Amazon dominates US e-commerce, right? From one angle, the stats paint a compelling case with Amazon receiving 2.7 billion monthly views in the US and accounting for 38% of online purchases.
But from another angle, almost two-thirds of US online sales are taking place on non-Amazon sites (62%) and there are 54 non-Amazon marketplaces with over 1 million monthly views in North America.
Either way you look at it, there’s clearly opportunities for brands beyond Amazon, but where should you look?
With its huge population (332 million) and high purchasing power (average income of $98,000), the United States was surprisingly slow to the e-commerce game as large distances between cities and low population densities reduced shipping viability. However, the pandemic accelerated online shopping trends and now 70-80% of US shoppers buy online.
In particular, US marketplaces have thrived over the past few years:
Amazon is the gold medal champion of US marketplaces, with ebay and Walmart completing the podium. But, dig below the surface, and the US has a wide range of general marketplaces (i.e. Target) and specialist category platforms, such as fashion (Macy’s), homeware (Houzz), books (i.e. Barnes & Noble) and electronics (i.e. Newegg), that might be well suited to your products.
Launched in 1995, eBay was the ‘original’ online marketplace and remains an integral part of the US marketplace scene, coming second to Amazon in terms of monthly views and gross merchandise value. Operating in the discount price range across every product market, it’s a great option for companies looking to offload stock either using its famed 'auction’ process or at fixed prices.
The United States’ largest retailer sells more products than Amazon, but has a much smaller online marketplace with around 100,000 vendors compared to Amazon’s 6 million marketplace sellers. Launched in 2009 and operating in the midmarket price range across a wide range of product categories, Walmart’s marketplace doesn’t charge listing or monthly fees (you only pay fees per sale) and also offers a fulfilment service similar to Amazon, which is great for sellers used to Amazon's FBA service.
Better known for its huge physical stores, Target also launched a digital marketplace platform called Target Plus in 2019. Growing year-on-year, the platform allows approved sellers to merchandise their products directly to shoppers, which is a great avenue for sellers that prefer autonomy over pricing and distribution. With Target hand picking its sellers (only around a dozen join each month), listings are harder to get, but show that your brand is trusted.
Formerly known for its second-hand style merchandise, Poshmark launched its Brand Closet programme in 2021 giving big brands access to its 80 million registered users in the US, Canada and Australia. Given 80% of Poshmark’s audience are Gen Z and millennials, its marketplace is a great place for brands that sell clothing, pets and homeware goods to these demographics. Poshmark also offers seller training to help brands make the most of the platform.
If the name Newegg means nothing to you, it does to millions of electronics buyers. Having made its name as a PC components and electronics retailer, Newegg launched its marketplace in 2011 which specialises in tech products, but also sells jewellery, sunglasses, homewear, toys and games on the site. Creating a Newegg seller account is free and the set-up process is quick and painless.
That’s just the tip of the iceberg. From Wayfair and Home Depot to Overstock and Kroger Marketplace, there are many US-based marketplaces that might be right for your products, the big question is: which ones? Follow these five simple steps to find out.
For more advice on selecting the right US marketplaces, check out our blog.
https://www.webretailer.com/marketplaces-worldwide/online-marketplaces/
https://www.digitalcommerce360.com/article/infographic-top-online-marketplaces/
https://www.similarweb.com/blog/ecommerce/retail-insights/target-vs-walmart/