Amazon marketplace allows sellers to list their items for sale through amazon.com. It offers credibility and brand recognition of Amazon.com to the smaller merchants with their own products. It was a decent alternative to creating own store and spend money on marketing, maintaining the online store. Amazon had a monopoly in the marketplace for a few years. But now more players are entering the market due to the success of this business model. Recently Sears.com, Buy.com, and Walmart.com announced they will be entering into online marketplace business. Some of these providers are offering product fulfillment services in addition to marketplace list and payment transaction management.
|Commission range||7-20%||8-15% + $.99 per transaction||8-15%, plus $1.35 per transaction||Do not disclose|
|Other Fees||$39.95 per month||None||$39.99 per month||Do not disclose|
|Seller options||Sellers can fulfill their own orders or pay $.45 per cubic foot storage for Sears to do product fulfillment. Also, there is $3.00 handling fee per order.||Sellers fulfill their own orders.||Sellers can fulfill their own orders or pay $.45 per cubic foot storage for Amazon to do product fulfillment. Also, there is $3.00 handling fee per order.||Sellers fulfill their own orders or ask Walmart to do the fulfillment.|
Overall this is a great opportunity for independent retailers who do not have the expertise to market their own products. This is also an opportunity for savvy marketers to create their own marketplace in niche markets. iScripts Multicart has been allowing users to create their own marketplace in any industry for the last 4 years, even before Amazon started this business model. You can create a multi vendor marketplace using this software. Recently we created a few other variations of multi seller marketplace with slightly different models. They include original multi vendor shopping cart, multi seller platform for dropshippers , multi vendor multi seller platform. In addition, we created an online store builder and a standard shopping cart platform for retail merchants. Here is the comparison of all these shopping carts, supply chain platforms for distributed ecommerce.
Lately, it seems most of the heavyweights in retail and manufacturing is slowly moving into distributed ecommerce space.