The past decade has seen the rise of one of the most dominant tech companies the world has ever seen: Amazon.
Nobody can dispute that Amazon is currently controlling the e-commerce market, as millions of people are purchasing products online from the platform daily.
Amazon’s influence has further increased during the past couple of years with the advent of the COVID-19 pandemic.
Nonetheless, some brave companies are rising to the challenge of competing with Amazon’s digital empire.
5 E-commerce Companies That Want a Bigger Piece of the Pie
This article examines a handful of corporations that are currently on the rise in the e-commerce sector. Especially in the Asian market, customers are looking for alternatives to Amazon, but the trend is also growing in Western markets. As a result, these companies have the capacity and power to compete and significantly minimize Amazon’s dominance.
The first company that comes to mind when talking about Amazon’s competitors is eBay. Consumers often look to eBay for similar products sold by Amazon, including electronics, fashion items, and various tools. Many sellers are looking toward eBay as they want to be able to auction their products. On Amazon, they are only allowed to offer a fixed price to the consumer.
Moreover, several e-commerce entrepreneurs are shifting towards eBay due to its looser restrictions and simpler payment methods. eBay also offers a niche market to sellers looking to make a profit from any antiques or collectibles they may have acquired. Instead of going from one antique shop to another, collectors can now buy any vintage item they wish online.
Taobao is an e-commerce company founded by the Alibaba Group. Like eBay, it allows sellers to either auction their items or sell them at a particular price. Taobao is one of the top e-commerce websites in China today, with over 450 million visitors per month. It offers many kinds of products, from clothes to electronics to accessories. Taobao contributes up to approximately 80% of Alibaba’s overall profits, which makes it a highly significant company in China.
With the massive population and growing internet usage in China, e-commerce websites based in the Asian giant are becoming formidable competitors in the global market. Chinese consumers are rapidly adjusting to the digital way of life, making more purchases online, thus giving Chinese online shopping corporations sustained profits.
Furthermore, by using a Taobao proxy, consumers from the US or Europe can also explore the Chinese market and purchase more diverse products directly from China at possibly better prices. These proxy servers give consumers outside of China the opportunity to overcome geo-restriction and make financial transactions on sites like Taobao.
Another company causing trouble for Amazon in the East Asian market is Rakuten. Rakuten sees high profits in Japan, where it competes directly with Amazon. Rakuten’s success is based on its cashback system, as consumers prefer to purchase products from Rakuten rather than directly from well-known corporations. Additionally, sellers may choose Rakuten over Amazon because the latter also sells its own products, which means that they may also have to compete with Amazon when trading on the platform.
Otto is one of the leading brands in European countries, especially Germany. It offers consumers products such as furniture, sports clothing, and electronics. Otto attempts to maintain a high quality of service, allowing consumers to call their customer service when facing an issue. They also offer quick delivery for furniture and appliances; customers receive their products within hours, which is a highly-attractive perk.
5. JingDong (JD)
Another significant player in the Chinese e-commerce space is JingDong. JD is competing against both the Alibaba Group and Amazon in China, as its vast network of warehouses offers it an excellent infrastructure that can support customers’ demands. JD will rise further in the next few years because of China’s massive shift towards online shopping as a result of the pandemic.
What’s in Store?
Amazon may dominate the e-commerce space today. However, the future may see many other companies rising in this sector. Multiple e-commerce businesses are looking for gaps in the market and taking advantage of the vast market of online consumers for their benefit. At the end of the day, only the future will show whether Amazon’s competitors will succeed in surpassing it.