In 2022 top online marketplaces sold $3.2 trillion worth of goods. Platforms such as Alibaba, Amazon, eBay and others accounted for 77.5% of total GMV and these marketplaces grew by 2.9%.
Online marketplaces are platforms that allow buyers and sellers to connect and transact online. They have grown in popularity and offer a convenient and efficient way to shop for goods and services.
In 2020, online marketplaces in the U.S. generated $1.5 trillion in revenue. The global online marketplace market is expected to reach $3.9 trillion by 2025, and the U.S. is expected to capture a lion’s share of this volume.
Introduction: Top Online Marketplace Apps In NY
Online marketplaces are innovative and modernistic ways of shopping and account for $4.9 trillion of global retail sales. This is expected to grow by 42% in the next four years.
Online marketplaces contribute $1.7 trillion each year to the global economy and should reach $7 trillion by 2024. In the US, Amazon alone accounts for 44% of the eCommerce market share.
Entrepreneurs looking to foray into the online marketplace domain must:
- Firstly, choose the right type of marketplace for their business.
- Next, create a strong marketing plan to reach your target audience.
- Lastly, provide excellent customer service so that your customers keep coming back.
Trends & Developments In The Evolution Of Online Marketplaces
Rise of Niche Marketplaces: The global niche market size was valued at $136.45 billion in 2020 and is expected to expand at a CAGR of 9.5% from 2021 to 2028.
Mobile Commerce and Apps: Insider Intelligence stats retail m-commerce sales to account for 43.4% of total retail ecommerce sales in 2023, up from 41.8% in 2022.
Peer-to-Peer (P2P) Marketplaces: P2P marketplaces have gained significant traction in recent years. One prominent example is Airbnb.
Focus on User Experience: A study by Forrester Consulting found that investing in UX design can yield 400% ROI. While, 88% are less likely to return due to poor design.
Blend of AI and Machine Learning: AI and machine learning integration can improve search relevance, personalisation, fraud detection, and customer support. Amazon increased their revenue by 35% due to AI algorithms.
Localisation and Global Expansion: To localise services, companies need to adapt to local languages, currencies, payment methods, and cultural preferences to provide a seamless experience.
Sustainability and Ethical Marketplaces: Grand View Research states global sustainable and ethical market size was valued at $19.65 billion in 2020 & will see a CAGR growth of 8.7% from 2021 – 2028.
Blockchain and Cryptocurrency Integration: According to a report by MarketsandMarkets, the global blockchain market is projected to reach $39.7 billion by 2025, driven by adoption in various industries, including e-commerce.
Top Online Marketplace Apps In NY
Online marketplaces offer a number of advantages for both buyers and sellers. For buyers, a wider selection of products and services, lower prices, and greater convenience. For sellers, a larger customer base, lower marketing costs, and greater efficiency.
Amazon: The E-Commerce Giant
Founder: Jeff Bezos
Total Funding: $8.1B
Founded in 1994 with headquarters in Bellevue, Washington, United States. It provides a wide variety of products, including electronics, books, and clothing.
Business Model: Subscription-based service, Amazon Web Services (AWS), Advertising Services, Amazon Devices, Data Analytics, and AI
Unique Selling Proposition
- Amazon Prime
- Fulfilment by Amazon
- Technological Innovation
- Cross-Selling and Upselling
- Competitive Pricing
- Customer-Centric Approach
eBay: The Online Auction House
Founder: Pierre Omidyar
Total Funding: $1.2B
Founded in 1995 with headquarters in San Jose, California, United States. It is a shopping website where individuals and businesses can buy and sell products, both new and used. eBay has a large user base and offers a wide range of categories.
Business Model: Monetization through fees, Advertising and Promotions, Seller Tools and Services, Fixed-Price Listings, and Auction-Style Format
Unique Selling Proposition:
- Auction-Style and Bidding Format
- Unique and Hard-to-Find Items
- Seller Autonomy
- Buyer Protection and Trust
- Community Engagement
- Flexible Buying and Selling Options
- Mobile Commerce
Etsy: The Handmade and Vintage Marketplace
Founders: Rob Kalin, Haim Schoppik, Jared Tarbell, Chris Maguire
Total Funding: $97.3M
Founded in 2005 with headquarters in Brooklyn, New York, United States. It is a marketplace app with a focus on handmade and vintage items, as well as unique craft supplies. Etsy is a well-known platform for independent sellers and artisans to display their products.
Business Model: Generates revenue through seller fees.
Unique Selling Proposition:
- Handmade, Vintage, and Unique Products
- Artisan and Independent Seller Community
- Personalisation and Customisation
- Niche and Specialised Market
- Community Engagement and Collaboration
- Sustainability and Ethical Practices
- Discovery and Curation
- Support for Small Businesses
Walmart Marketplace: The Retail Giant’s Online Platform
Founders: Sam Walton, Bud Walton
Total Funding: $5B
Founded in 1962 with headquarters in Bentonville, Arkansas, United States. It enables users to shop for a variety of products, including groceries, electronics, home goods etc.
Business Model: It integrates elements of a traditional brick-and-mortar retailer with a growing emphasis on e-commerce, strategic partnerships, and sustainability initiatives
Unique Selling Proposition:
- Everyday Low Prices
- Physical Store Network
- Supply Chain and Logistics
- Private Label Brands
- One-Stop Shopping Experience
- Customer Service
- E-commerce Presence
Craigslist New York
Founder: Craig Newmark
Total Funding: $13.5M
Founded in 1995 with headquarters in San Francisco, California, United States. It is a widely used online classifieds platform where you can find various items for sale, services, housing, jobs etc. The New York section of Craigslist is specific to the local area.
Business Model: Revenue generated from paid job postings in select markets, as well as certain fees for specific categories in certain regions.
Unique Selling Proposition:
- Local Focus
- Free and Easy to Use
- Direct Communication
- Community Engagement
- Established and Trusted Platform
- Wide Range of Listings
Newegg
Founder: Fred Chang
Total Funding: $1.63B
Founded in 2001 with headquarters in the City of Industry, California, United States. It is an online marketplace specializing in electronics and computer hardware. It provides a variety of products, including computer components, laptops, gaming consoles, and accessories.
Business Model: Marketplace Model
Unique Selling Proposition:
- Extensive Product Selection
- Tech-Focused Expertise
- Competitive Pricing and Deals
- Community Engagement
- Fast and Reliable Shipping
- Customer Support
- Global Reach
Zola
Founders: Shan-Lyn Ma, Nobu Nakaguchi, Kevin P. Ryan, Felix Lung
Total Funding: $240.8M
Founded in 2013 with headquarters in New York City, U.S. It is an online marketplace specializing in wedding planning and registry services.
Business Model: Online Marketplace, Affiliate Marketing, Vendor Partnerships, Advertisements and Promotions, Data and Analytics
Unique Selling Proposition:
- All-In-One Wedding Platform
- Personalised Wedding Registries
- Registry Cash Funds and Experiences
- Wedding Website Creation
- Vendor Recommendations and Planning Tools
- Collaborative Planning Features
Poshmark
Founders: Tracy Sun;Manish Chandra, Chetan Pungaliya; Gautam Golwala
Total Funding: $153M
Founded in 2011 with headquarters in Redwood City, California, US. It is a fashion marketplace app that allows users to buy and sell new and pre-owned clothing, shoes, accessories, and more. It provides a social shopping experience and enables users to interact with each other. Thus we have included them in the top online marketplace apps in NY.
Business Model: It integrates the peer-to-peer marketplace, seller fees, shipping fees, social commerce features, in-app purchases, premium services, brand partnerships, and advertising. Also, data analytics generate revenue.
Unique Selling Proposition:
- Fashion-Centric Community
- Peer-to-Peer Resale
- Social Commerce
- Seller Styling and Curation
- Mobile-First Approach
- Secure Transactions and Buyer Protection
- Sharing Economy and Sustainability
- Seamless Shipping and Support
Pros & Cons Of Top Online Marketplaces
| Platform | Pros | Cons |
| Amazon | Wide selection of products, Competitive prices, Fast shipping, and Easy returns. | Overwhelming to browse, Products may be counterfeit, Not always cheap. |
| eBay | Huge selection of products, Competitive prices, and Ability to haggle on prices. | Difficult to find your product, Some sellers are unreliable, Not always cheap |
| Etsy | Unique and handmade products, Easy to find handmade gifts, Supports small businesses. | Can be expensive, Products not available at all locations |
| Craigslist New York | Wide variety of items available, Can find local deals, Free to use | Difficult to find what you want, Sellers unreliable, Not always safe option |
| Newegg | Wide selection of electronics & computer products, Competitive prices, Fast shipping | Not always cheap, Products could be counterfeit |
| Zola | Great selection of wedding & home goods, Easy to use UI, Ability to create a registry | Can be expensive, Some products are not available in all areas. |
| Walmart Marketplace | Wide selection, Competitive prices, Easy to use UI | Difficult to search, Sellers unreliable, Not always the cheapest option |
| Poshmark | Great selection of second-hand clothing, Easy UI, You can negotiate prices | Not always cheap, Difficult to search, Some sellers unreliable |
Conclusion: Top Online Marketplace Apps In NY
New York-based businesses have immense opportunities to thrive in the digital marketplace. The city’s status as a global business hub, integrated with its strong infrastructure, industry diversity, accessibility to a highly skilled workforce, thriving tech and start-up scene offers a favourable environment for digital entrepreneurship.
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After an Engineering degree and a Diploma in Management I devoted 16+ years working in the automotive industry. My innate skill and extreme passion in writing, encouraged me to adopt it up as a profession. I have been writing for more than 10+ years in the software industry. The 400+ blogs I published are informative, exhaustive and interesting to a professional and causal reader.
