TikTok

Amazon

Buyers: 320 million (estimated)

Gross Merchandise Value (GMV): $800bn (estimated)

Amazon provides sellers with massive reach, access to international markets, and the ability to scale quickly using services like Fulfillment by Amazon (FBA).

STRENGTH

• Scalable logistics infrastructure through Amazon’s Fulfillment by Amazon (FBA), enabling rapid business growth without managing warehousing or shipping.
• Ad campaign customization with advanced targeting tools to optimize reach.
• Brand protection and control via Amazon Brand Registry, safeguarding IP.
• Global market access, including penetration into most U.S. households and consumers across 20+ international markets.

WEAKNESSES

• Intense competition from professional sellers, creating price pressures.
• Limited store customization, which is available only to brands enrolled in Amazon Brand Registry, restricting unbranded sellers from differentiating their storefronts.
• High return costs due to customer expectations for free/easy returns, impacting profitability for sellers in categories with frequent returns.

OPPORTUNITIES

• Artisans and small-scale creators gain reduced referral fees, waived monthly Professional plan fees, and a curated marketplace through Amazon Handmade.
• Businesses offering unique or patented consumer goods face reduced competition, leveraging Amazon’s vast audience while avoiding oversaturated markets.
• Access to Amazon’s global customer base—spanning age, income, and geographic segments—supports multi-category sales, from everyday essentials to luxury items.
• Leverage programs like FBA Export, Remote Fulfillment, and Amazon Global Logistics to seamlessly enter foreign markets.

THREATS

• Competition from social media platforms like TikTok Shop and low-price marketplaces like Temu has represented a growing threat to Amazon, forcing some sellers to diversify their selling efforts away from Amazon.
• Sellers report instances of Amazon replicating best-selling products, which carries a risk of direct competition from Amazon itself.
• Amazon’s frequent fee adjustments and policy changes introduce risks for third-party sellers, particularly businesses operating on thin margins.

Walmart

Buyers: 185 million (estimated)

Gross Merchandise Value (GMV): $100 billion (estimated)

Walmart Marketplace offers cost-efficient fulfillment and broad access to budget-conscious buyers underrepresented on Amazon. However, sellers must keep their prices competitive to align with Walmart’s Everyday Low Prices strategy.

STRENGTH

• Business scalability via Walmart Fulfillment Services (WFS), which matches Amazon Prime’s 2-day shipping timeline.
• Generally lower fulfillment fees and seasonal storage rates compared to Amazon FBA, particularly beneficial for heavy/bulk items.
• Buyers can return online purchases to Walmart’s 4,700+ U.S. stores, streamlining the process and enhancing customer satisfaction.
• Attractive sign-up bonuses for new sellers include 30% off referral fees (up to $50K GMV), $2K in WFS credits, and $1K in Walmart Connect ad credits.

WEAKNESSES

• Sole proprietors and small businesses face hurdles due to requirements like a business tax ID (no SSN acceptance), GS1-verified GTIN/UPC codes for all products, and documented e-commerce success history, excluding informal or new sellers.
• Automated algorithms powered by Walmart’s Pricing Rules unpublish listings deemed overpriced compared to Walmart.com or competitors. Shipping costs are similarly scrutinized, risking sudden delisting without manual review

OPPORTUNITIES

• Walmart has a strong appeal to rural, suburban, and budget-conscious buyers underrepresented on Amazon.
• It is ideal for sellers targeting cost-conscious shoppers and niche categories.

THREATS

• Failure to align with Walmart’s Pricing Rules risks suppressed visibility, lost Buy Box opportunities, or removal from the platform.
• Brands selling on both Walmart and luxury-focused platforms (e.g., Etsy, Wayfair) risk cannibalizing their premium appeal, as Walmart’s price-driven ecosystem contrasts with platforms emphasizing rarity or craftsmanship.

eBay

Buyers: 134 million

Gross Merchandise Value (GMV): $75 billion

eBay’s strength lies in its vast audience drawn to collectibles and fashion. While it lacks centralized fulfillment, its strong technology and presence in international markets—especially the UK and Germany—presents growth opportunities beyond Amazon.

STRENGTH

• eBay offers a more predictable advertising model, charging only when a clicked ad leads to a sale. In contrast, other marketplaces typically charge per click.
• Businesses listing <250 items/month avoid listing fees, contrasting with Amazon’s $39.99/month Professional Plan and Etsy’s $15 setup fee.
• Nearly 50% of eBay’s sales occur outside the US, with strong footholds in the UK (15% of sales), China (11%) and Germany (9%), presenting expansion opportunities.

WEAKNESSES

• Over two-thirds of sales depend on just five categories: Motor Parts & Accessories, Electronics, Collectibles, Home & Garden, and Fashion.
• Unlike Amazon FBA, eBay lacks integrated logistics, forcing sellers to handle storage/shipping independently.
• Minimal storefront customization options reinforce eBay’s branding over individual sellers.

OPPORTUNITIES

• eBay is ideal for sellers of trading cards, luxury handbags/watches, sneakers, or motor parts, which thrive on eBay’s auction model.
• Leverage eBay’s reputation for unique/rare items (art, vintage jewelry) and used products (excluding books) to expand beyond platforms like Facebook Marketplace.
• Tap into eBay’s established UK, German, and Chinese markets.

THREATS

• Heavy reliance on niche products and absence of centralized fulfillment limit growth potential for high-volume sellers.
• Generic storefronts and buyer email restrictions hinder customer retention and cross-selling.

Temu

Buyers: 160 million (estimated)

Gross Merchandise Value (GMV): $40 billion (estimated)

Selling on Temu provides quick access to a large, budget-focused audience, but success requires extremely competitive pricing. The platform’s reputation for low-cost goods also challenges sellers aiming for premium positioning.

STRENGTH

• Temu’s ultra-low pricing strategy and streamlined supply chain attract millions of budget-conscious shoppers, the market underrepresented by Amazon and even Walmart.
• Temu’s rapid growth and aggressive social media/gamification tactics offer sellers a chance to establish dominance in an unsaturated marketplace.

WEAKNESSES

• Focus on non-branded, mass-produced goods (often from overseas) limits appeal to US-based or premium brands.
• Ambiguous fee structures and operational policies create uncertainty for sellers evaluating profitability.
• Perceived as a hub for cheap/counterfeit products, deterring brands prioritizing quality or exclusivity.

OPPORTUNITIES

• Ideal for manufacturers with economies of scale (e.g., bulk electronics, fast-fashion apparel) to exploit low-cost production advantages.
• Cost-effective channel for offloading excess inventory without eroding brand value on premium platforms.

THREATS

• Reliance on the US $800 de minimis exemption for duty-free imports; policy changes could disrupt Temu’s pricing model.
• Intense price competition and platform-driven cost pressures challenge sustainable profitability for most sellers.

TikTok

Gross Merchandise Value (GMV): $33 billion (estimated)

Selling on TikTok Shop offers the chance to quickly gain visibility and drive sales through viral, algorithm-driven content. However, success depends on building influencer partnerships as well as the ability of TikTok to navigate the US regulatory landscape.

STRENGTH

• TikTok Shop generated $9 billion in US GMV in 2024, positioning it among the top five U.S. e-commerce platforms.
• Its content discovery engine drives viral product trends, enabling rapid visibility for emerging brands.
• Integrated shoppable videos and product tags streamline impulse buying, outperforming platforms like Pinterest that redirect users.

WEAKNESSES

• Nearly 50% of US TikTok shops report $0 sales, while only 0.25% achieve $1M+ annual GMV, highlighting scalability challenges.
• 90.4% of sales rely on influencer partnerships, creating resource-intensive demands for smaller sellers.
• ~70% of buyers are aged 18-34 (lower purchasing power), contrasting with Amazon’s broader demographic reach.

OPPORTUNITIES

• Partnering with creators (10–16% average commission) unlocks access to TikTok’s algorithm-driven audience.
• Focus on Beauty & Personal Care (21% of sales) and Womenswear/Underwear (13%) to align with top-performing niches.
• Leverage TikTok’s strongholds in Brazil, Indonesia, and Southeast Asia to test international markets.

THREATS

• Viral spikes often lack sustainability, complicating long-term sales stability.
• US scrutiny over data security and ownership threatens platform stability for sellers reliant on TikTok income.
• Rivals like Instagram Reels, YouTube Shopping, and Amazon Live intensify competition in live commerce and short-form video shopping.

Etsy

Buyers: 96 million

Gross Merchandise Value (GMV): $13 billion

Etsy offers low barriers to entry, customizable storefronts, and access to buyer emails, making it attractive for sellers targeting niche markets. However, earning potential is limited, and opportunities to sell or exit the business are constrained.

STRENGTH

• Etsy’s emphasis on handmade, vintage, and craft items creates a specialized ecosystem where independent sellers avoid competition from big brands.
• Setting up a shop is straightforward, requiring minimal technical expertise or upfront investment.
• Tailored storefronts and bios allow sellers to showcase their unique identity and storytelling.
• Access to buyer emails potentially repeat engagement, unlike most other marketplaces that withhold contact details.
• Buyers typically understand the handmade nature of products, minimizing returns compared to mass-market platforms like Amazon.
• Access to international markets (e.g., Canada, Mexico) without complex logistics.

WEAKNESSES

• Prohibits non-handmade, non-vintage, or non-craft items, limiting scalability for diverse product lines.
• Sellers must manage shipping independently, hindering growth for high-volume businesses.
• Etsy shops cannot be sold or transferred, limiting exit strategies.
• Limited as campaign customization compared to platforms like Amazon or Shopify.
• Average sellers earn <$1,600/year, with buyers spending ~$121 annually, reflecting limited earning potential.
• Underrepresentation of male buyers may skew opportunities for certain product categories.

OPPORTUNITIES

• Low startup costs and built-in SEO make it accessible for first-time sellers entering e-commerce.
• Leverage Etsy’s audience to grow off-platform communities (e.g., blogs, social media) for long-term brand loyalty.
• Categories like personalized items, holiday decor, or artisanal goods face less competition than on Amazon or eBay, attracting intentional buyers.

THREATS

• Amazon Handmade’s global reach, FBA logistics, and competitive fees risk diverting buyers seeking handmade goods to Amazon’s platform.
• Some sellers report sudden loss of Star Seller badges or store suspensions due to unverified IP claims, with no detailed explanations or appeals process, disrupting operations.
• Etsy’s reliance on discretionary spending (crafts, vintage items) makes it vulnerable during economic downturns, unlike Amazon’s diversified “essential + luxury” model, which attracts buyers during both economic growth and declines.

Wayfair

Buyers: 21 million

Gross Merchandise Value (GMV): $12 billion

Wayfair provides access to high-value home goods shoppers who tend to make repeat purchases. Its Fulfillment service also enables 2-day delivery, rivaling the speed of Amazon Prime.

STRENGTH

• Average order value of $300 and annual customer spend of $555 reflect strong purchasing power among Wayfair’s home-focused shoppers.
• Wayfair avoids competing with sellers through in-house brands, unlike Amazon’s aggressive private-label strategy.
• The marketplace makes revenue through wholesale pricing rather than per-transaction fees, simplifying cost structures for sellers.
• Wayfair’s CastleGate Fulfillment enables 2-day delivery for qualified sellers, enhancing competitiveness against Amazon Prime.
• Algorithm-driven price adjustments based on demand reduce manual effort and maintain market competitiveness.

WEAKNESSES

• Seller identities are often overshadowed by Wayfair’s platform branding, limiting independent brand recognition.
• Complex onboarding requires legal documentation, liability insurance, and inventory integration, creating barriers for new sellers.
• Only 12% of revenue comes from international markets, restricting growth opportunities for globally oriented sellers.
• Bulky/fragile items (e.g., furniture, glassware) face elevated damage rates during shipping, increasing return costs and logistical strain.

OPPORTUNITIES

• Ideal for home goods sellers targeting premium pricing and operational simplicity in categories like furniture, decor, and appliances.
• 80% repeat customer rate enables upselling opportunities for brands with diverse product assortments.

THREATS

• Competing with Amazon’s logistics (FBA) and broader product reach pressures niche home goods sellers.
• Wayfair’s ability to attract new buyers hinges on the health of the housing market.