The global online retail revenue is expected to reach $8.1 trillion by the end of 2024. Over the next decade, there is expected to be steady growth, with experts predicting at least 10% year-on-year growth through 2027.
70% of Americans shop online. The number of digital shoppers in the country is projected to reach up to 285 million by 2025. Canada, in turn, is worth less. In 2023, Canadian retail ecommerce revenue was worth $58.69 billion, but by 2029 it is expected to increase to $104.4 billion. On the other hand, revenue in the Mexico e-commerce market is projected to reach $38.11 billion in 2024.
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. Through the annual membership program, Amazon Prime, members are offered access to free shipping on items and instant media streaming, among other benefits. Amazon also runs a dedicated marketplace for businesses – Amazon Business.
Amazon generated $590.740 billion in revenue for the year ending March 31, 2024. In the first quarter of 2024, Amazon generated net sales of over 143 billion U.S. dollars, exceeding the 127 billion U.S. dollars generated in the same quarter of 2023.
Amazon wins when it comes to being the top marketplace in the fashion industry in the U.S. Walmart takes second place, followed on the podium by Macy’s.
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.
Walmart employs approximately 2.1 million associates worldwide. In fiscal year 2024, it generated $648 billion in revenue. During the 18 months leading up to October 2023, Walmart Marketplace had doubled in size and reached 100,000 active sellers. And according to eMarketer, Walmart Inc.’s US grocery ecommerce sales will reach $58.92 billion in 2024, which will account for 26.9% of total grocery ecommerce sales in the US.
Moreover, Walmart has ambitions to be better than Amazon and catch up with its successes, but Walmart’s marketplace is still much smaller than Amazon’s. By comparison, in 2023, Walmart made up overall 2.2% of total US retail marketplace sales, while Amazon made up 72.4%.
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 revenue for the twelve months ending April 30, 2024, was $42.832 billion. This marketplace earns almost half of its revenue from mobile phones and computing. The company’s second-biggest revenue generator is consumer electronics, accounting for about a third of its total revenue.
eBay
eBay is another of Amazon’s main global competitors. Over the past twelve months (March 31, 2023 – 2024,) its revenue has increased by 3.42% to $10.158 billion. This platform has users from every continent, including countries like the U.S., Canada, Austria, Belgium, Ireland, Netherlands, Poland, Switzerland, U.K., Australia, China, Hong Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan, Thailand, etc.
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. The number of online users visiting eBay has reached 687 million as of June 2024. The first most visited shopping site was Amazon, with 2.2 billion visits.
Target
Target is a popular online retail platform in North America, known for its wide range of products, including clothing, electronics, and home goods. It encourages all families to discover the joy of everyday life in nearly 2,000 stores and on Target.com.
Target’s revenue for 2024 is $107.4 billion, down 1.6% from 2023. Despite this decrease, Target remains a significant player in the e-commerce market – the net income as of the beginning of July 2024 is $4.14 billion, which is up 49% from FY 2023.
Wayfair
Wayfair is one of the largest online-only home goods retailers and a marketplace for household items, with 22.3 million active customers as of March 31, 2024, and $2.7 billion in revenue.
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.
Although Amazon is the clear leader of North American e-commerce, Wayfair also ranked among the most purchased online brands by U.S. consumers in March 2024. This includes both the United States and Canada. This marketplace ranks fourth among the largest online furniture and homeware retailers in the world.
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’s consolidated revenue in the first quarter of 2024 was $646.0 million, which represents an increase of 0.8% compared to the first quarter of 2023. This increase was primarily driven by an increase in payment revenue and transaction fee revenue from Offsite Ads and Etsy Ads.
The Etsy app is one of the leading shopping apps in its home market, with nearly 11 million downloads in 2023, and the Etsy website was among the most visited online stores worldwide during the same year.
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.
Now Newegg marketplace is present in more than 17 countries, enjoys more than 2.1 million unique active users, more than 382 million total visits, and an average order value of $419. Such achievements are the result of close cooperation between the platform and sellers.
Mercado Libre
Mercado Libre connects buyers and sellers across a wide range of products, from electronics and fashion to home goods and cars. People love Mercado Libre for its convenience and variety. You can find almost anything you need, often at competitive prices. It also offers secure payment options and buyer protection programs.
As of June 2024, the top marketplace in Mexico is mercadolibre.com.mx. It is ranked number one in the Ecommerce & Shopping > Marketplace category in Mexico, according to similarweb. It is most popular among users aged 25-34 years.
AliExpress
AliExpress is the third most popular marketplace in Mexico – behind Mercado Libre and Amazon, and before Walmart. It offers a vast selection of products, often at significantly lower prices compared to local retailers in Mexico. This is particularly attractive in a country where the average salary might not stretch as far.
With AliExpress, Alibaba International’s quarterly revenue rose 45% year-on-year to $3.8 billion in the three months to March. The growth was driven by robust order and revenue growth for AliExpress, which sells primarily through a cross-border model in many markets around the world, including Mexico.
AliExpress makes shopping easier for Mexican consumers by advising them on how to shop, improving customer experience, offering secure payment methods, offering promotions, and more.
Canadian Tire
Canadian Tire is one of the leading marketplaces in Canada after amazon.ca. It offers a unique blend of convenience and national identity. It’s a one-stop shop for a vast array of products, from automotive parts and sporting goods to housewares and clothing.
Canadians appreciate the familiarity and trust associated with this long-standing brand. Plus, the iconic Canadian Tire Money loyalty program adds another layer of appeal, offering rewards for future purchases. It’s a win-win for Canadians seeking a reliable shopping experience with a touch of national pride.
Canadian Tire revenue in 2024 is $12.30 billion. Based on a survey of over 38,000 people, this marketplace ranked third on a list of the most reputable companies to Canadians in 2024.
Temu
Temu is a Chinese e-commerce platform. Its popularity in North America stems from its strategic approach to affordability and convenience as well. Since the launch of Temu in the U.S. in 2022, this marketplace has gained popularity and momentum for expansion to other countries and continents. It offers a massive selection of competitively priced goods, prioritizes a user-friendly experience, and has a focus on efficient delivery options.
However, despite many ethical concerns and a lack of transparency, Temu has been an early success, suggesting that the brand has struck a chord with those looking for low-cost but value.
Temu wants to triple sales to $60 billion in 2024, suggesting its aggressive plans to expand into foreign countries, including such promising ones as the U.S., Canada, and Mexico.
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. In 2023 it had 718 stores worldwide. Its annual revenue for 2024 is $23.69 billion.
With 400 brands across 20 product categories, Macy’s marketplace adds exciting new experiences to the Macys.com site. Shoppers can find many items, and each product detail page clearly states that it’s shipped by a third-party seller.
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.
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, provide product information and delivery times, maintain affordable prices, and offer a diverse range of products to stand out. Marketplaces like Amazon and AliExpress 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 transparent product descriptions, 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 Target 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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