Buying and selling on the internet have changed dramatically since online shopping was created. When it comes to ecommerce today, there's no doubt that Amazon is a colossus, dominating the online retail market with its vast selection, global presence, convenient buying experience, and rapid delivery services.
However, this digital giant faces stiff competition from a diverse array of contenders, each carving out their own niche and challenging Amazon's supremacy in unique ways. From established retail chains venturing into the web realm to innovative startups revolutionizing how we shop, the battle for ecommerce dominance is fiercely contested.
This article delves into the top Amazon competitors, highlighting how they differentiate themselves, cater to specific customer needs, and pose a significant challenge to Amazon's reign in the digital marketplace.
Who competes with Amazon? Top 13 companies
1. eBay
First on our list of Amazon's main competitors is eBay, an online auction and shopping platform headquartered in San Jose, California, which launched in 1995, emerging around the same time as Amazon. However, Amazon's growth trajectory was much steeper compared to eBay's more gradual expansion. What's more, eBay's focus on merely facilitating a marketplace for users, without delving into logistics services, results in a smaller user base compared to Amazon's.
As one of today's top ecommerce sites, eBay has carved a niche for itself in the market with its auction-centric approach, becoming a favored site for consumer-led transactions and earning a net revenue of approximately $9.8 billion in 2022.
Many of the items listed on eBay are similar to those available on Amazon. That being said, eBay sets itself apart by enabling sellers to auction items or set a fixed price, an option not available on Amazon. This approach has made eBay a go-to platform for a variety of items, including fashion, apparel, fitness equipment, jewelry, tech gadgets, and other products.
2. Walmart
Established in 1962 by Sam Walton in Rogers, Walmart stands as the most seasoned among Amazon's rivals. Boasting a global presence with more than 10,500 stores worldwide, Walmart has undoubtedly secured its status as a powerhouse in the retail sector. Moreover, Walmart has ventured into the ecommerce realm with its swiftly growing Walmart Marketplace, positioning itself as a strong competitor to Amazon, particular when it comes to ecommerce in the US.
Both Amazon and Walmart rank as the premier retailers within the US, engaging in a continuous battle for market supremacy. While Walmart has a stronghold over brick-and-mortar retail, Amazon is the frontrunner in the digital domain.
Despite its primary emphasis on brick-and-mortar operations, Walmart continues to channel investments into technology, development, and marketing efforts to bolster its online footprint. When it comes to logistics, for example, Walmart challenges Amazon with its Walmart Fulfillment Services (WFS), providing fast two and three-day shipping options that give Amazon a run for its money. In fact, Walmart's 2023 revenue reached around $611.3 billion, outpacing Amazon's revenue of $574.8 billion for the same year.
3. Alibaba Group
Alibaba, founded by Jack Ma in 1999, is a globally renowned Chinese eCommerce giant. Unlike Amazon, which operates through country-specific divisions, Alibaba maintains a significant worldwide presence without regional subdivisions.
Amazon is recognized as a titan in the US market, but in China, the Alibaba Group holds a similar stature, earning around $126.5 billion in revenue in 2023. A prime example of this major Amazon competitor's strength in the web commerce sector is that it successfully ousted eBay from the Chinese market in 2014, a testament to its deep understanding of consumer needs and commitment to ongoing innovation.
The Alibaba conglomerate encompasses various entities such as Taobao, AliExpress, Tmall, and Alibaba Cloud. Each arm of Alibaba serves distinct purposes to ensure a comprehensive shopping experience. Taobao caters to B2C transactions, Tmall focuses on C2C interactions primarily within China, AliExpress targets international consumers, and Alibaba Cloud involves cloud computing positioning itself as a direct competitor to Amazon Web Services.
4. Flipkart
Flipkart, an influential ecommerce platform established in 2007 by two ex-Amazon employees, is one of the most popular ecommerce sites in India.
In 2018, the American retail giant Walmart secured a 77% majority interest in Flipkart with a $16 billion investment, placing Flipkart's valuation at approximately $20 billion. Like Walmart, Flipkart is committed to promoting numerous Indian brands, thereby enhancing customer loyalty.
While Flipkart's operational model closely mirrors that of Amazon, offering an extensive selection of products and services, it sets itself apart with the Flipkart Plus SuperCoins rewards program, which is earned by customers rather than purchased, unlike Amazon Prime.
Furthermore, although Amazon India topped the list of Indian internet marketplaces in terms of monthly visitors as of May 2023, attracting over 295 million monthly visitors, Flipkart came in second place, bringing in over 167 million monthly visitors for the same period of time.
5. Rakuten
Founded in 1997 and based in Tokyo, Japan, Rakuten is often referred to as the "Amazon of Japan." This company mirrors Amazon's business model and generated approximately $14.8 billion in revenue in 2023.
The key to Rakuten's dominance in the Japanese market lies in its focus on customer loyalty, offering exclusive rewards like point tracking, which allows shoppers to earn points and redeem them for discounts.
Beyond being a traditional marketplace, Rakuten has forged alliances with leading internet commerce enterprises, providing over 70 services that compete with Amazon in multiple domains. For instance, Rakuten has diversified its offerings to include a video streaming offering (Rakuten TV), its own payment gateway, and even ventures into health and life insurance, positioning it as a distinct and formidable competitor to Amazon both in Japan and globally.
6. Target
Target, sharing its inception year with Walmart, was established in Minneapolis, Minnesota. The company identifies itself as a "general merchandise retailer" and maintains a widespread network of over 1,950 stores in the US, proudly declaring that 75% of Americans reside within 10 miles of a Target store.
Although Target may appear to be a minor contender in the marketplace compared to other Amazon competitors, its strength lies in cultivating a dedicated following. An effective loyalty and rewards initiative along with the proprietary REDcard credit card enhance Target's potential to rival giants like Amazon and Walmart, with the company earning $109.1 billion in revenue in 2023, marking an approximately 2.9% increase in year-over-year sales growth.
Embracing the digital marketplace, Target has enhanced its ecommerce footprint by introducing services like same-day delivery, order pickup, and drive-up collection options. By prioritizing online sales, Target is gradually carving out a portion of Amazon's market dominance.
7. Best Buy
Best Buy has carved out a significant niche for itself as a formidable adversary to Amazon in the technology sector. The business is based in Richfield, Minnesota and was established by Richard M. Schulze and James Wheeler in 1966, initially operating as an audio specialty store named Sound of Music. In 1983, the company underwent a rebranding to its current identity, shifting its focus towards a broader range of consumer electronics.
Known for its strong brand, Best Buy has seen great success as a global online retailer, with revenue of about $43.5 billion in 2023. In addition, it has a deep understanding of the retail market, especially in technology products.
Beyond matching Amazon in sales, Best Buy stands out for its exceptional tech-centric customer service. It has launched a subscription service called Totaltech, which, for $199.99 per year, offers customers round-the-clock support, two-year product protection on most items, and exclusive pricing for members.
8. Facebook
Facebook is another one of Amazon's main competitors due to its vast user base and the social network's global reach. Leveraging Facebook's extensive social media platform, Marketplace facilitates direct peer-to-peer selling and buying within local communities or across broader regions, with more than 1 billion shoppers visiting Facebook Marketplace each month. It offers a unique advantage by allowing users to view sellers' profiles, fostering trust and community engagement.
While the platform was predominantly used by individuals to sell their second-hand items, the company has expanded its offerings by introducing Facebook Shops. This feature allows ecommerce businesses to create their own digital storefronts on Facebook, enabling them to sell products directly through the platform. With Facebook Shops, brands enjoy a distinctive opportunity to showcase their merchandise, engage with customers through Messenger, and execute Facebook advertising campaigns, all within a single platform.
9. Apple
Founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976, Apple stands as one of Amazon's top competitors, primarily due to its stronghold in the technology and consumer electronics market, generating revenue of approximately $383.3 billion in 2023.
Unlike Amazon's diversified product range, Apple focuses on high-end, premium devices such as iPhones, iPads, MacBooks, and its ecosystem of services including iCloud, Apple Music, and the App Store.
Apple's emphasis on innovation, quality, and user experience, along with its loyal customer base, positions it as a major player in segments where Amazon also competes, such as streaming services, smart home devices, and digital content. The brand's global presence and reputation for excellence make it a formidable rival in these overlapping markets.
10. JD (JingDong)
JD, also known as JingDong (and formerly named 360buy), is one of the largest online retailers in the world and represents another one of Amazon's top competitors in China and is also a major rival of Alibaba's Tmall, with both operating as B2C (business-to-consumer) marketplaces.
Founded by Liu Qiangdong in June 1998, the company launched its retail platform online in 2004. While it initially began as an online store for magneto-optical products, it quickly expanded its offerings to include electronics, mobile phones, computers, and related goods.
By tailoring its approach to the Chinese market and offering unique deals exclusive to its platform, such as bulk purchasing similar to Costco's model in the US, JD has successfully increased its profitability, earning around $148.7 billion in revenue for the 12 months ending September 30, 2023, down by 5.3% from the same period in 2022.
11. Otto
Otto, established in 1949, is a veteran German online retailer based in Hamburg and founded by Werner Otto. The company initially took orders via mail, later transitioning to telephone-based orders before embracing online retail in 1995, entering the US market in 1998 by purchasing a share in Crate & Barrel, a furniture retailer based in Chicago.
Regarded as a comprehensive source for electronics, fashion, and sporting goods, its primary market, especially within Germany, lies in the furniture and home decor sector.
Even with Amazon's substantial footprint in Europe and Germany, Otto has successfully maintained its market relevance, securing its position as one of the top ecommerce marketplaces in Germany, coming in second place to Amazon.
12. Netflix
Netflix and Amazon don't compete across all product lines, but specifically in the realm of digital streaming. Founded by Reed Hastings and Marc Randolph in 1997, Netflix, Inc. started out as an innovative DVD-by-mail movie rental service. Less than 10 years later, Netflix as a video-on-demand streaming provider was launched.
Today, the platform is one of the world's most favored subscription services, boasting approximately 260.3 million paid subscriptions across over 190 countries as of January 2024. In terms of monthly traffic, Netflix.com takes the lead, generating approximately 765.5 million visits in April 2022 compared to Amazon's Primevideo.com's 139.9 million visits for the same period. When we look at revenue, though, Amazon Prime is the winner, earning $40.1 billion 2023, compared to Netflix's $33.7 billion.
However, it's important to note that Amazon Prime's revenue encompasses more than just its video streaming service, including benefits like Prime delivery for physical goods. Despite this, Netflix's significant subscriber base and its extensive selection of video content solidify its status as a formidable rival to Amazon in the streaming arena.
13. Online stores
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Last on our list is an Amazon competitor that you may not have considered: the many online stores owned by ecommerce entrepreneurs all across the world!
Ecommerce growth has skyrocketed in recent years. In 2023, ecommerce made up over 19% of total retail sales around the globe. Furthermore, ecommerce revenue is predicted to reach approximately $3.6 billion in 2024.
It should come as no surprise then that online stores, particularly those owned by individual brands, pose significant competition to Amazon due to their ability to offer unique, branded experiences directly to consumers. These online sellers bypass traditional retail intermediaries, allowing for closer customer relationships, personalized service, and tailored marketing strategies.
They often provide exclusive products, better control over inventory, pricing flexibility, and a distinct brand story that resonates with their target audience. By leveraging social media, SEO, and digital marketing, these individual online stores can reach a wide audience, challenging Amazon's dominance by catering to niche markets and consumer preferences for authenticity and direct engagement with brands.
The great thing is that it's easier than ever for online sellers to launch their very own online stores, especially when using WiziShop, the AI-powered ecommerce solution!
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Each product you offer will distinguish itself through your marketing efforts, brand identity, and the unique features that transform your ecommerce website into a go-to destination for your dedicated customers. This approach enables you to advance further in the realm of online sales.
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GET YOUR FIRST MONTH FOR JUST $1How small businesses can compete with companies like Amazon
Today, small businesses face the colossal task of competing with giants like Amazon in the ecommerce space. However, with strategic planning, personalized customer experiences, and leveraging unique strengths, these smaller entities can carve out their own successful niche.
Here are few of the best strategies you can use for your own small business to stand toe-to-toe with ecommerce behemoths, highlighting the tools and tactics that can level the playing field.
Launch an enticing loyalty program
Loyalty programs serve as an effective method for ecommerce businesses to enhance sales and improve customer loyalty. Through providing attractive rewards, discounts, and special offers, brands motivate customers to return repeatedly. Furthermore, loyalty programs foster a community feeling among customers, making them feel valued and part of an exclusive group associated with the brand.
Develop an active community
Building an engaged community is a cornerstone of success in online sales, as demonstrated by the industry's giants during their early days. They cultivated a dedicated following around their offerings, a strategy small businesses can emulate.
By fostering community engagement and a sense of belonging, brands can not only attract more customers but also transform them into brand advocates. Essential tactics include compiling an email list for regular communication and leveraging influencers across platforms like Amazon, Instagram, and YouTube to promote products and run extensive brand campaigns.
Personalize the customer experience
One area where small businesses possess a distinct edge over Amazon is customer service. Their agility and proximity to the customer enable them to offer more personalized, open, and inventive customer service. This approach is one of the top ecommerce growth strategies, as it transforms the shopping experience from the impersonal and detached nature typical of Amazon to a more intimate experience reminiscent of traditional mom-and-pop stores found in physical commerce.
Focus on a niche market
By specializing in specific niches, small businesses can cater to particular customer needs and preferences, offering specialized products and expertise that large platforms like Amazon may overlook. This specialization enables businesses to build expertise, offer tailored product selections, and create more personalized marketing strategies, setting them apart from the competition.
By targeting a particular segment, small businesses can establish a loyal customer base, enhance customer satisfaction, and position themselves as go-to sources within their niche, effectively competing against larger ecommerce entities.
Use an omnichannel strategy
These days, many consumers avail of multiple channels before buying a product or service. This means, for example, that a shopper might see an ad for a product on Instagram one day. They might still be hesitant to purchase the item, but after seeing it again on another social network and receiving a discount code from the brand via email the next week, they may very well be convinced to head to the brand's website and finalize their purchase.
Adopting an omnichannel strategy enables small businesses to provide a seamless shopping experience across multiple platforms and touchpoints, from brick-and-mortar stores to online shops and social media. This approach meets customers where they are, offering convenience and flexibility in how they interact with your brand.
Amazon competitors FAQ
Is Amazon the largest online retailer?
In the US alone, Amazon commands 37.6% of the ecommerce market share as of April 2023. The #2 online retailer, Walmart, still trails relatively far behind, capturing 6.4% of the market share. Around the world, Amazon tops the list of online stores in terms of net sales, though the company is just slightly ahead of JD.
No other online marketplace matches Amazon's level of dominance, presenting a formidable challenge for businesses attempting to compete. Nevertheless, Amazon does face substantial competition in the market.
Who were Amazon's early main competitors?
In its early days, Amazon, founded in 1994 as an online bookstore, faced competition primarily from traditional brick-and-mortar bookstores and a few emerging online retailers. Notable among these were Barnes & Noble and Borders, established giants in the bookstore industry, which quickly moved to launch their own online sales platforms in response to Amazon's growing popularity.
Additionally, smaller online bookstores like Books.com, which was eventually acquired by Barnes & Noble, also competed in this space. These early main competitors were part of Amazon's initial challenge, setting the stage for its eventual expansion beyond books into the vast ecommerce behemoth it is today.
What differentiates Amazon from its prime competitors today?
Amazon distinguishes itself from its biggest competitors through its vast product selection, unparalleled logistics and delivery network, competitive prices, and customer-centric approach. Its Prime membership offers benefits like free, fast shipping, streaming services, and exclusive deals, enhancing customer loyalty.
Amazon's advanced technology infrastructure, including artificial intelligence and cloud computing through Amazon Web Services (AWS), supports its ecommerce platform's efficiency and scalability. Furthermore, Amazon continuously innovates in areas like voice shopping with Alexa and expands into new markets, maintaining its competitive edge.
These factors combined make Amazon not just a retailer, but a comprehensive ecosystem that addresses a wide array of consumer needs.
