Published on November 2nd, 2017 | by Guest


The Big Ecommerce Question- Alibaba or Amazon? [Infographic]

Ecommerce is transforming the shopping experience for customers worldwide. The entry of global biggies like Amazon and Alibaba has taken the competition in the online retailing area to a whole new level.

E-tailers are differentiating themselves by providing innovative service offerings and are competing for the top site in terms of sales, profits, market value, traffic, coverage, and buyers.

And the question that is often being asked is- who will be crowned the global Ecommerce king – American Amazon, or Chinese Alibaba?

Founded as Cadabra by Jeff Bezos in 1994, and later renamed as Amazon, the online bookstore has grown into a giant ecommerce platform.

Alibaba is the invention of Jack Ma and 17 other co-founders and was started as a global wholesale marketplace in his apartment. Alibaba is a much more open marketplace, connecting sellers with suppliers. In contrast, Amazon operates in a traditional retail environment– keeping a much tighter rein on its sellers and protecting its own brand.

Amazon mainly caters to the North American and European markets, whereas Alibaba has its main foothold in China. As Amazon is expanding its e-commerce business in new markets, Alibaba is investing in companies around the world, ranging beyond E-commerce to also include virtual reality and social media.

In the year 2014, Alibaba surprised everyone by raising 25 billion as IPO at a market value of $231.44 billion and eclipsing Amazon as ecommerce top player.

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.

Although they are seen widely as direct competitors, these companies are two different ecommerce corporations, operating in different markets and using different business models. Amazon has a strong reputation among consumers, whereas Alibaba is trying hard to create its supplier-oriented reputation outside China.

People prefer Amazon for its convenience – both in terms of service and the ease of use of the platform.

This infographic created by clearly depicts whether Alibaba can conquer new markets and whether Amazon can hold on to its global vantage point as emerging markets shift the axis of power.

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