Marketplaces: where many shoppers start (Amazon, Etsy, eBay)

6 minutes · 8 steps · workout 4 of 6 in this module

What you'll be able to do

By the end of this workout, you'll be able to calculate what a marketplace sale really leaves you after fees, explain what you gain and give up compared to your own store, and respond to a price war without joining it.

A first look: A crowded storefront you rent

Marketplaces like Amazon, Etsy, eBay and Walmart give you three things a new store can't build quickly: shoppers already there with intent, trust (the customer trusts the marketplace, not you), and logistics (Amazon's FBA stores and ships for you). In exchange you pay fees on every sale (Amazon's referral fee is about 15% in most categories, plus fulfillment fees; Etsy charges a transaction fee plus payment processing), you compete on the same page as everyone else, and you don't get the customer: no email, no way to message them outside the platform, and rules about what you can put in the box. Amazon fits mass-market products; Etsy fits handmade, vintage and custom items; eBay fits used goods, parts and collectibles. A marketplace is a fast way to get sales, and a slow way to build a brand.

Example: Northpack's Amazon listing sells three times more units than its own site, but Northpack knows the names of zero Amazon buyers. Its own site sells less and knows every one.

What this workout covers

A crowded storefront you rent
Case: A competitor undercuts you by $10
Marketplace search works like Google, plus reviews

A question from this workout: A competitor undercuts you by $10

Northpack's Amazon listing was steady until a new seller launched a similar backpack at $69. Northpack's sales fell 30% in three weeks. The founder's first instinct is to drop the price to $65.

Northpack: price / reviews / rating: $79 / 40 reviews / 4.6
Competitor: price / reviews / rating: $69 / 1,900 reviews / 4.3
Northpack listing: photos / A+ content: 3 photos / none
Northpack conversion rate: 6% → 4.2%
Profit per order at $79: $21

What's the first move?

Match at $65. On Amazon, the lowest price always wins
Fix the listing first: 7 photos including the laptop sleeve and rain test, A+ content, a comparison chart, and use Amazon's Request a Review on every order to close the review gap. Hold the price
Leave Amazon. Competing with 1,900 reviews is impossible
Bundle in a free water bottle and raise the price to $89

Pick your answer first, then open the reasoning below.

Show the answer and the reasoning

Answer: B. Fix the listing first: 7 photos including the laptop sleeve and rain test, A+ content, a comparison chart, and use Amazon's Request a Review on every order to close the review gap. Hold the price

The shopper isn't choosing on price alone; they're choosing between a listing with 1,900 reviews and one with 40 and three photos. Better photos, A+ content and a steady flow of reviews raise conversion rate without touching margin, and a higher conversion rate also lifts your ranking. The most common mistake is cutting the price. At $65 you'd earn about $7 per order and still have 40 reviews. A price war is the one fight the seller with more reviews always wins.

The other steps work the same way: you decide first, then see why each option is right or wrong.

How you practice here

2 short concept cards
2 multiple-choice questions
1 campaign case with real-looking numbers
2 guided calculations
1 recall question from an earlier workout

Part of the module: The Digital Channel Map

Search, social media, marketplaces, email and messaging: what each channel is good for and where your customers actually spend their time.

More workouts in this module

Programs that include this workout

See plans Try the free first workout