Marketplace Fees: Amazon, eBay, Etsy, and Walmart Charges Explained
One of the most effective ways to grow your ecommerce business is to join an online marketplace. Still, many business owners hesitate to join due to marketplace fees. How many fees does Etsy take, anyway?
To help you make the best decision for your business, take the time to understand what the marketplace fee meaning entails.?
When weighing which marketplace is right for your business, it’s crucial to wrap your head around the various fees each platform charges, from listing fees to fulfillment and everything in between.?
How does each marketplace stack up? We went straight to the sources and compiled all the nitty-gritty Amazon seller fees, eBay seller fees, Etsy seller fees, and Walmart seller fees.
Marketplace fee: What does it mean?
A marketplace fee is an amount a marketplace charges sellers for using their platform. It usually includes a combination of listing fees, membership fees, and more.
Businesses that build and scale on a marketplace are poised to serve thousands of customers they wouldn’t have reached otherwise. Think about it: Amazon boasts over 300 million customer accounts, and eBay has over 138 million active buyers.?
And even when consumers find items they want on an ecommerce site,?90% say?they’ll still check Amazon to compare prices. Cyber Monday alone raked in?$11.3 billion?in 2022.
Overall, marketplace fees may be a small price for access to such a large customer base. With the right marketplace, you can see tremendous growth in your store.
Membership Fees
Joining a top online marketplace is free, but extra perks come at a price. Marketplace fee structures can look different for every business, especially when it’s time to sell your products.
The good news? Creating a seller account on Amazon, eBay, Etsy, and Walmart is free. However, as you explore the marketplace, you may bump into paywalls where you can’t proceed without upgrading your account.
Whether or not to sign up for a premium membership depends on your business goals, like the number of products you plan to list and whether you want to take advantage of in-app advertising.
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What does it cost to sell on Amazon?
An individual plan on Amazon does not cost a monthly seller fee, but sellers must pay 99 cents for every item they sell.?
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Amazon’s professional plan comes at a $39.99 monthly seller fee. It includes perks like the ability to run free shipping promotions and in-app ads, customize shipping fees, and add additional users to your account.
Overall, Amazon is best for bigger brands, growing retailers, and new businesses. Pros of selling on Amazon include its vast customer base, robust fulfillment services, and ability to sync with your accounting software via a?QuickBooks-Amazon integration?solution. The downsides include high competition from other sellers.
What does it cost to sell on eBay?
eBay notably offers five different subscription tiers, ranging from $4.95 per month with the starter plan up to $2,999.95 per month on the enterprise plan. The five plans offer scaled benefits such as lower fees and more free listings.
The pricier the plan, the better the perks. eBay subscription perks include additional free listings, lower listing fees, coupons and discounts for shipping materials, and discounted business services. Overall, eBay is best for resellers and sellers.?
The marketplace offers flexible membership options and over 250 free listings per month. Sellers can even schedule automatic nightly updates via an?eBay-QuickBooks integration?solution. Unfortunately, eBay doesn’t offer fulfillment services and hasn’t seen as much growth as other marketplaces.
What does it cost to sell on Etsy?
You can open an Etsy store for free. But Etsy’s premium service, Etsy Plus, will cost you $10 per month. The premium plan offers perks like credits for ads and listings, customization tools, discounts on shipping boxes and business cards, and custom domain name discounts.
Overall, Etsy is best for artisans, crafts, and curated or unique products. It boasts lower costs to start, a simple fee structure, and a focus on artisan goods.?
Etsy sellers are known to offer discounts to customers who put items in their carts, which they can manage with an?Etsy-QuickBooks integration?solution. Sadly, Etsy doesn’t offer fulfillment services and offers limited membership features.
What does it cost to sell on Walmart?
Currently, Walmart doesn’t offer a monthly subscription or membership fee. But selling on its platform requires initial approval. Since there’s no membership or subscription option, no seller gets more benefits than another.?
Overall, Walmart is best for brand and growing retailers that want to expand beyond Amazon and compete with home goods retailers like Wayfair and Overstock. The marketplace doesn’t have listing fees and offers fulfillment services like Amazon but with less competition.?
Sellers can even post individual orders or consolidate and post them as journal entries with a?QuickBooks-Walmart integration?solution. The downsides include a lack of premium membership options and a shorter reach compared to Amazon.?
Listing fees, referral fees, shipping fees, fulfillment fees, and more
For a complete and straightforward breakdown of all these fees and more, visit the full blog on our website https://www.webgility.com/blog/marketplace-fees-amazon-ebay-etsy-walmart