Great prices only come with great competition, and when it comes to online retail giants like Amazon, that competition is fierce. From Walmart to eBay and Google Shopping Express, there are plenty of competitors to challenge Amazon’s dominance in the market.
But who are the biggest Amazon competitors?
Let’s take a look!
- What Is Amazon?
- The History Of Amazon
- Biggest Amazon Competitors
- Here are just a few of them:
- 1 Walmart
- So how does Walmart keep up?
- 2 eBay
- Far lower prices than Amazon…
- 3 Alibaba
- Big plans for their future…
- 4 Rakuten
- The competition is no secret!
- 5 Netflix
- Who knows what’s next?
- 6 JD
- 7 Flipkart
- Great customer service is key…
- 8 Otto
- 9 Target
- Amazing value for money…
- 10 Costco
- Bulk buying is their specialty…
- How Can Small Businesses Compete with Amazon?
- Why Not Work At Amazon?
- Final Thoughts
What Is Amazon?
Amazon is a gift from the universe when it comes to shopping, connecting us with items from almost every corner of the globe! With products ranging from everyday household needs like food, clothes, and electronics, to unique items to make your spirit soar, like crystals and books on meditation, they have something for absolutely everyone.
It’s the ultimate go-to place to buy almost anything you can think of – whether you’re searching for extraordinary gifts or just feel like treating yourself to something new. Best of all, whatever you choose on the website arrives right at your doorstep!
The History Of Amazon
The Amazon juggernaut has been a long time in the making; from its humble beginning as an online book retailer in 1994, it now boasts a market capitalization of over $1.5 trillion and is one of the largest companies in the world.
While its founder, Jeff Bezos, was initially laughed at for his dreams of selling books on the internet, he not only proved the critics wrong but changed eCommerce forever. The company now sells virtually everything – from the mundane to the extraordinary.
Creating unusual niches…
Not only that, but the e-commerce site continues to find and create unusual niches to make more money – such as providing cloud computing services through its Web Services division or even distributing original television shows through its ever-growing Prime Video service. Needless to say, Jeff Bezos’ idea has taken off quite successfully!
Biggest Amazon Competitors
It’s no surprise that Amazon has some of the biggest competitors in the online retail industry.
Here are just a few of them:
Walmart is a giant in the retail industry, and its roots span back to 1962. Over the years, it has developed into an indispensable staple of American life. Founded by Sam Walton, Walmart is currently owned by Walmart Inc., and despite its sweeping visibility across the nation’s landscape, it faces fierce competition from the e-commerce giant.
So how does Walmart keep up?
They’ve strategically implemented online delivery services for groceries, apparel, and other goods, plus expanded their market presence by offering low prices and introducing exclusive products that can’t be found on Amazon — an approach that keeps them one step ahead of their digital foe!
Need more info? No problem; check out our comprehensive Walmart Mission and Vision Statement Analysis.
eBay started in 1995 when computer programmer Pierre Omidyar offered a broken laser pointer to anyone willing to buy it online. Omidyar intended that the sale of the laser pointer would be a testament to his belief that people are good. Unbelievably, someone did end up buying the laser pointer, inspiring one of the first person-to-person trading platforms ever.
Fast-forward 25 years later, and eBay is now one of the largest sites for consumer-to-consumer sales, with over 180 million active users worldwide. At first glance, eBay may seem like it has its work cut out competing with Amazon, but they have quite a few things going for them.
Far lower prices than Amazon…
Shopping on eBay allows customers to get significantly lower prices than Amazon, as well as access rarer items or items sold by overseas sellers (perhaps explaining why they’re also loved by thrifters!). With an entirely different shopping model, quality customer service, and several tech advancements in recent years, eBay is most definitely here to stay!
Alibaba is easily one of the largest e-commerce companies in the world, and it lies at the heart of a complex network of businesses that are revolutionizing the way people shop and transact online. Founded in 1999 by Jack Ma, it all started with a simple mission: to make it easier for buyers all over the world to buy goods from Chinese merchants.
Today, Alibaba commands 80% of China’s e-commerce sales and nearly half of the global payments. In 2018, $768 billion was transacted on their platform. It’s no wonder, then, that they’re giving Amazon a run for its money!
Big plans for their future…
They’ve taken an innovative approach to competing with the e-commerce giant by focusing more heavily on mobile platforms, cloud services, and partnerships with malls and retailers. It seems their strategy is bearing fruit. Come 2022, analysts expect both companies to each have around 19% market share in global e-commerce sales – not bad going!
Rakuten is a Japanese e-commerce platform founded in 1997 by Hiroshi Mikitani, who still serves as its CEO. The global platform has since grown from an online mall to a vibrant ecosystem comprised of numerous digital services, ranging from banking to travel.
Though the company does not get nearly as much attention or buzz as many of its competitors, Rakuten continues to show impressive growth, with more than 90 million members worldwide and 25 billion US dollars in sales during 2017 alone! While Amazon remains the industry’s behemoth, Rakuten is certainly not shy about continuing to challenge its powerful competitor.
The competition is no secret!
From offering discounts or lower prices for similar products to creating loyalty programs for customers that involve actual rewards and experiences, not just discounts like Amazon Prime offers, Rakuten has made it clear that they are here to stay and compete – giving customers another alternative option when doing their shopping online.
Next on my rundown of the Biggest Amazon Competitors, Netflix has evolved from simply being your go-to streaming service to being a massive creative force. Originally started back in 1997 by Reed Hastings, it began as an online DVD rental service that has since changed the way the world consumes television and film.
Netflix is owned by numerous shareholders and is known for its investment in original content, both film and television. It has made a thorough effort to compete with Prime Video – from acquiring expensive programming rights to developing its own critically acclaimed series.
Who knows what’s next?
Despite this rivalry, many have applauded both platforms for their grand contributions to the entertainment industry. Who knows what new surprises these modern-day titans will come up with next?
Want to know more? Then take a look at our in-depth Netflix Mission and Vision Statement Analysis.
JD is a China-based online giant swiftly stealing the spotlight from Amazon. It started as an online retail store selling electronics, but soon expanded its product portfolio to apparel, footwear, and more. Owned by JD Inc, it has fostered strong relationships with many brands and provides we-commerce services alongside its e-commerce operations.
When it comes to fighting competition with Amazon, JD isn’t afraid to take risks. In addition to sharp discounts and free shipping, they have also implemented creative membership tiers that cater to all sorts of customers – from basic memberships for casual shoppers to Prime Elite for VIP perks and exclusive offers!
Flipkart is an Indian e-commerce giant which has quickly become one of the largest online shopping sites in the world. Founded in 2007 by Sachin and Binny Bansal, two software engineers who shared a passion for technology.
Flipkart has transformed from a small startup to a billion-dollar company. The company is now owned by Walmart International after Walmart purchased a 77% stake for $16 billion in 2018.
Great customer service is key…
As major competition for Amazon, Flipkart has implemented innovative strategies towards tackling the challenge at hand, such as partnering with local merchants and banking on its network of strong customer relations. In addition, the site offers exclusive discounts and provides great customer service – something which, no doubt, would have net them all those devoted customers!
Otto, established in 1949 by Werner Otto, has come a long way since then. It is now a leading e-commerce company with 16 million customers in 30 countries. Although Amazon is the giant of the e-commerce industry, Otto has managed to stay relevant by concentrating on its customer segment and focusing on quality. They offer both regular and luxury apparel as well as electronics that are not available everywhere else.
They focus on providing helpful customer service, which has helped them build loyalty over time. On top of that, they also have an impressive delivery speed, so customers don’t wait long for their orders. All these things combined have enabled them to tackle the challenge of competition from Amazon head-on – a feat many thought was impossible!
Target is a phenomenally successful American retail corporation, established in 1902 by George Dayton and now owned by a group of investors. It offers an array of products ranging from food to apparel and electronics.
Although originally a regional store, it has grown to become one of the largest retailers in the United States. In recent years, Target has been facing fierce competition from Amazon. To tackle this challenge, they have educated their customers on the convenience factor offered by being able to buy online and collect in-store if needed, as well as providing Click & Collect facilities for those who need their purchases in a hurry.
Amazing value for money…
Furthermore, Target continues to provide terrific value for money and an engaging customer experience that leaves its customers satisfied every time. No wonder why despite the competition, Minneapolis-based Target keeps soaring higher year after year!
For more info, check out our comprehensive Target Mission and Vision Statement Analysis.
Costco is the brainchild of a pair of business partners who had the adventurous idea to combine both wholesale and retail into one dynamic shopping experience.
The company was founded in 1983 and operated by two men, James Sinegal and Jeff Brotman, until 2017, when they opted to pass the baton-or barcode scanner, as it were-to new chairman and CEO W. Craig Jelinek. With Amazon’s vast reach across the internet only increasing each year, Costco faces tougher competition than ever before.
Bulk buying is their specialty…
However, they have developed strategies to differentiate themselves from Amazon, such as offering large bulk orders at discount prices that no other business can match. All in all, it seems that despite advances in technology and consumer choice, this unique brand has been able to stand its ground and remain a popular go-to destination for those looking to shop smart!
How Can Small Businesses Compete with Amazon?
As Jeff Bezos continues to dominate the e-commerce industry, small business owners must come up with innovative strategies to survive. One way to do this is to provide services that compete with the convenience of Amazon, such as free shipping and returns.
Additionally, small businesses should focus on local marketing, such as creating a presence on local directories, hosting events, and attending networking groups.
Building relationships with customers…
They can also look into loyalty programs and discounts that Amazon does not offer. Furthermore, they should prioritize creating a personalized customer experience that Amazon cannot replicate.
By understanding their customer base and providing exceptional service, small businesses can build relationships and create a loyal base that will continue to shop in-store despite the presence of Amazon. With the right strategies, small business owners can successfully compete with them and remain competitive in the modern market.
Why Not Work At Amazon?
Amazon is a great place to work and loads of fun too! So, let’s take a look at our in-depth guide to the Amazon Application, and once you’ve applied, find out What Does Amazon Jobs Application Under Construction Mean. Although, if you have a criminal record, check out Does Amazon Hire Felons, and the Amazon Background Check Policy, before you apply.
Next, we’ve also included the various work policies to look into before you put in your application, starting with the Amazon HR Policy, the Amazon VTO Policy, and the Amazon UPT Policy, as well as the Amazon Mandatory Overtime Policy, and the Amazon Bereavement Policy for 2023.
In addition, you might want to know Does Amazon Give Raises and Does Amazon Give Bonuses, along with the Amazon Transfer Policy, the Amazon Rehire Policy, and finally, the Amazon Vacation Policy if you need some time off.
The e-commerce industry is only getting more competitive as Amazon continues to dominate the market. Whether it be Target’s convenient Click & Collect service or Costco’s unbeatable bulk discounts, established companies are finding ways to differentiate themselves and remain competitive.
Despite the presence of Amazon, small businesses can still find success in the e-commerce industry. By understanding their customer base, offering innovative services, and creating a personalized experience for customers, small businesses can stay competitive and continue to thrive in today’s digital age.
With the right strategies, Amazon can be successfully challenged for its position as the leading online retailer. No matter the size, any company can compete with them and find success in the e-commerce market.
So, now you have better insight into the biggest competitors to Amazon!