Best Online Selling Platforms by Seller Type: Smart Marketplace Choices for eCommerce Sellers

As businesses grow on Amazon or Walmart, diversifying into other online selling platforms can serve as a strategic move, reducing reliance on a single eCommerce marketplace while opening up new sales channels. 

However, not all eCommerce platforms provide the same return on investment. Expanding without a clear strategy or preparation can strain your resources and negatively impact business performance.

This article offers a structured framework for evaluating top online marketplaces based on different types of sellers. It also addresses key marketplace variables when you sell online and provides actionable strategies for succeeding in a multi-sales channel environment.

Key Factors to Consider Before Choosing the Best Online Selling Platforms

Before exploring your following sales channels, it is essential to consider these key elements to help you identify the best online selling platforms that align with your business goals and products.

1. Product Type and Niche

Before committing to a new eCommerce site, identify where your product naturally fits into the platform. For example, home decor often thrives on Etsy, while electronics tend to perform well on Amazon, Newegg, or Walmart. Unique and used items may find success on eBay.

2. Business Goals

Determine your objective for expanding to other eCommerce sites. Are you testing a product idea, building a sustainable side income, or scaling a long-term brand? Your overall business goal, whether quick profit or brand building, is crucial when selecting the online store to support your goals.

3. Budget and Operational Readiness

Whether you are selling on Amazon or Walmart and looking to expand to other sales channels, it is essential to consider your budget and readiness. Some platforms require payment for ads, have specific logistics needs, or a complex fee structure that can affect your profitability.

4. Customer Location and Demographics

Consider where your ideal customers shop online. US-based brands or businesses may see better returns on Amazon and Walmart. If you are planning to sell internationally, it is essential to choose platforms with strong logistics support and global buyer reach. If you are targeting younger consumers, consider exploring TikTok Shop as your eCommerce platform.

5. Platform Fees and Tools

When selecting online selling platforms, it is essential to consider various platform fees, including referral fees, listing fees, insertion fees, and fulfillment fees. Additionally, the availability and quality of built-in seller tools (or lack thereof) can greatly affect your profit margins and overall operations.

Always choose eCommerce sites that best suit your business needs. Rather than opting for a platform simply because it is popular, consider the things mentioned above as your guide for choosing the best online selling platforms, and assess which ones best support online sales growth in your niche.

Understand Marketplace Types

Before deciding where to expand your online business, it is essential to understand how most platforms operate. Most online marketplaces can be categorized into two main types:

Open Marketplaces

Examples: Amazon, eBay (auction sites), Etsy, Facebook Marketplace  

• Low barriers to entry  
• Millions of active buyers  
• Highly competitive  
• Limited control over branding  

These marketplaces are ideal for testing products, reselling, online auctions, and other low-risk ventures.

Curated or Invite-Only Platforms  

Examples: Target Plus, Wayfair, Faire, Alibaba  

• Requires vetting or approval  
• Higher average order values  
• Attracts niche or premium buyers  
• Provides brand credibility  

These marketplaces are best suited for established brands, wholesalers, and premium sellers.

Online Selling Platforms by Seller Type 

When selecting an online selling platform, it is essential to consider not just popularity but also suitability. You need to understand that the ideal platform will depend on your specific situation as a seller and your current stage in the business journey.

Rather than presenting options in a random order, we categorize them by seller type. This way, you can choose to sell on a platform that aligns best with your needs, business goals, resources, and operational strengths.

1. New Sellers

Recommended Platforms: Amazon  (Individual Plan), eBay, Facebook Marketplace

Why it works:

• Minimal upfront costs
• Easy onboarding
• Built-in seller and consumer trust

Pro Tip: Start with used items or retail arbitrage to build capital and experience. As you expand your eCommerce business, consider utilizing advanced seller tools, which can help minimize the time spent on manual adjustments.

2. Budget-Conscious Sellers

Recommended Platforms: TikTok Shop, Etsy (digital goods), Amazon KDP

Why it works:

• Low to no physical inventory needed (for digital/POD)
• Low listing or publishing fees

Pro Tip: If you are on a tight budget, consider selling downloadable art, Kindle eBooks, or using print-on-demand services. Focus on creativity while the eCommerce platform handles delivery.

3. Arbitrage and Resellers

Recommended Platforms: Amazon FBA (also FBM), Walmart Marketplace, eBay

Why it works:

• High product turnover
• Large search volumes

Pro Tip: Combine online arbitrage with prep centers to save time and effort. Additionally, utilize automated repricer tools to remain competitive while maintaining profit margins.

4. Private Label Sellers & Brand Owners

Recommended Platforms: Amazon (Brand Registry), Shopify, Walmart Marketplace

Why it works:

• Higher control over listings and branding
• Better profit margins compared to arbitrage

Pro Tip: You can avoid high final value fees on some platforms by directing traffic to your DTC website via Shopify. Ensure brand consistency across both platforms. Whenever possible, link multiple marketplaces with integrated tools to synchronize listings and automate updates.

5. Wholesalers

Recommended Platforms: Faire, Alibaba, Amazon Wholesale

Why it works:

• B2B buyers
• Scalable bulk orders

Pro Tip: Focus on seasonal forecasting and bulk discounts. Foster strong relationships with retailers. Utilize advanced analytics to identify purchasing trends and plan for restocks.

6. Digital Creators & Artists

Recommended Platforms: Etsy (digital), Gumroad, Amazon KDP, Redbubble

Why it works:

• No physical inventory
• Instant delivery of goods

Pro Tip: If you plan to enter the eCommerce space through digital creation, consider exploring monetization models such as eBooks, illustrations, templates, and design assets. To enhance the conversion rate of your listings, make sure to include high-converting keywords, appealing visuals, and relevant tags.

7. Scaling Brands with Multi-Channel Ambitions

Recommended Platforms: Amazon, Walmart, Shopify, Newegg, Target Plus

Why it works:

• Diversified revenue
• Increased brand presence

Pro Tip: Streamline operations of online selling sites by centralizing inventory and fulfillment. Consistently build brand equity across all relevant platforms. Utilize dynamic and multi-channel repricers to synchronize pricing and avoid channel cannibalization.

What to Check Before You Expand

Before diving into a new online selling platform, take time to assess how well it aligns with your business goals, operations, and target markets. Not every platform is created equal, and what works for one brand may be a poor fit for another. Below are critical areas to evaluate before you make your next move:

Audience Behavior

Understanding the platform’s user base is crucial for determining whether your product will gain traction or get lost in the noise. Analyze the demographics, shopping habits, and motivations of the people who visit the platform. Know who shops there, what they purchase, and what drives their decisions.

Fee Transparency

Each platform has its cost structure, and some seasonal and “hidden fees” can significantly impact your profit margins. Ensure you are comparing similar elements by looking at referral fees, listing costs or selling price, and shipping costs, which can vary widely across platforms. Here are some examples:  

• Amazon: ~15% referral + FBA/storage fees
• Etsy: $0.20 per listing + transaction and ad fees
• Walmart: No monthly fees, but strict performance metrics

Seller Tools

The right tools can streamline your operations and help you scale more quickly. Evaluate whether the platform offers built-in solutions or if you will need to invest in third-party software to address any gaps. Check for features such as:  

• Marketplace compatibility or integrations
• Customer support (seller support)
• Advanced features or selling points
• Ability to fill in gaps

Branding Capabilities

Your ability to create a unique brand experience can significantly affect customer loyalty. Some platforms are restrictive, while others provide more freedom to develop and showcase your brand.

For instance, Shopify offers complete control over seller branding, whereas Amazon has more stringent rules regarding brands, sometimes requiring sellers to enroll in the Brand Registry.

Geographic Reach

Selling globally can open new revenue streams, but it is essential to understand which platforms dominate specific regions. Some platforms are strong in certain markets and virtually unknown in others. Different platforms dominate different areas:

• Amazon, Walmart: US-centric
• Flipkart: India
• Zalando, Otto: Germany/Europe

By carefully evaluating these areas, you can make an informed decision about which online selling platform is the best fit for your business.

Top International Markets for Online Sellers

Expanding internationally through the right online selling platforms can unlock new revenue streams. Here are some key considerations for specific countries based on buyer behavior, logistics, and scalability:

United States

With high buyer intent, a mature eCommerce infrastructure, and reliable logistics, the U.S. is a prime destination for global sellers.

China

China offers an enormous market volume; however, success requires a focus on localization, a mobile-first presence, and building consumer trust.

United Kingdom

The UK is a strong option for cross-border growth, thanks to a shared language, favorable tax regulations, and the presence of Amazon.

Germany

German buyers prioritize quality and trust, making the market ideal for premium or durable goods that convey product value.

India

India is a rapidly growing market with a mobile-first user base, making it an ideal market for budget-friendly products and localized promotions.

Platform Fit Beats Popularity

Success as an Amazon seller is not simply about jumping onto every trending online selling platform; it is about effective positioning. You need to understand where your products truly belong, how to scale your operations efficiently, and which tools will support that growth. 

The best online selling platforms align with your seller type and business model. With a focused strategy and the right technology stack, even small Amazon businesses can expand strategically across multiple online selling platforms.