Top 10 E-Commerce Channels for SMB Sellers in the US (2025)

Top 10 E-Commerce Channels for SMB Sellers in the US (2025)

The e-commerce landscape in 2025 offers more selling opportunities than ever for small and mid-sized businesses. It’s no longer enough to rely on a single website or marketplace — successful sellers now diversify across multiple platforms to reach broader audiences and reduce dependency on any one channel. From dominant marketplaces and social media storefronts to building direct-to-consumer (DTC) sites, each channel brings unique advantages, tools, and customer behaviors. Below, we break down the top 10 e-commerce channels for U.S. SMB sellers in 2025, what makes each one powerful, and why smart sellers are using them in combination.

1. Amazon – The Dominant Online Marketplace

Amazon remains the heavyweight of e-commerce in the U.S., responsible for roughly 38% of all U.S. online retail sales, according to Statista. With over 300 million active users and more product searches beginning on Amazon than anywhere else, it remains the default shopping destination. Amazon Prime’s 200+ million global members expect fast, free shipping — something Amazon delivers through its Fulfillment by Amazon (FBA) program. FBA gives small businesses access to Amazon’s logistics network for storage, shipping, and returns, while also granting products Prime eligibility.

Its scale is unmatched. According to Similarweb, Amazon had over 3.6 billion monthly visits in 2024, about 80% from the U.S. Third-party sellers now account for over 60% of items sold, and more than 2 million active sellers operate globally. As Analyzify notes, thousands of small sellers now exceed seven figures in annual sales. From advertising tools to seller analytics, Amazon gives entrepreneurs massive reach — if they can handle the competition.

But that reach comes at a cost. Referral fees average 15% in many categories, and FBA fees add up quickly. Amazon also enforces strict seller metrics and controls the customer relationship. While the volume potential is huge, it’s wise not to build your entire business around one channel.

2. Walmart Marketplace – Brick-and-Mortar Giant Turned E-Commerce Challenger

Walmart, America’s largest physical retailer, has quickly become a serious online contender. The company reported $75 billion in e-commerce revenue in 2024, and, as CNBC reported, its digital sales continue to grow at double-digit rates. Walmart leverages its 4,700+ stores and 255 million weekly shoppers to boost online sales through services like buy-online-pickup-in-store (BOPIS) and home grocery delivery.

Walmart Marketplace offers far less saturation than Amazon — with around 150,000 active third-party sellers in 2024 — giving SMBs more breathing room. There are no monthly seller fees, only referral fees, though sellers must pass an application to ensure product and service quality. According to Insider Intelligence, Walmart dominates U.S. online grocery, serving more than half of digital grocery shoppers, and is strong in categories like home goods and appliances. With nearly 500 million monthly visits, its site offers access to a loyal, value-focused customer base.

To help sellers compete, Walmart launched Walmart Fulfillment Services (WFS), providing two-day shipping through its distribution network. In-store pickup for third-party products blends online and offline channels. Walmart is actively recruiting new sellers and expanding into more categories, but it expects low cancellation rates, fast shipping, and reliable service. Its customer base tends to skew toward families and adults aged 30–49, according to Pew Research, making it a solid secondary pillar alongside Amazon for many merchants.

3. eBay – A Veteran Marketplace for New and Used Goods

eBay remains one of the original online marketplaces and still plays a major role in global e-commerce. In 2025, it’s especially attractive for sellers of used, collectible, or niche products, but millions of new items are sold on the platform as well. eBay’s flexible listing formats — including auctions, fixed prices, and best-offer options — give sellers more control over pricing strategies and buyer engagement.

According to eBay's financial reports, the platform had about 19 million active sellers in 2024 and facilitated approximately $85 billion in gross merchandise volume. While its growth has plateaued, eBay continues to attract a wide range of buyers, particularly enthusiasts and bargain hunters.

What makes eBay relevant in 2025 is its ease of access — anyone can start selling with little friction. It’s particularly strong for second-hand, rare, and refurbished items, offering lower competition in categories like collectibles, vintage electronics, and hobbyist gear. The platform has also been modernizing to better serve sellers of new products, with improved search visibility (including Google integration) and global reach through its Global Shipping Program. eBay’s fee structure remains straightforward, charging an insertion fee and final value fee, with no monthly cost for basic sellers.

eBay has also boosted trust with programs like its Authenticity Guarantee, covering items like sneakers, luxury watches, and trading cards — which has helped bring in serious collectors. These efforts have kept eBay strong in enthusiast and specialty markets. In 2025, it’s focused on retaining these loyal users while attracting more mainstream sellers through better tools and support for fixed-price listings. With roughly $35 billion in U.S. GMV annually, eBay may not be flashy, but it remains a dependable channel with flexible formats and a loyal customer base.

4. Shopify – Build Your Own Online Store and Brand

While marketplaces remain vital, building a standalone online store gives SMBs more control — and Shopify is the leading platform for doing just that. Unlike marketplaces like Amazon or Walmart, Shopify is a commerce platform that lets entrepreneurs create custom online stores with integrated checkout, shipping tools, and thousands of add-ons.

According to Backlinko, more than 2 million merchants use Shopify across 175+ countries, including hundreds of thousands in the U.S. In 2024, Shopify hit record highs in revenue and merchant growth, showing that independent DTC stores remain a thriving part of the e-commerce ecosystem.

Shopify is crucial in 2025 because it offers full ownership over the brand and customer relationship. Merchants can create fully customized sites, control their design and content, and access rich customer data — unlike marketplaces, where sellers compete side-by-side. Shopify’s ecosystem also includes the Shopify App Store, integrations with Amazon, Facebook, TikTok, and others, and a centralized dashboard for managing multichannel sales.

Its seller tools are robust: Shopify Payments handles transactions, while analytics, discount codes, and fulfillment integrations simplify operations. Shopify’s POS system also enables in-person selling. New in 2025 are AI tools for content generation and the continued rollout of Shopify Markets, which helps merchants expand internationally with localized pricing and compliance.

There are a few considerations. Shopify doesn’t bring shoppers to your store — you need to drive traffic through SEO, paid ads, and social media. Monthly plans start at $29, and additional fees may apply for third-party payment gateways. Still, the long-term benefits of brand ownership, better margins, and full control make Shopify a must-have for serious e-commerce businesses.

5. Etsy – Handmade and Vintage Goods Marketplace

For artisans, makers, and vintage sellers, Etsy remains the top platform for creative goods. It has carved out a powerful niche in the market, attracting millions of buyers looking for handmade, personalized, or vintage items that can’t be found elsewhere.

According to Analyzify, Etsy had more than 91 million active buyers and around 6–7 million active sellers as of 2024, most of them small-scale or solo entrepreneurs. Etsy buyers are drawn to categories like jewelry, home décor, art, gifts, wedding supplies, and vintage clothing — areas underserved by mainstream marketplaces.

Etsy matters in 2025 because it offers a ready-made audience that values originality and craftsmanship. It handled around $15 billion in gross merchandise sales in 2024 and continues to grow, with over 2.5 billion in quarterly sales mid-year and more than 400 million monthly visits. Shoppers on Etsy tend to be highly engaged, with long browsing sessions and frequent repeat purchases.

The platform is accessible: listing an item costs just $0.20, with a 6.5% transaction fee when sold. Etsy Payments and Etsy Ads offer integrated selling tools, and sellers can also opt into off-site advertising for additional exposure. Many sellers use Etsy alongside other platforms — about 54% are multichannel, often combining Etsy with Amazon or their own Shopify store.

In 2025, Etsy is doubling down on its community appeal while encouraging more product customization and one-on-one buyer interaction. It’s best suited for creatives, artists, crafters, print-on-demand entrepreneurs, and vintage resellers. If your product stands out for its uniqueness, Etsy’s specialized buyer base could be a cornerstone of your growth this year.

6. Meta’s Facebook & Instagram – Social Commerce at Scale

Social media is no longer just a tool for marketing — it's now a direct sales channel. Under Meta, Facebook Marketplace and Instagram Shopping have become critical for small business e-commerce. Facebook Marketplace lets sellers reach local buyers or ship nationwide, all within the Facebook app. Usage has exploded: by 2024, more than 1 billion people per month were actively browsing or buying via Facebook Marketplace.

Instagram adds a visual twist, with product tagging in posts and stories, plus a Shop tab for business profiles. Shoppers often discover items through curated content and may complete purchases via links or in-app checkout. According to Sprout Social, 29% of U.S. social media users have made purchases directly on Instagram, making it the third most-used platform for shopping — behind only Facebook and one other.

Meta’s platforms are indispensable because of their reach. Facebook has nearly 3 billion monthly users globally, while Instagram counts over 170 million in the U.S., with the majority aged 18–34. Facebook Marketplace is especially effective for locally-oriented sellers, such as those offering furniture, vintage goods, or thrift finds. It also fosters trust through Messenger communication and personal profiles. Meanwhile, Instagram is ideal for highly visual products — like fashion, beauty, or home decor — and often leverages influencer culture to drive viral interest and impulse purchases.

Both platforms continue to expand commerce tools. Facebook introduced Meta Pay for secure checkout and launched Shops, which allow businesses to create storefronts synced across Facebook and Instagram. Instagram also supports product tags, a Shop tab, and even live shopping via Instagram Live. While the dedicated Shop tab was de-emphasized in late 2023, integrated shopping within content is here to stay. As of 2025, Meta remains at the center of the $1+ trillion global social commerce industry, with Facebook ranked #1 and Instagram close behind, according to Sprout Social. For SMBs, these platforms aren’t just about selling — they’re about building community, brand identity, and content-driven discovery.

7. TikTok Shop – Short Videos, Big Sales

TikTok has quickly evolved from a viral video app to a powerhouse e-commerce platform, thanks to the rollout of TikTok Shop. This feature allows users to browse, discover, and purchase products directly within their video feed — merging content and commerce in real time. In 2024, TikTok Shop reportedly aimed for more than $17 billion in U.S. merchandise sales, according to Forest Shipping, signaling its ambitions to challenge major players.

TikTok’s appeal lies in its massive user base (over 150 million U.S. users) and its algorithm-driven, highly engaging format. The platform encourages sellers to post short, creative videos that demonstrate products in use. Think QVC meets social media: sellers can even host livestream shopping events with limited-time deals, a model that has already seen massive success in Asia and is gaining momentum in the U.S. In 2024, TikTok reported "explosive growth" in live shopping as more creators adopted the format.

TikTok Shop offers seller tools to manage listings, inventory, and orders, plus integrations with influencers through the Creator Marketplace. The algorithm is powerful for niche discovery — trends like #BookTok have driven entire product categories. Key in-app features include product links in videos, a Shop tab on profiles, and exclusive promotions to create urgency. High session times (often far longer than other platforms) make TikTok a prime space for conversions when a product resonates.

One trend to watch in 2025 is TikTok’s investment in infrastructure. In some regions, it’s even building fulfillment centers to compete more directly with Amazon on logistics. For SMBs with visually appealing or demonstrable products, TikTok Shop presents an exciting frontier with viral upside and relatively low saturation compared to older platforms.

8. Google Shopping – The Gateway to Online Shoppers

While not a marketplace in the traditional sense, Google Shopping remains one of the most important e-commerce channels for any seller with an online store. Many product journeys begin with a simple Google search. According to recent SEO research, about 85% of online product discovery starts on either Amazon or Google — and Google alone captures roughly 36% of that traffic.'

Google Shopping encompasses multiple surfaces: the product carousels in search results, the Shopping tab, and comparison listings. Through Google Merchant Center, sellers can upload product data to appear in both free and paid placements. These listings show images, prices, availability, and reviews, making them especially powerful for shoppers comparing options across brands and retailers.

What makes Google Shopping essential is the access to high-intent buyers. Your Shopify or WooCommerce store can compete head-to-head with major retailers if your listings are relevant and well-optimized. Paid Shopping Ads (also called Product Listing Ads) appear at the top of search results, driving significant traffic. Since 2020, Google has also allowed free listings, giving smaller merchants more visibility without ad spend, though paid listings still get priority placement.

In 2025, Google is leveraging AI to enhance product discovery. Visual search via Google Lens lets users upload photos to find similar products. Google is also working to streamline the path from search to purchase with faster-loading landing pages and integrated product feeds. Even though its earlier “Buy on Google” marketplace project was phased out, the broader infrastructure remains a vital source of traffic for sellers.

For SMBs, Google Shopping functions as a digital storefront window — it’s where many buyers go when they know what they want but haven’t decided where to get it. A well-optimized presence here can drive substantial, qualified traffic to your own website or marketplace listings.

9. Temu – The Upstart Ultra-Low-Cost Marketplace

Temu, the ultra-discount online marketplace backed by China’s Pinduoduo, has rapidly emerged as a major player in global e-commerce. Launched in late 2022, Temu spent 2023 and 2024 in hyper-growth mode, frequently topping U.S. app store charts and aggressively undercutting competitors on price. By 2024, the platform had around 167 million monthly active users and over 500 million monthly site visits — astonishing metrics for such a new entrant. At various points, Temu’s app even surpassed Amazon and Walmart in U.S. downloads, reflecting its growing popularity.

Temu’s appeal lies in its extreme affordability. It features a wide range of goods — clothing, gadgets, homeware — with many items priced under $10, boosted by gamified flash sales and coupon promotions. Originally focused on shipping directly from Chinese factories, Temu has started expanding its U.S. presence by enabling domestic sellers and warehouses to offer faster delivery.

According to Modern Retail, Temu lifted its invite-only policy in late 2024, opening the platform to any American brand or seller. The same source reports Temu is now enabling U.S.-based fulfillment, offering shipping in as little as one day. This shift marks a significant strategy to challenge Amazon not only on pricing but also on delivery speed.

Temu’s user base is heavily Gen Z — about 35% of its U.S. customers fall into this group — and the average user spends over 20 minutes a day browsing the app. It feels more like a social feed than a typical shopping site, making it ideal for novelty, low-cost, or impulse-buy products. The platform’s high traffic and low pricing environment are attracting Amazon sellers too; by late 2024, several of the top third-party Amazon sellers had begun listing on Temu, according to Modern Retail.

For sellers, Temu offers scale — but with trade-offs. Margins are often razor-thin, and the platform is best suited for sellers with low-cost supply chains or high-volume models. Brand building is difficult, as Temu controls most aspects of the customer experience. Still, for sellers looking to move excess inventory, test new products, or reach a younger, price-sensitive audience, Temu is an increasingly mainstream option worth considering.

10. Target Plus – A Curated Retailer Marketplace on the Rise

Target Plus, the online marketplace arm of Target, represents a curated approach to third-party selling. Unlike the open-model marketplaces of Amazon or Walmart, Target Plus is invitation-only. Sellers must be approved by Target and typically offer products that complement the retailer’s core assortment in categories like home, electronics, apparel, and beauty.

By 2024, Target Plus featured roughly 1,000 approved third-party sellers. Target’s total e-commerce revenue — combining its own online sales and marketplace activity — reached approximately $20 billion. As reported by Digital Commerce 360, Target has ambitions to grow its marketplace GMV from $1 billion in 2024 to over $5 billion by 2030.

What makes Target Plus appealing is its strong brand affinity and customer trust. Target has a dedicated following among millennial shoppers and families, with frequent in-store and online traffic. Sellers on Target Plus gain access to this loyal audience, and their products appear directly alongside Target’s own inventory on Target.com. Some items are even promoted through Target’s internal marketing and recommendation systems.

The platform is also expanding its fulfillment capabilities. In 2025, Target began allowing select marketplace sellers to use its sortation centers for faster shipping, providing a logistical boost without requiring full in-store integration. While most Target Plus items are shipped online only, the potential for future in-store exposure gives approved sellers a strategic long-term advantage.

There are some hurdles. Sellers don’t pay a monthly fee, but they do incur commission charges, and approval is selective — brands typically need a strong track record, high-quality products, and alignment with Target’s customer base. However, once accepted, competition is far lower than on Amazon, giving products more visibility.

As noted on Target’s corporate site, the company plans to expand marketplace participation gradually, bringing on more third-party sellers in 2025 and beyond. For SMBs with premium or design-driven products that align with Target’s brand — think stylish home decor, boutique beauty, or upmarket gadgets — Target Plus can be a high-impact channel offering credibility, volume, and prestige.

Honorable Mentions:

Faire – Wholesale Marketplace for Independent Retail

Faire has carved out a niche as the leading online wholesale marketplace connecting independent brands with small retailers. It’s not a traditional B2C sales channel — rather, it’s built for B2B, enabling SMB product makers to reach thousands of boutiques, gift shops, and specialty retailers across the U.S. and abroad. Faire offers a streamlined experience: brands list their products with wholesale pricing, and retailers place orders with net terms and low minimums. The platform provides marketing support, risk-free returns for retailers, and order management tools for sellers. For brands with giftable or boutique-ready products — such as candles, skincare, jewelry, and home decor — Faire offers access to a curated, trend-driven buyer base. In 2025, the company is expanding internationally and remains a powerful channel for scaling wholesale revenue without the complexity of traditional distributor relationships.

Whatnot – Live Shopping Meets Collector Communities

Whatnot is a fast-growing live commerce platform that combines livestream selling with niche collector communities. Originally launched as a marketplace for trading cards and collectibles, Whatnot has since expanded into categories like vintage fashion, sneakers, toys, and comics. Sellers host live auctions or fixed-price streams, engaging directly with viewers while showcasing products in real time — creating a highly interactive and impulse-driven shopping experience. Whatnot takes care of payment processing and shipping logistics, allowing sellers to focus on showmanship and inventory. In 2025, it continues to be a strong channel for hobbyist entrepreneurs, flippers, and micro-retailers who thrive on personality-driven sales. If your brand leans toward collectibles or community-based categories, Whatnot offers visibility and loyal followers — especially among younger, mobile-first audiences.

Reverb – Marketplace for Musical Instruments and Gear

For sellers in the music space, Reverb remains the top e-commerce platform dedicated to new, used, and vintage instruments, recording equipment, and gear. Now owned by Etsy, Reverb is known for its strong enthusiast audience and supportive community vibe. Whether you're selling guitars, pedals, synths, or studio monitors, Reverb offers lower fees than general marketplaces and deep reach within the music ecosystem. It’s especially good for independent dealers, boutique builders, and individuals flipping used gear. In 2025, Reverb continues to add seller tools like integrated shipping labels, inventory syncing, and analytics. Its global reach and reputation for fair pricing and buyer protection make it a strong choice for niche sellers looking to tap into a passionate user base with specialized needs.

Amazon Handmade – Artisan Goods on a Trusted Platform

Amazon Handmade is Amazon’s curated section for handcrafted goods — designed to compete with Etsy while leveraging Amazon’s massive traffic and fulfillment network. Approved artisans can list handmade products in categories like home decor, jewelry, and bath & body, and reach Prime customers through Fulfillment by Amazon. It combines the scale and convenience of Amazon with some of the ethos of smaller maker communities. While competition is stiffer than on Etsy, Handmade sellers benefit from high purchase intent and access to millions of Amazon shoppers. In 2025, Amazon continues to promote the Handmade section as part of its effort to attract small businesses, and for crafters who can scale production and meet Amazon’s standards, it’s a viable way to grow beyond niche marketplaces.

LinkedIn – Emerging Hub for B2B E-Commerce

LinkedIn might not be a shopping platform in the traditional sense, but it's becoming a surprisingly effective e-commerce driver — especially for B2B, professional services, and digital product sellers. With over 1 billion members globally and strong penetration among decision-makers, LinkedIn is an excellent channel for building brand credibility, generating leads, and even directly selling courses, templates, software, or bulk orders. In 2025, LinkedIn continues to improve its newsletter, live video, and product showcase features, enabling sellers to present offerings natively. Many SMBs in categories like consulting, SaaS, or business supplies use it to generate inbound interest or move buyers into sales funnels. For any brand with a B2B component — even if it’s a side revenue stream — LinkedIn is worth incorporating into your broader e-commerce mix.