Choosing the Right Marketplace: A Strategic Guide for Ecommerce Brands

77% of European brands have cracked the code to global sales through online marketplaces. Are you ready to join them—or risk falling behind?

Marketplaces have become a powerful growth engine. Brands are using online platforms to break into new markets, tap into ready-made customer bases, and fast-track their expansion to unlock the next stage of growth.

If your brand is ready to do the same, choosing the right marketplace is a must. Doing so will help you get maximum value from the time and money you allocate toward this growing sales channel.

In this guide, we’ll review the major types of marketplaces, their pros and cons, and the top factors brands should consider before finalizing their selection.

Harness The Power Of Marketplaces in Ecommerce

Online marketplaces are a rapidly growing sales channel. 

According to ShipStation’s research, 83% of consumers made purchases in online marketplaces in 2024. Additionally, 48% of shoppers said they plan to use marketplaces more frequently in 2025. The trends are especially strong among younger consumers, who will account for an increasing percentage of global trade in the years to come.

Online marketplaces also make it easy for ecommerce brands to join. They provide all of the infrastructure and tools a company needs to immediately begin selling its products to consumers across the world.

This combination of a growing user base and ease of access makes marketplaces an attractive option for ecommerce brands in 2025. But where should you start?

Match Your Brand to The Right Marketplace

You can begin by reviewing the main categories of marketplaces available for your ecommerce brand. There are 5 marketplaces worth exploring.

1. Generalist Marketplaces (Amazon, Alibaba, eBay)

First, generalist marketplaces have high traffic across a broad segment of consumers. They also tend to have strong logistics support or support easy third-party solutions like ShipStation.

However, generalist marketplaces are highly competitive due to their high traffic. They also tend to provide less brand control than alternatives, which can make standing out with a distinct message a challenging task.

2. Specialist Marketplaces (Etsy, StockX, Wayfair, Houzz)

Specialist marketplaces attract niche audiences with a higher purchasing intent. In other words, the traffic to these sites is lower, but the average visitor converts at a higher rate.

Marketplaces like StockX and Etsy tend to have less direct competition than generalist platforms. They also make it easier to differentiate your brand. However, it can be difficult to scale on these sites, given their smaller footprints.

3. Retail-Operated Marketplaces (Next Total Platform, Walmart, Kingfisher)

Next up are retail-operated marketplaces. These are owned and operated by a physical retail chain, like Walmart or Kingfisher. There are pros and cons to that.

On one hand, these marketplaces integrate physical store services like click-and-collect and in-store returns. They also provide direct access to an established network of customers. However, seller fees can be high on these sites. Plus, you could face logistics challenges around fulfillment and customer service.

4. Social Commerce Marketplaces (Amazon, Alibaba, eBay, TikTok Shop)

Social commerce marketplaces are very popular among younger generations. They provide a highly immersive in-app shopping experience, which blurs the line between entertainment and ecommerce.

The key challenge with these marketplaces is typically logistics. You’ll need to develop your own fulfillment process for every international market you serve. That can be a costly, time-consuming endeavor without the right technology.

5. Pre-Loved Platforms (Vinted, Depop, ThredUp)

Finally, it could make sense for your ecommerce brand to establish a footprint on pre-loved platforms. These emphasize sustainability and can be a viable way to recoup profits from returns and other lightly used merchandise. However, the secondhand focus makes scaling challenging.

5 Questions to Ask Before Picking a Marketplace

Now that you know what types of online marketplaces exist, you can begin exploring which is the right fit for your company. Here are the key factors to consider as you go through that process.

1. Who is your target audience, and where do they shop?

First, consider your target demographic and where they shop. For example, if you have a younger customer base, social commerce marketplaces like TikTok Shop will likely be critical. But if you have an older target audience, classic options like Amazon and eBay could be a better fit.

2. Can you maintain control of your brand?

Next, consider how much brand control you need from an ecommerce marketplace. If the level is very high, retail-operated platforms won’t be a good fit. 

Some of this may depend on how you feel about ownership over customer data and communication channels. Marketplaces tend to retain varying levels of control in these areas, while direct-to-consumer sales will give your brand complete access.

3. Do the fees and profits balance each other out?

Of course, you’ll also need to consider the fee structure of different marketplaces. Some will offer smaller profit margins than others. But they could still be a good fit if they make up for that downside with more consumer traffic.

4. Can you keep up with the demands of marketplace shipping?

Next, consider how you’ll fulfill marketplace orders. Do you want to use ready-built marketplace fulfillment options? Or are you interested in third-party logistics solutions that might improve delivery timelines?

5. Are you planning on expanding internationally?

Finally, consider your plans for international expansion. If you’re ready for that, choosing marketplaces that allow cross-border selling could help you get there sooner.

How To Build a Multi-Marketplace Strategy

Since every marketplace has pros and cons, many brands decide to build a multi-marketplace strategy. Selling on multiple marketplaces can protect your brand from sudden policy changes, price competition, or loss of traffic on any one platform. However, you’ll need the right technology to enable it. For example, as you build your strategy, you’ll need internal solutions for:

• Real-time inventory management
• Dynamic pricing
• Third-party seller performance
• Local returns and customer service
• Order fulfillment

ShipStation can help you with each of these challenges. Our logistics software automates repetitive tasks, makes data more accessible, and helps ecommerce brands run multi-platform businesses with lightweight teams.

Next Steps for Growing Your Brand

Ultimately, marketplaces are a growing sales channel with enough diversity for every ecommerce brand to get involved. From generalist options like Amazon and eBay to social commerce platforms like TikTok Shop, marketplaces can help you sell more products by appealing to an international audience of consumers.The right marketplace strategy is your path to faster growth. Discover exactly which marketplaces can deliver that growth—get your copy of ShipStation’s 2025 Ecommerce Report today.