Why It's Better to Start a Business on Amazon Instead of Marketplaces
If you are wondering which marketplace to choose for a successful start in e-commerce, then be sure to read the article to the end. We will try to compare the most popular marketplaces in the world and clearly demonstrate why Amazon is your best choice.Which marketplace is better to invest in?
First, let's compare Amazon with its closest competitors - the Ebay trading on page seo service platform and the Walmart marketplace. All of them have quite a decent influence on the US market and their "fans".
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Characteristic Amazon eBay Walmart
Number of users (million) 200+ 185+ 120+
Average age of users 35-44 35-44 25-34
Main assortment Wide range of products Various categories of goods Wide range of products
Sales fee 6-45% 2.9-12% 6-20%
Delivery fee Yes Yes Yes
Registration cost For free For free For free
Ease of use Simple and clear interface Complex interface Simple and clear interface
Marketing tools Powerful sales and marketing management tools Limited marketing tools Limited marketing tools
Global presence Yes Yes No
Quality control of goods Strict quality control Limited control Strict control
As you can see from the table, Amazon is the best choice for selling products online due to its wide range of products, powerful sales and marketing management tools, global presence, and strict quality control.
Another indisputable advantage of Amazon is the unlimited trust of buyers. The site guarantees the best prices. The buyer is always protected from fraud, can compare various competitors and choose the product with the best reviews.
This could be the end of the discussion about which platform to start trading from.
However, if you sell unique items, Etsy may be a better choice.
The audience of the Etsy marketplace is almost 3 times smaller than that of Amazon and is 60+ million. However, the niche is somewhat specific: handmade goods, antiques, vintage, decorations, materials and, in general, everything that is directly or indirectly related to creativity. Etsy also has a relatively small commission: 5% + $ 0.20 per sale. You can find detailed information in our previous article " Trading on Etsy ".
In general, the choice of marketplace should depend on the product and the target audience. Therefore, the Etsy platform is at least worth mentioning, because it leads foreign marketplaces in the hand-made segment.
What about local marketplaces?
Almost every country in the world has local buying and selling sites with private ads: Gumtree in England, Wallapop in Spain, OLX in Ukraine, etc.
Many who are afraid to start a large-scale business on Amazon, first "test their strength" on the domestic market. This is really a good help for starting larger projects. However, comparing Amazon, even with the largest trading platforms in the country, makes no sense due to the global nature of the former and the local restrictions of the latter.
How to Sell on Amazon as a Beginner
If you're new to selling on Amazon, here are some tips to help you get started:
Create an account on Amazon. Follow the instructions to register as a seller and read the terms and conditions for selling on the platform.
Research the demand for your product on Amazon. Do some market research to understand what products are in demand and determine their potential.
Create an attractive listing for your product on Amazon, including quality images and descriptions. Pay attention to keywords that will help buyers find your product.
Set your product price. Remember that competition on Amazon can be fierce, so you should set your price so that it is competitive but still allows you to make a profit.
Starting to sell on the marketplace is quite simple. But to succeed, you need to continue to study the market, dive deep into marketing, solve problems that arise (of which, believe me, there will be many) and optimize your sales in accordance with the needs of buyers.
Contact our team if you are planning to build a business on Amazon - we will help you go from a beginner to a successful e-commerce entrepreneur.
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