Amazon is the world’s
biggest online retail company that was created by Jeff Bezos in United States
in 1994 and it is considered the most valuable company with a brand value of
$ 756 billion. Headquartered in Seatle, it employs more than 650,000 people
among its 191 offices in 73 cities and 33 countries worldwide.
It also operates cloud
computing services, digital content, connected home technology, and it is
always diversifying its business with new units. Currently, it offers services
under 17 different brands and, in 2018, annual revenues reached $ 232.88
billion, where eCommerce was the main source of income.
Amazon is increasingly
investing in technology and content, and it is adding computer scientists,
designers, software and hardware engineers, as well as merchandising
professionals. These investments and new projects allow the company to finance
different offers and geographical expansion. The company is a benchmark in the
area of technology and content and AWS services and is constantly innovating to
improve the efficiency of its processes.
The biggest competitor of Amazon is eBay,
which is positioned second in the global eCommerce market with a 7.2% share. In
this niche, Amazon is the undisputed leader with 48% of market share, almost
$233 billion in revenues and 650,000 employees worldwide. Founded in 1955, eBay
is the American platform that has reached 180 territories and attends 180
million active buyers, with annual revenues of almost $ 11 billion.
How the company makes money
has more than 100 million active users live listings with more than 119 million issues. With 48% market share, it remains as the
world’s main eCommerce company in the United States United. It offers a wide
variety of product types, service offerings, and delivery channels, competing
with al sort of companies worldwide.
amazing brand recognition led Amazon to be considered the leader online sales
provider and to gain a high level of trust among users. Amazon’s main strategy
is based on low prices, but it is not offering free shipping because of the
AMAZON WEB SERVICES (AWS)
represents the second source of income for the group and commercializes global
compute, storage and database services. The amount charged to customers depend
on the amount of services rendered, for example the storage capacity delivered
on-demand, or in the case of database or computed, they pay for a fixed
quantity or specified term.
services is the third source of income for Amazon. It includes fees associated
with Amazon Prime memberships and access to content such as audiobooks, digital
video, e-books and digital music. It commercializes the Prime subscription that
offer access to a bunch of benefits.
eBay is the American eCommerce platform that was founded by Pierre Omidyar in California in 1955. Since it went public in 1998, it grew to reach a global presence that today includes 180 countries with almost 14,000 employees. Its main business is the online retail, with more than 180 million active buyers and annual revenues of $ 10.7 billion.
the second biggest eCommerce brand In the United States and the biggest
Amazon’s competitor with 7.2% market share. It offers a virtual
space for the purchase and sale of new and used items. Its listing offers more
than 1.4 billion products, which also includes the exchange of tickets for live
shows. It has also made it easier the product and services exchange among
people within the same community.
Alibaba is the Chinese
leading platform for online retail, with 55.9% market share in the
Asian country. The company was founded in 1999 supported on the benefits that
gave China to deliver items fast and cheap. It grew very fast and today is
present in more than 200 territories and employs 100,000 people. It is a public
company since 2004, when it was valuated in $ 25 billion, setting a world
than 674 millon active users at the
eCommerce platform, Alibaba generated revenues of $ 250.2 billion in 2018. It
is supported on a B2B business model that connects manufacturers with dealers,
and consumers between each other. The listing does not belong to Alibaba and it
is not in charge of the delivery or logistics and storage of purchases.
Walmart is an American retail
group founded by Sam Walton in 1962, that remains as a family business but is
public since 1972, despite being the world’s largest retail brand, with more
than 2 million employees. It has 11,200 stores in 27 countries and every week
receives 265 million clients. Annual revenues have reached $ 500.3 billion in
operates Walmart.com, its main eCommerce service with 100,000 unique visitors
each month and an annual growth rate of 40%, which means 5% of
the total company’s income. In the US it has 4% of market share, positioning as
the third online retailer behind Amazon and eBay. To fight Amazon, Walmart has
purchased more than ten eCommerce services since 2017. It has also incorporated
the omnichannel strategy with the online grocery pickup and the in-home grocery
Target is a retail store
chain from United States that was founded in Minneapolis in 1962. Today it has
350,000 employees and is positioned as the sixth brand in this category. Target
operates 41 brands and in 2018 generated $ 75,3 billion in revenues.
has its own online platform for eCommerce which combines local, drive-up and
shipt collection, which growth year after year at a rate of 36%. In 2018, online
sales represented 7% of Target’s total sales. The company is redirecting
resources to eCommerce segment, for example with the rebranding of ToysRUs.com and the incorporation
of a Disney micro site.
JD is an online retail
platform that was created in Beijing, China in 1998. In the Asian country it is
the biggest Alibaba’s competitor, where it is positioned in the second place in
terms of share with 16.7%. It employes 178,000 people and revenues in 2018 totalized
$ 219.6 billion through its 305.3
million registered users.
marketplace is composed of 210,000 merchants. As part of its strategy it has
incorporated luxury items as the main differential and seeking to position as
the most reliable retail company in the country. In 2019, it launched the brand
JoyBuy to commercializes
fashion products, accessories, sports items and toys through the Google Express
Rakuten is an eCommerce
platform from Japan, that was founded in 1997 and has grown to become the
largest in that country. It has diversified its business to include, besides
online retail, digital content, communications and fintech. With 1.3 billion
users in 30 territories worldwide, it generated revenues of $ 10 billion in
The platform works
within two segments: consumers that individually
search products and services through the Internet, and any kind of merchants
that need clients or buyers to sell their items. Rakuten works with advanced
functionalities such as customization, lower cost and risk reduction, as well
as providing a better brand status for its merchants.
Zalando is an eCommerce
service for clothes and shoes for all ages and genres, that was founded in 2008
in Germany. Now it operates in 17 countries from Europe and has 28 million active
users. With 15,000 employees, it has registered revenues for $ 6 billion in
listings include 100,000 products and 1,300 brands. As a benefit, it works with
free shipping and it allows returns. In the last two years it has put sustainability
at the top of its strategy releasing Zalando Wardrobe, an app for second-hand clothes
sales that already overpassed 1 million products sold.
Flipkart is an online retail
service that started in India in 2007 and since 2018, it is part of the Walmart group. Its listings
include books, technology and clothes, together with a huge bunch of items. In
2018, it generated revenues of $ 4.4 billion and was positioned as the largest
retail company in India, employing 30,000 people. Every day, Flipkart receives
10 million visits and it has reached 100 million of registered consumers and it
delivers 8 million of purchases per month.
company has 31.9% market share in India, leading the
eCommerce segment in that country followed by Amazon which holds 31.2%. In the
last years, with the purchase of Myntra and Jabong, two eCommerce sites for
fashion items, Flipkart managed to control 38.3% of market. In 2019, it also
added the online video subscription service
and has included the Hindi language in order to reach more customers in the
Etsy is an
online retail store for people who wants to buy or sell craft and vintage
items. It started in New York in 2005 and today has eight locations in North
America, Europe and Asia, attending users all over the world. The company
employs 950 people and generates annual revenues of $ 603.7 million (2018).
business model is based on commissions for sales transactions and other
services to people who sell, as well as third-party payment processor fees. The
listing is formed by 60 million products from all independent vendors, and has
reached 42.7 million active buyers. Etsy
has managed to increase the use of mobile app, obtaining 55% of sales in 2018.
OLX is an eCommerce
platform specialized in free classifieds that was created in Argentina in 2006
and today has 350 million users monthly. It operates 20 different brands such
as Avito, dubizzle, letgo and OLX. The services generates 8.5 million
transactions every month and is operative in 30 territories.
in India, with OLX CashMyCar it has gained a lot
of success becoming the car marketplace most used in the country. It is also
growing in Poland, Portugal and Brazil. Ten years ago, Naspers group, from
South Africa, purchased OLX increasing its international reach even more.
Annual revenues ware 624 million in 2018.
The top 10 Amazon competitors are: eBay, Alibaba, Walmart, Target, JD, Rakuten, Zalando, Flipkart, Etsy, and OLX. Together they have raised over $ 1.1 trillion between their estimated 3.14 million employees. Amazon has 650,000 employees and is ranked 1st among it’s top 10 competitors. The top 10 competitors average 314,290.