Nowadays, many customers don’t want to go to an offline store; therefore, if you run an online store, you can generate a lot of cash. Instead, they would favour shopping from the convenience of their homes. However, it also reveals that the market is highly competitive. To thrive in this rapidly expanding sector, you must constantly innovate, enhance the shopping experience, and adhere to high-quality e-commerce product trends 2023. Even though e-commerce is incredibly unpredictable, certain businesses have managed to dominate the e-commerce market.
By offering better technology, more practical services, and more extensive delivery options, the top eCommerce companies in the world are supporting exceptional growth as economies throughout the globe flourish. The expansion of the worldwide eCommerce market, which had sales of USD 3.465 trillion last year, was driven mainly by rising consumer spending. Detailed comparisons of the top eCommerce businesses are provided in this article.
So why not? You’d think Amazon would be at the top of the list! We must have all ordered something from this rapidly growing online store. This company’s customer base and revenue are increasing year after year. The company earned $477.748B in revenue at the end of the fiscal year 2022, a 13.99% increase over the previous year. The company’s products are used by 310 million people worldwide.
Amazon Prime is perhaps its most innovative and successful contribution to online retail. Amazon Prime is a subscription service that offers unlimited two-day shipping from Amazon. The company is constantly adding new features, such as video and music streaming, exclusive access to certain items, early deals, free ebooks, unlimited photo storage, and more. As a result, Amazon now has more than 100 million Prime members worldwide. Amazon’s Fulfilled by Amazon service has also proven to be a home run. Over the last three years, Amazon Fulfilled allowed the online retailer to increase the number of Prime-eligible items from 20 million to 100 million.
JD.com is ranked second on our list of the world’s top eCommerce companies by revenue in 2020. JD.com, also known as Jingdong, is a Chinese e-commerce company based in Beijing. JD.com is one of China’s two largest B2C online retailers by transaction volume and revenue. JD.com was founded on June 18, 1998, by Liu Qiangdong, and its retail platform went online in 2004. Tencent owns 20% of the company. The company is best known for investing in high-tech and artificial intelligence delivery via drones, autonomous technology, and robots. It has the world’s most extensive drone delivery system, infrastructure, and capability.
JD.com is ranked second on this list of the largest eCommerce companies by revenue, with USD 82.86 billion in revenue and a market capitalisation of USD 93.15 billion. Jingdong, which competes with the more popular Alibaba, has well over a quarter of a billion registered users as of 2018. Today, the company touts its high-tech delivery system, which includes robots, artificial intelligence, and a fleet of drones. Regarding employee numbers, JD.com has over 380,000, while Alibaba has slightly more than 250,000.
- Alibaba Group
The company is ranked third on the list of the largest eCommerce companies by revenue. The Alibaba Group is a Chinese multinational technology conglomerate specialising in e-commerce, the internet, retail, and technology. Alibaba was founded in Hangzhou, Zhejiang, 21 years ago and offers online sales through web portals, as well as electronic payment services, shopping search engines, and cloud computing services. In 2017, Alibaba launched Hema, a supermarket chain where customers can order in-store or online for delivery in under 30 minutes. In 2020, Alibaba generated USD 71.98 billion in revenue and had a market capitalisation of USD 595.23, making it one of the world’s top eCommerce companies by both measures.
Few people are unaware of Jack Ma’s success. The life of the Chinese business magnate is a tale of riches to rags. After being turned down for more than 30 job openings in the early 1990s, he began creating websites for businesses with his wife and a friend. The company expanded rapidly, and in 1999, the Alibaba Group was founded, now the world’s largest retailer, operating in over 200 countries.
In the 1990s, eBay began as an online auction house where people could sell collectables and used goods to one another. Currently, 80% of items sold on the platform are brand new, and 89% are sold at a fixed price. eBay is taking steps to make its platform more similar to Amazon’s in appearance and operation. It encourages sellers to provide free, guaranteed three-day shipping. It combines product listings from different sellers for the same item, making it easier for customers to find the best price. It also introduced the Best Price Guarantee, which provides customers with a 110% refund on the difference between an item purchased on eBay and an identical listing on a competitor’s website.
GMV growth (on a currency-neutral basis) began to accelerate in 2018, with a 7% increase in the year’s first half. Nonetheless, that growth is much slower than that of the other companies on this list and slower than the overall growth of the e-commerce industry. While eBay works to improve its GMV growth, it is also attempting to increase its profit margin. It began to cut ties with its former subsidiary PayPal to transition to its intermediary payments.
Rakuten, a Japanese electronic commerce and online retailing company based in Tokyo, Japan, ranks fifth on this list of the world’s top largest eCommerce companies by revenue. Rakuten earned USD 11.6 billion in revenue last year and has a market cap of USD 12.46 billion. Rakuten is the largest e-commerce site in Japan and a B2B2C E-Commerce platform. Rakuten began to expand outside of Japan and into international markets in 2005 with significant acquisitions and joint ventures such as buy.com and eBates. Rakuten currently employs over 18,364 people and serves 29 countries and regions.
Rakuten is comparable to JD.com and Amazon. The Japanese e-commerce company operates an online mall for major brands in Japan, but it also owns e-commerce operations in other countries, including the United States, France, Brazil, and the United Kingdom, which are more unbranded marketplaces similar to Tmall, eBay, or Walmart’s marketplace. Rakuten invests outside of retail and logistics to compete with Amazon’s growth. It is the largest internet bank in Japan and the third-largest credit-card company. It recently began constructing a wireless network to increase the profitability of its MVNO business. Among its 60 other firms are a travel agency, an insurance company, a matchmaking service, and a golf-reservation system.
Walmart is a multinational retail corporation based in the United States with 10,500 stores and clubs in 24 countries. It runs a hypermarket, discount department store, and grocery store chain. In addition to focusing on offline stores, the company has begun allocating resources to its e-commerce stores and expanded its grocery pickup and delivery services. The massive offline store network lets the company sell more goods and services online. The company’s market capitalisation is $343.52 billion. Walmart’s annual revenue for 2022 was $572 billion, up 2.43% from 2021. Walmart employs 2.3 million people, allowing the company to scale its operations rapidly.
Walmart’s most recent e-commerce investment is a 77% stake in Flipkart, one of the leading e-commerce companies in India. Walmart is now neck and neck with Amazon in India, another market where Amazon has grown to outperform the local competition. India has enormous growth potential for online shopping, and Walmart’s stake in Flipkart gives it significant market exposure. According to Walmart, Flipkart’s GMV in 2017 was around $7.5 billion.
Each of these six companies provides a unique opportunity to invest in e-commerce. Amazon has a global reach. Alibaba and JD.com give access to China’s rapidly expanding market. Walmart’s Flipkart acquisition provides exposure to India, but its massive brick-and-mortar operations offer stability. Rakuten and eBay are growing slower than the competition. Still, eBay is looking for ways to improve the profitability of its core business, while Rakuten is investing in areas other than retail to drive profit growth.