Online marketplaces: Expanding your brand’s reach in Italy

Online marketplaces serve as an effective tool for expanding and growing your online business. These digital platforms, attracting more than 1 billion shoppers monthly, have become the go-to choice for numerous online retailers seeking to showcase and sell their products.

Selecting the appropriate online marketplaces for your brand hinges on several key factors:

• The type of products you sell
• The reasons for selling on an online marketplace
• The specific regions and markets you wish to target,
• the advantages and disadvantages associated with each marketplace,
• The logistical management when selling through a marketplace

To optimize your profitability when utilizing marketplaces, it is essential to gain a comprehensive understanding of how each platform functions and operates.

In this guide, we provide a detailed breakdown of the following aspects:

• What are online marketplaces?
• Why sell on an online marketplace?
• Advantages of selling on an online marketplace
• Disadvantages of selling on an online marketplace
• Top 5 e-commerce marketplaces in Italy
• Working with a 3PL partner

What are online marketplaces?

Online marketplaces are platforms that facilitate the buying and selling of products from multiple retailers. These platforms offer brands the opportunity to showcase their products alongside competitors, providing a convenient and centralized shopping experience for consumers.

In order to participate as a retailer, you are required to pay a fee for each product sold, and adhere to the marketplace's set of guidelines and regulations.

Nowadays, a significant 44% of online product searches in Europe now commence directly on online marketplaces, with Gen Z shoppers leading the trend at an impressive 52%. This noteworthy shift in consumer behavior implies that individuals are increasingly bypassing traditional search engines like Google. Instead, they are heading straight to prominent marketplaces such as Amazon, eBay, or their preferred marketplace of choice.

Why sell on an online marketplace?

The European e-commerce market witnessed remarkable growth, expanding by 23.8%, reaching 431.4 billion in 2022. Analysts predict an additional 9.97% growth in 2023, projecting a total market value of € 682 billion (£585 billion).

With such growth rates, the e-commerce industry is constantly evolving and adopting innovative strategies to capture a larger customer base. To stand out from competitors, providing an exceptional customer experience and delivering top-notch service is imperative. In light of this, an increasing number of retailers are embracing online marketplaces due to the numerous advantages they offer.

Advantages of selling on an online marketplace

Streamlined setup process: The top marketplaces provide a user-friendly online environment that allows retailers to effortlessly list their products without the need for extensive IT resources or complicated procedures.

Extensive customer reach: In cases, where your brand is unfamiliar to potential customers, they are highly likely to turn to known marketplaces like Amazon. You might lose customers, since these marketplaces might have products similar to you. In fact, marketplaces are five times more likely than your own website to be the initial starting point for your consumers' search.

Superior customer experiences: Leading marketplaces have established a new benchmark for exceptional customer service. Amazon, in particular, has played a pivotal role in revolutionizing the online shopping experience.

Enhanced scalability: By leveraging global platforms such as Amazon or Etsy, you can effortlessly expand your business into new markets across the world. This allows you to tap into new customer bases and unlock growth opportunities.

Disadvantages of selling on an online marketplace

Costs: Many popular marketplaces such as Amazon and eBay require sellers to pay commissions or other fees.

Terms and conditions: Sellers are obligated to adhere to the specific terms and conditions set by the marketplaces, which can be quite strict.

Reduced brand visibility: Selling on a marketplace can make it more challenging to showcase your company's unique brand identity, as your products will be displayed in a standardized environment alongside numerous other brands.

Limited control over customer data: When utilizing marketplaces for selling, sellers have restricted access to customer data. This hampers their ability to finely tune their marketing strategies.

Italy’s e-commerce market growth

Italy's e-commerce market is experiencing rapid growth, surpassing even Spain's, with an impressive compound annual growth rate (CAGR) of 33% in 2021. The market has reached a remarkable value of €64 billion (£53.7 billion).

Online sales now contribute to 17% of the country's total retail volume. The widespread internet usage in Italy is noteworthy, with over 76% of the population having access, and an impressive 90% of adults owning a smartphone.

While local brands are still in the process of establishing their digital sales channels, the e-commerce landscape in Italy is currently dominated by major international companies.

These companies possess the necessary expertise and infrastructure to thrive in this market. Consequently, it is noteworthy that 67% of Italians have made purchases from foreign websites. Furthermore, nearly all of them have explored popular marketplaces, such as Amazon (95% usage) as well as eBay and Zalando (each with approximately 50% usage).

Top 5 e-commerce marketplaces in Italy

1. Amazon.it

Amazon requires little introduction, being the largest global marketplace. It has become a go-to platform for consumers to begin their product searches, often bypassing search engines like Google.

Selling on Amazon is facilitated by two primary options: Amazon FBA (fulfilled by Amazon) and FBM (fulfilled by merchant). To explore these selling schemes in more detail, you can find additional information here.

Visits per month in Italy: 180.5 million

Category: general

Fee for retailers: €39 monthly, plus variable commission per order based on product categories (generally around 15.45% for the portion of the total sales price up to €45.00 and 7.21% for any portion of the total sales price greater than €45.00); Additional fees apply if you use Amazon's e-fulfilment service, FBA.

2. eBay.it

Ebay is a prominent global player, boasting an astounding user base of over 187 million eBay users worldwide. This expansive platform offers a wide range of opportunities for selling various types of goods. It serves as a facilitator for both C2C and B2C commerce, allowing individuals and companies alike to engage in successful transactions.

Visits per month in Italy: 76.9 million

Category: general

Fee for retailers: starting at €19.50 per month, plus Variable fees, depending on selected services; 4.5% to 12% commission per sale, depending on the product category

3. Mediaworld.it

Mediaworld is an all-round online store that offers a diverse range of products across multiple categories, including; electronics, furniture, appliances, and toys. With a global net sales of €666 million, it has established itself as a significant player in the market.

However, it is important to note that Mediaworld.it provides support and communications exclusively in English. This limitation can be considered a disadvantage, as conducting business in the local language is crucial for effective customer service and engagement.

Visits per month in Italy: 11.3 million

Category: electronics

Fee for retailers: exact fees unknown

4. UniEuro.it

UniEuro stands as the premier Italian retailer for consumer electronics and household appliances, boasting the largest number of outlets with an impressive network of 460 stores spanning across Italy.

This platform serves as an ideal marketplace for selling electronics and accessories, being a great space to meet a larger customer base. Furthermore, being an online store with a focus on national sales, Unieuro presents a convenient avenue for sellers within Italy's borders.

Visits per month: 10.4 million

Category: electronics

Fee for retailers: exact fees unknown

5. AliExpress.com

AliExpress is a versatile B2C and C2C selling portal that goes beyond just providing a marketplace. Alongside its extensive product offerings, it offers valuable cloud computing and payment services. This makes it an ideal platform for e-commerce brands adopting the dropship business model.

AliExpress empowers entrepreneurs to connect with buyers across Italy and Europe, expanding their market presence and boosting sales. In this regard, it has often been compared to eBay, as it allows independent sellers to leverage the platform to showcase their products and reach potential buyers.

Visits per month in Italy: 8.65 million

Category: general

Fee for retailers: no monthly fee. 5-8% commission per sale

Which online marketplace should you choose?

While Amazon.it remains the dominant player in the market, the Italian e-commerce landscape boasts a variety of competitive local selling platforms that enjoy significant popularity among consumers. This vibrant ecosystem provides online retailers with a diverse selection of locally approved platforms to cater to their needs.

Choose a 3PL partner

If you're looking to sell and expand your brand in Italy, partnering with a reliable 3PL partner like Hive to handle all of your brand’s operations. Go one step further by extending your reach to other European markets such as France, Spain, the UK, and Germany.

Our seamless integration with your online store enables efficient order fulfillment, from picking and packing to timely product delivery. Intrigued? Discover more about our services and how we can benefit your brand here.