eCommerce Marketplaces Other Than Etsy, eBay, and Amazon.
Amazon and eBay are the undisputed kings in the eCommerce marketplace world. Marketplaces do remain the best place to be selling your products as they have very high exposure rates.
However, there are other eCommerce marketplaces that give good competition to these two top players, especially in the foreign marketplace, where they are faced with tough competition and often struggle to gain a strong foothold. Many sellers in the US are unhappy with the terms and conditions laid by the two biggest eCommerce marketplaces.
Middle class shoppers in some countries, including India, China, and Mexico, are flocking to the Internet marketplace as internet penetration and disposable income increases in these countries. You cannot afford to miss out on the huge potential for international sales!
U.S. Based Marketplaces
A number of eCommerce marketplaces have come up in the US, which are giving tough competition to Amazon and eBay. They cater to B2B and B2C also.
Newegg is an online retailer of software and hardware products that has expanded its product line to selling clothing, industrial products, sporting goods, consumer electronics, and automotive products. Their goal is to have all products shipped within 72 hours. With over 700 sellers, Newegg charges commission rates ranging from 8 to 15 percent, depending on the product type.
With a mission to empower people through the Internet, Rakuten is a network of marketplaces around the globe, including Europe, Asia, and the Americas, with a membership fee of $99 per quarter and commission of 99 cents per item. The fee is charged only when an item sells. As a seller, you can make items available to the Japanese market without having to pay any additional charge. Besides, you can create your own branded storefront instead of using Rakuten branding.
Three different types of services for third-party sellers are available on Sears. These include Fulfilled on Sears, Advertise on Sears, and Sell on Sears. Sell on Sears’ monthly cost is $39.99 in addition to 7 to 20 percent commission, which is based on product category.
With Fulfilled by Sears, the items to be sold are shipped to the company’s warehouses, where they are stored, picked and packed, and fulfilled via its distribution system. Monthly charges of $39.99 apply, besides storage fees of $0.45 per cubic foot.
You can sell unique hand-made artistic creations on Etsy. This eCommerce marketplace also sells a small batch of manufactured goods. Each item sells at a price of 20 cents on the listing, which lasts for four months. When a buyer buys a product, Etsy gets a transaction fee of 3.5 percent on the sale price of the item.
An initiative of the founder of Diapers.com, Jet offers a similar commission structure as Amazon. The new online platform will come up later this year and let sellers adjust commissions based on different criteria, such as order size or shipping distance.
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China and Latin American Marketplaces
eCommerce Marketplaces are popping up all over the world. International eCommerce is taking off!
A very popular Chinese eCommerce platform, Alibaba’s global revenues are significantly higher than those of eBay and Amazon. Alibaba owns a number of websites, including Tmall Global, Tmall, and Taobao.
This eCommerce website gives a platform to small businesses, startups, and individual sellers to sell via auctions or fixed prices. There are no charges on listing of products or commission fees. However, the website earns revenue from advertising and similar services.
An Alibaba subsidiary, Tmall enjoys 50 percent market share and connects small businesses and leading brands with consumers. With strict requirements, Tmall leads China’s B2C (Business to Consumer) eCommerce market. It requires companies to have a brick-and-mortar unit in China for three years, where it stores inventory.
A perfect eCommerce platform for volume sellers, Tmall requires $25,000 as security deposit; $5,000 or $10,000 as annual fee, depending on the type of item; and a transaction fee of 5 or 6 percent through Alipay.
Set up for sellers outside of China, Tmall Global is a global platform for foreign businesses to sell directly to Chinese consumers. It does not mandate such companies to secure Chinese business licenses, nor does it require them to store inventory. Merchants are charged $5,000 to $10,000 as annual fee, along with a refundable deposit of $25,000. The eCommerce platform requires a payment of 3-6% as commission on each sale.
A popular eCommerce site in Latin America, Mercado Libre offers a Cross Border Trade program. This program is especially designed for foreign sellers in Mexico and Brazil and will soon be launched in other Latin American countries. The platform allows listings in native language. Users are allowed to have a basic, free web store. They can also pay a monthly subscription fee for value added services and enhanced functionality on their stores.
The eCommerce landscape has changed significantly and is continuing to evolve. Cross Border trade is becoming increasingly competitive but also more accessible. Look into the different marketplaces to see where you could expand your product sales.
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