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Marketplace Sellers

Marketplace Sellers

Marketplace Sellers

Looking to start your marketplace journey on ebay & Amazon 

Here at A&B STORE, we actively support new or existing customers looking to sell through online marketplaces such as eBay and Amazon.

For our customers who are looking to start-up on eBay or Amazon we have made a handy guide below to explain how these platforms can benefit your business. 

 

Increase Sales From a High Traffic Channel

The chief draw of selling on marketplaces such as Amazon and eBay is the scale of their online presence. Amazon draws nearly 200 million visitors a month and eBay is home to over 180 million active buyers, that’s a heck of a lot of eyeballs! And those eyeballs can translate into higher sales volumes.

According to an Amazon executive, sellers report an average 50% increase in sales when they join Amazon Marketplace.

 

Acquire New Customers

Nobody visits Amazon or eBay searching for your store. But they may be searching for and discover your products. Products they may not have discovered otherwise, or that they may have purchased from a competitor. 

Once you’ve got a customer in the door, even if it is through a marketplace, you’ve got a chance to win repeat business through excellent service and fulfillment. This is especially the case if you’re selling products in a category that encourages frequent, repeat purchases, such as hobby supplies or fishing gear.

 

Many People Prefer Shopping Via Marketplaces

Marketplaces are all about strength in numbers. This is as true for online marketplaces as it is for real world examples like markets and shopping centers.

The variety and all in one aspect of the marketplace can draw in lots of customers who prefer that kind of shopping experience. Online marketplaces also bring the additional layer of single stream checkout and fulfillment support in order to create a seamless experience for buyers.

 

How to Choose a Marketplace

 

As you weigh the pros and cons of selling on a marketplace, it’s also worthwhile to consider which marketplace you would join.

The tempting answer is “all of them!”, but each marketplace has its own system, its own processes and limitations and quirks. Learning to navigate those can take time you probably don’t have, so it’s best to stick to one or two marketplaces unless you know you can support more.

Two of the largest and most well-known marketplaces are Amazon and eBay.

 

Amazon  

Amazon’s Marketplace takes the sharper retail tack, and as a retailer itself Amazon provides tools to help third-party sellers become part of a seamless shopping experience for consumers.

Some things to consider when selling on Amazon include:

  • Fulfillment by Amazon, which involves sending your inventory in bulk to Amazon and letting them handle shipping and fulfillment.
  • Amazon Prime membership, which offers shoppers with free 2 day shipping, along with a reputation for fast and reliable order fulfillment.
  • Built-in comparison shopping on Amazon (for better or for worse) puts you against other sellers.
  • There is usually a monthly fee for listing your products on Amazon; referral and other fees are charged upon making a sale and vary depending on your product category (an 18% commission for most categories).

Be sure to check out the fees for selling on Amazon and factor that into your margins when you consider selling in their marketplace.

You'd need to register with HMRC as Self Employed or as a company due to a UTR (Unique Taxpayer Reference) which is mandatory.

Notes to be wary of: Suspension highly likely for most reasons unknown nor for your own fault (in percentage: 85% suspension rate)

 

eBay

Ebay on the other hand, is a massive marketplace for buying and selling items at both fixed prices and to the highest bidder through an auction system. Where Amazon focuses on the Amazon shopping experience, eBay offers seller tools and features that make it easier for you to feature your brand in an eBay store.

Consider the following before you decide to sell on eBay:

  • eBay lets you put items items you own up for auction to the highest bidder, which will attract many shoppers who are looking for used, unique, or hard to find items. However, the marketplace is also great for offering items at fixed prices. In fact, contrary to what you might think, 86% of eBay's Gross Merchandise Volume is from items sold at a fixed price and 80% of the items sold on the platform are new, not used. 
  • You will need to figure out shipping and fulfillment, either by doing it on your own or working with a third party fulfillment center.
  • There is an insertion fee per listing, per category, but sellers get a fixed amount of "free listings" per month depending on their eBay account type. However there are also Advanced Listing options that you can pay for to spruce up your listing. 

If you have any questions on how to start up on either of these platforms or any product advice to increase your established store, please email us at: info@anbstore.co.uk or Click here to contact us or to start your dropshipping business with us.

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