Selling on Amazon, eBay, and Etsy: Marketplace Strategy for Michigan Businesses

Marketplaces put your products in front of millions of active buyers. But marketplace fees, competition, and rules mean they should be part of your strategy, not your entire strategy.

Marketplace Comparison

Amazon

300+ million active customers. Best for established brands and commodity products. High competition but massive volume. FBA (Fulfillment by Amazon) handles shipping for you. Fees: 15% referral + FBA costs. Margin impact: Expect 35-50% lower margin than your own store.

eBay

135+ million active buyers. Best for unique items, collectibles, refurbished products, and niche categories. Auction and fixed-price formats. Lower fees than Amazon. Fees: 13.25% final value fee.

Etsy

96+ million active buyers. Best for handmade, vintage, and craft supply products. Strong community of buyers looking for unique items. Fees: 6.5% transaction fee + $0.20 per listing.

Multi-Channel Strategy

1. Launch on your own store first (highest margins, you own the customer)
2. Add one marketplace where your customers shop most
3. Use marketplace sales to fund inventory for your own store
4. Include inserts in marketplace orders directing customers to your website
5. Build your email list from all channels

Inventory Sync

Selling on multiple channels requires real-time inventory sync. Tools like Sellbrite, ChannelAdvisor, or your e-commerce platform multi-channel features prevent overselling.

Need help with marketplace strategy? Contact us for e-commerce consulting.