How to sell online: a practical guide to online marketplace success

Marketplaces are a major force in Australia’s eCommerce landscape. Australians spent $18.9 billion on pure online marketplace platforms in 2025, representing 23% of total online spending.¹

With 69% of consumers purchasing from online marketplaces and 78% through retailer websites, marketplaces now sit alongside traditional online stores as a core sales channel.¹

For businesses looking to sell online in Australia, understanding how online marketplaces work - and which ones best suit your products - is a critical first step.

In this guide we’ll explore why, where and how you can start selling through online marketplaces.

We’ll cover:

• What is an online marketplace?
• Marketplace vs your own website: which is better?
• Why online marketplaces are popular with Australian businesses
• How to choose the right marketplace for your business
• 12 of the best online marketplaces in Australia to sell on
• Tips for successful selling through online marketplaces
• Common questions about selling online and marketplaces

What is an online marketplace?

An online marketplace is a digital platform where multiple sellers list and sell products to customers. Instead of managing their own standalone store infrastructure, sellers can leverage the marketplace’s existing audience, technology and trust.

Examples of online marketplaces include global platforms like Amazon and eBay, as well as Australian marketplaces such as THE ICONIC, Bunnings, Baby Bunting, BIG W and Woolworths’ Everyday Market.

Marketplaces typically handle key elements of the customer journey, including:

• Product discovery and search
• Payments and checkout
• Customer trust and platform policies
• In some cases, fulfilment and returns.

This makes them an attractive entry point for businesses looking to sell products online quickly and efficiently.

Marketplace vs your own website: which is better?

Finding the balance between the brand control you get managing your own website and fulfilment and the audience reach achieved via a marketplace is, for many businesses, a hard one to strike. If you’re deciding whether to sell exclusively through an online marketplace, build your own website or a hybrid approach, here are some essential considerations.

When considering how to sell online, the most effective strategy is often a mix of your own website and one or more marketplaces. Developing a hybrid approach to selling online can become a strategic advantage as online shopping grows to pre-pandemic levels.⁵

Your website supports storytelling, loyalty and long-term customer relationships. It allows you to build your brand’s identity, values and positioning, while giving you access to browsing and sales data that helps guide business decisions.

Marketplaces act as immediate acquisition engines and can be a powerful channel to scale your business. When working well, new customers can be acquired at a lower cost than if you were acquiring them yourself. With an intentional approach (for example in-box offers, warranty registrations) you can convert marketplace customers to direct customers.

Why online marketplaces are popular with Australian businesses

In Australia, online marketplaces have evolved from simple product directories into sophisticated retail ecosystems that support discovery, convenience and scale.

Built-in audience and discovery

Marketplaces provide immediate access to large, active customer bases. Nearly 9 million Australians shop at least once a year on Amazon, 4.7 million on Temu² and one in five households buy from THE ICONIC.³ With millions of shoppers already browsing these platforms, businesses can gain exposure without needing to build traffic from scratch.

Marketplaces also play a strategic role in helping brands reach new audiences while maintaining control over their trading model.

Lower upfront costs

For eCommerce business starting out, products can be tested on marketplaces without the overheads of your own website and checkout infrastructure.

Trust and customer confidence

Consumers often choose marketplaces because they trust the platform experience.⁴ Customers expect reliable delivery, transparent returns and consistent service regardless of the seller.¹

According to THE ICONIC, trust is a key motivator: customers shop on marketplaces because they are confident in the experience they will receive, from product discovery through to delivery and returns.

“We differentiate ourselves by being laser-focused on fashion and lifestyle and obsessing over the end-to-end customer experience. For us, an inspiring and relevant assortment is critical, but it’s not enough. To truly stand out as a pure-play fashion eCommerce retailer, we need to deliver a ‘beyond the fitting room’ experience for our customer,” Javadi says.

Faster time to market

For small and medium businesses, marketplaces can act as an immediate sales channel. This allows businesses to test demand, scale product visibility and expand reach without the time required to build a fully optimised standalone store.

As well as in-built audiences, many marketplaces also offer marketing and fulfilment services that help ensure discoverability and seamless end-to-end customer experiences.

How to choose the right online marketplace for your business

Not all online marketplaces are created equal. Which platform will work best for you depends on your customers, products, margins and long-term growth goals.

To choose the right online marketplace for your business, consider the following:

1. Understand your target audience
2. Compare fees and margins
3. Consider integration and operational efficiency
4. Review delivery expectations and customer experience
5. 7 questions to help you choose the right online marketplace for you

1. Understand your target audience

Different marketplaces attract different demographics. For example, fashion-focused platforms prioritise curation and customer experience (including fast delivery and premium returns options), while value-led marketplaces attract price-conscious shoppers who prioritise price over experience (although delivery speed expectations are rapidly rising even amongst bargain shoppers).

Understanding your audience helps you choose a marketplace where you’re most likely to find shoppers looking for products like yours whose expectations you can meet.

2. Compare fees and margins

Marketplace fees can include commissions, listing costs and fulfilment charges. Being clear about what these are up front helps you factor them into your pricing strategies to protect margins.

3. Consider integration and operational efficiency

Platforms that integrate with inventory systems, eCommerce platforms and shipping tools can significantly reduce manual workload and support scaling. Understanding a marketplace’s limitations and opportunities for integration helps you make an informed decision about what will work for you.

4. Review delivery expectations and customer experience

Delivery speed, tracking and returns policies heavily influence customer satisfaction on marketplaces. Platforms with clear delivery updates and easy returns processes often drive higher conversions, repeat purchases and loyalty. Many marketplaces have strict rules around delivery speed and fulfilment. Making sure you can meet these is important for successful partnerships.

7 questions to help you choose the right online marketplace for you

Before locking in a marketplace, sanity-check your selection by asking yourself these seven questions.

1. Does the marketplace align with my audience’s needs?
2. Does the marketplace align with my brand’s values?
3. Are the platform’s fees, costs and charges clear?
4. Will factoring the total costs into my pricing protect margins without turning customers away?
5. Does the platform integrate seamlessly with my existing systems?
6. Do the marketplace’s delivery and fulfilment policies align with mine?
7. Can I meet the platform’s delivery and fulfilment rules?

12 of the best online marketplaces in Australia to sell on

Australia’s marketplace landscape now includes a range from global marketplaces to home-grown heroes and niche offerings powered by established brands. The scope of what a marketplace can offer your business ranges from simply including your products on a marketplace so you can ship orders, to marketplaces managing storage and fulfilment, inclusion in loyalty programs and more. Choosing the right platform depends on your product category, target audience and growth strategy.

eBay Australia

eBay is one of the most mature Australian marketplaces, offering auction and fixed-price listings with strong buyer trust.

Best for: Established brands, refurbished products and collectibles.

Audience: Large, high-intent customer base.

Shipping and fulfilment: Flexible options including integrated label printing, end-to-end tracking and a nationwide Click & Collect network.

Learn more about how to sell on eBay Australia

Etsy

Etsy is ideal for small creative businesses looking to reach global audiences interested in unique and artisanal items.

Best for: Handmade, creative and niche products.

Audience: Creative shoppers looking for unique or personalised products.

Shipping and fulfilment: Options to buy Australia Post labels directly (with auto-tracking) or manually upload tracking from your own carrier.

Learn more about how to sell on Etsy

THE ICONIC Marketplace

THE ICONIC is a leading Australian marketplace for fashion and lifestyle products, known for its curated brand mix and premium customer experience.

Best for: Established fashion, beauty and home brands. Sellers are curated by THE ICONIC and the checkout experience is tailored to savvy shoppers, including the option to select a Parcel Locker at checkout.

Audience: Fashion-forward shoppers who prioritise fast delivery and easy returns.

Shipping and fulfilment: You can choose from three partnership types: Fulfilment by THE ICONIC (pick, pack, ship and support), Shipped by THE ICONIC (you pack, they deliver) and Dropship (you manage the entire end-to-end storage and shipping process).

Learn more about how to sell on THE ICONIC

Myer Marketplace

Myer Marketplace is a highly curated platform with a large audience including 4.6 million members of Myer One, Myer’s customer loyalty program. Suppliers must adhere to strict shipping, fulfilment and returns guidelines.

Best for: Fashion, homewares and lifestyle products.

Audience: Brand-conscious shoppers seeking premium products.

Shipping and fulfilment: You fulfil orders and need to comply with the Myer Marketplace Selling Guidelines.

Learn more about how to sell on Myer Marketplace

BIG W Market

As part of Woolworths Group Marketplaces, BIG W Market enables sellers to tap into established retail traffic and loyalty ecosystems.

Best for: Family, lifestyle and everyday products.

Audience: Value-driven everyday shoppers.

Shipping and fulfilment: Handled by you.

Learn more about how to sell on BIG W Market

Everyday Market (Woolworths)

Retail-led marketplaces like Everyday Market allow sellers to align with trusted Australian retail brands and benefit from existing customer relationships.

Best for: Home, lifestyle and complementary retail categories

Audience: Existing Woolworths grocery shoppers seeking a one-stop shop experience.

Shipping and fulfilment: Handled by you.

Learn more about how to sell on Everyday Market

Bunnings Marketplace

A curated extension of Australia’s hardware leader. Bunnings is highly selective in choosing ‘Trusted Sellers’ for its marketplace. They look for sellers who fill gaps in their range without competing directly with their core in-store product range.

Best for: Home improvement, professional tools, outdoor living, and bulky lifestyle categories (e.g. furniture, appliances).

Audience: DIY shoppers and trade professionals.

Shipping and fulfilment: Marketplace orders are shipped directly by you.

Learn more about how to sell on Bunnings Marketplace

Kogan Marketplace

Kogan is one of Australia’s largest pure-play online retailers, offering high-volume exposure to a price-conscious customer base. An active loyalty program attracts return shoppers.

Best for: Electronics, appliances and high-volume retail.

Audience: A tech-savvy, price-sensitive demographic (predominantly male) loyal to the Kogan First ecosystem.

Shipping and fulfilment: You can choose to store and ship orders yourself, or talk to Kogan about a supplier partnership where they handle fulfilment.

Learn more about how to sell on Kogan

Temu (Local Seller Program)

Temu is a rapidly growing marketplace that has transitioned from a cross-border model to actively recruiting Australian businesses. While traditionally known for slow shipping, the Local Seller model uses Australian warehouses to offer 4-6 day delivery, making it a direct competitor to Amazon and Kogan.

Best for: High-volume, price-competitive categories such as home gadgets, fashion basics and toys.

Audience: Value-driven shoppers who have a high tolerance for deal-hunting and gamified shopping experiences.

Shipping and fulfilment: You ship products to consumers.

Learn more about how to sell on Temu

Shopify Collective / Marketplace integrations

Shopify Collective presents an opportunity for you to sell on another brand’s online store, or offer another brand’s products on your site. Margins typically range between 20% and 50% according to Shopify.

Best for: Established brands looking to offer complementary products or curated guest ranges (e.g. a fitness apparel brand selling a partner's protein powders).

Shipping and fulfilment: You fulfil orders.

Learn more about Shopify Collective

Temple and Webster

Temple & Webster is an online-only retailer for furniture and homewares offering access to a large, established and trusting price-conscious audience.

Best for: Homewares, furniture and home décor products.

Audience: Aspirational but value-conscious audience base.

Shipping and fulfilment: You fulfil orders.

Learn more about how to sell on Temple & Webster

Baby Bunting

Baby Bunting is Australia’s biggest specialist baby goods retailer, catering to parents with children from newborn to three years of age.

Best for: Baby (including clothing, devices, prams, car seats and furniture), maternity and family lifestyle products

Audience: A highly engaged audience of parents, caregivers and gift-givers.

Shipping and fulfilment: You fulfil orders.

Learn more about how to sell on Baby Bunting

Amazon Australia

Amazon offers a vast customer base, strong logistics infrastructure and high search visibility. It suits businesses ready to scale volume and compete on pricing and fulfilment performance.

Best for: Scalable retail, electronics, home and consumer goods.

Audience: Vast customer base that prioritises convenience and fast delivery.

Shipping and fulfilment: There are three fulfilment options. The first is you fulfil all orders, the second is Amazon stores and fulfils all orders placed on the Amazon marketplace and the third is you can have Amazon store and fulfil all orders – including those placed on your own website or a third party site.

Learn more about how to sell on Amazon Australia

Tips for successful selling through online marketplaces

Listing is only one step in making marketplaces a successful part of your online sales strategy. Here are three tips for selling products online effectively.

1. Optimise product listings for search and discovery
2. Set clear pricing and shipping options
3. Manage returns effectively

1. Optimise product listings for search and discovery

Include clear titles, detailed descriptions and high-quality images in your listing to improve its visibility not only in marketplace search results but also in AI-powered product recommendations.

AI adoption is growing, with six in ten Australians now using AI. 28% of Millennials use it every day.¹ Agentic commerce may soon complete the full shopping journey without human intervention. Making sure your listing is discoverable and optimised for AI becomes more critical.

Many platforms offer tools to help you improve your product listings to save time on administration and increase search visibility. Two examples, from eBay and Shopify, are:

eBay Australia’s Advanced Listing tool offers:

• Automated description generation: Using image recognition and titles to draft professional, SEO-friendly descriptions.
• AI image clean-up: Automatically removes backgrounds and adjusts lighting to meet marketplace quality standards.
• Smart item specifics: Scans photos to pre-fill technical details like brand, colour, material and dimensions.

Shopify’s Shopify Magic

• Brand voice cloning: Learns your unique brand tone of voice from past posts to create new descriptions.
• Generative lifestyle imagery: Places your product shots into AI-generated backgrounds.
• Sidekick pulse: Suggests edits to your listings if it detects a drop in conversion rates.

2. Provide attractive shipping options

Shipping experience and delivery options can directly influence marketplace conversions, ratings, reviews and repeat purchases. Select a shipping partner you know customers trust, with reliable and safe tracking, regional reach and modern delivery options like Parcel Lockers.

Depending on their location, generation and the purchase urgency, consumers may prioritise delivery speed, reliability and choice differently.

Speed

• 26% of consumers expect deliveries to arrive same day or next day when it’s time sensitive or for special occasions.¹
• 43% of consumers are willing to pay extra for same-day or next-day deliveries. This increases for Gen Z (59%) and Millennials (59%).¹

Reliability

• 85% of shoppers say a reliable delivery experience will be the most important factor in trusting online retailers over the next five years.⁸
• 70% of consumers say poor delivery communication at checkout makes them less likely to complete purchase.¹
• 8.7m people use the AusPost app and 49% of shoppers say receiving updates from multiple sources makes the experience feel cluttered and confusing.¹

Choice

• 32% of consumers would switch retailers to access Parcel Lockers.¹

3. Manage returns effectively

26% of online shoppers buying from Australian retailers abandon cart if the returns policy isn’t clear.⁷ Explore whether you can provide your own returns policy, or if the marketplace’s policy will meet your customers’ expectations. Make returns policies clear and the process easy for customers to strengthen loyalty and increase repeat purchases.

Common questions about how to sell online and through marketplaces

What does it mean to sell online?

Selling online refers to offering products or services through digital channels, allowing customers to browse, purchase and receive goods without visiting a physical store. For Australian businesses, this typically involves three main approaches.

Selling through an online marketplace

An online marketplace is a platform where multiple sellers list products in one place. Customers can discover, compare and purchase from different brands within a single trusted environment. Advantages of this approach include built-in traffic, streamlined checkout experiences and established customer trust.

Selling through your own website

Launching an eCommerce website gives businesses full control over branding, pricing and customer experience. However, it often requires more investment in marketing, technology and customer acquisition.

Using a hybrid approach (marketplaces + website)

Many successful Australian retailers use marketplaces to acquire new customers, then leverage in-the-box incentives like exclusive discounts or product warranties to transition them to their own website. This hybrid model allows businesses to benefit from a marketplace’s reach while building long-term loyalty and capturing higher margins through direct channels.

How do I sell online in Australia?

You can sell online through an online marketplace, your own eCommerce website or a hybrid approach. Many small businesses start with marketplaces for their built-in audience and lower upfront costs while they build their customer base.

What is the best online marketplace in Australia?

The best marketplace depends on your product category and audience. Platforms like Amazon, eBay and retail-led marketplaces such as THE ICONIC Marketplace or BIG W Market suit different business models. Understanding your audience, how marketplace costs can impact your margins and a platform’s integration with your system can help you make the right choice.

Can I sell on multiple online marketplaces?

Yes. Many businesses list products across multiple marketplaces to maximise reach and reduce reliance on a single sales channel.

Do I need a website to sell online?

No. Many businesses successfully sell exclusively through marketplaces. However, having your own website can help establish a brand and build long-term customer loyalty.

How much do online marketplaces charge?

Fees vary by platform and may include commissions, listing fees and fulfilment costs. It’s important to factor these into your pricing and margin calculations.

Start selling online with confidence

Online marketplaces are now a core pillar of Australia’s eCommerce ecosystem, offering businesses a scalable, capital-light pathway to growth. 

For micro, small and medium businesses, the opportunity lies in using marketplaces strategically. Marketplaces can be powerful acquisition engines that create discoverability and enable scaling, while leveraging owned channels for brand storytelling, loyalty and long-term margin protection. By choosing the right marketplace, delivering a reliable customer experience and aligning fulfilment with customer expectations, you can build a resilient and future-ready online sales strategy.