Marketplace

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

1 min readLast updated Apr 2026

Reviewed by Golden Digital·Operator-reviewed ecommerce reference

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

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.

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.

Put it to work

Related Terms

Multi-Channel Selling

Selling on multiple platforms without necessarily integrating the experiences.

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