From A to Z Amazon is effectively not only providing all the relevant products but now stepping into all the relevant online industries. It is known as one of the world’s most significant online market place, and it is spreading rapidly in other areas like subscription services, web services, and other physical stores. It is one of the most reliable places to find individual items in an efficient manner. Over the decades, Amazon has transformed from an online book store into the largest e-commerce company. The following are the categories where Amazon generated a huge amount of revenue.
- Online stores
- Physical stores
- Subscription Services
- Web Services
- Third-party seller services
There are some great competitors that are rising day to day in accordance to compete with this giant market place. There are some strongest competitors of Amazon, which includes:
Let’s into this list to see who are Amazon’s competitors.
Amazon Competitors in Online Retail Market:
EBay is one of the top e-commerce competitors of Amazon. It was founded by Pierre Omidyar in 1995, and now it has become the second most popular marketplace after Amazon. Buyers can shop freely, whereas sellers have to pay a certain fee once the item is sold after limited listings of products for free. The company operates both B2B and B2C sales efficiently, along with its C2C model.
eBay has all the ability to attract buyers and sellers whereas it has statistical growth in the market in terms of customer services and brand recognition that’s why it is the second biggest brand of eCommerce in the United States, eBay is one of the top competitors of Amazon with its unique way of connecting buyers and sellers online.
Related Article: eBay vs Amazon
Save Money, Live Better! That’s what Walmart is all about. Walmart generates most of its revenue from physical department stores, as about 90% of Americans live within 10 miles of Walmart store. Moreover, Walmart announces a partnership with Shopify recently in June. As a result, nearly 1,200 Shopify Sellers are united in this marketplace currently.
3- Ali Express
Famously known as ‘Amazon of China,’ Aliexpress is one of the leading China-based online retail companies owned by Alibaba groups. It connects manufacturers and retailers from around the world to businesses worldwide. Aliexpress is not available for Chinese citizen for that Alibaba has stepped into various expansion such as Taobao and Tmall that are exclusive for Chinese buyers.
Unlike Amazon, Alibaba is the representative between buyers and sellers. Alibaba has such an effective business model that generates a worthy revenue of up to $72billion with millions of users across the world.
4- JD (Jingdong)
JD is popular for its B2C services and commonly known as Jingdong and formerly knowns as 360buy. JD.Com was founded in China in 1998. JD’s online stores started operating in 2004 for customers. JD displays a wide range of Chinese products at affordable prices where customers can easily select the products they required, which later on delivered to the doorstep.
The website also has an option named ‘buy in bulk’ that directly competes for head to head with Alibaba and Amazon. Jingdong has 305 million active customers, and the numbers are still increasing annually.
Otto is one of the leading successful German trading groups for more than 60 years, and today it is the known name of the largest online retail market for lifestyle and fashion products where it generates 90% sales through the website. Otto has a user-friendly interface that attracts the consumer to avail of easy online shopping. Otto’s annual growth rate is 13.7%, where 72% of the sales generates from furniture, other appliances, and fashion products.
This statistic shows the revenues generated by the online retailer OTTO from 2012-13 to 2019-20. In the 2019-20 financial year, OTTO had earned revenues worth 3.5 billion euros in e-commerce. An increase compared to the previous year at 3.2 billion euros.
Priceline, one of the most leading travel giant, popularly known for travel purchases and provide various travel-related purchases such as hotel bookings, car rentals, and flight bookings to the customer. It provides several packages bookings such as flight, hotel, and car altogether with special offers and discount coupons. The first time customers receive bonus points as a reward.
It is considered as one of the top Amazon competitors for its wide range of online flight and hotel booking. Priceline does not only knack at hotel booking, but it also started other online services included baby products, skincare, hair products, and cosmetics.
Tesco is considered as the world’s ninth-largest retailers with established stores across 12 locations of Europe and Asia. Tesco is a leading company especially known for grocery items and general products. Tesco has classified stores in various locations to satisfy the daily needs of the customers. Some of the well-known Tesco stores are; Tesco Dotcom, Tesco Extra, Tesco Express, Tesco Superstore, Tesco Metro, Dobbies, and One Stop. The wide range of various categories of general items is one of the reasons which makes Tesco a leading competitor of Amazon.
Flipkart is one of the leading e-commerce company which offers a wide range of apparel, furniture, electronic appliances, cosmetics, and other useful products. The large variety of different products attracts about 100 thousand registered sellers. It provides a user-friendly interface that enables the customer to place orders easily on the website or on the app with 24/7 customer services. Everything is much feasible for the customers, from selection to purchasing, and tracking of the shipment goes smoothly for the customers. Due to these certain customer-friendly features and product range, Flipkart is also a leading competitor of Amazon.
Costco is a leading warehouse, operating in more than a hundred locations. Costco is a warehouse club that, according to a survey, beat Amazon in terms of customer satisfaction. Costco is also well known for having a private label collection such as ‘Kirkland Brand,’ which cheaper than other national brands and has a good quality.
According to Cheapism Comparison Test, Costco was cheaper on 79 of the 100 items. Costco also offers a Treasure Hunt shopping experience, which is hard to find in online purchasing. To meet customers’ requirements, Costco offers the best quality and price with membership access. The products include a wide variety of electronic appliances, gifts, books, jewelry, home, kitchen, and office supplies. Other products include clothing, baby products, and so much more. Costco has a wide range as an offline retailer due to which it is considered as one of the leading competitors of Amazon
Target Corporation is another giant retailer, one of the most recognized retail stores, and one of the biggest competitors of Amazon. It has I,834 stores in the United States. Based on design and brands, Target has a wide range of several products that are available in the best of quality and affordable pricing deals. The products generally offered by Target include; apparel, electronics, accessories, baby products, and much more. Target is considered as ‘A Master of Displaying Products’ that it has one of the most attractive displays of products with clean fixtures that motivates a huge sale.
11- Home Depot
Home Depot is best known for selling products with a wide range of construction tools at reasonable prices. The products include a massive range of home improvement appliances, bathroom redecorating ideas, kitchen remodeling, power tools, bbq grills, carpeting, and much more.
In the Covid-19 pandemic, Home Depot has reportedly generated higher revenue. Home Depot plans to invest $1.2 billion in the next five years to increase its supply chain and distribution. Home Depot also plans to widespread 170 distribution facilities so that it can reach 90% of the US population in a day. Throughout the United States, Home Depot had a total of 1,984 stores in operation, whereas it also operates stores in Canada and Mexico. Home Depot is one of the leading home improvement and DIY retailers that has a total of 2,291 stores worldwide that makes Home Depot a head to head competitor of Amazon.
Amazon Digital Competitors
Amazon is quite versatile. Along with its well-established e-commerce and cloud services, it has its own digital services such as Amazon Prime Music, Amazon Prime Video, and its production studio named Amazon Studios.
The online streaming service Netflix is on the rise these days; however, Amazon Prime and Netflix are the two most renowned competitors who offer similar packages, on tap movies and TV shows. Netflix has now become the most recognized American technology and entertainment company internationally. Its main business includes streaming media and on-demand online movies.
It is the most renowned entertainment provider globally, with 117 million registered audiences from 190 countries. Netflix is the head to head competitor with Amazon Prime; its most affordable subscription plan is the same as Amazon’s Prime
13- i Tunes
Popularly recognized as an online entertainment channel, iTunes functions as a media library, Internet radio broadcaster, mobile device management, and media player. In the music streaming industry iTunes has introduced some outstanding features that made it the toughest competitor for Amazon Prime, such as; offline listening and playback information. Apple Music and iTunes made the listeners accessible to listen to 45 million songs with premium quality to their 30 million paid subscribers.
Spotify is an online music streaming app that provides its users with easy access to millions of songs, playlists, and albums. Spotify launched in 2006 just a year earlier to launch Amazon Music around 108 million subscribers and had 36% of market share.
Amazon Competitors in Web Serice – AWS
Amazon Web Service- Amazon Cloud service platform held a top position for a long time. Now Microsoft and Google stepped ahead, taking some enough market share from Amazon in the market.
15- Microsoft Azure
Microsoft Azure is a cloud service from Microsoft. Azure is considered as the world’s second-largest global cloud infrastructure due to which it is the direct competitor of Amazon. It reported that it holds over 17% of the cloud market share and keeps on showing high levels of growth annually. Though Amazon Web Service (AWS) and Azure share a similarity in cloud services, Azure has a leverage of previous experience from Microsoft, whereas Amazon had to face the challenges of reinvestments into AWS.
16- Google Cloud Platform
Google Cloud Platform (GCP) comes in third place with a market share of 6% in Q42019. However, Google Cloud Platform is used as a substitute for Azure and AWS. It keeps on fluctuating between third and fourth place due to the rising in competition against Alibaba cloud and IBM cloud, but GCP’s prominent growth made it a promising competitor of Amazon.
Amazon Competitors in Artificial Intelligence – Alexa
Amazon also provides AI services in the Amazon Web Service platform. Its most knowable virtual assistant is Alexa, and it competes with two mainstream virtual assistants from Google (Google Assistant) and Apple (Siri).
17- Google Assistant
Google Assistant is currently a market leader and easily available on a variety of devices. Google Assistant has 36% of market share alongside with Apple Siri. In order to complete the task, Google Assistant is designed to have a conversation with you just like Siri. Google Assistant interacts with android devices and capable of performing tasks such as setting alarms or playing music.
18- Apple’s Siri
Apple Siri is available only on Apple devices, but it is quite popular. Siri has the advantage of being the first-ever commercial AI virtual assistant in the market, and due to the rising sales of Apple iPhones, Siri was the most liked software interface in customers.
This is an era of exploration in the online market. Even the smallest business has now become retailer giants within decades. The list may go on and on as there are numerous categories with huge companies that compete head to head with Amazon, such as in the sector of web services; Amazon has competitors like Alibaba Group, Microsoft (MSFT), Google, and International Business Machines Corporation (IBM). Similarly, Amazon has competitors in Online Traffic as well, such as; Facebook, Whatsapp, and Google.
The current Covid19 impact on e-commerce is undeniable. According to Feedvisor customer sales data, beauty, personal care, electronics sales increases by up to 17% and 3%, respectively. Shoes, jewelry, and clothing down to 11%. As social distancing is mandatory, people prefer to purchase online more often.