How do I balance DTC and marketplace sales?

Use marketplaces for acquisition and volume, DTC for margin and retention. Include DTC inserts in marketplace orders (where allowed). Aim for 40-60% DTC as you grow, depending on category.

Which marketplace should I start with?

For most products: Amazon (largest reach). For handmade/unique: Etsy. For mass-market value: Walmart. For B2B: Amazon Business or industry-specific platforms. Match the platform to your customer.

Marketplace & Channel Terms

Marketplace

Third-party platforms where multiple sellers list products—Amazon, Walmart, eBay, Etsy.

1 min readLast updated Apr 2026

Quick Reference

CategoryMarketplace & Channel Terms

Related Terms1

Third-party platforms where multiple sellers list products—Amazon, Walmart, eBay, Etsy.

Why It Matters

Marketplaces represent 60%+ of online retail sales. They provide built-in traffic but take 8-20% fees and limit brand control.

Practical Example

Scenario

An accessories brand evaluates marketplace expansion strategy.

Calculation

Amazon: Highest volume, 15% fees, limited branding. Etsy: Craft audience, 12% fees, good for storytelling. Walmart: Growing, 12% fees, harder approval

Result

Chose Amazon + Etsy, matching channel strengths to product positioning and target customer

Pro Tips

1Understand each marketplace's customer: Amazon (convenience), Etsy (unique/handmade), Walmart (value)
2Factor in all fees: referral, fulfillment, advertising—marketplace 'tax' is often 30%+
3Use marketplaces for discovery and volume; convert customers to DTC for retention

Common Mistakes to Avoid

Treating marketplaces as pure revenue without a strategy to own customer relationships

Ignoring marketplace advertising—organic visibility is increasingly pay-to-play

Underpricing on marketplaces because of fees, then unable to match on DTC

Frequently Asked Questions

Related Terms

Multi-Channel Selling

Selling on multiple platforms without necessarily integrating the experiences.