One name stands out above the rest: Amazon, when it comes to online retail and eCommerce behemoths. Amazon’s unrivaled advantage in logistics, transportation, distribution, and general technological innovation has pushed it so far ahead of its competitors that it’s fair to wonder if they’re competitors anymore. It is essential to know about amazon’s rivals. Try to think of an area of eCommerce where Amazon isn’t the industry leader.
- Alibaba group
While Amazon is a monster in the United States, the Alibaba Group is a behemoth in China. Its primary retail companies are AliExpress, Taobao, and Tmall, and it was founded in 1999 by Jack Ma (who has faced criticism for comments against the Chinese regulatory system). Each subsidiary competes with Amazon in its unique way. For example, Taobao, a B2C (business to consumer) operation, competes with Amazon in selling low-cost clothing, accessories, gadgets, and computer gear.
Alibaba is one of Amazon Web Services’ major competitors, with cloud computing revenue of $2.24 billion in the three months ending September 30, up 60% year on year. That was quicker than the revenue increases of Amazon Web Services and Microsoft Azure, 29 percent and 48 percent, respectively.
Otto, one of Europe’s largest eCommerce firms, was founded in Hamburg, Germany, in 1949. Its products were first ordered by mail and subsequently by phone before the company shifted to online shopping in 1995, making it the oldest company on this list. While it is a one-stop shop for technology (such as Apple and Microsoft), fashion, and sports equipment, its largest market (especially in Germany) is furniture and home furnishings. The Otto Group recorded total revenue of €15.6 billion ($18.5 billion) in 2020, placing it second only to Amazon in Germany in terms of online sales.
JD (JingDong), also known by its URL, jd.com, is the next rival on our list. It’s a Chinese eCommerce sales website created in 1998 in Beijing.
Beyond being a direct competitor of Amazon, it’s also a direct competitor of Tmall (both are Chinese B2C e-commerce enterprises).
JD is distinguished from Amazon by its capacity to purchase things in bulk (similar to Costco) and its commanding logistics infrastructure in China. As a result, JD.com generated $114.3 billion in revenue in 2020 (yep, more than Alibaba), a massive 29.3 percent rise from the previous year.
Taking a break from physical goods, we look at Amazon Prime Video’s main rival, Netflix. The video-on-demand service began in 1997 when Reed Hastings and Marc Randolph, in Scotts Valley, California, mailed themselves a DVD. Since then, the corporation has grown year after year, with revenue expected to reach $25 billion by 2020. Original material, which it produces at a rate of just over one original title each day, is popular among its approximately 208 million users. While numerous new video streaming competitors have sliced into its market share in the United States, it still has a sizable 20 percent.
Rakuten, founded in 1997 in Tokyo, Japan, is another major competitor, returning to the eCommerce area. Rakuten is more than just an eCommerce company; its ecosystem includes a streaming service (Rakuten TV), banking and payment services, telecommunications, and even health and life insurance. As you can see in the graphic, Rakuten has a very distinct business model in terms of retail strategy. Customers are enticed to shop through Rakuten rather than directly with brands through a cash-back system.