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 even competitors anymore. Try to think of an era of amazon competitors in the USA where Amazon is the industry leader but not in other countries.
Despite its overwhelming domination, Amazon only “only” sold approximately half of all goods purchased online in the United States last year. Yes, Amazon is up against many other online retailers for a slice of a vast and rapidly expanding eCommerce pie. As a reminder that there is life after Amazon, we’ll look at some of the most well-known Amazon competitors online, attempting to address the issues of who they are and how they manage to exist, if not thrive, in an industry dominated by an online retail Godzilla.
Who are Amazon’s main competitors?
Given Amazon’s position at the top of the global eCommerce food chain and the breadth of products and services it provides, it’s only logical that it has a slew of competitors from various niches and industries vying for market share. We can name a few of the most well-known ones:
- Online marketplaces across the world
- Retailers and large physical stores
- Marketplaces on social media
- Services with a subscription model
- Vendors who specialize in niche eCommerce
- Online Marketplace
Online marketplaces, like Amazon, are eCommerce platforms where third parties provide the majority of the products and services. They aren’t, however, the only globally recognized brand
eBay began as an auction-based website, but it has refined its structure over time, which many sellers used to find confusing and costly. The vast majority of its sales are now made at the advertised price. Amazon still has a critical advantage over eBay: users can buy directly from the platform, and sellers can store part of their products in Amazon warehouses.
- Alibaba Group
AliExpress, a sub-brand of the global Alibaba Group, is the most apparent Amazon competitor. Amazon’s sales will be $386 billion in 2020, while Alibaba’s will be over $109 billion. While Amazon dominates the American retail market, Alibaba is a well-known Chinese eCommerce behemoth. Apart from the price range, there is a big difference in how the two marketplaces do business. While Amazon’s business strategy is dependent on commissions, Alibaba charges sellers for the chance to show higher in its search ranks.
- Retailers and physical stores
While Amazon is most recognized for its online sales, it has also been aggressively purchasing a network of brick-and-mortar locations. In addition, due to the post-pandemic movement toward online buying, many people who would ordinarily shop offline are now doing it online. As a result, many brick-and-mortar stores are now obliged to compete with Amazon.
- Marketplaces on social media
Another significant source of Amazon’s competitors comes from social media. The main distinction is the economic model: no social media sites can yet charge a large fee for showcasing the merchants’ goods. Advertising channels, user engagement, and brand promotion are how they make money instead.