Top 5 Best E-Commerce Platforms for Small Business in 2024

Introduction

Starting a small business in 2024 has never been easier, thanks to a variety of e-commerce platforms that allow you to reach a global audience. Whether you're selling handmade products, wholesale goods, or niche items, choosing the right platform can make or break your success. 

In this guide, we’ll explore the top 5 e-commerce platforms to kickstart your small business, comparing their pros and cons, costs, and ease of use.

These platforms are:

• Amazon
• eBay
• Walmart Marketplace
• Etsy
• AliExpress

By the end of this article, you'll know which platform suits your business type best, and you can dive deeper with specific guides for each platform through the internal links provided. Let’s get started!

Amazon

Amazon remains the world’s largest e-commerce platform, offering small businesses a unique opportunity to reach millions of customers worldwide. Whether you want to sell private label products, wholesale goods, or even drop-ship, Amazon has a solution for everyone.

Opportunities for Small Business Owners:

Amazon provides tools like Fulfillment by Amazon (FBA) that handle logistics, allowing you to focus on scaling your business. With Amazon Prime, your products can reach more than 200 million active members. If you’re selling in the United States, Amazon’s vast infrastructure helps ensure quick shipping and customer satisfaction.

Pros:

• Access to a global market with millions of active users
• FBA simplifies shipping and returns
• Trust and credibility through the Amazon Prime badge
• Strong marketing tools like Amazon Advertising

Cons:

• High competition across all product categories
• Fees, including referral fees and FBA fees, can cut into profit margins
• Strict policies regarding customer service and returns

Costs:

• Individual Seller Plan: $0.99 per sale
• Professional Seller Plan: $39.99/month + referral fees ranging from 6% to 45% depending on the category

Best for:

Selling a variety of goods, from wholesale to private label, especially if you want to use Amazon’s fulfillment services. For more details, check out our complete guide to starting a small business on Amazon.

eBay

eBay remains a go-to platform for auction-style listings, but it has evolved to cater to small businesses selling everything from vintage items to brand-new products. With 182 million buyers worldwide, eBay offers global reach without the complexities of running your own store.

Opportunities for Small Business Owners:

eBay is ideal for sellers looking to resell used or niche products, especially vintage or collectible items. The Buy It Now option also caters to traditional retail, making it a versatile platform for different selling styles.

Pros:

• Flexible selling options: auction or fixed-price listings
• Low fees compared to some other platforms
• Access to an audience seeking unique or hard-to-find items
• Simple listing process

Cons:

• Lower trust factor than Amazon; many buyers are cautious of used goods
• Less control over branding compared to standalone e-commerce sites
• Limited fulfillment options (you handle shipping unless using eBay’s managed options)

Costs:

• Basic Store: $21.95/month with 250 free listings, 10% final value fee
• Premium Store: $59.95/month with 1,000 free listings, 9% final value fee

Best for:

Selling vintage items, collectibles, or offering discounted products. For more detailed insights, visit our complete guide on starting a small business on eBay.

Walmart Marketplace

Walmart massive footprint in the retail world extends to its e-commerce platform, Walmart Marketplace, which is quickly becoming a top choice for small businesses wanting to scale. With a focus on trust and convenience, Walmart Marketplace is particularly attractive for U.S.-based sellers.

Opportunities for Small Business Owners:

Walmart’s customer base trusts the brand for everyday essentials, making it an ideal marketplace for products like home goods, electronics, and groceries. Plus, Walmart offers two-day shipping for sellers who meet certain criteria.

Pros:

• Less competition compared to Amazon, particularly for niche categories
• Walmart Two-Day Shipping increases customer satisfaction
• Lower fees than Amazon’s FBA
• Access to Walmart’s vast in-store customer base, bridging online and offline retail

Cons:

• Stringent approval process to become a Walmart seller
• Less robust tools and support compared to Amazon
• Limited international reach compared to Amazon and eBay

Costs:

• No subscription fee, but referral fees range from 6% to 20% based on the product category

Best for:

Sellers in the U.S. focusing on wholesale or brand-new products, particularly in categories like electronics, home essentials, and groceries. Learn more in our complete guide to starting a business on Walmart Marketplace.

Etsy

If you’re selling handmade products, craft supplies, or vintage items, Etsy is the go-to marketplace. With over 96 million active buyers, Etsy has carved out a niche for creative entrepreneurs who want to reach an audience looking for unique and custom-made goods.

Opportunities for Small Business Owners:

Etsy caters specifically to handmade and vintage products, so you don’t have to compete with big retailers selling mass-produced items. Sellers can also build strong personal brands, as buyers appreciate the stories behind handmade items.

Pros:

• Perfect for sellers of handmade, vintage, or custom items
• Strong sense of community among buyers and sellers
• Easy-to-use platform with customizable store options
• Low upfront costs

Cons:

• Limited to certain product categories (handmade, vintage, and craft supplies)
• Transaction fees and advertising costs can add up quickly
• High competition within the handmade niche

Costs:

• Listing Fee: $0.20 per item
• Transaction Fee: 6.5% of the sale price

Best for:

Creative entrepreneurs selling handmade or custom products. For a full breakdown, see our complete guide to starting an Etsy business.

AliExpress

AliExpress, part of the Alibaba Group, is a massive e-commerce platform primarily catering to international buyers. It’s a popular platform for drop-shippers and small businesses looking to source inexpensive products from overseas manufacturers.

Opportunities for Small Business Owners:

AliExpress allows sellers to either list their own products or engage in drop-shipping, where products are shipped directly from manufacturers in countries like China. This makes it a low-cost option for starting a business without the need for upfront inventory.

Pros:

• Ideal for drop-shipping and sourcing products directly from manufacturers
• Access to a global audience
• No upfront inventory costs for drop-shippers
• Wide variety of product categories

Cons:

• Shipping times can be long, especially for international orders
• Lower product quality can lead to higher returns and refunds
• Limited brand-building opportunities compared to other platforms

Costs:

• No upfront fees for sellers, but commission fees range from 5% to 8% depending on the category

Best for:

Entrepreneurs looking to drop-ship products or source inexpensive items for resale. For more details, check out our complete guide to starting a business on AliExpress.

Platform Recommendations Based on Business Type

• Handmade and Custom Products: Etsy is the best choice for selling handmade or custom goods.
• Wholesale Goods: Amazon and Walmart Marketplace are ideal for selling wholesale products.
• Niche or Vintage Items: eBay is best for selling niche, vintage, or collectible products.
• Drop-Shipping Business: AliExpress excels for drop-shipping and sourcing low-cost products.
• Brand-New Consumer Goods: Amazon and Walmart Marketplace are strong options for new products.

Conclusion

Choosing the right e-commerce platform for your small business is critical for success in 2024. Each platform offers unique opportunities, but the best choice depends on the products you sell, your target market, and your long-term business goals.

Be sure to check out our in-depth guides to each platform for more detailed information:

• Complete Guide to Starting a Small Business on Amazon
• eBay Business Guide for 2024
• How to Start a Walmart Marketplace Business
• Comprehensive Guide to Selling on Etsy
• Start a Drop-Shipping Business with AliExpress

Take the first step toward entrepreneurial success today by choosing the right platform to kickstart your e-commerce journey in 2024!

Frequently Asked Questions

Which e-commerce platform is best for small businesses in 2024? +

The best e-commerce platform for small businesses in 2024 depends on your product type and business goals. Amazon is ideal for sellers aiming for a global reach, while Etsy is perfect for handmade or vintage items. Walmart Marketplace is great for U.S.-based sellers, and eBay works well for niche or second-hand goods. AliExpress is ideal for drop-shippers.

What are the costs of selling on Amazon vs eBay? +

Amazon charges a $39.99/month subscription fee for the Professional Seller plan, along with referral fees ranging from 6% to 45%, while eBay’s Basic Store costs $21.95/month with a 10% final value fee. Both platforms have variable costs based on the product category and shipping methods.

Is Etsy a good platform for selling handmade products? +

Yes, Etsy is one of the best platforms for selling handmade and custom products. With over 96 million active buyers, Etsy provides a strong community-focused marketplace that prioritizes unique, handmade, and vintage items.

Can I start a drop-shipping business on AliExpress? +

Yes, AliExpress is one of the most popular platforms for starting a drop-shipping business. You can source products directly from manufacturers and list them on other platforms like Shopify or eBay without holding inventory.

How does Walmart Marketplace compare to Amazon for small businesses? +

While Amazon has a larger global audience, Walmart Marketplace is gaining popularity, especially in the U.S. It has lower fees and less competition compared to Amazon, but a more selective approval process. Both platforms offer valuable opportunities, depending on your business needs.