The eBay Alternative: Competitors in Different Niches

The eBay Alternative: Competitors in Different Niches

Online marketplaces have become an integral part of our lives. They are growing along with the new wave of sharing economy and taking over the market share of individual webstores, let alone brick-and-mortar shops.

The reason? A marketplace provides sellers with a large prospective customer base, while customers enjoy the best prices and unprecedented choice, all in one place. What is more is that, sometimes, smaller merchants can stand out against the competition.

eBay is one of the oldest and most famous marketplaces that use the auction selling model. With more than 160 million registered users, it is a platform that appeals to any merchant.

Still, it is not perfect, and competitors are snapping at its heels. To look at last year’s data, see Marketplace Pulse’s review.

At Roobykon, we monitor trends in this e-commerce sector. While the popularity of marketplaces is growing, the flip side of large operators like eBay or Amazon is high fees and stronger competition among merchants.

The balance is restored by new platforms where specific merchandise categories are sold. Now merchants have the alternative to the industry’s mammoths. They often prefer to use niche marketplaces or several platforms at once.

We have identified the key eBay competitors and looked into their competitive edge.

Etsy

Etsy is a place to buy and sell handmade and vintage merchandise. It is heaven for artists, craftspeople, collectors and all the talented lot. As to the buyers, if you need something special, something that nobody else has, this is your one-stop shop.

Because of this approach, wholesale is possible mostly in craft supplies. In any other field, it would not be profitable due to the very nature of this marketplace.

Competitive Edge:

• Emphasis on the uniqueness of the listed goods, connecting like-minded buyers and sellers.
• There’s a purely lucrative point, as Etsy is less expensive for sellers in terms of fees and charges.
• Among other advantages of this marketplace is the fact that its listings last four times longer than those on eBay.

Bonanza

Another marketplace that suits the needs of those who are sick of ordinary, one-size-fits-all things. Unlike Etsy, the scope of merchandise here is really vast, but all goods claim to be unique.

Bonanza is a growing platform that attracts sellers with its simplicity. Here you don’t need technical expertise to build and promote your business, so everyone can become an entrepreneur. There’s even a special feature that removes the background in the uploaded pictures of products.

Competitive Edge:

• Listings are free and the fees are comparatively low (around 3.5%).
• Bonanza has an easy import and synchronization tool that allows merchants to list across numerous marketplaces.
• Every listing is indexed by Google and Bing. Sellers can advertise through several channels.

Newegg

This marketplace specializes solely in electronics. Computers, mobile devices, home appliances, vehicle parts, and even industrial machinery – you can find it all here. Geographically, Newegg operates in North America, but it is represented in more than 50 countries in different parts of the world.

Competitive Edge:

• Unlike eBay, Newegg has a fulfillment service, which makes it very attractive both for sellers and buyers.
• It has three membership plans. Depending on their plan, users get a certain level of support, features, and options.
• Sellers can use the services of account managers that help them stay on top of business development.

Rakuten

A good alternative to a niche market is a regional one, and here Rakuten is as successful as it could be. Operating in 29 countries, it is headquartered in Japan and has 90% of the country’s internet users among its customers. Can the coverage get even better? We’ll see.

It is often called ‘the Amazon of Japan’, but there’s a fundamental difference between them. Amazon has always been focussed on goods and distribution. Rakuten centers around excellent shopping experience, which determines the marketplace’s strategy.

It is not only a B2C but also a B2B marketplace. Famous merchants include Dell and Lenovo.

Competitive Edge:

• Due to Rakuten’s philosophy, each seller has a lot of flexibility for customizing their interaction with consumers, as well as their store, merchandise, and content.
• The marketplace provides sellers with first-class tools and support.

Final points

Over time, disadvantages of big all-encompassing marketplaces, such as high fees or excessively severe and complex policies, are becoming more and more obvious. Some merchants and buyers are willing to put up with them, as far as profit margins and product value are tolerable. Others embrace new platforms that offer more opportunities. In any case, eBay’s competitors are worth paying close attention to

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