is committed to selling high-quality and authentic products with the goal of being the most trusted company in the world.

Benefits of selling on JingDong:

• The Chinese market is huge. Their online shopping population is projected to reach over a billion in 2022.
• Their values on authentic and high-quality goods are a well-known trait of the company. Selling on this eCommerce platform means your goods are already well-perceived by the Chinese public.
• The JD Marketplace channel makes it easier than ever for Shopify merchant to sell on JD.com.

Challenges of selling on JingDong (This can apply to other Chinese or international online selling efforts):

• You need to get to know international tax laws, customs, and import duties.
• Currency and pricing conversion
• Language barrier

Walmart

The retail behemoth dipped its toes into eCommerce in 2018 and has since become the #3 online retailer in the US in terms of site visits (approx. 410 million visitors/month). Walmart’s fiscal year (ended Jan 31) eCommerce sales amounted to $47.8 billion in the U.S. which was up 11% compared to 2021 sales. While the majority of their sellers are U.S.-based, Walmart Marketplace encourages internationally based businesses to sell on their platform.

Benefits of selling on Walmart Marketplace:

• Brands can have their own return policy
• They charge no other fees other than a referral fee per product purchased. These fees depend on the product category.
• Comparatively less competition than an eCommerce platform like Amazon
• Approved US brands can connect their Shopify store to Walmart.com’s Marketplace website. Walmart’s proprietary app allows sellers to upload their product catalogues, build listings, track inventory synchronously, and link order details to get them fulfilled through Shopify.

Challenges of selling on Walmart Marketplace:

• Walmart’s Price Parity Rule and Price Leadership Rule limit how sellers can price on other marketplaces.
• Walmart’s Every Day Low Prices (EDLP) limits profit margins. You can likely sell your products for a higher price on other marketplaces.
• Those who do not qualify for Walmart Fulfillment Services will need to handle their own fulfilment

To find out more about the benefits, get in touch with the Quickfire Digital team. Our professional services ensure you have the ideal website for your ecommerce venture.