Online marketplaces provide a straightforward means for online merchants who desire to expand to new markets. It is crucial to consider the unique features of the various sales platforms before venturing into them and to understand the different advantages for your e-commerce business.
Germany is the 5th largest market for eCommerce with a projected market volume of US$175,260.9 million by 2027. Fashion is the largest market and accounts for 28.8% of the German eCommerce revenue. Food & Personal Care follow with 21.4%, Furniture & Appliances with 18.1%, Electronics & Media with 16.4%, and Toys, Hobby & DIY with the remaining 15.2%.
What is an online marketplace?
Online marketplaces are ecommerce websites that combine the convenience of shopping from home while providing a vast selection of products akin to that of a large shopping centre. These marketplaces facilitate price comparison, making it easier to find convenient deals. Shoppers can place orders on the Website or through dedicated apps, benefitting from efficient delivery services, thanks to the collaboration with 3PL companies.
What are the benefits or advantages of selling on online marketplaces?
The European e-commerce market has experienced remarkable growth, and is the third largest ecommerce market in the world, with total online retail sales of $498 billion annually. Moreover, selling on an online marketplace offers significant advantages, including:
Easy setup process
Major marketplaces provide an intuitive online setup that allows retailers to easily list their products without the need for extensive IT resources or complicated procedures.
Extensive customer reach
Online marketplaces play a vital role in expanding the reach of your brand, especially when your products are unfamiliar to potential customers. These platforms allow you to connect more easily to potential customers and are five times more likely than your website to be the initial starting point for your consumers’ research.
Greater scalability
By leveraging global platforms like Amazon or Etsy, you can easily expand your business, tapping into new customer bases and unlocking growth opportunities.
Let’s discover the top 10 online marketplaces in Germany, based on monthly visits in April 2023 with data retrieved from Similarweb.
#1 Marketplace in Germany
Amazon.de
- Visits per month in Germany: 434.9 million
Advantage of Amazon.de
The main advantage of Amazon as an online marketplace is obviously its unparalleled customer reach and the trust buyers have in its robust services which include fast, cheap deliveries, 24/7 customer assistance and secure payment methods.
#2 Marketplace in Germany
eBay.de
- Visits per month in Germany: 159.2 million
Advantage of eBay:
Apart from its solid reputation as a marketplace, unlike Amazon eBay does not have its own products. This means your ecommerce will never “compete” with eBay. In fact, they simply provide the platform allowing individual sellers or companies to list products either in auction format or fixed-price format.
#3 Marketplace in Germany
Otto Market
- Visits per month in Germany: 60.8 million
Advantage of Otto Market:
Otto Market is Europe’s largest B2C online marketplace for fashion and lifestyle, as well as the largest German domestic alternative to Amazon and eBay. To be approved as a seller on this marketplace you require:
- German legal form of a company
- German VAT ID
- German-speaking customer service
- Shipping from a German warehouse
- Selling products with a standard VAT rate of 19%.
#4 Marketplace in Germany
Zalando.de
- Visits per month in Germany: 35.8 million
Advantage of Zalando:
With its large and active customer base, Zalando is the leading platform for fashion in Europe. Operating in multiple countries, Zalando is a must-have for fashion brands who want to expand their reach in Germany as well, with many young buyers preferring this marketplace to Otto.
#5 Marketplace in Germany
Etsy.com
- Visits per month in Germany: 151.8K
Advantage of Etsy:
Entrepreneurs and artisans who want to showcase and sell their products can benefit from several advantages of selling on Etsy, particularly its extensive reach within the niche market of handmade, vintage, and craft supplies.
#6 Marketplace in Germany
About You
- Visits per month in Germany:15.0 million
Advantage of About You:
If you sell fashion targeted to younger groups, About You may be the right choice as it is very popular in Germany.
#7 Marketplace in Germany
Shopapotheke.com
- Visits per month in Germany: 12.8 million
Advantage of Shopapotheke.com:
If you sell pharmaceuticals, beauty products or dietary supplements you might want to consider Shopapotheke.com, a highly popular and trusted market.
#8 Marketplace in Germany
Alternate.de
- Visits per month in Germany: 4.5 million
Advantage of Alternate.de:
Alternate.de is one of the most important national marketplaces for electronics and gaming.
#9 Marketplace in Germany
Hood.de
- Visits per month in Germany: 3.0 million
Advantage of Hood.de:
A cost-effective solution for marketers who want to list their products and reach a large customer base. Moreover, it covers a wide range of product categories.
#10 Marketplace in Germany
Avocadostore.de
- Visits per month in Germany: 963.6K
Advantage of Avocadostore.de:
Avocadostore.de, a very popular marketplace born as an eco-friendly alternative to amazon and eBay, offers a wide range of products including clothing, accessories, personal care, as well as home and living.
Diversifying sales channels beyond online marketplaces
Complement online marketplace presence
Selling on online marketplaces is a huge opportunity for brands looking to reach new markets and connect to a larger customer base more easily. However, relying solely on online marketplaces for sales is a limiting choice. While online marketplaces can help you gain visibility, they provide a standardized interface that won’t allow the audience to grasp your brand’s unique identity and thus fully appreciate what you offer. This is why it is important to complement a presence on these marketplaces with your own dedicated online store. In fact, an effective strategy often involves a combination of both. An online marketplace can serve as a discovery hub for potential clients, whereas your own website can be where you foster long-term relationships with them and nurture brand loyalty. For example, once people discover your brand on Amazon, they may want to visit your online store to see if there are additional products or variations you offer!
Some of the main advantages of having your own online store include:
-Full control over prices and product catalogues
– People can grasp your brand identity and you can create a consistent brand image. This is what people remember!
– Direct customer relationship
– Personalized User Experience
Important advice: If you want your own online store to be successful, you have to ensure the same level of efficiency as large online marketplaces, especially when it comes to fast and cheap delivery. This is what your customers expect!
How eLogy can help you compete with the big players
One of the most significant advantages of large online marketplaces is optimized logistics. However, providing fast, efficient and cost-effective e-commerce fulfillment is often not feasible for companies alone. This is why many brands outsource their logistics operations to third-party logistics providers (3PLs) or fulfillment companies, a solution that allows them to compete with the big players and retain customers.
The advantages of this choice are:
- Automated fulfillment processes, from storage, picking, and packing to shipping and returns
- Transparent shipping costs
- Fast, reliable, cheap shipping
- Real-time tracking
- Access to more convenient prices over the most popular parcel delivery companies
- Multiple warehousing solutions to get closer to customers and reduce delivery time and costs
- Personalized packaging to distinguish yourself from competition
