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Amazon Vs Alibaba: Two Biggest Brands Of The Global E-Commerce Market-Who Is Winning?

Published Tue Oct 15 2019 By Bean
Amazon Vs Alibaba: Two Biggest Brands Of The Global E-Commerce Market-Who Is Winning?

Amazon Vs. Alibaba

In the present context, e-service and electronic commerce have continued to get the consumers' preference for purchasing things and stuffs online. 

The two giants of the eCommerce industry Amazon (AMZN) and Alibaba (BABA) are in huge competition to win the top spot of the global e-commerce market. 

For over 20 years, the two major e-commerce companies have been competing as the grocery space, online retailer as well as in the field of entertainment and Pictures. They have been defeating each other creating a trade-war.

The Difference Between Two E-Commerce Superpower    

Jeff Bezos founded Cadabra later turned Amazon.com, Inc. with his ex-wife Mackenzie Bezos 25 years ago in 1994 as the online bookstore. Nearly 5 years after the establishment of Amazon, Jack Ma and the other 17 co-founders started the Alibaba Group Holding Limited in 1999 as a global wholesale marketplace.  

Jeff Bezos And Jack Ma: FrenimiesImage Source: Quora
Jeff Bezos And Jack Ma: Frenemies

Image Source: Quora

Now both the companies are competing for head to head in their home territories. As of 2018, Amazon has the bigger Market Capital than that of Alibaba. The market cap differs:     

CompanyAmazonAlibaba
Revenue$232.887 billion$56.152 billion
Operating Income$12.421 billion$8.506 billion
Net Income$10.073 billion$11.995 billion
Total Assets$162.648 billion$143.801 billion
Total Equity$43.549 billion$90.681 billion

The United States-based Amazon is known to American customers as an online retailer while Alibaba has dominated China as it’s e-commerce titan. 

Service

Amazon is recognized as the world’s largest online retailer whereas Alibaba serves as the middle man for the dealers; buyers and sellers similar to Pierre Omidyar’s eBay. 

Amazon vs. Alibaba

Image Source: E-Commerce Fuel

Amazon sells the goods directly and in addition, it also provides a platform for miscellaneous retailers and sellers. However, Alibaba is not involved in direct sales and helps small business persons and brands to reach consumers.  

Country Domination And IPO

Alibaba has branches in over 15 countries and Jack Ma himself claims that Alibaba has its suppliers and buyers in more than 170 countries.

In comparison, Amazon is not available in many places. It has rooted it’s subsidiaries and branches in 14 countries across the world. But it provides the services and shipping to over 100 countries. 

Nowadays, the two companies have grown and are now fighting in the new battlegrounds: the Stock market. Amazon started selling its Initial Public Offering (IPO) in 1997 with the base price of $18 per share. The company raised $54 million for Amazon from only stock sales. Summing out the $54 million profit from shares it grossed the market value of $438 million.  

Services and products of Amazon & AlibabaImage Source: repricerexpress
Services and products of Amazon & Alibaba

Image Source: Reprice Express

Likewise, Alibaba held its first IPO in 2014 at $92.70 per unit. Eventually, the stock sales raised $25 billion giving it the market value of $231.44 billion.   

Amazon is focused on the globalization of its Marketplace while Alibaba is increasing the area of services around the world.     

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