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Consumers today want convenience and instant gratification. This is why millions of consumers turn to platforms like Amazon to make daily purchases. With a simple click of a button, the product they want arrives at their doorstep within days (or sooner). Thanks to technology and changes in consumer behavior due to the global pandemic, e-commerce is expected to continue to grow rapidly. By 2028, the global e-commerce market is expected to grow by 50% to nearly $7 trillion.
In today's modern economy, most entrepreneurs and small business owners are required to embrace technology through social media, chatbots, workflow automation and CRM platforms. While this can complicate and frustrate entrepreneurs, the Internet has enabled businesses, especially product-based businesses, to reach millions of potential customers across the globe and generate serious revenue through e-commerce.
But is 2025 the right time for small businesses to embrace global marketplaces like Amazon, Shopify and Etsy? A recent trend has shown that small and medium businesses are finding tremendous growth and success through these platforms.
The benefits of Amazon and other online marketplaces
There are a wide range of benefits that come with building an e-commerce presence using an established online market like Amazon. Small businesses that are best positioned to gain these benefits include established product-based businesses with a scalable supply chain, brands looking to expand or diversify into international markets, businesses that need an option to cheap for building an e-commerce presence and providers of special or specialized products.
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Broad reach and global reach: Small businesses often struggle to reach a large enough audience through traditional marketing. They are often limited to local or online communities that they have built themselves. Global marketplaces like Amazon allow small businesses access to millions of new customers and help them expand into new international markets with little or no effort.
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Consumer trust and brand exposure: Winning consumer confidence it's tough, especially for startups and small businesses that haven't built the same social credibility as major brands. Online marketplaces like Amazon provide a level of comfort to consumers looking to purchase products from trusted sources. While they may not be familiar with your specific business, they can feel confident that their experience will be consistent with past purchases on the platform.
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Integrated Marketing and SEO Tools: Reaching an audience online can be quite challenging. Not only are SEO (search engine optimization) the rules are constantly changing, but you're competing with thousands of similar brands for attention. Learning the technical concepts of SEO and other online marketing strategies can become complicated and time-consuming. Fortunately, platforms like Amazon provide their sellers with the tools they need to be successful without having to become an SEO guru.
Related: How to get your first 100 sales on Amazon
Get the most out of online marketplaces
Building an e-commerce operation is not a silver bullet. Success on these platforms requires strategic planning and setting things up from the start. It is important for entrepreneurs to understand the best practices that can improve their chances of a successful e-commerce launch in an online marketplace.
I talked to Jamie LeBlanc by Prime Seller Pro, a logistics and e-commerce channel management expert, to find out what companies should be looking at if they are considering an e-commerce strategy in 2025. He identified five key areas to investigate:
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Choose the right platform: Amazon seems to be the favorite in today's e-commerce landscape. This is no surprise, since Amazon controls almost 40% of the US e-commerce market. However, Amazon is not right for every business. There are a number of platforms available that each have their pros and cons. For businesses that make handmade or artisan products, a platform like Etsy, for example, may be a better option since these are the types of products that Etsy customers are looking for.
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Consider fees and support: Each platform has its own fee schedules, infrastructure and vendor support resources. It is important to carefully evaluate each platform to find which one works best for your business. It's a good idea to get feedback from other small businesses using these platforms to learn more about their experience, what they recommend, and what mistakes you can avoid.
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Build a strong and sustainable brand: When selling products on a third-party platform, it's important to project the look and feel of your brand. Consistency across your social media, website and online marketplace is key to giving it a professional look that consumers can trust. Try to incorporate a similar tone in your messaging and add branding elements like colors or logos whenever possible.
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Choose how you will fulfill orders: Some platforms have rules fulfillment services that allow you to send products to a centralized warehouse for storage. When you make a sale, the platform picks the order from their warehouse and ships it to the customer. This makes the experience smooth for both you and the customer. However, this also means that you will need to carry excess inventory, which can be costly. The alternative is to ship everything yourself. The downside here is that this requires a lot of manual effort to handle orders, pack products, and arrange shipping.
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Understand the platform's search algorithms: You will never sell your products if people can't find them. It's important to understand how to optimize your product listings to work with the platform's SEO standards. The good news here is that most platforms offer many resources to help you achieve this.
Related: 3 Reasons Why Online Marketplaces Benefit Entrepreneurs — And They Should Be Protected
Building a successful e-commerce operation with an online marketplace like Amazon has many benefits. However, having the right strategy is key to staying ahead of the competition and keeping up with rapidly changing consumer behavior. Entrepreneurs need to be supported market research to carefully determine if this option is right for their business.