So How Do I Grow My E-Commerce Business? Part I: E-Commerce Marketplaces

Part I – E-Commerce Marketplaces

The list of Internet stores open for business is growing at a rapid pace. Each one has slight differences depending on your goals. You have the big name store, Amazon, and on-line auction giant, EBay.  So how do you know where to sell your products? Here is a simple overview of some of the top marketplaces and what they offer to you as a seller.

EBay – EBay is a great marketplace if you have unique items you want to put up for auction. You can also offer fixed price sales if your items are widely available. After a sale, buyers give you a feedback to promote your ratings as a seller. Beware as this can be either a positive experience, or a negative one. However, EBay has recognized this and is changing how they measure performance by using a new ‘defect rate’ calculation to measure sellers ratings.   As one of the largest on-line marketplaces, EBay can give you great exposure.                                                                                   http://pages.ebay.com/sellerinformation/Index.html

Amazon – Amazon is the current leader and is known as the worlds largest online retailer. Most countries have their own domain version of the Amazon marketplace. Here in the US we shop on Amazon.com. If you live in Canada, you shop on Amazon.CA, and so on! But even though they are all part of Amazon, each is treated as a separate marketplace requiring you to contract with each entity. Amazon can offer you enormous exposure as well as flexibility in selling your items. Once you list your items in their massive catalog potential customers can do a simple search to find your product!  But keep in mind the search will also find your competitors (including Amazon itself) offering the same items. Competitor prices are displayed allowing buyers to pick who they choose to purchase from.  They also offer various services you can elect to utilize like setting up your own personalized “Amazon WebStore” where you can build your personazlied web page using Amazon templates, or utilize  “Amazon Fulfillment” where you send your inventory to an Amazon fulfilment center and they complete the sales process for you by shipping to your customer!                                                                                     https://sellercentral.amazon.com/gp/homepage.html

Rakuten – Even though they’ve been around since 1999, this marketplace is not as well known here in the US like Amazon, however, the company has enormous Japanese presence and has become a major worldwide online marketplace for both buyers and sellers. While selling on Rakuten, you don’t have to worry about competing with Rakuten as a merchant like you do on Amazon. They also go out of their way to do a lot of advertising to potential customers about upcoming sales and merchandise available on their site. But, as with all marketplaces, selling on Rakuten could have its downfall. Since many of your customers could be located in a country outside the United States, you will have to consider the high shipping costs as a factor in your selling price, no matter who is paying the shipping cost!