Online marketplaces: E-commerce opportunities and risks

Online marketplaces are a convenient affair: Various suppliers can be found quickly for any product. Everything is presented uniformly and clearly, and prices can be compared directly. In short, consumers love marketplaces. And retailers? In the context of various social media channels, this relationship would probably have the status: "It's complicated." Why is that? In fact, many of the features of an e-commerce marketplace that are so valued by online shoppers present certain barriers for merchants. At the same time, however, it cannot be denied that companies are beneficiaries of the reach of marketplaces and profit from their popularity.

So, because dealing with e-commerce platforms is a double-edged sword, let's take a look at the opportunities and risks of online marketplaces in this article.

Today, online marketplaces have long since become more than just sales channels. They are evolving into full-fledged commerce ecosystems in which topics such as retail media, artificial intelligence (AI), omnichannel commerce, and international expansion are playing an increasingly important role. At the same time, the demands on retailers are increasing: To sell successfully, you need a clear strategy, professional product data, and smart integration between marketplaces and your own online store.

Overview Online Marketplaces: These are the top 10 online marketplaces Germany

#1 Amazon

Amazon is by far the largest online marketplace in Germany and is also one of the most important e-commerce platforms internationally. In 2024, Amazon accounted for approximately 63% of online retail sales in Germany—including sales from its own business and those made through the Amazon Marketplace. For retailers, the platform thus offers enormous potential to reach new target groups and significantly expand their reach.

A key factor in this success is Prime membership. Benefits such as free premium shipping, Prime Video, and exclusive shopping promotions ensure high customer loyalty and make Amazon the first port of call for many consumers when searching for products. As a result, retailers benefit from a target audience with strong purchasing power and a high propensity to buy.

At Amazon you can offer goods of any kind or category and thus have the opportunity to present a very wide range of products. You may have a lot of competition here, but on the other hand you can benefit from the large reach and popularity with customers.

Connection: Amazon can be easily connected to your Shopify shop by adding Amazon as another sales channel in your Shopify admin.

#2 eBay

eBay remains one of Germany's largest online marketplaces, connecting millions of individual and business buyers and sellers. According to the company, more than 134 million active buyers worldwide use the platform. In Germany, eBay is one of the online marketplaces with the widest reach—second only to Amazon—and is a key destination, particularly for used, refurbished, and new products.

The broad categories that can be found on eBay also allow you to present a wide range of products. As a trader, you can also benefit from eBay's broad reach and high profile.

Connection: eBay can also be conveniently integrated into Shopify as a further sales channel.

#3 Otto

OTTO Market is one of the leading online marketplaces and offers merchants access to a target audience with strong purchasing power. In fiscal year 2025/26, OTTO generated platform revenue (GMV) of approximately 7.5 billion euros and served 12.6 million active customers. Around 6,100 partners now sell their products on the marketplace, while the product range has grown to more than 19 million items.

Unlike open marketplaces, OTTO relies on a curated network of merchants. Companies must meet specific quality requirements before they can offer their products on the platform. As a result, merchants benefit from a high-quality marketplace environment and a high level of customer trust. You must meet these requirements:

• You must have a German legal form as well as a VAT ID

• You only sell B2C (business-to-consumer) products

• You ship from a German warehouse

• You have a German-speaking customer service

• You sell products with standard VAT (19%)

If you meet all these criteria, you can also benefit from a wide reach by placing your goods with Otto.de. Otto also offers you the possibility to offer goods in different categories.

Connection: An interface is required to connect Otto to Shopify.

#4 Etsy

Etsy became known as a platform for handmade goods. Today, with around 96 million monthly hits, Etsy rightly ranks among the most popular marketplaces. Even though many goods are now offered on Etsy, the main focus is still on handicrafts. Therefore, you should consider whether your products match the target group before placing them.

Connection: Etsy can only be connected to your Shopify shop via an interface.

#5 Kaufland

Kaufland.de has gained popularity with around 32 million monthly users. To be a merchant at Kaufland, you must meet the following criteria:

• Pursue a trade

• German customer service

• Official EAN for all products

• No articles from prohibited categories (e.g. products with contractual obligations; products that are not suitable for sale, such as samples; pharmacy-required medicines, etc.).

Apart from the prohibited categories, goods from a wide range of areas can be sold at Kaufland.

Connection: To connect Kaufland with your shop, an interface is necessary.

#6 Zalando

Zalando is probably one of the most popular retailers when it comes to fashion and is known to every German. With around 30 million monthly hits, it is also possible to profit wonderfully from the reach and popularity of the platform.

To run your merchandise on Zalando, you should match the target group. In addition, you must have your own website and offer free shipping and returns.

Connection: To link Zalando with your Shopify shop, it needs an API.

#7 About You

About You has established itself as a major online marketplace for fashion brands and retailers. With more than 2.9 billion page impressions and over 27 million unique active users per month, the platform is enjoying increasing relevance. With a clear focus on fashion and a youthful, "cool" brand presence, the e-commerce marketplace competes directly with giants like Zalando. Here, About You focuses even more strongly on young target groups. In general, About You is characterized by a particularly emotional presentation that sets it apart from other online marketplaces.

#8 AliExpress

On AliExpress, customers have the opportunity to shop globally. However, it is important to note that all merchants represented on this platform are from China. On the contrary, other online merchants are not allowed to offer their products on this selling platform. This platform receives more than 40 million visits every month, which highlights its global reach.

#9 TikTok Shop

TikTok is increasingly evolving from a social media channel into a sales platform. With TikTok Shop, merchants can sell products directly within the app, while creators showcase them in their videos or livestreams. TikTok Shop offers enormous potential, especially for brands targeting a young audience, as it seamlessly blends entertainment with the shopping experience. Anyone already leveraging social commerce should definitely incorporate TikTok Shop into their marketplace strategy.

#10 Avocadostore

Avocadostore is an environmentally conscious alternative to platforms like Amazon and eBay. The store offers a wide range of sustainable and eco-friendly products for men, women and children. The assortment focuses on clothing, accessories, care products, and home and lifestyle items.

E-commerce opportunities and risks at a glance

First, we provide you with an overview of all the opportunities and risks that a marketplace placement entails. In the further course we will go into them in more detail.

Online marketplace: Opportunities

Without any doubt, marketplace operators are the big players in e-commerce. Not only do customers get a convenient shopping option, but the groups also offer retailers great opportunities for success in online retailing. We'll show you which ones they are here.

1: More reach

The first notable advantage of online marketplaces is obvious. Because the platforms already have a lot of traffic, they offer the chance to achieve a considerable increase in reach. Unlike your own online store, whose visibility has to be built up over a longer period of time, you can fully focus on your offer on Amazon, eBay and the like and let your products speak for themselves. Articles with good conditions are usually taken into account by the algorithm and end up in the search results.

2: More brand awareness

Marketplaces are often a potential customer's first touchpoint with their product. Without them, many contacts might not even come about. Marketplaces can therefore also be used to make your brand known and establish it. The trick is to lure customers away from the marketplace and onto your own store. To make sure you succeed, it's worth creating incentives and rewarding customers for their swing to the online store. This can take the form of discounts, exclusive sales, or a loyalty points program.

3: Product niches also find buyers

Especially if you are selling a very specialized product for which there is only a small number of potential buyers, selling on online marketplaces can be an opportunity. The reason for this is the reach of the platforms mentioned in point #1. Etsy in particular scores with a target group that covers a wide variety of niches such as fan art, handmade items, or creative products. However, Etsy is only the most prominent example: On the international market in particular, many niches already have their own marketplace.

4: An ideal test environment

Launching a new marketplace environment is much faster than building your own online store. This is one of the reasons why marketplaces are particularly well suited for testing new products. In addition, the sample size is much larger due to the traffic. On a marketplace, you quickly get a feel for whether the launch of a new item is worthwhile or not.

5: Your business can be expanded very easily.

There is no such thing as a single Amazon Marketplace. With .de, .uk, .fr, .com and others, the e-commerce leader operates several platforms depending on the target market, and eBay is also represented in various countries. Taking into account the legal framework, it is very easy for a company to expand with online marketplaces.

Online marketplaces: Risks

Even though the advantages of marketplaces should outweigh the disadvantages, especially for e-commerce beginners, we do not want to hide the fact that they also entail certain risks. We have listed some of them below.

1: Less design freedom

The fact that online marketplaces enforce their design concept so consistently makes it particularly easy for consumers to find their way around and, given the large number of different items, makes perfect sense. At the same time, however, it also inhibits retailers from presenting their product in an appealing way and offering an individual shopping experience. Marketplaces also don't offer enough space for successful storytelling. So you always run the risk that your brand message will not be conveyed as intended.

2: High competitive pressure

The fact that the barriers to entry into e-commerce are nowhere as low as in marketplaces also has its drawbacks. New companies are entering the market every day, and you are competing with them. They, too, want to be listed high in the search results of potential buyers or - as in the case of Amazon's BuyBox, for example - preselected directly for purchase. Since terms and conditions are the main deciding factor for the marketplace algorithm, this can create a price battle that's poison for your margins. Things like free shipping or 24-hour delivery are also increasingly becoming hygiene factors that demanding customers require.

3: Fees

It goes without saying that online marketplaces charge for the use of their platform. This increases the more services you use. One example: If you use Amazon's fulfillment service (FBA), in addition to the monthly fees for your Amazon account (39 EUR/month, as of August 2022) and the sales fees (0.99 EUR/item, as of August 2022), you may incur additional costs for warehousing, shipping, brokerage, and possibly also refund and return fees. If you calculate all these items, you will notice that your margin shrinks considerably. This is also the reason why many online retailers often sell cheaper in their own store than on Amazon & Co. - they have to pass on far fewer fees to the customers.

4: Cannibalisation effects

If you take a closer look at the previous point, where would you rather sell, in your own online store or via a marketplace? Provided the selling prices are the same, the answer should be quite clear. However, due to the familiarity of online marketplaces, there is a risk of cannibalization effects. If that's the case, customers will buy from Amazon or eBay out of convenience, for example, rather than from your own online store, even if they know it. The power of habit can therefore also cost you part of your profits.

5: Lack of transparency

The algorithms behind product selection on online marketplaces are a well-kept secret. You can present your products as attractively as possible and describe them in as much detail as possible on Amazon, eBay & Co. but whether the effort is of any use to you is something you will only know afterwards at best. The situation is similarly intransparent with various services such as the already mentioned FBA. That the operator stores and picks your products for you is all well and good, but do you know how the items are handled during these processes? The fact that you cannot see into the processes of a marketplace is in the nature of things, but it can become a problem for you.

Customer acquisition and retention on online marketplaces

Customer acquisition and retention in online marketplaces is critical to the success of merchants. Here are some important aspects that play a role in this process:

1. Profile optimization: a well-designed merchant profile on an online marketplace is crucial. It should look professional, provide clear information about your company and products, and include appealing images.

2. Product presentation: the quality of your product photos and descriptions is of great importance. High-quality, well-lit images and detailed, appealing descriptions can pique customers' interest.

3. Competitive pricing: Pricing plays an important role. Low-priced offers or attractive discounts can attract customers, but be sure to keep your profit margins in mind.

4. Customer reviews: Reviews and customer feedback are of great importance in online marketplaces. Good reviews boost customer confidence and increase the credibility of your business.

5. Customer service: efficient and helpful customer service is essential. Quick responses to inquiries and positive customer interaction can help attract and retain customers.

6. Marketing and advertising: use the advertising and marketing tools of the marketplace to draw attention to yourself. This can include paid advertising, promotions or discounts.

7. Delivery and shipping: Fast and reliable delivery is another key to success. Customers today expect fast deliveries and easy returns.

8. Customer loyalty: Make an effort to retain your customers. Offer discounts or exclusive deals to regular customers. Maintaining a long-term relationship can pay off in the long run.

9. Update the offer: keep your product offer current and relevant. Customers are constantly looking for new products and trends.

10. Analysis and customization: use the marketplace's analytics tools to understand your customers' behavior. Adjust your strategy based on the data and trends.

Overall, customer acquisition and retention in online marketplaces requires a thoughtful strategy that focuses on product quality, customer service, and marketing. Merchants who successfully address these aspects can build a loyal customer base and achieve long-term success on online marketplaces.

The future of e-commerce: trends in online marketplaces

The future of e-commerce on online marketplaces is shaped by new technologies, changing customer expectations, and innovative sales concepts. Retailers who embrace these developments early on can secure long-term competitive advantages. Here are the key trends:

• Personalization: AI and data analytics enable personalized product recommendations and a tailored shopping experience.

• Artificial Intelligence (AI): AI supports retailers with product descriptions, pricing, customer service, and personalized recommendations.

• Omnichannel Commerce: Companies are integrating online stores, marketplaces, and brick-and-mortar retail to create a seamless shopping experience.

• Sustainability: Transparent supply chains, sustainable products, and resource-efficient shipping continue to gain importance.

• Augmented Reality (AR): Customers can virtually try out products or view them in their own environment.

• Mobile Commerce: Mobile devices remain the most important channel for online shopping. Optimized apps and fast checkouts are crucial.

• Social Commerce: Platforms like TikTok and Instagram are becoming key sales channels for retailers.

• Retail Media: Advertising directly on online marketplaces increases visibility and drives sales.

• B2B E-Commerce: Digital marketplaces and self-service solutions continue to gain importance in the business-to-business sector.

• Faster Delivery and Fulfillment: Short delivery times and efficient logistics remain a key competitive advantage.

These trends show that e-commerce on online marketplaces is continuously evolving and adapting to the changing needs and expectations of consumers. The future promises exciting developments and opportunities for retailers and customers alike.

How to Set Up an Online Marketplace in Shopify

As a Shopify merchant, there are several ways to connect online marketplaces to your online store:

• Shopify Apps: The Shopify App Store offers apps for many marketplaces that allow you to automatically sync products, orders, and inventory.

• Shopify Marketplace Connect: With the official Shopify solution, merchants can connect selected marketplaces—such as Amazon, eBay, or Etsy—directly to their Shopify store and manage them centrally.

• Custom Apps: Custom Shopify apps can be developed to meet specific requirements. These enable tailored integrations with marketplaces or external systems and offer maximum flexibility.

• Middleware Solutions: Businesses with multiple sales channels often rely on specialized integration platforms such as ChannelEngine, Channable, Tradebyte, or plentyONE. These platforms enable the centralized management of product data, inventory, and orders across numerous national and international marketplaces.

Which solution is right depends on the connected marketplaces, the size of the business, and the desired level of automation. While smaller merchants often start with a Shopify app, growing businesses typically benefit from a centralized middleware solution for their marketplace management.

Online stores and marketplaces are not mutually exclusive: Use multichannel!

By now you have an idea of the opportunities and risks that online marketplaces offer. As a company, you are now faced with the decision of whether to use the advantages of online marketplaces or to do without them because of the risks. The good news is: there is a third option besides these two, because selling on marketplaces and having your own online store are by no means mutually exclusive. In fact, more and more companies are opting for a mix of different sales channels, which means they are pursuing a so-called multichannel strategy. This allows you to test out for yourself the extent to which you benefit from the advantages of online marketplaces. If it turns out that the risks of marketplace selling are too great, you can still focus fully on your own store.