Top Amazon Competitors: 9 Key Platforms for Third-Party Sellers

As an Amazon third party seller, you’ve experienced the thrill of success and the frustration of competition in the world’s biggest ecommerce industry. But have you ever wondered what opportunities are waiting for you beyond Amazon’s borders? In this post we’ll explore 9 of Amazon’s top competitors, we’ll look at their strengths, market share and why they could be the platforms to expand your e-commerce empire.

Why Go Beyond Amazon?

Before we get started, let’s address the elephant in the room: Why should you, a successful Amazon seller, even consider other platforms? The answer is simple: diversification. To effectively compete with Amazon, diversifying your selling platforms is crucial. By selling on multiple marketplaces you can:

Diversify from one platform

Reach new customers

Protect your business from policy changes or account issues

Potentially increase your overall sales and profits

Now let’s look beyond Amazon.

eBay: The Online Marketplace and Auction Pioneer That’s Still Alive

Remember when eBay was the only name in online stores and shopping? While it may not be the biggest anymore, eBay is far from dead. In fact, it’s still the second most visited online marketplace after Amazon with a 9% global market share.

Here’s why you should consider eBay:

• Flexibility: eBay offers both auction and fixed price listings so you have more control over how you sell.
• Niche markets: It’s a platform for collectibles, vintage items and unique products.
• Global reach: eBay operates in over 190 markets worldwide.

In 2023 eBay reported $10.5 billion in revenue. And 9.4 million app downloads in the US alone last year. These numbers show eBay still has some serious pulling power in the e-commerce world.

For third party sellers eBay’s multiple selling options can be a big plus. Whether you want to sell inventory fast through auctions or steady sales through fixed price listings, eBay has you covered. And with 57% of US adults using eBay to buy secondhand luxury fashion and accessories in 2023, it’s clear the platform has a strong market for specific product categories.

Walmart: The Retail Giant’s E-commerce Evolution

When you think of Walmart you think of big box stores not online shopping. But don’t be mistaken, Walmart has become a big player in e-commerce. In 2023 Walmart’s online sales hit $82.1 billion, making it Amazon's biggest competitor.

Here’s why you should consider Walmart:

• Massive customer base: Walmart sees 37 million daily and 230 million weekly customers through its online platform.
• Omnichannel presence: Walmart’s ability to combine online shopping with its physical stores is a big advantage.
• Growing marketplace: With over 80 million products from third party sellers, Walmart’s marketplace is growing fast.

One of Walmart’s biggest strengths is its dominance in online grocery. In Q2 2023 Walmart took 36% of US online grocery sales. This hybrid model, combining online convenience with in-store pickup has proven super popular with customers.

For third party sellers, Walmart’s platform gives you access to a massive established customer base. The company’s big marketing budget, $4.1 billion in 2023 fiscal year, means your products could reach millions of new customers.

Etsy: The Handmade and Vintage Haven

If your products are unique, handmade, or vintage, then the ecommerce platform Etsy could be your ticket. Founded in 2005, Etsy has become the go-to marketplace for creative, one-of-a-kind items. With 97.3 million active buyers worldwide, Etsy has a community of customers who love artisanal and unique products.

Here’s why Etsy could be right for your business:

• Niche focus: Etsy’s focus on handmade, vintage, and craft goods attracts customers looking for unique items.
• Supportive community: Etsy has a strong sense of community among its sellers and buyers.
• Gift-centric features: Etsy’s Gift Mode helps customers find the perfect gift, perfect for gift-oriented products.

Etsy is particularly good for sellers of personalized or customizable products. The site’s focus on uniqueness and creativity means customers come to Etsy to find items they can’t find on mainstream marketplaces like Amazon.

For third-party sellers, Etsy gives you the opportunity to show off your products in a boutique environment. Whether you’re selling handcrafted jewelry, vintage clothing, or custom home decor, Etsy is where your unique products can really shine.

Best Buy: The Electronics and Appliance Giant

If you have electronics or appliances in your inventory, the major competitor Best Buy should be on your list. Founded in 1966, Best Buy has transitioned from big box stores to become a big player in online electronics retail.

Here’s why Best Buy could be part of your selling strategy:

• Tech focused audience: Best Buy attracts customers looking for electronics and appliances.
• Omnichannel presence: Like Walmart, Best Buy combines online shopping with in-store pickup.
• Growing online: In 2023, Best Buy’s online sales grew 22%.

Best Buy’s e-commerce site bestbuy.com is a hub for tech enthusiasts and professionals. From smartphones and laptops to home theater systems and smart home devices, Best Buy has a wide range of electronic products.

For third party sellers of electronics or tech accessories, Best Buy’s marketplace gives you access to a highly targeted customer base. By listing your products on Best Buy, you can tap into an existing network of online shoppers who are looking for tech products.

Alibaba Group: The Chinese E-commerce Behemoth

You may not think of selling on Chinese platforms but the size of Alibaba Group is worth considering. In 2023 Alibaba reported $130.35 billion in revenue, making it one of Amazon's main competitors, that’s about 23% of the global e-commerce market.

Here’s why Alibaba Group could be worth considering:

• Massive scale: Alibaba’s platforms Taobao and Tmall have hundreds of millions of users.
• B2B opportunities: Alibaba.com is for wholesale and business to business sales.
• Global reach: While China focused Alibaba is expanding internationally.

Alibaba’s main retail subsidiaries each serve a different purpose:

• Taobao: Consumer to consumer with over 920 million monthly active users
• Tmall: Business to consumer with international and Chinese brands
• AliExpress: A global retail marketplace with 525.45 million monthly visits

For third party sellers looking to get into the Chinese market or do B2B sales Alibaba Group’s platforms offer the most reach. But selling on these platforms requires navigating different cultural and regulatory landscapes.

JD.com: Speed and Convenience in China

Another big player in the Chinese e-commerce space is the online retailer JD.com. Known for fast delivery and logistics, JD.com reported $160 billion in revenue in 2023.

Here’s why JD.com could be worth considering:

• Logistics: With over 1,600 warehouses, JD.com has built an infrastructure for fast delivery.
• Direct sales model: JD.com is a direct sales model so they have more control over product and customer experience.
• Growing user base: JD.com has 580 million active customers.

One of JD.com’s unique selling points is its focus on authentic products and quality control, which has earned the trust of Chinese consumers. The platform is strong in categories like electronics, home appliances, and fast-moving consumer goods.

For third-party sellers, JD.com offers a way to get into the Chinese market through a platform known for its reliability and speed. Like Alibaba, selling on JD.com would require understanding and adapting to the Chinese market.

Target: Leverage Loyalty and Unique Products

Target has successfully taken its brick and mortar success online, becoming a leading online retailer. In 2023 Target reported $107.41 billion in revenue with a big chunk of that coming from e-commerce.

Here’s why Target could be worth considering:

• Brand loyalty: Target’s loyal customer base is an asset for third party sellers.
• Unique products: Target is known for its designer collaborations and exclusive product lines.
• Omnichannel: Like Walmart, Target has online shopping with in-store pickup.

Target’s loyalty program Target Circle has been a big win for the company. With over 100 million members, the program offers personalized deals and automatic savings at checkout. In 2023 Target launched Target Circle 360, a paid membership with same day delivery and additional perks.

For third party sellers, Target’s platform offers access to a customer base that values quality and affordability. If your products fit Target’s brand image of stylish but affordable products, this could be worth considering.

Rakuten: The Japanese E-commerce Hub

Rakuten, often called the “Amazon of Japan,” is one of Amazon's biggest competitors and has built an e-commerce ecosystem that goes far beyond online retail. In 2023 Rakuten reported $16 billion in revenue with 42.4% of that from domestic e-commerce.

Here’s why Rakuten could be worth considering:

• Ecosystem: Rakuten offers e-commerce, financial services and digital content.
• Loyalty program: Rakuten’s points system encourages loyalty across its services.
• International presence: While focused on Japan Rakuten operates in 28 countries.

Rakuten has over 57,000 sellers on its marketplace and offers a wide range of products from food and fashion to electronics and household goods. The platform gets around 112.1 million monthly visits mostly in Japan.

For third party sellers looking to get into the Japanese market Rakuten offers a established platform with a built in customer base. But success on Rakuten would require understanding Japanese consumer behavior and business practices.

Temu: The New Discount E-commerce Player

As a newcomer to the ecommerce industry, Temu has made a big impact since its launch in 2022. Focused on rock bottom prices, Temu has quickly gained a following among price-conscious shoppers.

Here’s why Temu could be worth considering:

• Fast growth: Temu had 338 million app downloads in 2023.
• International presence: 40% of Temu’s traffic comes from the US and Mexico.
• Price-sensitive audience: Temu attracts customers looking for the lowest prices.

Temu’s business model is to connect consumers directly with manufacturers, cutting out the middlemen to offer lower prices. The platform offers a wide range of products from clothing and accessories to home goods and electronics.

For third-party sellers, Temu is an opportunity to reach a price-sensitive customer base. But competing on this platform would likely require adjusting your pricing and potentially sacrificing profit margins for volume.

Third Party Sellers Strategies

Now that we’ve looked at these other platforms you might be wondering how to get started. To effectively compete with Amazon, it’s important to adopt strategies that leverage the unique strengths of each platform. Here are some strategies:

Start small: Don’t try to launch on all platforms at once. Start with one or two that fit your products and target audience.

Be platform specific: Each platform has its own characteristics and customer base. Adjust your product listings, pricing and marketing accordingly.

Use platform tools: Many of these platforms offer tools and services to help sellers succeed. Use them.

Monitor performance: Keep an eye on your sales and customer feedback across platforms. Use that data to adjust.

Cross promote: If allowed use your presence on one platform to drive traffic to your listings on other platforms.

Optimize for search: Just like on Amazon make sure your product listings are optimized for each platform’s search algorithm.

Provide great customer service: Keeping high customer satisfaction across all platforms will help build your seller reputation.

Conclusion: The Multi-Platform Approach

As an Amazon third party seller expanding to other e-commerce platforms can seem overwhelming. In addition to e-commerce, Amazon faces significant competition in video streaming services from platforms like Netflix, Hulu, and Disney+. But in today’s diverse online retail landscape putting all your eggs in one basket (even if that basket is as big as Amazon) can be risky.

Each of these platforms offers something unique:

• eBay for flexibility and second hand market
• Walmart for massive customer base and growing online presence
• Etsy for unique and handmade items
• Best Buy for tech savvy customers
• Alibaba and JD.com for access to China
• Target for loyal customers and style
• Rakuten for Japan market
• Temu for price sensitive customers

By launching across multiple platforms you can reduce your dependence on any one marketplace, reach new customer bases and potentially increase your overall sales and profits.

Don’t forget success in e-commerce isn’t just about being on the biggest platform—it’s about being on the right platforms for your business. So take a look at your products, your target audience and your business goals. Then get out there and start exploring beyond Amazon.

Your next big sale is just a platform away.