Amazon Competitors Should Know About Market People
Amazon competitors has been making strides ranging from eCommerce and digital streaming to cloud services and a possible venture into space exploration, leading to a more diversified industrial establishment in technology. Jeff Bezos’s brainchild has helped revolutionize a lot of industries.
But Amazon is not the only fish in the pond. Why? Because there are a lot of businesses, brands and companies being Amazon competition, and are making a lot of profits selling different kinds of products and services.
Who are Amazon’s competitors ?
Let us now have a look at some of Amazon competitors in different areas, having a good look at the way they attract customers despite the resource constraints.
eBay is a large eCommerce platform and is among those Amazon competitors up against the company toe to toe. In recent years, its revenue took a slump but in 2020, the company saw its best net revenue in seven years at USD$ 10.2 billion.
On eBay, retailers and sellers can list products for sale. Also, customers can buy them with ease on the site. Customers can find eBay sellers offering products similar to the ones on Amazon. The key difference? eBay’s sellers can auction items at variable rates or can sell them through a fixed rate.
The ability to bid on products along with the ease of connecting with sellers makes eBay one of the best sites for purchasing items like clothes, cars, electronics, collectibles and other products. It also ranks higher than all other players in Amazon competition when it comes to the number of visitors to the website, with more than a billion visits each month, on average.
Alibaba Group is a multinational Chinese retail giant established by Jack Ma in the year 1999, and has different subsidiaries operating in its umbrella namely Alibaba.com, Taobao, Tmall and AliExpress.
Alibaba.com is a B2B (business-to-business) marketplace and also, the group’s flagship subsidiary. Being among the most well known of Amazon Competitors, it helps retailers in looking to purchase products in bulk and sell again for a profit.
The website gives businesses direct access to manufacturers of various goods, helping them avert middlemen and save a good amount of money on unit pricing.
The B2C (Business to Consumer) eCommerce business units and brands of the Alibaba Group are AliExpress, Taobao and Tmall. These firms are strong Amazon competition when it comes to selling accessories, clothing, electronics and gadgets at affordable prices.
Collectively, the AliBaba Group brought in a revenue of USD$ 31.14 billion in the third quarter of last year, which was an increase of 21% in comparison to the same quarter of 2020.
Walmart is an American multinational retail giant with more than 11,000 physical retail stores present across 27 nations. It competes directly with the retail subsidiaries of Amazon (Whole Foods and Amazon Books) across various locations offering a wide array of products at daily low prices.
Whilst Amazon dominates the eCommerce arena, Walmart has an online presence which is growing quite fast. As per the eCommerce report of 2021 by Jungle Scout, consumers prefer shopping for groceries and other essentials on Walmart.com.
This helps leverage many Walmart stores across the United States in terms of offering customers familiar brands with easy pickup and returns. Moreover, Walmart saw a global eCommerce revenue of USD$ 75 billion last year and was USD$ 35.3 billion more than it saw in 2020.
In the United States, Amazon is a titan but in Japan it faces tough competition, thanks to the Rakuten Group. Established in 1997, the company’s ecosystem has online shopping, payments, banking and financial transactions, investments and incubation along with a streaming service known as Rakuten TV.
Being one of well-known Amazon competitors, Rakuten relies on a much different business model to run its growth. It utilizes a cash-back program to help encourage shoppers to purchase its products on Rakuten instead of doing so directly through brands. This strategy helped the company earn a net revenue of more than USD$ 13.6 billion in 2020.
Additionally, people will be surprised that Rakuten has acquired numerous companies outside of its home country to create an international presence. In 2010, the company purchased buy.com (USA) with further acquisitions of play.com (UK) and PriceMinster (France). The websites of all three companies are now redirecting visitors to the official sites of Rakuten and its brands.
One of the largest eCommerce firms in the European Union, Otto was established in 1949 originally as a mail-order service in Germany. It was in 1995 that it evolved into an online shopping brand. Today the company is considered as a one-stop shop for a wide array of consumer items.
In 2020, the company became the second most profitable retailer in Germany (after Amazon). Otto Group’s success is largely due to the top-notch customer service it offers along with strong partnerships with leading brands.
The biggest market share of the company is in furniture and home furnishings despite having considerable strengths in keeping clothing, sports gear and electronics’ stocks from leading brands. In Europe, Otto provides Amazon competition and has made the American giant vie for a decent place on the continent.
Another competitor Amazon faces is one of China’s leading eCommerce websites named JD (abbreviation of JingDong). It was created in 1998 in the Chinese capital Beijing. The Chinese retail giant is well known for its B2C operations and for having a robust logistics infrastructure too. As of September 30, 2021; JD has around 1,300 warehouses.
Apart from being Amazon’s competitor, it is also a dir3ect competitor to Alibnaba.com as both companies offer the facility to purchase goods and items in bulk quantity. In the year 2020 the company earned a revenue of USD$114.3 billion in comparison to Alibaba’s revenue of USD$ 109 billion that year.
Flipkart is ranked among the most popular eCommerce firms in India. It offers a wide array of choices in different product categories, ranging from fashion, electronics, furniture and gardening tools to many others. The company was established in 2007 and competes with Amazon in terms of customer experience, variety of products offered, reward schemes plus prices.
Moreover, the company also has a unique scheme using Plus SuperCoins which is based on rewards. It allows consumers to earn points on the purchases they have made. These coins can then be traded for things like entertainment offers, extra discount coupons and the like.
Flipkart’s revenue is growing quickly and reported an increase of 25% last year in comparison to 2020. The platform has approximately 100 million customers who love its user-friendly interface and the top-notch service quality it offers.
Netflix is a well-known specialist of on-demand video. It was established in 1997 by entrepreneurs Reed Hastings and Marc Randolph. They mailed themselves a DVD which arrived intact without a scratch, and their venture Netflix provided users with access to movies, documentaries and TV shows.
The company has been growing each year nicely, and brought in a revenue of USD$ 25 billion in 2020. Its largest competitor is Amazon Prime Video. What is popular among Netflix’s subscribers? It is the original content it produces. The streaming giant releases more than one original title a day on average.
Who is Amazon’s competition ?
Amazon has competition in various sectors. In the retail sector, Alibaba, eBay, Rakuten, JD, Walmart, Flipkart and Rakuten. In terms of online streaming services, Amazon competes with Apple TV, Hulu, Netflix and Disney+. Amazon competition in the cloud business comes from two companies: the Alibaba Cloud and Microsoft Azure.
In terms of Amazon’s indirect competitors, the term implies those firms that operate on a different business model. Yet, they target the same audience. Apple, Google and Shopify are some worthwhile examples.
Who is Amazon’s biggest competitor ?
Though it faces competition from various players across various industries, Alibaba Group ranks among the biggest Amazon competitors, thanks to Alibaba.com, AliExpress, Taobao and Alibaba Cloud. Then comes Rakuten because Rakuten also has a diverse portfolio across online retail ,cloud and other technology services too.