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Amazon and Alibaba, the two big giants of the ecommerce industry are competing against each other to win the crown for the leader of the global ecommerce market. Amazon laid the cornerstone in 1995 as an online bookstore whereas Alibaba started off its venture in 1999, nearly five years after Amazon’s founding.
Marketing share -- Finstead:
Alibaba serves about 80% of the Chinese e-Commerce market where population density is very high. E-Commerce Index reveals which developing markets hold the most potential for online growth, and China is now leading the race in terms of maximizing the potential of the Internet compared with the West. The low-cost, widely available telecommunication infrastructure in China has increased the popularity of online shopping.
Amazon dominates North American online retail, and with more than half of the world's Internet users coming from developing markets, Amazon has promising international growth opportunities, including Europe, Japan, and India. Amazon has been introducing several new products for international markets that are expected to drive demand. It is also building fulfillment centers to cater to the increase in demand. The company has been expanding Prime internationally to strengthen its foothold in international markets and create a launch pad for its other business.
logistics business -- Finstead:
Increased competition and market saturation has forced Alibaba to move beyond hawking goods online. The company is trying to build its business as an ecosystem of retail, cloud and artificial intelligence. Having been around long enough to establish logistical relationships through Cainiao, payments processing through Ant Financial and a solid core commerce model, Alibaba has been guzzling data that it is in an increasingly better position to use for improving customer experience and feeding its AI initiatives.
Amazon has accelerated its push in the logistics business. The company is reportedly working on a new delivery service called “Seller Flex”, where it itself will pick up packages from third-party merchant warehouses and deliver them to customers, a function currently handled by its long-time partners United Parcel Service and FedEx. The company is increasing its own control and reducing reliance on courier partners and third-party merchants in the process of delivering products.
Alibaba quarterly revenue growth was 60.70%, while Amazon quarterly revenue growth was 33.70%.
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