Are you curious about the Amazon marketplace?
Do you want to start your business on Amazon and find it confusing?
Well, here we are going to introduce you to all the important aspects of the amazon marketplace so that you can easily opt for the most suitable program of amazon.
Amazon is the most trusted and very frequently used e-commerce website.
It is a comprehensive platform that uses cloud computing and other tools to revolutionize the trading process.
Over 150.6 million people use the mobile application of amazon to always stay connected and it has prime memberships as well.
In this blog, we have mentioned the best marketplaces on amazon, the costs of selling on Amazon, and the list of best amazon marketplaces.
By the end of this blog, we have discussed the differences between FBA and FBM as well.
Table of Content
Chapter 1: What is Amazon marketplace, and how does it work
Chapter 2: Selling on Amazon marketplaces
Chapter 3: The top 10 most popular global Amazon marketplaces
Chapter 4: FAQs about the Amazon marketplace
Table of Contents
Chapter 1: What is Amazon marketplace, and how does it work
Amazon Marketplace allows customers to buy products from a wide range of sellers.
Moreover, it will enable users to compare prices of similar categories of products from different brands.
Due to tight integration with Amazon.com, users do not get an idea that they are purchasing from another seller.
Amazon.com consciously picks the retailers allowed to sell on the Amazon marketplace.
It permits some nations to sell on the Amazon marketplace and does the jurisdiction of their financial accounts.
In this chapter, we have tried to introduce you to the Amazon marketplace.
1. Background of Amazon marketplace:
Amazon emerged from a humble background to become the most influential e-commerce store globally.
Jeff Bezos initiated Amazon as a simple e-commerce bookstore in 1994. Amazon services and products have grown over time throughout the world.
Moreover, it has expanded the banking industry, cloud computing marketplace, and streaming video industry.
People can exhibit and sell their products online from being an e-commerce store.
Amazon has become the biggest online selling platform by revenue because it made more than $386 billion in sales in 2021.
2. Introduction to amazon marketplace
It is a marketplace that permits third-party sellers to enlist their sale items on the Amazon app and website. This marketplace works like an e-commerce platform.
Regular Amazon and Marketplace sales items are listed together and appear in frequent searches.
Therefore, it is suitable for retailers to sell more products by getting more exposure for their sale items.
Retailers can select to arrange fulfillment and client service or go for FBA. Amazon stores ship their products themselves in FBA. Retailers pay some fee for each product they sell on Amazon.
It is delivered in the form of a percentage of the selling cost. They have to pay an additional fee for various Amazon services and FBA.
Retailers can avail of the Amazon Marketplace service to sellers in 18 different countries and various languages.
It is a significant eCommerce marketplace for both individuals and businesses.
3. What are the differences between amazon marketplace and amazon?
Although the names have a little resemblance, Amazon and Amazon marketplace differ in certain things.
Just like Target or Walmart, Amazon is an online retailing website. You can take it as a shopping Centre just like Target and Walmart. Most retailers get help from Amazon for shipping their goods or getting extra revenue for their trades.
You can buy items directly from Amazon when you shop from the website named Amazon.com, and you can only purchase an item that Amazon provides.
Whereas at the Amazon marketplace, you can not only buy items that Amazon offers but also the items that other retailers offer. This way, you can see a clear cost contrast between online stores and other brands.
Amazon does not permit sellers worldwide to sell their products on this online platform. Only a few vendors from specific countries can sell their items on Amazon, and they have to show their bank accounts in some countries allowed by Amazon.
-Key differences between Amazon and Amazon marketplace:
Although minor differences are present in the Amazon marketplace and Amazon.com, they operate differently. Both of these create a large count of dollars and clients for Amazon. The key differences are discussed below.
- The list of items that Amazon sells is on Amazon.com, but lists of Amazon products and other products that other retailers sell are current on the Amazon marketplace.
- The retailers can sell old and new items on the Amazon marketplace, but Amazon.com sells only new products.
- The products on significant websites are also available on the Amazon marketplace and Amazon.com.
- Sellers must pay some amount for each item sold on the Amazon marketplace. This extra amount is paid on Amazon.com. When buyers buy something from Amazon, the purchase amount directly goes to Amazon.
- Only new products are available on Amazon, but fresh and some old items are available for sale on the Amazon marketplace entire stock is unknown, but the Amazon marketplace sellers can purchase old and new products at Amazon.
4. Annual revenue of Amazon
On Amazon, one can purchase various items, but on the Amazon marketplace, one can buy different things from multiple sellers that sell their goods through the Amazon website.
The popularity of amazon has multiplied in recent years. Amazon has become the biggest online selling platform by revenue because it made more than $386 billion in sales in 2021.
The following table shows the revenue data of Amazon from 2005 to 2019.
|Sr No.||Year||Annual Revenue|
5. How does the Amazon marketplace work?
In the Amazon marketplace, vendors can sell their goods alone, and only a few online traders are present on this platform.
More than half of the sales on the Amazon marketplace are by third-party vendors.
After creating an account on the Amazon marketplace, you will have to provide information such as product information, billing information, and tax information to Amazon marketplace.
The product information should contain UPCs and universal product codes to identify the product.
Amazon possesses copyrights for removing listings that don’t resemble the criteria for UPCs that are authentic.
Then, a trader can enter the Seller Central dashboard and keep developing their listings after completing all the information. In addition, he gets options for constructing graphics, a corporate logo, an “About Seller” page, and a FAQ page.
The dashboard also contains tabs for generating order management, advertising, and pricing.
The Seller Central is the hub for all third-party vendors associated with the Amazon platform.
6. The best-selling categories of the Amazon marketplace
It is essential to sell best-selling categories on the Amazon marketplace because these will earn vendors more profit and get them more customers. Some of the best-selling-categories on the Amazon marketplace are given as follows;
- Personal care& beauty
- Apparel, fashion, and clothing
- Photo accessories and camera
- Video games
- Electronic accessories and gadgets
- Games and Toys
Chapter 2: Selling on Amazon marketplaces
Amazon marketplace and Amazon are available online, and you can purchase almost the same type of products from both. If you do not find a product on Amazon.com, you will most probably avail of it on the Amazon marketplace.
Most people throughout the globe search Amazon.com but a wide range of products are sold through various websites on the Amazon marketplace.
At the same time, both websites contain information on development and ratings that prove helpful for the customers. In this chapter, we have discussed the information about selling on the Amazon marketplace in detail.
1. Amazon – the first-party seller
The first-party association with Amazon indicates that you trade your items straight to Amazon.
Your function as the seller is to complete purchase orders (PO) dispatched by Amazon and send the item to the Amazon platform. Amazon then markets those goods to consumers.
2. Third-party vendors:
Third-party vendors have to follow certain rules set by Amazon.
- Fulfilment by Amazon
FBA, usually directed to as fulfilled by Amazon, is an opportunity that permits merchants to transmit their products to any one of 80 fulfilment hubs across the US for Amazon to manage shipping, packaging, and the bulk of client contact.
This hands-off method allows traders to concentrate purely on trade development without having to bother about logistics above shipping products to fulfilment centres. Sellers do not have to select FBA for all of their items.
- Some advantages of FBA are:
Amazon Prime customers purchase more often on the forum than regular customers, and there are around 80 million active Prime subscriptions in the US!
Prime clients will probably buy an FBA product since it will deliver them the current advantages of Prime with the increased trust of Amazon’s excellent client courtesy.
- Fulfillment by merchant
Another choice you can opt for as a merchant is to fulfil your items as a seller (FMB).
It indicates that your products, customer communication, and shipping, are completely at your commitment and payment, affording you more authority over your firm.
Some of the advantages of FBM are:
- Stock credentials and right
If there is an issue with your item, you can access your products anytime and resolve the problem at the start.
Moreover, this is not functional on FBA, where stock is kept at Amazon Fulfillment Centers. Similarly, when there are defective things, these are either shipped back to vendors or estimated as a loss, based on the expenses.
- Descending prices.
Even if you still have to spend for closing and referral fees, you will preserve on FBA depository and completion expenses if you go the FBM course.
- Elevated margins.
You will be giving the fees FBA merchants have to spend; you will have more profit margins on each item you trade.
3. Selling programs on Amazon
Following are two selling programs on Amazon.
- Amazon seller central
Amazon Seller Central is the best for routine dealers or vendors. Greater than half of the whole deals on Amazon are from third-party vendors reported via Seller Central, so you are in the right business if you select to opt for this course.
Merchants on Amazon Seller Central trade items under their trademarks or shops on Amazon Marketplace and preserve the stock right, unlike those on Amazon Vendor Central.
“[Amazon Marketplace] presents consumers a much wider goods selection from thousands of outer vendors and allows cost comparison to control the forum competitive.”
Moreover, these vendors can freely determine whether they like Amazon to manage the shipping and packaging of their items from Amazon culmination hubs or do it by themselves.
The terms Fulfilled by Merchant (FBM) and Fulfilled by Amazon (FBA) are used for these options, respectively.
- Amazon vendor central
It is an invite-only program and is prearranged for wholesalers and retailers. Manufacturers or Merchants trade their products (e.g., purses) straight to Amazon at wholesale prices, which are then vented straight on the Amazon.com website.
It retains the right of the by-products, so they should not be perplexed by items traded on Amazon Marketplace by third-party retailers.
Trading to Amazon via Amazon Seller Central is an easy method for factories or wholesalers to trade bulk products without doing additional work like logistics and marketing.
4. Selling fee on Amazon:
The trading cost on Amazon varies depending upon the selling strategy selected. There are generally two subscription plans: Individual and Professional.
- Individual plan
The Individual vendor program has:
- Varying ending costs that differ by category (ranging between $0.45 to $1.35)
- Every sold product has $0.99
- No fee on monthly subscription
- Professional plan
- The monthly subscription cost is $39.99.
- Varying closing prices that deviate by category
- Referral fees per sold article (ranges from 6% to 25%)
Chapter 3: The top 10 most popular global Amazon marketplaces
Various products are sold on the Amazon website, including home furnishing, baby products, clothes, pottery, and many others.
On the other hand, Amazon Marketplace allows customers to buy products from a wide range of sellers. Several retailers are working on the Amazon platform and selling their items through the Amazon marketplace.
Amazon marketplace is operating in the several countries on an international level.
In this chapter, you will discover about the 10 best Amazon marketplaces of world.
1. North America Amazon marketplaces
Amazon in North America covers the United States, including North America, Mexico, and Canada, and it is a Unified Account on Amazon.
The English language is used, and traffic of 3.1 billion is present on it.
The United States is the number 1 Amazon marketplace, and It is the most famous Amazon domain in terms of Fame and Traffic.
56% of the vendors live in the US, and 77% of the sellers sell through the Amazon US marketplace.
2. Canada Amazon marketplaces
The language is English, and traffic of 231 million is present on this Amazon marketplace. After Us, Canada is the second most famous marketplace.
29% of vendors on Amazon Canada’s sellers are from Canada, but the rest of 41% of sellers are from the US.
Many experienced sellers have been selling through the Canadian marketplace for more than five years.
3. Mexico Amazon marketplaces
Amazon was officially launched in Mexico in the year 2015. Soon after that, Amazon made great progress and found its space in the Mexican market. Amazon has really revolutionized the eCommerce of Mexico.
Amazon surprisingly became the largest online retailer in Mexico with a solid market share of around 13.4 per cent during the time period 2016 to 2019.
The language used in the Mexico marketplace is Spanish, and traffic of 89.6 million is present on this Amazon marketplace.
Out of all the Amazon sellers, 12% are from the Mexico marketplace, but US sellers get the highest sales from this marketplace.
4. Europe Amazon marketplaces
It is an Amazon Unified Account that contains the UK, Italy, France, Germany, and Italy. This account provides services to 28 European countries.
Although Amazon Netherlands is not a member of the Amazon Unified Account, it is an Amazon marketplace that provides full service.
5. UK Amazon marketplaces
Amazon.co.uk is the biggest and most popular online marketplace in the UK. Around 98% of inhabitants of the UK prefer to shop from Amazon.
The net sale of the Amazon market in the UK rose to 43.6% in the last quarter of the year 2020.
The language used in the UK marketplace is English, and traffic of 569.64 million is present on this Amazon marketplace.
Amazon UK is the 3rd most famous Amazon marketplace for selling after the US and Canada.
6. Germany Amazon marketplaces
The language used in the German marketplace is German, and traffic of 605.38 million is present on this Amazon marketplace.
Based on traffic, Germany is 2nd only to the US as Amazon’s active marketplace. 22% of British sellers, 8% of American sellers, 18% of China sellers, and 10% of German sellers are present in this marketplace.
7. France Amazon marketplaces
The language used on France marketplace is French, and traffic of 269.79 million is present on this Amazon marketplace.
Just like Germany, the most significant portion of vendors in this marketplace are from the United Kingdom, which is 22%.
There is a greater count of Chinese sellers in the French market, which is 16%. Just 11% of vendors on amazon.fr are from France.
8. Italy Amazon marketplaces
The language used in the Italy marketplace is Italian, and traffic of 251.72 million is present on this Amazon marketplace. 23% of the UK sellers are present, and 10% of the Spain sellers are trading through this marketplace.
Italian sellers had a record of selling about 20 million products in December 2020 during the Christmas holidays.
The sale rate of the Italian amazon market was 100 products each minute. The best-selling products on the Italian amazon marketplace were home decor, mobile phones, beauty products, toys, furniture and electronics.
9. Spain Amazon marketplaces
The language used in the marketplace of Spain is Spanish. In 2020, Amazon declared that the total revenue generated by Spain on the Amazon marketplace was almost 5.4 billion Euros.
Electronics and computers are the most sold items in the Spanish market. It is because the age of most buyers stands between 35 to 55 years. Amazon is a leading provider of electronics and computers as 79% of Spanish users trust it.
10. Netherlands Amazon marketplaces
The language used in the Netherland marketplace is Dutch, and a traffic of 32.93 million is present on this Amazon marketplace of Netherlands.
Around 96 per cent population of the Netherlands uses the internet, and online shopping is very common nowadays.
According to the most relevant studies, it is a prediction that the predilection of online shopping and thus Amazon will increase further in the near future.
Chapter 4: FAQs about Amazon marketplace
1. What is the best-selling category on amazon?
The home and kitchen category is the best-selling category on amazon. It has been reported that almost 37% of sellers sell products related to homes and kitchens on Amazon.
This category covers a wide range of products from normal kitchen supplies to faucets and sinks.
It is often advised to the new sellers to give preference to the kitchen-related products as they are in high demand on Amazon throughout the year.
Other good categories include electronics and computers, apps and games, and handmade.
2. What is the estimated selling fee on the Amazon marketplace?
Sellers must pay some amount for each item sold on the Amazon marketplace. This extra amount is paid on Amazon.com.
When buyers buy something from Amazon, the purchase amount directly goes to Amazon.
The total charges you have to pay as a seller for amazon vary according to your subscription plan. For a professional selling plan, you have to pay $39.99 as a monthly fee, and around a 6 to 25 per cent fee on each article sold as the referral fee.
For the individual plan, you are entitled to pay $0.9 for each product sold along with the monthly charges of $0.45 to $1.35.
3. Is it really profitable for me to sell on amazon?
Amazon is the game-changer in the world of eCommerce, as it is setting new trends in the world market. It provides you with easy options and useful tools to track your sales.
A single dashboard can manage data that includes orders, customers, and products. Amazon also provides you support in case of any problem.
You should not be reluctant to approach the client support team when facing any issue. They are always there to help.
So, yes! If you think you have unique goods that can stand the pressure of a worldwide market like Amazon, then it is beneficial for you.
4. What is the Amazon marketplace referral fee?
If you use the professional selling plan of Amazon marketplace, then the referral fee for amazon marketplace ranges from 6 to 25 per cent for each of your items sold.
The average fee lands on a figure of 13 per cent. For amazon fulfilment by merchant plan, the referral fee is lower.
The referral fee is automatically subtracted with each sale of your products. This fee is deducted under the banner of cost per Acquisition, also known as CPA.
In conclusion, we have explained the minor distinction between Amazon and Amazon Marketplace. The online platform called Amazon poses benefits that any trade should consider.
Your business can grow through your efforts, and there is no must or must not advise.
If you wish your business to grow on Amazon, you may select an integration that can connect your primary account to Amazon Marketplace.
Many adaptable multi-channel solutions are present online that can convey your by-products to the highest international marketplaces like Walmart, and eBay, Etsy.