Let's start with the numbers. Numbers that are important for US e-commerce, because they concern marketplace platforms' market share and monthly user visits.
In online retailing, the largest market share is held by Amazon - at almost 38% in 2023. Definitely smaller are platforms such as Walmart (6.4%), Ebay (3%) and Target (1.9%).
And this is the situation if we take Similarweb data from three months (June-August 2024):
- Amazon 52.34%
- Ebay 11.08%
- Walmart 9.56%
Etsy and Target each have a few percent.
Does a smaller share mean that these marketplaces are unprofitable? Let's check the traffic figures for June 2024.
Total number of visits to marketplace sites in September 2024 worldwide and share of traffic (%):
- amazon.com 2.553 billion (85.63%)
- ebay.com 594.7 million (79.32%)
- walmart.com 416.6 million (95.43%)
- etsy.com 404. 4 million (54.10%)
- target.com 158. 1 million (97.22%)
Source: Similarweb
Find out what you need to know about these most popular e-commerce sites in the US market and whether they positioning of stores in the USalso applies to marketplace platforms.
1. amazon.com
- Date of creation: 1994 r.
- Net sales revenue for 2023 in the US: $395.64 billion
Amazon is the most valuable brand retailer in the world, and a pioneer in technology and innovation, especially in logistics and customer service. It operates globally, but it is the U.S. market that is the most profitable in the world, with revenues running into billions of dollars.
Why do customers choose Amazon?
- Free delivery
Almost half of those surveyed (48%) in March 2024 cited this benefit as a motivating factor for their purchases.
- Friendly UX
For 44%, amazon.com is the most convenient website.
- Quick shopping
38% use Amazon when they want to buy a product quickly.
- Buying without leaving home
34% choose to store on this platform because they want to avoid going to the store.
Other reasons cited by Amazon customers include:
- hassle-free and free returns,
- Save time with suggested products,
- The ability to return products to Amazon partners (e.g., Whole Foods).
What sets Amazon.com apart in the U.S. market?
- Millions of customers and global reach
A huge base of loyal customers around the world who can't imagine shopping at any other site than amazon.com is undoubtedly one of the main benefits.
- Amazon Prime
It's a subscription service. Amazon Prime members enjoy fast and free delivery of millions of products, with no minimum order value requirement. In some regions, same-day or even same-day delivery is available. Amazon Pirme also delivers, among other things: free games, movies and series.
The cost of selling on Amazon.com
Amazon offers two sales plans: individual and professional for those selling more than 40 products per month.
Currently, the cost of the Professional plan in the US is $39.99 per month.
It includes tools such as Amazon Business (a solution for B2B sales), the Amazon Seller app for sellers and Amazon Ads.
The amount of fees for selling products through Amazon, depends on the category of the product and whether it is a percentage of the total price or a minimum amount of commission - Amazon will charge a higher one.
2. Ebay.com
- Date of inception: 1995 AuctionWeb, eBay since 1997.
- U.S. revenue for 2023: $5 billion
It is one of the largest and oldest e-commerce platforms in the world. It allows sellers to sell an assortment of products on an auction or "Buy Now" basis, giving sellers flexibility in pricing and sales strategies. Both individuals and companies can list their products.
Users have access to thousands of merchandise categories, and top sellers include:
- Clothes, shoes and accessories
- Home and Garden,
- Jewelry and watches
- Collectibles, sports and toys
- Health and beauty
What sets Ebay.com apart in the U.S. e-commerce market?
- Auction platform
The auction system undoubtedly sets eBay apart from other e-commerce platforms, which operate on a fixed-price basis. Users can bid on products, making sales more profitable.
- Global reach
eBay operates worldwide, giving U.S. users access to listings from different parts of the globe. In turn, sellers gain export opportunities that allow them to expand their customer base beyond US borders.
The cost of selling on eBay.com
eBay offers five plans for sellers, ranging from a Starter package for occasional sellers ($4.95/msc) to an annual Enterprise plan ($2,999.95).
Vendors are given a number of free listings to display each month, depending on the package. Each subsequent listing is subject to a fee.
eBay charges a fee for the item sold:
- You have to pay $0.30 for an order of up to $10.
- An order over $10 is a charge of $0.40.
3. etsy.com
- Date of creation: 2005 r.
- Global revenues for 2023: $2.7 billion
Etsy stands out from other e-commerce platforms such as Amazon and eBay because it focuses on unique and handmade products and vintage products.
Etsy.com customers are looking for original items. The platform is an excellent channel for sellers who offer niche products and thus may have difficulty competing with mass-market items.
What sets Etsy.com apart in the U.S. e-commerce market?
- Originality and quality
This is popularly the place to shop for original gifts that are hard to find in traditional stores and on other sites. They are often handmade or produced in limited quantities.
- Sales opportunities for small businesses
The platform provides individual sellers with access to a global marketplace. Independent artists, artisans and small businesses that want to sell their products directly to customers around the world will find their place on it.
- Vintage category
In addition to handicrafts, Etsy also offers a category of vintage products, which must be at least 20 years old. And this attracts collectors and vintage enthusiasts.
The cost of selling on Etsy.com
Selling on Etsy involves several fees, which vary from country to country:
- Store opening fee - one-time.
- Offering fee - one is enough for 4 months and is $0.20.
- Sales commission - 6.5% of numerous in the currency quoted.
- Transfer fee - 4% + EUR 0.30 (in Poland).
4. walmart.com
- Date of creation: 1962
- Revenues: $66.8 billion in online sales (2021)
Walmart is one of the largest chains and a global retail leader. The company is best known for offering a wide range of products at competitive prices, which is a major competitive advantage.
Walmart operates both traditional stationary stores and an online platform.
The company operates as Walmart US, Walmart International and Sam's Club.
- Walmart U.S. focuses on the retail market in the United States (including walmart.com).
- Walmart International is focusing on expansion outside the US.
- Sam's Club offers bulk purchases for its members.
What sets Walmart.com apart in the U.S.?
- Low prices
Walmart is known for its Every Day Low Price (EDLP) policy, which attracts customers looking for savings and favorable deals.
- Wide and varied assortment
It is a store where one can order, among other things: food, clothing, electronics, household goods, sporting goods. This allows customers to buy everything they need in one visit.
The cost of selling on Walmart
Walmart and Sam's Club are establishing partnerships with suppliers according to specific guidelines.
For example, Walmart encourages diversity supplier certification from a recognized agency, including the National Minority Supplier Development Council.
5. target.com
- Date of establishment: 1962 (store), 1999 (online store)
- Revenue for 2023: $107 billion
Target.com is an online shopping platform owned by retailer Target Corporation, one of the largest retail chains in the United States.
The company has 45 private labels. It offers a wide range of products such as apparel, home goods, electronics, cosmetics, children's products, food and more.
What sets Target.com apart in the U.S.?
- Loyalty program
Target offers the Target Circle loyalty program, which provide discounts, special offers and other benefits to regular customers. In addition, Target Circle Card users can enjoy discounts and a longer time to return goods.
- Click & Collect service
This is a free service that applies to the delivery of products available in stock at the selected store. Target delivers it within 2 hours.
The cost of selling on Target.com
Target is not a typical marketplace like Amazon, for example, so you won't find packages for businesses on the site. Target.com does implement some elements of a marketplace in its business through Target Plus.
Target Plus allows selected third-party sellers to offer their products on the Target.com platform. However, it is much more limited than standard marketplaces.
It carefully selects which companies and products that can join the platform. To apply, a company is expected to meet specific requirements, such as being registered in the U.S. and being able to ship via approved shipping companies.
Marketplace vs. positioning in the US
Platforms such as Amazon, eBay, Etsy and Walmart Marketplace are becoming important sales channels for companies looking to expand their reach.
Marketplaces offer many advantages: ready technical infrastructure, access to a wide customer base, logistical support. For many companies, especially small and medium-sized ones, they are a way to quickly enter the US market without having to invest in developing their own e-commerce solutions.
Challenges
- Competition
Marketplaces attract a huge number of vendors offering similar products.
- Algorithms
Each platform uses its own algorithms to position products.
- Reputation management
Customer reviews and ratings influence sales and brand trust.
Activities worth pursuing
- SEO for e-commerce
Optimizing product listings, pertinent keywords in product titles and descriptions, as well as good quality images, help increase the visibility of listings.
- Customer service
Without fast delivery and hassle-free returns, it will be difficult to maintain positive ratings and customer confidence. Consider investing in a robust logistics system.
- Ads on marektplace
Marketplace platforms additionally offer paid promotion options, so you can increase the visibility of your products in a short period of time.
In conclusion, marketplaces are both an opportunity and a challenge. The opportunity can be seized by marketplace SEO, promotion, and brand reputation management.
In conclusion
Each platform has its own unique features and popular categories. Amazon, with its services such as Amazon Prime, is attractive for high-demand bulk products. eBay provides an auction system, while Etsy works well for selling unique, handmade products that attract customers looking for originality. Walmart is known for its low prices and wide assortment, while Target offers loyalty programs and a Click & Collect service.
Selling in the U.S. market offers tremendous opportunities to scale a business. However, it requires a carefully thought-out strategy, choosing the right e-commerce platform tailored to the type of products and target customer group, and understanding export regulations and cultural preferences in different countries.
