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Top 5 best marketplaces in the USA

Julian Drago
September 5, 2023

The U.S. e-commerce industry is a rapidly growing market, with revenue expected to reach $1.4 trillion by 2027.

Marketplaces in the USA are gaining more and more strength within the e-commerce business. They are an entrepreneurial and democratic solution that overcomes local barriers. This business model allows you to see how popular your product can be in the market.

This option suits smaller entrepreneurs because it does not require as much investment as developing an e-commerce platform from scratch.

But who are the dominant players in this market? Which one is the best for selling your product?

We are going to guide you on this matter in this blog post.

Do non-US residents need an LLC to sell on US marketplaces?

Non-US residents do not need an LLC to sell on US marketplaces. However, there are several reasons why it may be a good idea to form an LLC.

  • An LLC provides limited liability protection, which means that your personal assets are protected from business liabilities. This is important if you are selling products that could potentially be hazardous or if you are selling products that could be subject to legal challenges.
  • An LLC can make it easier to open a business bank account in the United States.
  • An LLC can help you to comply with US tax laws. If you are selling a significant amount of products on US marketplaces, you will need to file US taxes. An LLC can help you to do this correctly.

Ultimately, the decision of whether or not to form an LLC is up to you. However, if you are serious about selling on marketplaces in the USA, it is something to consider. You can learn more about it here.

List of the best online marketplaces in the USA

Amazon is the dominant player in the market with over 40% market share. Other major players include Walmart, eBay and Target. Let's take a look at the key characteristics of each:

1 - Amazon

Amazon US marketplace is a good choice for new businesses because it is the largest online retailer worldwide. It has a strong brand name and a global reach, which can help new businesses reach a wider audience. Amazon also offers a variety of services that can make it easier for new businesses to get started, such as Fulfillment by Amazon (FBA).

FBA is a service that allows Amazon to store, pack, and ship your products for you. This can be a great option for new businesses that don't have the resources to handle these tasks themselves. FBA can also help you to improve your shipping times and customer satisfaction.

In addition to its size and reach, Amazon is also constantly innovating. This means that new businesses can be confident that they are partnering with a company that is always looking for ways to improve.

2- eBay

While Amazon is a retailer that sells its own products, eBay is a platform that connects sellers and buyers. This means that eBay does not own any of the products that are sold on its site.

eBay's main objective is to help sellers sell their products. To do this, eBay provides sellers with a variety of tools and resources, such as listing templates, shipping calculators, and marketing guides. eBay also offers a variety of seller protection programs to help sellers avoid fraud and scams.

Unlike Amazon, eBay does not offer logistics services. This means that sellers are responsible for shipping their own products to buyers. However, there are a number of third-party logistics companies that can help sellers with this task.

One of the advantages of selling on eBay is that it has a global reach. eBay is available in over 190 countries, so sellers can reach a large audience of potential buyers. eBay also has a large and active community of buyers, which can help sellers get their products noticed.

3 - Walmart

Walmart marketplace is an invite-only platform with over 80 million monthly visitors**.** This makes it a highly attractive option for online retailers who are looking to reach a large audience.

To be invited to sell on Walmart marketplace, you must meet certain criteria. These criteria include having a valid business license, a good track record of sales, and products that are in line with Walmart's policies.

If you are interested in selling on Walmart marketplace, you can apply for an invitation online. The application process is relatively simple and can be completed in a few minutes.

4 - Etsy

Etsy is a major online marketplace for handmade and vintage goods**.** It is a great platform for artists and collectors to sell their unique and creative products to a global audience.

Etsy follows a similar operating format to eBay**,** but it focuses on handmade and vintage items. This means that sellers on Etsy must create their own products, or sell items that are at least 20 years old.

Etsy's niche approach has made it a popular destination for shoppers looking for unique and one-of-a-kind items**.** The platform has over 82 million active buyers and over 5.5 million active sellers.

5 - Target

This online marketplace allows third-party sellers to sell their products on Target's website. It is a good option for sellers who want to reach a large audience and benefit from Target's brand recognition.

Target marketplace offers a variety of features and benefits to sellers, including:

  • Access to Target's large customer base: Target has over 100 million active customers, so sellers on Target Marketplace have the potential to reach a large audience.
  • Brand recognition: Target is a well-known and trusted brand, so sellers on Target Marketplace can benefit from its brand recognition.
  • Convenient shipping: Target offers a variety of shipping options, so sellers can choose the option that best meets their needs.
  • Payment protection: Target offers payment protection to sellers, so they can be confident that they will be paid for their products.

To sell on Target marketplace, sellers must meet certain requirements, such as having a valid business license and a good track record of sales. They must also pay a listing fee and a commission on each sale.

How can you be part of these marketplaces?

To sell on marketplaces in the USA other than Amazon, you will need to register as a seller and sometimes register as an American company.

Selling on multiple marketplaces can help you reach a broader audience and increase your sales. It can also help you to improve your logistics as you can consolidate your shipments and avoid having to ship to multiple warehouses.

If you are selling only on Amazon, it may be a good idea to consider selling on other marketplaces, such as eBay, Walmart, and Etsy. These US marketplaces have a large audience and offer a variety of features and benefits to sellers.

Do non-US residents need an LLC to sell on US marketplaces?

Non-US residents do not need an LLC to sell on US marketplaces. However, there are several reasons why it may be a good idea to form an LLC.

  • An LLC provides limited liability protection, which means that your personal assets are protected from business liabilities. This is important if you are selling products that could potentially be hazardous or if you are selling products that could be subject to legal challenges.
  • An LLC can make it easier to open a business bank account in the United States.
  • An LLC can help you to comply with US tax laws. If you are selling a significant amount of products on US marketplaces, you will need to file US taxes. An LLC can help you to do this correctly.

Ultimately, the decision of whether or not to form an LLC is up to you. However, if you are serious about selling on marketplaces in the USA, it is something to consider. You can learn more about it here.

List of the best online marketplaces in the USA

Amazon is the dominant player in the market with over 40% market share. Other major players include Walmart, eBay and Target. Let's take a look at the key characteristics of each:

1 - Amazon

Amazon US marketplace is a good choice for new businesses because it is the largest online retailer worldwide. It has a strong brand name and a global reach, which can help new businesses reach a wider audience. Amazon also offers a variety of services that can make it easier for new businesses to get started, such as Fulfillment by Amazon (FBA).

FBA is a service that allows Amazon to store, pack, and ship your products for you. This can be a great option for new businesses that don't have the resources to handle these tasks themselves. FBA can also help you to improve your shipping times and customer satisfaction.

In addition to its size and reach, Amazon is also constantly innovating. This means that new businesses can be confident that they are partnering with a company that is always looking for ways to improve.

2- eBay

While Amazon is a retailer that sells its own products, eBay is a platform that connects sellers and buyers. This means that eBay does not own any of the products that are sold on its site.

eBay's main objective is to help sellers sell their products. To do this, eBay provides sellers with a variety of tools and resources, such as listing templates, shipping calculators, and marketing guides. eBay also offers a variety of seller protection programs to help sellers avoid fraud and scams.

Unlike Amazon, eBay does not offer logistics services. This means that sellers are responsible for shipping their own products to buyers. However, there are a number of third-party logistics companies that can help sellers with this task.

One of the advantages of selling on eBay is that it has a global reach. eBay is available in over 190 countries, so sellers can reach a large audience of potential buyers. eBay also has a large and active community of buyers, which can help sellers get their products noticed.

3 - Walmart

Walmart marketplace is an invite-only platform with over 80 million monthly visitors**.** This makes it a highly attractive option for online retailers who are looking to reach a large audience.

To be invited to sell on Walmart marketplace, you must meet certain criteria. These criteria include having a valid business license, a good track record of sales, and products that are in line with Walmart's policies.

If you are interested in selling on Walmart marketplace, you can apply for an invitation online. The application process is relatively simple and can be completed in a few minutes.

4 - Etsy

Etsy is a major online marketplace for handmade and vintage goods**.** It is a great platform for artists and collectors to sell their unique and creative products to a global audience.

Etsy follows a similar operating format to eBay**,** but it focuses on handmade and vintage items. This means that sellers on Etsy must create their own products, or sell items that are at least 20 years old.

Etsy's niche approach has made it a popular destination for shoppers looking for unique and one-of-a-kind items**.** The platform has over 82 million active buyers and over 5.5 million active sellers.

5 - Target

This online marketplace allows third-party sellers to sell their products on Target's website. It is a good option for sellers who want to reach a large audience and benefit from Target's brand recognition.

Target marketplace offers a variety of features and benefits to sellers, including:

  • Access to Target's large customer base: Target has over 100 million active customers, so sellers on Target Marketplace have the potential to reach a large audience.
  • Brand recognition: Target is a well-known and trusted brand, so sellers on Target Marketplace can benefit from its brand recognition.
  • Convenient shipping: Target offers a variety of shipping options, so sellers can choose the option that best meets their needs.
  • Payment protection: Target offers payment protection to sellers, so they can be confident that they will be paid for their products.

To sell on Target marketplace, sellers must meet certain requirements, such as having a valid business license and a good track record of sales. They must also pay a listing fee and a commission on each sale.

How can you be part of these marketplaces?

To sell on marketplaces in the USA other than Amazon, you will need to register as a seller and sometimes register as an American company.

Selling on multiple marketplaces can help you reach a broader audience and increase your sales. It can also help you to improve your logistics as you can consolidate your shipments and avoid having to ship to multiple warehouses.

If you are selling only on Amazon, it may be a good idea to consider selling on other marketplaces, such as eBay, Walmart, and Etsy. These US marketplaces have a large audience and offer a variety of features and benefits to sellers.

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