Stefaniy Martynenko

Why it’s better to start a business on Amazon than on other marketplaces

If you’re wondering which marketplace to choose for a successful start in e-commerce, be sure to read the article to the end. We will try to compare the most popular marketplaces in the world and demonstrate why Amazon is your best choice.

To begin with, let’s compare Amazon with its closest competitors – Ebay and Walmart. All of them have a very decent influence on the US market and their “fans”.

Number of users (million)200+185+120+
Average age of users35-4435-4425-34
Main product rangeA wide range of productsDifferent product categoriesA wide range of products
Sales fee6-45%2.9-12%6-20%
Delivery feeYesYesYes
Registration feeFree of chargeFree of chargeFree of charge
Ease of useSimple and intuitive interfaceSophisticated interfaceSimple and intuitive interface
Marketing toolsPowerful sales and marketing management toolsLimited marketing toolsLimited marketing tools
Global presenceYesYesNo
Quality control of goodsStrict quality controlLimited controlStrict quality control

As you can see from the table, Amazon is the best choice for selling products online because of its wide range of products, powerful sales and marketing management tools, global presence, and strict quality control.

Another undoubted advantage of Amazon is the unlimited trust of its customers. The platform guarantees the best prices. The buyer is always protected from fraud, can compare different competitors and choose the product with the best reviews.

This could be the end of the story about which platform you should start trading on.

However, if you sell unique products, Etsy may be a better choice.

The audience of the Etsy marketplace is almost 3 times smaller than that of Amazon and amounts to 60+ million. However, the niche is also somewhat specific: handmade goods, antiques, vintage, decorations, materials, and generally everything that is directly or indirectly related to creativity. Etsy also has a relatively small commission: 5% + $0.20 per sale. You can find more information in our previous article “Selling on Etsy”.

In general, the choice of marketplace should depend on the product and target audience. That’s why Etsy is at least worth mentioning, as it leads foreign marketplaces in the handmade segment.

What about local trading platforms?

Almost every country in the world has a local classifieds website: Gumtree in England, Wallapop in Spain, OLX in Ukraine, etc.

Many people who are afraid to start a large-scale business on Amazon first “test their strength” in the domestic market. This is indeed a good help for launching larger projects. However, it makes no sense to compare Amazon, even if it is the country’s largest marketplace, due to the global reach of the former and the local limitations of the latter.

How to sell on Amazon for a beginner

If you’re new to selling on Amazon, here are some tips to help you get started:

  1. Create an account on Amazon. Follow the instructions to register as a seller and read the terms and conditions of selling on this platform.
  2. Study the demand for your product on Amazon. Do a little market research to understand what products are in demand and determine their prospects.
  3. Create an attractive listing for your product on Amazon, including high-quality images and a description. Pay attention to keywords that will help customers find the product.
  4. Determine the price of the product. Remember that competition on Amazon can be fierce, so you have to set your price so that it is competitive but still allows you to make a profit.

It is quite easy to start selling on marketplaces. But to succeed, you need to continue to study the market, dive deep into marketing, solve emerging problems (which, believe me, will be many) and optimise your sales to meet the needs of your customers.

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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