Article

Catalin Zorzini
Catalin Zorzini 27 October 2017

The War for Global Ecommerce- Amazon vs Alibaba

Cloud computing for ecommerce has reached new heights with Amazon and Alibaba. These ecommerce giants are the two biggest names in online shopping and are vying for the top spot in terms of market value, sales, profits, geographical coverage, traffic, and active buyers. And, everybody is asking, who is winning the ecommerce war – Amazon or Alibaba?

Founded by Jeff Bezos on July 5, 1994, Amazon is based in Seattle, Washington. China’s Alibaba is the brainchild of Jack Ma, whose rags-to-riches story continues to inspire young entrepreneurs across the world. 
 
Ma started Alibaba.com in 1999 with a business-to-business portal connecting small Chinese manufacturers with buyers overseas. 
 
The ‘Amazon Effect’ on the U.S online retail market has been phenomenal and far greater than in other international markets where Amazon competes. Starting out as an online bookstore, Amazon diversified into a vast range of merchandise – from music CDs, movie DVDs, video games, software, and electronics to clothes, furniture, toys, jewelry, and much more. 
 
Forbes recently reported that the Amazon Effect is gradually driving the entire brick-and-mortar retail industry in the U.S. to shut down.  By changing the way Americans shop, Amazon’s ripple effect extends from the shopper’ wallet to economic activity, including prices, jobs, and investment. 
 
China’s largest ecommerce company, Alibaba is expanding its offerings for Chinese consumers. Alibaba has teamed up with top brands in the food and beverage, healthcare, sportswear, home decor, cosmetics and travel segments, allowing people to buy everything from food to clothing to luxury items online. 
 
It has gone beyond outpacing the broader retail market in China, investing in logistics and focusing on capturing the rural market. 
 
The world is watching in rapt attention as Amazon and Alibaba battle it out. In 2017, Amazon’s market value stands at $427 billion and Alibaba’s market cap at $264.9 billion. 
 
Amazon’s GMV grew from $171 billion to $136 billion between 2012 and 2016 while Alibaba’s GMV increased from $61b to $136b during the same period. 
 
However, profits are an entirely different story. The American ecommerce giant’s profits increased from $20,271,000 in 2013 to 47,722,000 in 2016, while Alibaba’s soared from $3,990,000 to $10,327,000 over the same period.

This infographic by Ecommerce-Platforms.com clearly depicts where Amazon and Alibaba stand in their battle for ecommerce supremacy. 
 
Here you go:

Amazon-or-alibaba-ecommerce-war-infographic.png
 

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