With the growth of online shopping over the years, especially the recent boom in 2020, you may be asking yourself if it’s time to open an e-commerce shop on an online marketplace.
There are over 100 online marketplaces in today’s age to place your product or service. Whether it’s a general marketplace like Amazon or a niche market space like Etsy for artisan pieces, the options are abundant. Some sites limit what services and products can be sold, while others allow for any piece of product, from a book to furniture.
There are benefits to selling online, like a large consumer base, more chance for sales, and getting your brand out there, but we’ll also cover those fees that come with owning an e-commerce shop.
Follow along as we go over the benefits of selling online, what online marketplaces to consider and how this journey can help your company make new sales and customers.
Opening an online shop is easier than you think, and it can be rewarding and profitable when you take the proper steps to set it up. However, keep in mind that you will need to market your online store differently than a physical shop since you will need to bring in customers, and it can take time to build traffic.
Make sure when you’re opening an eCommerce shop to have a marketing plan in place to follow along. Without proper marketing, an eCommerce shop will have difficulty bringing in that traffic and sales you expect to make.
Follow along below as we go over our top 5 picks for eCommerce shops.
One of the original eCommerce sites, eBay is a go-to for many online sellers. Since 1995 eBay has been the spot to sell all kinds of merchandise, perfect for those who create handcrafted pieces to those who sell vintage found items.
Like most eCommerce websites, eBay charges a non-refundable listing fee for each product and another insertion fee if you list the same items in two different categories. It also charges a final value fee (usually between 10%–12%), calculated as a percentage of the total amount of the sale, including any shipping and handling charges.
eBay is one the best for online sales due to its popularity, site traffic, and easy use, helping you easily reach customers everywhere.
One of the best-selling platforms for artisan and handcrafted items, Etsy is a perfect spot for those creating personalized or handcrafted pieces for sale. With over 60 million buyers in 2020, its popularity continues to rise, Etsy showcases an extensive platform for any seller.
Etsy charges a $0.20 listing fee for each item you sell on Esty. Your listings expire every four months, so if your item doesn’t sell and you renew the listing, you’ll be charged an additional $0.20. In addition, when you make a sale, you’ll be charged a transaction fee of 5% of the displayed price, plus the amount you charge for shipping. Keep in mind these fees when opening your eCommerce shop so that you can prioritize what products you want to showcase.
Etsy is an excellent option for those new to the eCommerce world and wants to try selling online with assistance before moving on to creating their site and shop.
With Amazon’s popularity, it’s no surprise why this is in our top five. Amazon sells over 400 products a minute, a leading eCommerce site, providing sellers like you a top-notch platform to sell your products on. With an active and built-in audience constantly surfing for new products, it’s no wonder Amazon is a top business choice for many.
With a foundation of trust and consistency that Amazon has built as a brand, your products have a good chance of being purchased through their site. Amazon offers top service and holds quality and speed as an ultimate goal. With the option for next-day delivery a standard go-to for many and usually lower rates than in-store purchases, Amazon’s audience loves to shop there.
Let’s review their fees. Amazon’s cost to sell on their platform depends on your plan, product category, fulfillment strategy, and other variables. For $39.99 per month, their minimum plan, for a Professional seller plan, you can sell more than 40 units per month, advertise your products, qualify for top placement on product detail pages, and use advanced selling tools like APIs and reporting.
For more community or local sales, look into sites like Facebook Marketplace. With the ability to now integrate your eCommerce site or continue face-to-face sales, the Marketplace is perfect for all products and services in your community or online.
If you choose to list on Marketplace, no fee is necessary. However, Marketplace has specific requirements and guidelines. You can learn more about the Marketplace here: https://www.facebook.com/marketplace/learn-more/business
Based in Seattle, Washington, Bonanza is a new and growing eCommerce space. With the ability to sell just about anything on the site, over 5.1 monthly visitors check out the page, looking for their perfect product.
More focused on artisan and handcrafted pieces than branded items, the site is a middle ground between Amazon and Etsy shops. You also can set a price on a product or allow negotiation offers.
Focusing on fees, Bonanza has a different approach to other sites. While listings are at no charge, Bonanza will take a margin of the final sale price. You also can integrate your website shop, like a Shopify account, into a bonanza for more sale opportunities.
Where Will You Sell?
No matter the product or service, there is an online eCommerce site out there for your needs. When it comes to choosing a platform, make sure you find one that is easy for you to understand and use, that can help you achieve your sale goals, and will assist you in getting your brand out there.
What eCommerce sites would you recommend to those wanting to start their online market? Let us know down below!