With retail competition growing faster than ever, it can be a struggle to stay competitive in a primarily online marketplace. eCommerce stores are a fantastic way to be seen and boost revenue without facing the traditional limitations of geographical locations and business hours. However, setting up an eCommerce website can be time-consuming and present unwanted upfront costs. If you’re wanting to save on some hard-earned cash, an easy solution to this is selling on marketplaces. These can be referred to as eCommerce marketplaces or online multi-vendor marketplaces.

What is an Online Multi-Vendor Marketplace?

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An online multi-vendor marketplace is a website that hosts third-party vendors to sell products and services whilst being privately owned. This affords the vendor increased customer exposure to their products as well as a correlated increase in sales, in exchange for a commission to the marketplace owner. They can be beneficial to a number of retail businesses, big and small.

Some marketplace examples include:

  • Amazon
  • eBay
  • Etsy
  • My Deal
  • Catch
  • Gumtree
  • Facebook Marketplace

Benefits of Using an eCommerce Marketplace

If you don’t already have an eCommerce site, the most obvious benefit that comes with selling your products on other channels is skipping the upfront costs of creating one. This is the most affordable solution to begin testing the compatibility of your product with online sales. The following benefits apply to both those business owners who do and who don’t already have their own eCommerce business.

  1. 1. Quick Product Launch Times

Once approved as a third-party vendor on marketplaces, all you need to do is upload your product/s and start selling. This allows you the opportunity to generate extra revenue as well as build your brand credibility. 

  1. 2. Integrated Marketing Programs

The most established online marketplaces have integrated marketing programs which are designed to help to present your product to the right customer, at the right time. This is a great alternative to doing it yourself, and can really help push your sales. 

  1. 3. Delivery Assistance

If required, you can opt for assistance to achieve fast delivery times. Amazon and eBay both have options for you to allow the marketplace to store, pick, pack and ship inventory on your behalf. This allows you to meet customer expectations and also helps you build reliability as a seller. 

  1. 4. Large Customer Bases

The number of people regularly shopping on online marketplaces is steadily increasing. This allows customers the convenience of being able to view multiple stores, in one accessible location. In October 2019, online marketplaces recorded over 200 million active online shoppers

Which Australian Marketplace Attracts the Most Users?

This data represents the Australian online marketplace traffic share as of October 2019. 

selling on marketplaces

Image Source: Similarweb

Who Should Consider Selling on Marketplaces? 

Anyone who wants to advance their business’s profitability should consider selling on marketplaces. While it seems like a simple solution to just jump on and get started, considering there are over 100 of these marketplaces online, it’s beneficial to consider which online marketplace might benefit you the most. 

Top Online Sales Platforms 

When deciding which marketplace to list your product/s on, it’s important to consider the unique seller fees, commissions, requirements as well as the best selling product categories. This will help you determine which platform is likely to be the most profitable for you. Here are just some of the leading Australian online marketplaces with the key figures you might need to implement this strategy effectively.

  1. eBay

  2. selling on marketplaces ebay 2

eBay is a global B2B and B2C online platform which allows you to sell new and second-hand products at auction or at a fixed price. There are roughly 8 million Australian users and 167 million active users globally.

Fees

It costs $3.85 AU to list a product on eBay plus a 10.9% commission fee of the final value of products. There are no setup or monthly fees to sell on eBay. 

eBay’s Top Product Categories are:

  • Mobile phones and accessories
  • Video games
  • Health and beauty products. 

Image source: Edison Trends

An added bonus for retail businesses impacted by COVID-19, eBay is waiving fees for 3 months for new sellers!

ebay promotion

  1. Amazon

  2. selling on marketplaces amazon s

Amazon is the world’s largest online eCommerce retailer that allows individuals and businesses to sell and display their products online. There are roughly 14.3 million Australian users and 197 million active users globally. 

Fees

It costs $49.95 to have an account with Amazon, plus a 6-15% commission fee off product sales.

Amazon’s Top Product Categories are:

  • Toys and Games 
  • Electronics, accessories and gadgets
  • Cameras and photography 

selling on marketplaces amazon

Image source: Edison Trends

  1. Facebook Marketplace

  2. selling on marketpalces facebook marketpalce

Facebook marketplace is a convenient destination for people to discover, buy and sell items locally. Products are filterable by location, category and price. There are roughly 11.2 million Australian active monthly users.

Fees

The selling fee is 5% per sale or $0.40 for sales under $8.00

Top Product Categories 

  • Accessories
  • Clothing
  • Baby and kids.
  • Bags and luggage.
  • Beauty products
  • Furniture

selling on marketplaces facebook marketplace

Image Source: SimilarWeb

  1. Catch

  2. selling on marketplaces catch2

Catch, formerly Catch of the Day, is a unique Australian owned and operated shopping platform that allows you to buy products from a variety of sources. There are roughly 6.3 million Australian users each month.

Fees

$49.99 per month, plus a 10-15% commission fee off product sales.

Top Product Categories 

  • Fashion
  • Technology 
  • Beauty
  • Groceries 
  • Sporting items 

selling on marketplaces catch

Image Source: SimilarWeb

  1. Gumtree

  2. selling on marketplaces gumtree

Gumtree is an online marketplace where you can sell and buy just about anything, new and used. It’s an Australian only retailer and is not designed for international sales. There are roughly 13.8 Australian monthly users.

Fees

 It’s free to post an ad. If the buyer purchases using PayPal, there is a $0.30cent fee plus 2.6% of the sale price.

Top Product Categories

  • Vehicles (Car, boats and caravans) 
  • Furniture
  • Bikes
  1. MyDeal

  2. selling on marketplaces my deal

MyDeal is an Australian owned and operated retailer for thousands of essential and in-demand products at discounted prices. There are roughly 1.85 million Australian active monthly users. 

Fees

There are no subscription fees to list products. However, there is an 8-20% commission fee off product sales depending on the category.

Top Product Categories 

  • Home and Garden
  • Furniture
  • Electronics

 

Etsy 

selling on marketplace etsy

Etsy is an American owned e-commerce website which sells primarily handmade or vintage items (over 20 years old), as well as craft supplies. There are 45.7 million active worldwide users. 

Fees

5% commission on sales. If the buyer uses Etsy Payments, there is a 3% commission + $0.25 payment processing fee. 

Top Product Categories

  • Jewellery and accessories
  • Home decor
  • Personalised items 

Prepare For Selling on Marketplaces

It’s important that you are prepared before listing your products online. You must have a plan in place to manage the back end of these online sales. 

If you choose to list on multiple online marketplaces, consider how you will:

  1. Manage orders from different marketplaces
  2. Manage multiple sets of inventory 
  3. Meet shipping expectations
  4. Manage customer communication

Take the Next Step Towards eCommerce

Regardless if you’re just considering launching a new eCommerce business or have been selling online for years, selling on online marketplaces is both an intelligent and strategic move to grow your business.

Thanks to the help of many established online multi-vendor marketplaces, you can launch your products fast, reach accustomed audiences and quickly develop a positive reputation. The relatively painless and affordable set-up process will be worth it once you experience the potential of selling on marketplaces.

If you are ready to set up your own eCommerce site, our team of experienced eCommerce web developers can help. We welcome any questions you may have about the digital marketing space! Contact us to get in touch.

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