When it comes to selling online, eBay is one of the oldest and most established marketplaces. It's suitable for sellers who offer both new and used items, and you can even auction your products for a higher price.
Amazon is the world's largest e-commerce retailer and the second largest search engine. It's incredibly popular with shoppers, with 38% of product searches being performed on Amazon. You can sell almost anything on Amazon, from electronics to perfumes and unopened makeup.
OfferUp is a free marketplace that allows you to list almost anything for sale, from kids' toys to cars. You can receive your money without fees through regular bank transfers or instantly with the quick deposit feature (for a fee).
Poshmark is best known for selling clothes, shoes and accessories from well-known brands. You can also offer discounts to customers who buy more than one item from your store, increasing your chances of selling.
Mercari is another popular marketplace where you can sell almost anything you own. Listing your items for sale is free, but Mercari charges 10% on all purchases plus an additional payment processing fee of 2.9% plus 30 cents for each sale.
Decluttr works differently than other selling sites as you sell to Decluttr and their team takes care of the rest. It's a good choice for used books, technology and LEGO branded blocks. Decluttr charges no fees but shipping and processing costs are factored into the price offered to you.
Facebook Marketplace is another great option when you're just starting out as it has over 2.7 billion monthly users. You can also expand your reach by selling on country-specific marketplaces.
Making Money from Marketplaces
The biggest benefit of selling on marketplaces is that you don't have to spend money on marketing, retargeting or social media campaigns as customers are already spending money on a membership. However, brands may be concerned that people buy their products in marketplaces rather than on their own sites.
Business models such as commissions, subscriptions and display advertising are popular sources of revenue for classified ad sites. According to Malcolm Smith of Bloomforth, 55% of companies selling in markets have profit margins above 20%.
Choosing the Right Marketplace
When choosing a marketplace, it's important to be clear about your goals and needs. You'll want to focus only on platforms that are a good fit for your products and consolidate prices in your online store.
Selling on online marketplaces can be a great way to make money if you choose the right platform for your products. With so many options available, it's important to do your research before committing to any one marketplace.