Top 5 e-commerce platforms for small businesses in 2024

TL;DR

• Amazon, Walmart, eBay, Temu, and TikTok Shop are highlighted as top marketplaces

• Critical e-commerce trends include increased reliance on mobile shopping, the importance of engaging younger consumers, and the integration of social media in marketing strategies.

• Sustainability and visual commerce are gaining importance

The foundation of a successful business in the dynamic world of online retail may be laid by carefully choosing the right e-commerce platform. As the digital marketplace continues to grow in 2024, it is offering more sophisticated and approachable solutions to satisfy the needs of small businesses seeking to expand their online presence. With so many platforms available, each promising a range of capabilities to boost site performance, drive increased traffic, and boost sales, it could be difficult to decide where to launch a business.

This guide helps small business owners launch, expand, and manage their operations profitably in the competitive online marketplace. Taking a chance on new e-commerce platforms increases your brand's exposure and sales potential while diversifying your revenue sources and positioning your business to profit from a variety of channels.

What is an e-commerce platform?

An e-commerce platform is a piece of software that assists businesses in setting up an online store and managing every facet of their operations, such as customer support, sales, and inventory. It is the foundation of any online retail business since it gives you the means to create a website, list products, take payments, and handle shipping and customer service.

These platforms range from open-source, customizable frameworks to hosted services that are simple to use and require little technical knowledge. They provide features like pre-designed templates and integrated payment methods, which make it easier for business owners to launch and manage their online ventures without needing sophisticated technological skills. E-commerce platforms are constantly changing as the online market grows, offering state-of-the-art functionality to meet the needs of modern online retailers and their clients.

Top 5 e-commerce marketplaces for sellers

• Amazon

• Walmart

• eBay

• Temu

• TikTok Shop

Let's understand the advantages and challenges of some of the leading online marketplaces around the globe.

#1: Amazon

Pros:

• Global reach: Due to its immense size, which enables sellers to connect with buyers in 180 nations, Amazon is a great place to establish a global brand.

• Extensive logistic support: The platform offers a wide range of logistical support, including fulfillment services via Amazon FBA seller services, which manage shipping, packing, and storage.

• High traffic volume: With millions of visitors each day, Amazon has a solid reputation and a devoted following of customers, which presents a substantial opportunity for large sales volume.

Cons:

• Increasing fees: Because of Amazon's intricate pricing structure, which includes costs for long-term inventory, shipment, and storage, selling on the platform may be expensive.

• Competitive environment: To stand out in the market, one must frequently spend a substantial amount of money on advertising and use smart pricing.

• Frequent policy changes: Sellers are required to consistently conform to Amazon's dynamic policies and standards, which can complicate operations.

#2: eBay

Pros:

• Diverse market: A wide range of things, including new items, antiques, and collectibles, are available on eBay, drawing in a large number of customers.

• Flexible selling options: To optimize their sales approach, sellers can choose fixed-price listings or auction-style listings.

• Ease of entrance: Compared to other platforms, opening a shop on eBay is very simple and has fewer entrance hurdles.

Cons:

• Fees: eBay charges insertion fees and final value fees, which can add up, especially for high-volume sellers, even though there are some free listings.

• Limited fulfillment support: eBay does not provide fulfillment services, therefore sellers are responsible for handling shipping and handling. This is in contrast to Amazon.

• Price sensitivity: The platform works best with lower-cost products, which may not be in line with sellers of luxury goods.

#3: Walmart 

Pros:

• No monthly fees: Instead of charging monthly fees, Walmart pays referral fees to sellers for each item sold.

• Physical store integration: With services like curbside pickup and BOPIS, sellers may take advantage of Walmart's wide physical presence.

• Less saturation: With fewer sellers compared to Amazon, it can be easier to gain visibility on Walmart’s platform.

Cons:

• Strict approval procedure: Walmart is picky about its partners, only accepting those who meet certain requirements and have a track record of success.

• Price competition: Walmart frequently highlights its low prices, which puts pressure on sellers to lower their profit margins.

• Product restrictions: There are more stringent rules on the site about what can be sold, which may reduce the selection of goods available.

#4: Temu

Pros:

• Ease of entry: Temu's minimal costs and simple setup process make it an appealing platform for new sellers. For individuals hoping to get into e-commerce without making a big upfront investment, this simplicity of entrance is a big lure.

• Growing customer base: Temu has attracted a wide audience and topped download charts since its inception, demonstrating its quick rise in popularity. This expansion means that sellers have access to a sizable prospective market.

Cons:

• Data security issues: Data security is essential for any online platform. Temu has been under fire for how well it safeguards user and corporate data, which has made prospective sellers anxious about the security and privacy of their data.

• Pricing pressure: Although Temu's philosophy of incentivizing sellers to reduce their prices may draw in a sizable consumer base, it may also result in a compression of profit margins. It may be difficult for sellers to maintain long-term profitability as a result of this approach.

#5: TikTok Shop

Pros:

• High engagement levels: TikTok Shop gains from the large, active user base on the platform. Sellers have the opportunity to capitalize on a dynamic market where consumers are used to regularly and creatively interacting with content.

• Integrated social commerce: TikTok cleverly combines social media and e-commerce, giving sellers cutting-edge resources to advertise their products straight in their videos. Higher conversion rates may result from this integration, which enhances the participatory nature of the buying experience.

Cons:

• Emerging platform challenges: TikTok Shop is a very young e-commerce site, thus its features and seller policies might be unpredictable at times. Sellers need to continue being flexible and open to new ideas.

• Competition for visibility: Because the platform is content-driven, sellers need to continuously provide interesting and high-quality material to be noticed. Those who lack the means or expertise to create engaging media may find this criterion to be a major issue.

Current landscape and projections for top U.S. E-Commerce marketplaces in 2024

The dynamic U.S. e-commerce landscape is still dominated by a small number of platforms, but others are gaining ground swiftly. Amazon is the undisputed leader, with projections from eMarketer and Marketplace Pulse pointing to $325 billion in sales this year. This figure only includes sales made through third parties; it excludes Amazon's own retail operations, which would further erode its dominance as the largest offline and online retailer in the country.

On the other hand, eBay, a previously formidable rival, is currently forecasting $35 billion in sales, staying flat but not growing. eBay has moved its focus to enthusiasts and niche markets as a result of this stagnation, setting itself apart from rivals with well-known brands like Amazon and Walmart.

With an estimated $10 billion in sales from marketplaces alone, Walmart is positioned as a major player in e-commerce. This year, Walmart is predicted to have more than $100 billion in total e-commerce sales in the United States. Even with these remarkable figures, the marketplace segment's Gross Merchandise Value (GMV) only makes up approximately 10% of the total, although expanding at a quicker rate than direct sales.

New platforms such as Temu and TikTok Shop are progressing significantly. Temu has set a lofty goal of $60 billion in sales for the year, of which 40% is anticipated to come from the US market. Even though Temu only began operating in the United States in 2022, it is already gaining traction throughout Europe. Temu, which more closely resembles a retail model than traditional marketplaces, nevertheless, has more control over pricing and selection, which may reduce its attractiveness to independent American brands.

Another exciting competitor is TikTok Shop, which wants to revolutionize e-commerce by utilizing integrated social commerce tactics. Thanks to its aggressive advertising strategies, its U.S. sales might potentially reach up to $17.5 billion. Anecdotal data from sellers suggests it may exceed Walmart in terms of sales volume, despite other reports suggesting it might not reach this target. TikTok Shop is bullish about its growth prospects in the U.S. market despite coming under political scrutiny.

These changes point to a new paradigm in American e-commerce, where old and up-and-coming platforms compete for market share. Although Amazon and Walmart continue to hold major market share, Temu and TikTok are emerging as noteworthy contenders, highlighting the industry's dynamic nature.

2024 E-Commerce Trends

• Online and mobile shopping: Following COVID-19, contactless interactions have become more common, and mobile transactions are becoming more and more popular due to their convenience. E-commerce is still growing. To satisfy the demands of today's consumers, businesses must make sure their e-commerce platforms are mobile-friendly and easily accessible.

• Engaging younger generations: A sizable portion of consumers between the ages of 25 and 40 say they prefer to shop online. Businesses should use analytics to improve social media engagement and website design to better connect their digital presence with the interests and values of younger consumers.

• Social media integration: To reach a wider audience and increase sales through social commerce, it is essential to build a strong social media presence and integrate e-commerce capabilities, especially since the majority of social media platforms now accept shoppable ads.

• Sustainability & corporate social responsibility: A growing number of customers are endorsing companies that follow moral standards and care about the environment. Companies can draw in these customers by implementing sustainable practices, earning designations such as B-Corp, and making these promises obvious.

• Visual commerce and video content: Customers of today anticipate engaging with products via in-depth product reviews and videos on the internet. Adding top-notch visual content to e-commerce websites can boost conversion rates and enhance user experience.

Conclusion

Success in e-commerce depends on keeping up with the latest trends as the industry changes. To remain competitive, businesses need to focus on mobile optimization, effectively engage younger populations, integrate social media with ease, make a commitment to sustainability, and take advantage of visual commerce. These tactics improve the overall purchasing experience, which is crucial in today's digital-first industry, in addition to catering to consumers' evolving preferences.

If you want to maximize your online sales and need expert guidance, consider partnering with eStore Factory. As a seasoned Amazon consulting agency, eStore Factory provides comprehensive support and strategies tailored to your unique business needs. Our Amazon experts can help you navigate the complexities of selling on Amazon and other platforms, ensuring your e-commerce venture is both successful and sustainable.