List of Biggest Amazon competitors in 2023
The largest online retailer in terms of revenue online, Amazon.com is an undisputed top-of-the-line retailer in the world of online shopping. It offers a vast array of merchandise and has numerous online stores around the globe. It was founded in 1994 by Jeff Bezos 1994; it’s now accessible in more than 190 countries and has more than 500 million items.
Apart from being an internet-based retailer, Amazon has an online marketplace open to sellers from third parties who can market their merchandise. Amazon also earns a fee on every sale. Additionally, it offers services such as Amazon Prime and Amazon Web Services.
Through the help of these products, Amazon has become one of the most powerful corporations worldwide and continues to expand at an incredible pace. In a time when there’s so much uncertainty in the market, and many shops are closing, Amazon continues to dominate the retail market.
Table of Contents
- 1 List of industries Amazon is facing competition
- 2 List of Amazon’s eCommerce competitors
- 3 Amazon’s Streaming Service Competitors
- 4 Amazon Competitors in Web Services
- 5 How to compete with amazon
List of industries Amazon is facing competition
This category covers digital media sales and product sales through Amazon’s E-commerce website. The company gives its customers various consumer and durable digital-format items like video, e-books, music, software, and games.
While sales from online shopping make up the majority of the company’s revenues, Amazon greatly expanded its presence in the retail sector through its acquisition in 2017 of the grocery store Whole Foods Market. Amazon also has four different kinds of physical stores: Amazon Books, Amazon 4-star, Amazon Go, and Amazon Pop Up.
Third-Party Seller Services
Third-party vendors market their goods on Amazon’s marketplace. Amazon’s popularity as an online shopping site permits numerous third-party sellers to reach more customers and expand their business. However, in exchange for such a service, Amazon costs commissions, shipping, and the associated cost of fulfillment.
In the business of third-party marketplaces, Amazon’s founder Jeff Bezos has stated Amazon’s principal rival is the auction site eBay.
Amazon offers a wide range of different subscriptions. The most popular paid-for subscription can be found in Amazon Prime, which had 200 million global subscribers in 2020. Amazon also offers subscriptions to audiobooks, e-books digital videos, as well as digital music.
Amazon’s primary competitors in the field of subscription services include media game changer Netflix ( NFLX), Apple ( AAPL) with iTunes, and Google ( GOOG) through the Play Store.
Amazon Web Services (AWS)
Amazon Web Services (AWS) is Amazon’s cloud platform, which offers over 200 services, including machine learning and artificial intelligence storage and analytics. AWS customers include enterprises, startups, and government agencies.7
List of Amazon’s eCommerce competitors
eBay is an enormous e-commerce platform that competes directly with Amazon for sales online. However, eBay’s revenues have suffered a decline during the last few years; in the year 2020, the company posted its highest annual net profit since 2013$10.2 billion. $10.2 billion.
On eBay, sellers list their products to sell, and buyers purchase them on the marketplace. There are also eBay sellers selling items similar to those sold by sellers on Amazon. The major difference is that eBay sellers can auction off products or use an agreed-upon price.
With the option to auction off items in a matter of minutes and ease of interacting with buyers and sellers, eBay can be a great site to buy automobiles, electronics, clothing, collectibles, and other items. It also has a higher rank than any other Amazon competitors in terms of visits to its website, with more than one billion visitors every month, on average.
2. Alibaba Group
Established 1999 in 1999 by Jack Ma, Alibaba Group is a Chinese multinational company with several subsidiaries that are part of the umbrella company of Alibaba Group, which include Alibaba.com, Taobao, Tmall, and AliExpress.
Alibaba.com, a B2B (business-to-business) marketplace, is the flagship subsidiary of the Alibaba Group. It is a competitor to Amazon for retailers who want to purchase bulk quantities of products and resell them to earn an income. In addition, Alibaba.com gives businesses direct access to the manufacturers of various goods, assisting them to stay clear of middlemen and cut down on cost per unit.
Taobao, Tmall, and AliExpress are B2C (business-to-consumer) eCommerce operations. They compete with Amazon by selling clothes, electronics, and accessories at a low cost.
Collectively together, Alibaba Group as a whole Alibaba Group brought in revenue of $31.14 billion in the third quarter of 2021. This is a rise of 29% over the year.
Walmart is the largest multinational chain of retail that includes supermarkets, hypermarkets, and grocery stores and is widely considered among the leading competitors to Amazon, particularly in the retail consumer and electronic industry.
The market’s share was 3.7 percent in 2018 has helped Walmart to be within the top three in the US online retail market. Moreover, it has been growing each year.
Walmart and its fusion of bricks and mortar and online stores have proved to be a formidable competitor to Amazon, particularly in physical retail.
Year of establishment: 2007
Flipkart is the biggest internet retailer in India, with over 100 million registered customers. In 2018, Walmart acquired 77% of Flipkart for $16 billion. This acquisition transformed the company from a small, local business into an international player in eCommerce.
According to Forrester’s research, Flipkart controls 31.9 % of India’s online sales market and 31.2 percent of its share of the market Amazon. The primary competitive advantage of Flipkart is the variety of low-cost goods. As a result, Flipkart is an effective rival to Amazon in the online retail marketplace.
Otto , one of the biggest European eCommerce businesses, was established around 1949 in Hamburg, Germany. The oldest of the listed companies, its goods were initially ordered via post and later by phone before the move into online shopping in the year 1995.
Although it’s an all-in-one shop for electronics (like Apple and Microsoft) and fashion and sports equipment, its biggest market (particularly in Germany) is home furniture and furniture.
In 2020 The Otto Group reported EUR15.6 billion ($18.5 billion) in revenue total, which puts it in second place in the market behind Amazon in sales online in Germany.
The next competitor we’ll be looking at comes from JD (JingDong), Also known by its URL jd.com. It’s the second Chinese E-commerce site for sales established in Beijing in 1998.
In addition to being a rival to Amazon, It’s also a direct rival to the previously mentioned Tmall and Tmall (both Chinese B2C e-commerce firms).
What distinguishes JD from Amazon is its capability to purchase items in bulk (similar to Costco) and its dominant transportation infrastructure in China.
The result was that JD.com could earn $114.3 billion in revenue in 2020 (yes, it was higher than Alibaba), which was a massive 29.3 percent increase over 2019.
Rakuten is a Japanese online retailer.
The company earns more than $2.3 trillion annually in retail eCommerce sales. In 2019, Rakuten controlled 14.1% of the entire global eCommerce market regarding sales from retail. Additionally, they are responsible for close to 10 percent of Japan’s overall e-commerce retail market share.
Rakuten generated an estimated $134 billion worth of Japanese E-commerce sales alone in 2019.
In 2010, they bought buy.com to increase its reach across America. United States. Besides buy.com, Rakuten has acquired other online retailers such as PriceMinster (France) and Play.com (UK). They also have made acquisitions such as Ebates (cash-back reward program) and Viber (VoIP software).
While Rakuten continues to grow and acquire companies from different areas, industries, and regions, they’ll try to keep up with Amazon.
Amazon’s Streaming Service Competitors
Amazon provides both video and streaming music services. Prime Video is the second most popular streaming service for video after Netflix and is ahead of that of Disney+. Music streaming service Amazon Music competes with Spotify and Apple Music.
Year of establishment: 1977
Netflix has become associated with streaming video on demand. This is the most viewed service in the world, with over 200 countries worldwide. Netflix gained 28 million additional users in 2019 and drew 26 million users in the first half of 2020.
The streaming company has an impressive 195 million subscribers. In addition, Amazon Prime Video surpassed 150 million by 2020. Prime Video was catching up quickly and contributed 23 % of all subscriptions to SVOD in Q2 2020. This is up from 14% in the first quarter of 2020.
Netflix offers more content; however, the basic plan is $9 per month. Prime Video subscribers pay $119 for the Amazon Prime annual subscription to the entire video library and other benefits. In general, Netflix is the top Amazon rival in video streaming.
Year of foundation: 2019
Disney+ is the third most-watched video streaming service after Netflix and Amazon Prime Video. Disney’s vast library, which dates through the 1970s, gives its an edge over Amazon Prime Video.
Disney+ closed the fourth quarter of 2020 with 86.8 million users, and Amazon Prime Video has 150 million users. Both streaming services offer something and are supported by formidable forces. The battles for streaming have only started.
Year of establishment: 2006
Spotify is an online music streaming service that provides easy access to millions of tracks, playlists, and albums. There are 113 million pay subscribers with 248 million active monthly customers across the globe.
Amazon Music had 55 million users in 2020 and is still on the way to catching up with Spotify. The biggest competitive advantage for Spotify is its huge music library. Regarding cost, Spotify starts at $ 9.99 per month, and Amazon Music Unlimited costs $7.99 for Prime members. Spotify is the top Amazon competitor to music streaming.
4. Apple Music
Year of its creation: 2015
Apple Music is a music streaming service provided through Apple Inc. It is the second most listened-to streaming service, with more than 60 million users. However, Amazon is working to erode that lead.
Amazon Music surpassed 55 million subscribers in 2020. As a result, it now only requires 5 million subscribers to catch up with Apple Music. However, with more than 45 million songs available, Apple Music still has significant leverage to compete with Amazon and keep its market shares.
Amazon Competitors in Web Services
Amazon Web services dominated the cloud market for quite some time. However, the solutions of giants of the tech industry like Google or Microsoft have taken over the lead from Amazon.
1. Google Cloud Platform
Google is a major tech company that specializes in internet-based products and services. In the 3rd quarter of 2021, Google Cloud Platform (Google cloud platform) globally held a market share of nearly 8.8%.
AWS has more experience than GCP and has a strong global network that can support many of the complicated IT environments around the globe.
Additionally, AWS provides more than 140 distinct services for customers in the field, including IoT (internet of things), mobile, networking, computing, and more. Google Cloud Platform offers far lesser services and is more flexible than AWS.
What’s more, GCP is more prominent for PaaS (platform-as-a-service) and IaaS (infrastructure-as-a-service) use cases than for enterprise solutions. GCP plans to combat this by investing more in improving enterprise processes and forming new alliances.
2. Microsoft Azure
Microsoft Azure, the clouding service that is offered by the tech firm Microsoft had a market share of nearly 21 percent. This creates MA (Microsoft Azure), the second-largest cloud infrastructure service.
Furthermore, the Azure Active Directory is being used by more than five million companies worldwide. Furthermore, over 4 million developers are using Azure’s Visual Studio team services.
While both AWS and Microsoft Azure offers similar services, Microsoft’s vast range of services and superior experience gives it an advantage over AWS.
How to compete with amazon
The trend toward e-commerce has been steadily growing; however, in the past two years, shopping online has exploded. Currently, 40% of shoppers claim to buy everything on the internet, while 43% do not plan to go back to the traditional method of buying products from brick-and-mortar shops.
It’s a good thing for eCommerce businesses like yours; however, only if they can make customers stay away from giants such as Amazon and Walmart to go with smaller, independent stores.
They have raised customer expectations concerning customer care, shipping times, and shipping.
In fact, 66% of customers expect free shipping on each purchase. Customers also want their orders quick: 91% of them claim they will receive their purchases within a week or less, and 9% anticipate receiving to receive their order on the same day.
If you’re a smaller company, can you meet customers’ expectations and win them over to bigger brands?
Here are some strategies to implement.
Enhance your reach
If you can’t beat ’em, join ’em.
Your shopfront can be synced on Amazon, Walmart, and other retailers and ensure that their massive customer base will discover your merchandise. Be sure to include top-quality images of your products and SEO-related keywords to ensure that your customers are in a position to locate your items quickly. Also, we recommend evaluating the competition in your category to ensure you’ve got an appropriate pricing strategy for your product.
If you’re using Shopify and Shopify, you’ll be able to connect your inventory in real time to Amazon and then integrate your data between both platforms.
Optimize your customer support
Also, you’ll need to ensure that your support channels for customers are set up to speed up the resolution of issues.
Customers do not want to wait for an entire day to receive a response: 49% of customers would like to hear from you in less than one minute, making use of chat-based support. However, customers who contact via email are ready to wait a bit longer, 48% of them say they’d like to wait up to six hours, and 94% of them would like an answer within 24 hours maximum.
To meet your customer’s expectations, put procedures to make sure that customers are able to locate answers to their most frequently asked queries with a chatbot to assist them. Chatbots can direct customers to frequently asked questions on your site or let customers use search terms to obtain fragments of details. The chatbot can also use these tools to check order status in case of a need or reserve your live support representatives for tickets from customers requiring customized assistance.
This will help you provide excellent customer service to customers who need to require individual attention. This makes it simple to provide an excellent customer experience.
Offer same-day delivery
The majority of customers expect speedy and free delivery, so the most effective way to compete against bigger retailers is by following in their footsteps. At the very least, 51 % of merchants are now offering the same-day delivery of some of their products at most.
Same-day delivery is an excellent idea to strive for, provided it is a good idea for your company’s financial health. Delivery on the same day is more costly, and you need to take into consideration whether you could include it as part of your standard delivery or add an additional cost for customers who want to receive the order to be delivered faster.
If you provide same-day delivery or not as an option, you must make sure you’re communicating accurately estimated delivery times. If an order isn’t delivered on or before its original timed day, 69% of customers said they were less likely to purchase from that business at a later time. Be sure you’ve got a reliable logistic company, and be sure to inform your customers promptly if there’s a change to your time or schedule.
Simplify return process
Customers’ purchases may not always succeed, for any motive, but that’s fine. To ensure an exceptional customer experience that will keep customers returning it’s essential to make the return process as easy as you can.
To be competitive with bigger retailers such as Amazon to compete, you must provide the option of free shipping for returns. Also, don’t make it difficult for customers to make returns. They will be able to do so using an online self-service system that allows customers to schedule their own returns.