In 2025, consumers spent an estimated $2.6 trillion on the top 100 online marketplaces globally. Shopping habits are shifting toward these platforms because they offer convenience and variety in one place. For businesses, this means selling on online marketplaces is an essential way to reach more customers.
This guide will answer your main questions about online marketplaces, including:
- What is an online marketplace?
- What types of marketplaces exist?
- What benefits do they offer?
- Which marketplaces are the most popular today?
If you want help building your presence on marketplaces, professional teams can assist you in reaching more buyers and boosting sales.
Definition: What Is an Online Marketplace?
An online marketplace is a platform where multiple sellers can collectively sell their products or services.
It brings different businesses together in one place for buyers to browse and compare options.
The platform does not usually own the products; it simply facilitates transactions and creates trust between sellers and buyers.
Marketplaces make it easy for consumers to find what they need without visiting multiple websites.
Examples include Amazon, eBay, and Etsy, where buyers can see several options for the same product.
This central hub allows sellers to reach a larger audience and buyers to make informed choices quickly.
Examples of Online Marketplaces
Some of the most widely known marketplaces include Amazon Marketplace, Facebook Marketplace, Angi, Thumbtack, Walmart Marketplace, and eBay. Each of these platforms connects buyers and sellers but specializes in different types of products or services.
Whether you are selling physical goods, digital products, or professional services, there is a marketplace that suits your business model.
Two Major Types of Online Marketplaces
Online marketplaces fall into two main categories: ecommerce marketplaces and service-based marketplaces.
Ecommerce marketplaces are designed for selling products. Businesses can list items ranging from clothes and electronics to digital downloads. These platforms make it easy for companies to reach shoppers who are actively looking to purchase goods online.
Service-based marketplaces focus on businesses offering services rather than physical products.
Consumers can find service providers such as plumbers, painters, or photographers. These platforms simplify hiring by connecting professionals directly with clients who need their skills.
Benefits of Using an Online Marketplace
Selling on an online marketplace provides multiple advantages for businesses.
Access to an existing customer base is one of the biggest benefits. Building a new audience from scratch takes time, but marketplaces already attract large numbers of potential buyers. This allows businesses to start selling quickly without worrying about attracting traffic to their own website.
Increased visibility and brand discovery is another key benefit. Many shoppers are looking for the products or services your business offers. Being present on a marketplace increases the chances that these potential customers will discover your company.
Trust is easier to establish through marketplaces. Research shows that 81% of consumers consider brand trust crucial when making a purchase. Marketplaces act as a trusted intermediary, giving buyers confidence that transactions will be secure and any issues will be resolved.
Shoppers prefer marketplaces because of the convenience they provide. Buyers can find multiple options in one place, make a single purchase, and enjoy the platform’s protections. This behavior means businesses have a higher chance of reaching consumers where they already like to shop.
Four Popular Online Marketplaces
Businesses can choose from multiple online marketplaces depending on their needs. Here are four top options:
1. Amazon
Amazon is one of the most popular choices. Over one million small and medium-sized businesses sell through Amazon. To start, create a seller account and select a plan. Individual plans cost $0.99 per item for sellers with fewer than 40 sales per month. Professional plans are $39.99 per month for larger sellers.
Creating a branded storefront helps customers recognize your business. High-quality images and detailed product descriptions improve visibility and conversions.
Amazon also allows service businesses to sell through Amazon Home Services. For example, a plumber can offer installation services for purchased products.
2. eBay
eBay is ideal for both new and used products. Sellers create an account, choose a store plan, and list their products. High-quality photos and detailed descriptions help buyers make informed decisions.
eBay connects sellers with over 183 million buyers worldwide, making it an effective platform for reaching diverse audiences.
3. Angi
Angi focuses on service-based businesses. Formerly Angie’s List, Angi connects professionals with clients needing services such as plumbing, landscaping, roofing, or housekeeping.
Businesses register, wait for leads, and communicate with potential clients to provide quotes.
The platform simplifies client acquisition and helps service providers earn more opportunities.
4. Thumbtack
Thumbtack caters to a broader range of service businesses.
Movers, electricians, wedding photographers, personal trainers, and app developers can all find clients through Thumbtack.
After signing up, professionals list their services, define locations, and indicate availability.
Clients contact service providers based on their listed criteria, creating new opportunities for business growth.
Additional Marketplaces to Consider
There are many other platforms businesses can use to sell products or services.
For ecommerce, marketplaces like Walmart Marketplace, Target+, Etsy, Sears Marketplace, Alibaba, and Facebook Marketplace are popular.
For services, platforms like Houzz, Bark, HomeAdvisor, and Porch can help connect businesses with clients.
Exploring multiple marketplaces ensures businesses reach their target audience efficiently.
Why Online Marketplaces Are Important for Business Growth
The best marketplaces allow businesses to access a larger pool of qualified leads. They simplify selling, increase visibility, and build trust with consumers.
Businesses can use these platforms to generate more sales and grow revenue faster than traditional online stores. By establishing a presence on multiple marketplaces, companies can reach buyers in different regions and markets without heavy marketing costs.
Conclusion
Online marketplaces are essential tools for modern businesses. They connect sellers with buyers, simplify transactions, and increase brand visibility. Whether selling products or services, being on the right marketplace helps businesses reach more customers, build trust, and boost revenue. With careful planning and professional support, businesses can maximize their success on these platforms.
FAQs
An online marketplace is a platform where multiple sellers list products or services for buyers to purchase in one place.
Sellers create accounts and list items or services. Buyers browse, compare, and purchase through the platform, which handles payments and trust.
There are two major types: ecommerce marketplaces for selling products and service-based marketplaces for offering professional services.
Marketplaces provide access to a large customer base, increase brand visibility, build trust, and simplify the selling process.
Popular platforms include Amazon, eBay, Etsy, Facebook Marketplace, Thumbtack, and Angi.
They typically earn revenue through commissions, listing fees, subscriptions, advertising, and payment processing fees.
Yes. They allow small businesses to reach more customers, increase sales, and compete with larger brands without building their own store.
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