For the method 1, due to there are around 3500 rows in the excel file, it is not recommended to copy and paste items form excel file to SharePoint server.
For the method 2, Excel creates the list for you. In the Address box, type the address like this URL http://webapplication/sites/testsite. Also make sure that you log in Excel with account has enough permission.
For the method 3, please try following PowerShell.
Add-PSSnapin Microsoft.SharePoint.PowerShell -ErrorAction SilentlyContinue
#Read the CSV file
$CSVData = Import-CSV -path "C:\Data.csv"
#If the CSV Doesn't has column Headers, you can create Named Headers
$CSVData = Import-CSV -path "C:\Data.csv" -Header("Title", "Description", "Priority", "AssignedTo", "DueDate", "Status")
#Get the Web
$web = Get-SPWeb -identity "siteurl"
#Get the Target List
$list = $web.Lists["sitename"]
#Iterate through each Row in the CSV
foreach ($row in $CSVData)
{
$item = $list.Items.Add();
$item["Title"] = $row.Title
$item["Description"] = $row.Description
$item["Priority"] = $row.Priority
#Set the People Picker Field value
$item["Assigned To"] = Get-SPUser -Identity $row.AssignedTo -web "siteurl"
#Set the Date Field value
$item["Due Date"] = Get-Date $row.DueDate
$item["Status"] = $row.Status
$item.Update()
}
Here is another way for you to import excel spreadsheet to SharePoint list.
Go to Site contents -> Import Spreadsheet -> Choose excel file to import data.
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