Consumers engage with brands across multiple channels as a part of their shopping journey and online marketplaces have emerged as a cornerstone of channel revenue for ecommerce brands.
A 2024 study shows that marketplaces are the leading channel for product search worldwide, beating out in-store browsing, and branded websites.
Today, millions of sellers leverage online marketplaces to expand their reach and boost sales by integrating marketplace listings with their web stores and advertising strategies.
When we say marketplaces, we’re referring to channels where transactions and product discovery happen on the same platform. This includes traditional marketplaces like Amazon, Walmart, and eBay, niche marketplaces like Etsy, NewEgg, and Houzz, and social commerce channels like TikTok Shop, Instagram Shop, and Facebook Shops.
In this blog, we’ll explain why sellers list their products on online marketplaces, show you which marketplaces are best suited for your business, and help you avoid some common pitfalls that slow down sellers from truly scalable growth.
The key benefits of selling on online marketplaces
Selling on marketplaces offers many benefits to ecommerce businesses that want to diversify their revenue streams, reach more customers, and grow cost-effectively. Here are some of the key advantages you should know about:
Access to built-in customer bases
Marketplaces like Amazon, Walmart, and eBay have millions of active users, providing sellers with a pre-existing audience. This increased visibility helps you reach new customers without having to invest as heavily on marketing efforts.
Established marketplaces are trusted by consumers, reducing the need for sellers to build brand credibility from scratch. Features like secure payment gateways, return policies, and review sections make customers more comfortable when making a purchase.
Additionally, many marketplaces operate internationally, allowing you to more easily tap into global markets. Marketplaces like Alibaba and Mercado Libre are particularly effective for expanding into regions like Asia and Latin America while Amazon alone ships to over 100 countries worldwide.
Leverage existing infrastructure
Marketplaces provide a ready-made infrastructure for listing, selling, and shipping products.
Tools and services like Fulfillment by Amazon (FBA) and Walmart Fulfillment Services (WFS) handle logistics, eliminating the costs involved with building out your own delivery infrastructure.
Marketplaces also handle payment processing, minimizing the risk of fraud and ensuring secure transactions for both buyers and sellers.
Increase discoverability
Advanced search and recommendation algorithms help sellers connect with customers who are actively searching for their products or similar ones.
Sellers can also leverage marketplace ads and promotional tools to improve visibility. Marketplaces like Amazon, Walmart, and Target have been steadily growing their advertising capabilities.
They enable sellers to increase visibility for specific products and appear in search results or product detail pages, or leverage their platform’s data to retarget to users externally.
For example, Walmart has pay-per-click sponsored search ads, which allow you to promote a specific product, brand, or video. Similarly, Amazon offers sponsored product, brand, and display ads.
Also, cross-selling and upselling opportunities often arise naturally through recommended and “frequently bought together” sections.
Scale and diversify your revenue streams
Sellers can start with a small catalog and scale up as they grow, leveraging the marketplace’s resources to manage larger operations.
Listing on multiple channels also reduces your dependency on any single sales channel, mitigating risks like algorithm changes or website downtime.
Access to analytics and insights
Most marketplaces provide detailed performance metrics, helping sellers track sales, customer behavior, and advertising effectiveness. Insights into trends and customer preferences can guide your product and marketing strategies everywhere you sell, not just on the marketplaces you list on.
Best online marketplaces in 2025
By leveraging the established infrastructure, vast customer bases, and built-in trust of online marketplaces, merchants can quickly access new audiences and streamline their operations.
However, not all marketplaces are created equal. Each has its unique strengths, audience demographics, and seller requirements, making it crucial to choose the right one based on your business goals.
Here’s a look at the best online marketplaces for ecommerce sellers in 2025 and what makes them stand out. This list is focused on marketplaces in North America, Europe, and Australia but we’ve also included some marketplaces for sellers that want to tap into selling in Asia in the FAQ section below.
Amazon
A global marketplace serving diverse audiences worldwide, Amazon is ideal for scaling businesses with its extensive infrastructure and massive reach.
As the undisputed leader in online retail, Amazon offers sellers access to one of the largest customer bases in the world. With features like Fulfillment by Amazon (FBA), robust advertising tools, and a reputation for convenience, Amazon is ideal for merchants aiming to scale quickly.
Walmart
A U.S.-focused marketplace blending physical and online retail, Walmart attracts budget-conscious shoppers with its reliable logistics and affordable pricing.
Walmart’s marketplace has rapidly gained traction, particularly in the USA, thanks to its growing online presence and integration with physical stores. Sellers benefit from Walmart’s emphasis on affordable pricing and its commitment to fast shipping through its Walmart Fulfillment Services (WFS). It’s a strong contender for merchants targeting budget-conscious shoppers.
eBay
A versatile marketplace with global reach, eBay excels at serving niche, collectible, and unique product markets with flexible seller options
Known for its auction-style listings, eBay remains a versatile platform for selling new, used, and unique items. With a global reach and a loyal customer base, eBay is particularly beneficial for niche or collectible products. Sellers appreciate its flexibility and lower fees compared to some competitors.
TargetPlus
A curated U.S.-based platform, TargetPlus offers exclusive access to premium brands aligned with Target’s trusted reputation and quality standards.
Target’s invitation-only marketplace is a curated platform focusing on quality and customer experience. While access is exclusive, sellers who make the cut benefit from Target’s strong brand presence and highly engaged shoppers. It’s an excellent choice for premium or specialty brands looking to align with a trusted name in retail.
Macy’s
A U.S.-based marketplace combining department store heritage with a growing online presence, Macy’s provides sellers access to fashion-forward and brand-conscious shoppers.
Macy’s Marketplace is an extension of its iconic department store chain, offering third-party sellers a chance to showcase their products to a highly engaged, style-conscious audience. Its curated platform emphasizes high-quality items in categories like apparel, beauty, and home goods. Sellers benefit from Macy’s established reputation, targeted advertising capabilities, and integration with its brick-and-mortar network, making it an excellent choice for brands aiming to reach premium and mid-market shoppers.
Kohl’s
A trusted name in family retail, Kohl’s Marketplace caters to value-driven shoppers by offering an expanding range of third-party products.
Kohl’s Marketplace builds on the retailer’s strong foundation in family-focused, affordable shopping. It allows third-party sellers to list products that align with Kohl’s customer base, spanning apparel, home goods, and more. With an emphasis on value and convenience, the platform integrates seamlessly with Kohl’s omnichannel strategies, including in-store pick-up and return options.
SHEIN Marketplace
A trend-driven platform with global reach, SHEIN Marketplace focuses on affordable and fast-fashion products for price-sensitive consumers.
A relatively new entrant to online shopping, SHEIN Marketplace offers sellers access to a vast audience that loves affordable, trendy products. With its rapid product turnover and focus on fast fashion, it’s an excellent platform for brands catering to price-sensitive, trend-driven consumers.
Etsy
A niche marketplace for handmade and vintage goods, Etsy connects creative sellers with a community that values craftsmanship and individuality.
Etsy remains the go-to marketplace for handmade, vintage, and artisanal goods. Sellers benefit from a niche audience that values creativity and craftsmanship. With user-friendly tools and a supportive community, Etsy is perfect for small businesses and independent creators who want to drive ecommerce sales.
TikTok Shop
TikTok Shop combines social media engagement with ecommerce through algorithm-driven product discovery.
TikTok Shop capitalizes on the power of social commerce, combining entertainment and shopping seamlessly. This platform is perfect for sellers targeting Gen Z and millennials, as it allows them to showcase products through short, engaging videos. TikTok’s algorithm-driven discovery makes it easier for new brands to gain visibility. Users can go from consuming content to checkout in a matter of seconds.
Facebook Shops
Facebook Shops provides integrated ecommerce tools within the world’s largest social platform, offering seamless shopping and community engagement
Facebook Shops, not to be confused with Facebook Marketplace, integrates ecommerce with one of the largest social media platforms globally. Sellers can create a seamless shopping experience directly on their Facebook pages, leveraging targeted ads and an active community to drive online sales.
Checkout on Instagram
A visual-first platform, Instagram is perfect for aesthetic-driven brands targeting engaged audiences in fashion, beauty, and lifestyle.
With its visually-driven platform, Checkout on Instagram and Instagram Shop are ideal for brands that rely on aesthetics to sell products. Instagram enables merchants to tag products in posts, Reels, and Stories, creating a frictionless shopping journey. It’s a natural fit for fashion, beauty, and lifestyle brands looking to connect with engaged audiences.
Zalando
A European fashion-focused marketplace, Zalando connects sellers with a broad audience seeking clothing, accessories, and beauty products.
With operations spanning several European countries, Zalando provides sellers access to a vast customer base. Its focus on fashion and lifestyle, combined with strong logistics support, makes it an ideal platform for brands aiming to reach style-conscious shoppers.
Fnac
A French-based marketplace specializing in electronics, media, and cultural products, Fnac is a top choice for tech-savvy and entertainment-focused audiences.
Fnac caters primarily to customers in France and neighboring countries, offering a wide range of electronics, books, and multimedia products. Sellers benefit from its strong brand reputation and loyal customer base.
Newegg
A U.S.-based marketplace specializing in tech and electronics, Newegg attracts a niche audience of tech enthusiasts and professionals.
Newegg is a go-to platform for selling consumer electronics, computer hardware, and gaming equipment. It provides sellers with tools like Newegg Marketplace Global to reach international audiences and leverage its specialized user base.
Wish
A global discount marketplace, Wish focuses on affordability, offering sellers access to price-sensitive customers seeking deals on diverse products.
Wish is known for its mobile-first platform and strong presence in North America and Europe. Its appeal lies in its low-price model and direct-to-consumer approach, making it an excellent choice for sellers of inexpensive goods.
Catch
An Australian ecommerce platform, Catch specializes in value-driven products across various categories, catering to budget-conscious customers.
Catch provides sellers with access to the growing Australian market. Its reputation for daily deals and competitive pricing attracts a loyal customer base seeking affordability and variety.
Houzz
A U.S.-based marketplace tailored to home improvement, Houzz connects sellers with homeowners and professionals in design and renovation.
Houzz specializes in furniture, decor, and home renovation products, offering a platform that blends ecommerce with design inspiration. Sellers benefit from a targeted audience and robust community engagement.
Sell on more marketplaces and automate product listing, optimization, and order management with Feedonomics
Factors to consider when choosing an online marketplace
Before adding a new marketplace to your channel mix, you should evaluate how well it fits with your brand, target audience, profitability, and operational strategy:
Target audience and niche
Each online marketplace attracts a specific type of shopper, often dictated by product categories, pricing, and demographics. For example, marketplaces like Etsy cater to artisans and handmade goods enthusiasts, while platforms like Amazon appeal to a broader audience seeking convenience and variety. Sellers should evaluate whether a platform aligns with their product offerings and target customer profiles.
Fees, commissions, and pricing structure
Most marketplaces operate on a fee-based model that includes listing fees, commission fees, or subscription charges. These costs vary significantly; for instance, Amazon charges referral fees based on product categories, while eBay combines insertion fees and final value fees. Sellers must account for these costs when pricing products to maintain profitability.
Fulfillment and logistics
Some marketplaces offer fulfillment services, such as Amazon FBA or Walmart Fulfillment Services, which can simplify inventory storage, shipping, and returns. Sellers should assess whether leveraging a marketplace’s logistics aligns with their operational capabilities and cost structure.
Marketplace rules and regulations
Marketplaces enforce strict rules regarding product listings, pricing policies, and customer interactions. Sellers who fail to comply risk penalties or account suspension. Reviewing and understanding these rules is critical for long-term success on the platform.
Integration with existing ecommerce platforms
Seamless integration between your ecommerce website and the chosen marketplace simplifies listing management, inventory synchronization, and order processing. Many platforms, such as BigCommerce and Shopify, offer plugins or APIs to connect with major ecommerce marketplaces. Compatibility with your tech stack ensures smoother operations and reduces manual effort.
Ability to scale with feed management software
As sales grow across multiple marketplaces, managing product data manually becomes inefficient and error-prone. Feed management software allows sellers to automate and optimize their product feeds for each marketplace. This scalability ensures that listings are accurate, up-to-date, and optimized for visibility, enabling sellers to manage larger catalogs and expand to new channels effectively. Make sure that your feed management service provider is able to integrate with your marketplaces of choice.
Challenges of selling on marketplaces
Marketplaces, just like any other channel, come with their own set of challenges that should be planned for and mitigated against:
High competition and saturated categories
Popular marketplaces often have crowded categories, making it hard for new sellers to stand out. Competing with established sellers who offer similar products at lower prices requires innovative marketing strategies, such as promotions or unique value propositions.
Optimizing product listings with relevant keywords, high-quality images, and competitive pricing is critical for visibility. However, marketplaces often have their own algorithms and requirements, which makes listing optimization an ongoing challenge. Consistently updating and refining listings is necessary to maintain competitive listings, higher search rankings, and attract customers.
Fees and commissions impacting profit margins
Marketplace fees, transaction fees, commission fees, and additional costs for optional services like fulfillment or advertising can significantly reduce profit margins. Sellers must carefully calculate costs and consider whether these expenses align with their pricing strategies.
Scaling order management
As order volumes increase, keeping track of inventory, shipping, and returns across multiple marketplaces can become overwhelming. Poorly managed order workflows risk stockouts, late deliveries, or errors, which can negatively impact seller ratings and customer satisfaction. Investing in scalable order management solutions is essential for scalable growth.
Risk of marketplace dependence
Relying heavily on a single marketplace for sales can be risky, as changes in policies, fees, or algorithms can disrupt operations. Diversifying sales channels and maintaining an independent ecommerce presence is critical for mitigating these risks and ensuring sustainable growth.
Ecommerce strategies to help you win on online marketplaces
Thriving on online marketplaces requires a combination of strategic planning and execution. Success comes from leveraging best practices to stand out in competitive spaces, optimize your listings, and ensure smooth fulfillment. Below are actionable strategies to help you excel.
Building your brand
A strong brand sets your products apart, building trust and loyalty with customers. Use cohesive brand stories, professional images, and engaging product descriptions to captivate shoppers.
Maximize marketplace tools like customizable storefronts, enhanced content, and live shopping features to amplify your brand’s presence. Leverage programs like Amazon Vine and Walmart Review Accelerator to boost reviews, and protect your brand with IP registration services like Amazon Brand Registry or Walmart Brand Portal.
Winning the buy box
If multiple sellers list the same product on a marketplace, their listings can be grouped together. When this happens, one seller’s offer may be prominently displayed over the rest on the product page. We can say that that seller has “won the buy box.”
Winning the buy box, also known as the “Featured Offer” on Amazon, significantly boosts a seller’s visibility and sales potential. This coveted spot highlights one seller’s listing on a product page when multiple sellers offer the same item. Marketplaces take multiple factors into consideration when determining who receives the buy box. Let’s take a look at Amazon and Walmart as two examples.
Amazon’s Featured Offer is influenced by factors such as competitive pricing, fulfillment methods, seller performance (order defect rate, cancellation rate, and late shipment rate), and inventory availability. The buy box rotates among eligible sellers meeting these criteria.
On Walmart, the buy box prioritizes low prices, fast shipping, and seller performance metrics. Walmart also recommends tools like Repricer to help sellers stay competitive.
Some marketplaces like eBay and TargetPlus don’t have a buy box at all. On eBay sellers have individual product pages and Target Plus assigns one seller per barcode, avoiding direct competition for the same listing.
Optimizing your product data
Optimizing product data is essential to increasing your product visibility and attracting shoppers on online marketplaces. Key areas of focus include images, titles, descriptions, and categorization.
Rich, accurate content in listings ensures products appear in relevant search results and next to related items.
High-quality images, well-structured titles, and detailed descriptions help shoppers quickly understand what they’re buying, while optimized data improves trust and conversion rates.
Each marketplace has specific feed requirements, making it critical for businesses to submit accurate, scalable product data feeds rather than relying on manual uploads.
Getting your fulfillment right
A seamless fulfillment process is critical for success on marketplaces, particularly if you’re managing sales across multiple channels. Proper fulfillment ensures orders are processed accurately and on time, reducing returns, boosting customer satisfaction, and avoiding negative reviews. Meeting marketplace standards for metrics like order defect rates is essential to maintaining seller performance and the visibility of your listings.
Leveraging automation and integration tools can streamline fulfillment. Automated order management systems minimize manual errors, pulling and syncing order data directly with marketplaces. These tools also support strategies like inventory buffers, where sellers list slightly less stock than available to avoid overselling, especially during peak seasons or promotions. This ensures a smoother fulfillment process and reduces the risk of cancellations.
Additionally, monitoring customer feedback can provide valuable insights for fulfillment improvements. Addressing common complaints, such as sizing issues or unclear product details, helps reduce returns and enhances the shopping experience.
How Feedonomics supports selling on marketplaces
Feedonomics is a full-service product feed management platform that simplifies the process of managing product data across multiple online marketplaces. Sellers can update, monitor, and adjust their product listings from one place, saving valuable time and resources.
Ensuring marketplace compliance and quality listings
Feedonomics ensures your listings meet each marketplace’s specific requirements and best practices, preventing rejections due to format errors, missing attributes, or policy violations.
Enhancing listing visibility with data optimization
Through automated data transformation, Feedonomics optimizes titles, descriptions, and other critical attributes to improve product discoverability. Optimized data helps listings rank higher in search results and attract more customers.
Synchronizing your inventory, pricing, and promotions
Feedonomics synchronizes your product data like stock levels, pricing, and promotions everywhere you sell. This automation reduces the risk of overselling or listing outdated information, maintaining customer trust and reducing order cancellations.
Delivering 24/7 support for error resolution and feed optimization
Feedonomics provides round-the-clock support to resolve feed-related issues quickly. Our team ensures your listings remain error-free, minimizing downtime and maximizing your marketplace presence.
Feedonomics connects your ecommerce platform to 300+ global advertising and marketplace channels. Schedule a demo to learn how Feedonomics can help your business synchronize, optimize, and scale ecommerce.
Conclusion
Online marketplaces provide unmatched opportunities for ecommerce sellers. By strategically selecting marketplaces that align with their business model, leveraging analytics, and optimizing listings, sellers can thrive in the global ecommerce landscape.
Integrating your ecommerce platform, marketplaces, and ad channels using a feed management platform can significantly streamline and improve your business.
Frequently asked questions
What are the top online marketplaces for selling in Asia?
Asia’s ecommerce landscape offers diverse opportunities with Alibaba’s platforms—Taobao, Tmall, and AliExpress—dominating in China for local and cross-border ecommerce. In India, Flipkart stands out as the leading marketplace, while Rakuten leads in Japan with its loyalty-driven audience. For Southeast Asia, Shopee and Lazada provide robust platforms for regional and international sellers, offering wide market reach and integrated logistics solutions.
What are the top online marketplaces for selling in Latin America?
Mercado Libre is the largest online marketplace in Latin America, offering third-party sellers integrated payment systems and extensive regional reach. Linio, another prominent platform in the region, focuses on technology and home products, supporting cross-border and local sellers. Amazon also plays a growing role in Latin America, particularly in Mexico and Brazil, providing international sellers access to its trusted logistics and established customer base.
What are the best online marketplaces for small businesses?
Small businesses looking to expand their online presence have several excellent marketplace options:
Etsy: Etsy caters to the niche ecommerce market of handmade, vintage, and artisanal goods. Its supportive community and user-friendly functionality make it ideal for creative sellers.
eBay: eBay is highly versatile, accommodating new, used, and niche products. Its broad reach and flexible functionality make it a strong contender for small businesses seeking market share in online selling.
Bonanza: Bonanza supports a wide variety of product categories and simplifies online selling for small businesses. Its marketplace platform is designed to empower small online businesses with ease of use and affordability.
Craigslist: While Craigslist is technically a classifieds website rather than a marketplace, it remains a popular option for small businesses to reach local audiences and promote products without the complexities of larger ecommerce platforms.
Facebook Marketplace: Although not a traditional marketplace platform, Facebook Marketplace connects local buyers and sellers, offering an informal yet effective channel for small businesses to test online selling strategies.
Muhammed is a content marketing specialist creating informative content to help ecommerce professionals solve industry challenges and stay ahead of the curve.
