In 2023, the US online sales grew by 9.3% to $1.137 trillion. Over the next decade, there is expected to be steady growth, with experts predicting at least 10% year-on-year growth through 2027. Moreover, 70% of Americans shop online. The number of digital shoppers in the country stands at 268 million and is projected to reach up to 285 million by 2025.
Canada, in turn, is worth less. In 2023, Canadian retail ecommerce revenue was worth $52 billion, but by 2028 it is expected to increase to over $81 billion.
So, yes – a lot happens on marketplaces. We have compiled a list of marketplaces that either take the lead in North America or are growing rapidly as potential new industry unicorns:
Amazon
Amazon is America’s largest internet retailer. In addition to serving consumers, the company serves sellers, developers, enterprises, and content creators. Consumers are engaged through its numerous retail websites, and various branded electronic devices. They are offered access to free shipping on items, and instant streaming of media, among other benefits, through the annual membership program, Amazon Prime. Amazon also runs a dedicated marketplace for businesses (Amazon Business).
According to Amazon’s latest financial reports, the company’s revenue in 2023 is $554.02 billion. In the U.S. alone, during the third quarter 2023, it generated total net sales of approximately $143 billion. This is 16 billion more than a year earlier in the period.
Walmart
Walmart boasts a diverse range of products and, like Amazon, allows third-party sellers to list their products on the platform. It places an emphasis on competitive pricing and often offers special deals and promotions for its clients. In 2023, it earned revenues of $611 billion. In the third quarter of the same year, revenues increased 5.2% thanks to strong positions in various segments.
Since 2012, Walmart has been gaining more and more of the market and has been steadily climbing. The difference between 2022 and 2023 in revenue is nearly $29 billion.
In 2023, grocery sales accounted for as much as 58.8% of Walmart U.S. net sales in the United States. Moreover, Walmart U.S. net sales totaled $420.6 billion in the year under review.
Best Buy
Best Buy is a multi-national retailer of consumer electronics, home office products, entertainment software, appliances and related services. It operates retail stores, call centers, and online retail operations under various brand names, such as Best Buy, Future Shop, Geek Squad, Magnolia Audio Video, and Pacific Sales.
People appreciate Best Buy for its wide range of consumer electronics and the expertise of its staff, who offer technical support and assistance. Customers also value Best Buy for its competitive pricing, including price matching policies, and its user-friendly online platform that complements its physical stores.
Best Buy’s annual revenue in 2023 was $46.298 billion. This represents a decrease of 10.55% compared to 2022, but still, it’s a great number. As of December 2023, there are 1,048 Best Buy stores in the U.S. and 164 in Canada.
eBay
eBay is one of Amazon’s main global competitors. It has 132 million buyers in 190 countries, like: the U.S., Canada, Austria, Belgium, France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Switzerland, U.K., Australia, China, Hong Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam.
eBay is considered a competitor to Amazon in North America primarily due to its vast online marketplace that caters to a wide range of consumer needs. Its auction-style sales model and consumer-to-consumer focus provide an alternative to Amazon’s approach and attract users who prefer bidding and finding lower prices. eBay, as well as Amazon, has a global presence and strong brand recognition.
eBay also consistently ranks as one of the biggest U.S. online companies based on market cap. Its revenue for the twelve months – ending September 30, 2023, was $10.060 billion. As of April 2023, eBay was the second most popular online marketplace worldwide, averaging about 1.2 billion visits that month. The first most visited shopping site was Amazon, with roughly 4.8 billion visits.
Wayfair
Wayfair is one of the largest online-only home goods retailers and a marketplace for home goods, with 22.3 million active customers as of September 30, 2023. It’s a large online retail company specializing in home goods like furniture, decor, and appliances. It’s nown for its vast selection and offers products from thousands of suppliers. The company’s e-commerce platform allows customers to easily browse and purchase items for their homes, offering an extensive range of choices and competitive pricing.
Wayfair generated $12.0 billion in net revenues for the twelve months, ending September 30, 2023. That’s less than in 2022, when it generated $12.218 billion. Interestingly, in the first quarter of 2023, the most profitable category at Wayfair was rugs. The furniture e-retailer generated nearly $100 million from it.
Target
Target is a popular online retail platform in North America, known for its wide range of products, including clothing, electronics, and home goods. In 2023, Target experienced a decline in online sales by 10.5% in its fiscal second quarter, which contrasts with its competitor Walmart’s 24% growth in U.S. online sales during the same period.
Despite this decrease, Target remains a significant player in the e-commerce market – the company reported higher profit margins than analysts expected. Its annual revenue for 2023 was $109.12 billion – as much as a 2.94% increase from 2022.
Bonanza
Bonanza is an online marketplace that permits its users to sell everything from antiques to electronics. It is similar to eBay, but its focus is on unique items. The company claims to have similar items to those that may be found at a street fair, although virtually any merchandise is available on the site.
In 2023, the marketplace consisted of over 23000 sellers and over 22 million products listed on its marketplace. In November of the same year, it enjoyed as many as 2.32 million visits. In the same month, bonanza.com achieved a revenue of $8,256,320 for online sales. Comparatively, amazon.com leads the category with an impressive $11,128,100,052 in revenue. The Average Order Value (AOV) for this site was recorded at $175-200, with the highest AOV reaching $281 and the lowest AOV hitting $54.
Tmall
Tmall is a Chinese-language website for B2C online retail. It allows international brands to sell their products directly to consumers. This attracts North American businesses looking to tap into the vast Chinese market. Moreover, in North America, there’s a significant Chinese diaspora (more than 1.7 million), and many of them prefer shopping on platforms they are familiar with from China, like Tmall, for products they can’t easily find locally.
In 2022, Tmall was the fourth most popular marketplace in Canada. In the same year, Taobao and Tmall Group generated GMV (Gross Merchandise Value) of $616,784.2 million.
Etsy
Etsy is an e-commerce website that works as an intermediary between customers and artists, crafters of handmade items, or collectors of vintage products. The company engages in customer-to-customer (C2C) or peer-to-peer (P2P) e-commerce in which both the seller and the buyer are private individuals. This is in contrast to other forms of Internet commerce, such as B2C (business to customer) or B2B (business to business).
Etsy revenue for the twelve months ending September 30, 2023 was $2.713 billion – a 9.58% increase year-over-year. It has over 96.2 million buyers – it’s an increase of over two million in the previous year. What’s more, it had as many as 7.3 million sellers in 2022. Etsy.com had 614.22 million page views as of November 2023.
Newegg
Newegg is an online retailer specializing in computer hardware, consumer electronics, and related products. Founded in 2001, it has become a popular destination for tech enthusiasts and professionals looking for a wide selection of the latest computer components. It expanded its offerings with categories such as appliances, smart home, sports, gaming, and toys.
In 2010, Newegg launched its marketplace and generated more than $2.5 billion in revenue in its first year. As of 2023, it has over 40 million registered users and over 2.1 million unique active customers. In 2023 it got $1.77 billion in revenue.
Overstock (Bed Bath & Beyond)
Overstock is an American online retailer primarily selling furniture, home decor, bedding, and other home goods. Over the years, it expanded its product range and now offers new merchandise in addition to closeout products, specializing in home goods and furniture. In 2023 this company bought the iconic home goods store’s branding, Bed Bath & Beyond’s.
In 2023 Overstock generated revenue of $1.58 billion. But this is a big drop compared to 2021, in which they generated $2.75 billion.
Anthropologie
Anthropologie is a lifestyle brand and retail chain known for its eclectic and bohemian-inspired collection of clothing, accessories, and furniture. Their offerings often feature unique designs, patterns, and materials, appealing to customers looking for something different from mainstream retail options.
Urban Outfitters Inc., owner of brands such as Anthropologie, Urban Outfitters, and Free People, saw a 9% increase in the company’s total net sales, earning $1.28 billion in the third quarter of 2023. This figure was achieved mainly through sales in the digital channel and showcasing digital catalog. What’s more, at Anthropologie, net sales increased 13.2%.
Macy’s
Macy’s is a prominent American department store chain known for its wide range of merchandise, including clothing, accessories, beauty products, home furnishings, and more. Founded in 1858, Macy’s has become an iconic retail brand in the United States and operates stores across the country, along with a robust online presence.
As one of the oldest and most established department store chains in the U.S., Macy’s has a long history and a strong brand identity that resonates with many American consumers. Its annual revenue for 2023 was $25.305 billion, which is a 0.05% increase from 2022.
FAQs
What are the top online marketplaces in North America, and how do they cater to Canadian, Mexican, and American consumers?
In North America, the largest online marketplaces include Walmart Marketplace, Amazon, and eBay. Each of them offers a diverse range of products and services. These platforms are tailored to meet the specific needs of Canadian, Mexican, and American consumers, providing a seamless online shopping experience with competitive pricing and a wide selection of products.
How can new sellers start selling online in popular marketplaces and what are the key considerations for the US ecommerce market?
To start selling online, new sellers should first identify the most suitable marketplace specializing in their product category. In the US ecommerce market, it’s crucial to understand the competitive landscape, ensure an accurate product feed, and offer a diverse range of products to stand out. Marketplaces like Amazon and Etsy are great starting points for new sellers.
What advantages do pure play marketplaces offer over traditional department stores for online retailers?
Pure play marketplaces, unlike traditional department stores, offer online retailers access to a huge audience, advanced fulfillment capabilities, and the ability to gain traction quickly. They also provide more flexibility in terms of product listings and pricing strategies, making them ideal for businesses focusing solely on online sales.
How can marketplace sellers effectively compete with online retailers on different marketplaces?
Marketplace sellers can compete effectively by offering competitive pricing, maintaining a high-quality and accurate product feed, and providing excellent customer service. Staying informed about the latest trends in the ecommerce market and adapting to consumer preferences are also key strategies for success.
What role does internet penetration play in the growth of online marketplaces in North American countries?
Internet penetration is a significant factor in the growth of online marketplaces in North America. Higher internet accessibility leads to an increase in online consumers, thereby expanding the potential buyer base for online marketplaces and contributing to the overall business growth in the ecommerce sector.
How do online marketplaces impact the annual revenue and market share of traditional retail stores?
Online marketplaces have significantly impacted the annual revenue and market share of traditional retail stores by providing consumers with more convenient shopping options. The ease of online purchase, diverse product offerings, and competitive pricing have shifted consumer preferences towards online shopping, affecting the sales of physical department stores.
What are the benefits for Mexican retailers to join North American online marketplaces?
Mexican retailers can benefit from joining North American online marketplaces by gaining access to a larger, more diverse customer base. This expansion can lead to increased net sales, greater brand visibility, and the opportunity to understand and serve consumers from different marketplaces, enhancing their overall market presence.
In what ways do online marketplaces support sellers of niche products like craft supplies?
Online marketplaces are ideal for sellers of niche products like craft supplies, as they provide access to a targeted audience looking for specific items. Marketplaces like Etsy are popular for such products, offering specialized categories and the ability to reach potential buyers interested in related accessories and crafts.
What are the considerations for setting up an online store on a third-party marketplace from a seller’s perspective?
From a seller’s perspective, key considerations include understanding the marketplace’s fee structure, such as monthly fees or commission rates, evaluating the marketplace’s fulfillment capabilities, and ensuring the marketplace aligns with the seller’s target audience and product category. Additionally, sellers should focus on creating compelling product listings to attract potential buyers.
How can sellers maximize their presence in the largest and best marketplaces to effectively gain market share?
Sellers can maximize their presence by optimizing their product listings for search visibility, engaging with customer feedback, and utilizing marketplace advertising tools to increase visibility. Staying informed about marketplace trends and consumer preferences in the ecommerce market is also crucial for gaining and maintaining market share.
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