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Related: How to Create an Amazon Seller Account & RegistrationĪlibaba was founded 4 years after its competitor. Advertising services (Amazon Advertising), etc.Subscription services (Amazon Prime, Amazon Music, Prime Video, etc.).Cloud computing services (Amazon Web Services).In addition to online stores, its streams of revenue include:
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They now produce and sell consumer electronics such as the Kindle e-book reader and Amazon Echo.ĪMZ has continued to expand into new markets, acquiring subsidiaries that cut across different industries, like Zappos (a footwear and apparel retailer), Whole Foods (grocery store chain), Twitch Interactive (live-streaming video company), and so on.Ī huge chunk of the company’s revenue comes from its online stores. The company has since become a one-stop-shop for virtually any product you can imagine. Within a few years, AMZ was selling consumer electronics, video games, toys, games, software, home improvement items, apparel, jewelry, and much more. It grew rapidly and began to offer a variety of products other than books. In 1997, AMZ became a public company, raising $54 million on the NASDAQ market. He knew that the platform would one day become a technology giant, not merely an online retailer. It initially began as an online bookstore, although Jeff Bezos had always envisioned that it would be bigger. He was already the Senior Vice President of an investment firm in 1994, but he had a vision and a dream of building his company.
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The story of how the company started in the garage of its founder Jeff Bezos after quitting his job isn’t new. It’s hard to imagine but the eCommerce giant known as one of the biggest companies today had humble beginnings too. Zonbase – Free Quickstart Amazon Cheatsheet Background on Amazon In this post, we’ll look at the similarities and differences between these two eCommerce competitors. But first, a brief background on the two retail giants. This means that, in a way, Alibaba is even supporting and supplying AMZ’s e-commerce success indirectly.Īlthough both companies are purely e-commerce companies, their business models are quite different. Also, most of the merchants and third-party vendors selling on AMZ are getting their products on Alibaba. While Alibaba’s GMV was $1.14 trillion, Amazon’s GMV was only $575 billion. Using the Gross Merchandise Volume (GMV) of both eCommerce platforms as a measure, Alibaba appears to be the larger company. However, the Chinese giant is still a close competitor. With Alibaba generating only 109 billion US dollars, the numbers are quite interesting yet staggering (Source: Statista, 2021).
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On the other hand, Alibaba’s annual revenue for 2020 is not even up to half that of AMZ. Its annual revenue for 2020 was $386.06 billion. Meanwhile, AMZ has already ventured into the online streaming space to compete with other giants like Youtube and Netflix.Ĭurrently, AMZ is leading the global e-commerce market.
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Alibaba has started to enter into movie production and television. Furthermore, the two retail giants are also starting to dominate other spaces other than online selling. However, these eCommerce giants are not content with dominating their home territories and are competing to lead the global eCommerce market. Amazon is the largest eCommerce company in the U.S while Alibaba is the largest eCommerce company in China.
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