Home / Ecommerce / Top 9 Amazon Competitors and Why They are Successful (2020)

Top 9 Amazon Competitors and Why They are Successful (2020)

Top 9 Amazon Competitors and Why They are Successful (2020)

Amazon, launched by president and CEO Jeff Bezos in 1994 simply outdoors of Seattle, Washington, is a world ecommerce large. With $232 billion in web gross sales yearly, Amazon is probably the most dominant on-line retailer in existence at this time.

In truth, Forbes reported in May that Amazon had surpassed Walmart to turn out to be the world’s largest retailer.

Every ecommerce retailer proprietor must face the truth that they are competing with Amazon.

Your trade and the dimensions of your enterprise doesn’t matter. If you promote bodily merchandise on-line, you’re up towards Amazon. They promote every thing; you’ll be able to even purchase a pre-built tiny residence on their platform.

In the U.S. alone, Amazon controls 45% of the ecommerce market share. That’s up from 34% in 2016 and anticipated to eclipse 50% by 2021.

Simply put, Amazon is exhibiting no indicators of slowing down any time quickly.

As huge as Amazon is, the corporate nonetheless has its fair proportion of opponents. Streaming service Netflix competes with Amazon Prime Video. Google Home merchandise compete with Amazon’s digital assistant Alexa. In the cloud computing enviornment, Microsoft Azure and Google Cloud each compete with Amazon Web Services (AWS).

And that’s simply on the know-how aspect — there are loads of B2B and B2C ecommerce shops going face to face with Amazon and thriving.

I’ve recognized Amazon’s largest opponents to indicate you the way different web sites can nonetheless have success on this area. In this information, I’ll additionally clarify how ecommerce shops can compete with Amazon with actionable, fact-based ideas.

If you personal an ecommerce web site, it is advisable hold studying. Let’s dive in.

Top Ecommerce Competitors For Amazon

Who is Amazon competing with? You is perhaps stunned. From small area of interest web sites to different retail enterprise giants, Amazon has its arms full with on-line opponents.

Online shops.

The ecommerce trade is rising at an exponential charge. In truth, retail ecommerce gross sales worldwide are anticipated to achieve $four.eight trillion by 2021.

retail ecommerceretail ecommerce

That’s proper; practically $5 trillion is up for grabs!

But take a second to consider what number of on-line shops exist. No one straight screens the precise variety of ecommerce web sites throughout the globe. However, it’s estimated that there are upwards of 24 million shops promoting merchandise on the Internet at this time.

There is only one Amazon.

Let that sink in for a second. While Amazon is perhaps dominant, it is only one web site out of hundreds of thousands of others promoting on-line.

This is energy in numbers at its most interesting. One of these web sites may not take an enormous chunk of Amazon’s market share by itself. But collectively, each on-line retailer poses a risk to Amazon.

Niche ecommerce shops.

When Amazon first launched again in 1994, the corporate specialised in promoting books on-line. But at this time, the corporate doesn’t essentially have one clear-cut specialty. As I stated earlier than, they promote every thing.

But some prospects will at all times want shopping for from area of interest shops, manufacturers, and producers.

Amazon is clearly excellent at what they do. But by way of data and high quality, they’ll’t compete with smaller area of interest retailers that are consultants in a specific trade.

A number of examples of area of interest merchandise embrace beard oil, CBD for pets, and vegan cosmetics. Consumers are extra probably to purchase merchandise like this straight from an organization that makes a speciality of these industries.

Furthermore, 66% of consumers worldwide, and 73% of Millennials say they are prepared to spend more cash on sustainability. So area of interest ecommerce websites may even cost more cash for his or her merchandise.


Walmart is one other world large. This big-box division retailer generates $514.41 billion in web gross sales per yr. That’s greater than double Amazon, though a big share of Walmart’s gross sales clearly come from brick-and-mortar purchases.

There are greater than 11,000 Walmart bodily retailer places throughout 27 nations.

While Walmart is best-known for its bodily department shops, this retail large additionally has a major presence on-line. Behind Amazon, Walmart is the second hottest on-line retailer within the United States by way of ecommerce income.


With Walmart’s worldwide presence and buyer base, they are going to be a steady risk to Amazon within the ecommerce area.

Walmart’s on-line gross sales are rising at 40% year-over-year. At this tempo, you’ll be able to count on this large to remove much more Amazon enterprise within the coming years.

Alibaba / Aliexpress.


Alibaba is a China-based on-line retailer. This worldwide large makes a speciality of wholesale promoting on-line, which is a differentiation issue in comparison with Amazon.

Another distinctive distinction between Alibaba and Amazon is its total enterprise mannequin. While Amazon is run completely below one roof, Alibaba is cut up into separate companies:

Alibaba is the B2B focus of the corporate, whereas the opposite branches deal with B2C and multinational manufacturers, respectively.

As of June 2019, there are 755 million Alibaba customers worldwide. The firm is liable for 58% of all on-line retail gross sales in China.

Alibaba bought $30.eight billion of merchandise on November 13, 2018, the Chinese model of Black Friday often known as “Singles Day.”

With a world presence, a dominant market share in China, and B2B gross sales along with B2C focus, Alibaba is a pressure to be reckoned with. Plus, any web site that may do $30 billion in sooner or later can undoubtedly win towards Amazon.



Otto is a European on-line retailer. The firm is greatest recognized for innovation all through the years to maintain tempo with the instances. At its core, Otto is a buying and selling firm, that means that it sells merchandise from different manufacturers on its ecommerce platform.

It’s primarily a one-stop-shop for purchasing on-line in Europe. Some of Otto’s prime classes embrace style, electronics (like Apple and Microsoft merchandise), residence items, and sports activities.

One of the the explanation why Otto is so common is because of its user-friendly interface. The platform makes it straightforward for customers to buy on-line.

In 2019, Otto generated roughly $three.eight billion in income from on-line gross sales. While this may increasingly appear marginal in comparison with Amazon, it’s nonetheless extraordinarily spectacular.

Otto has a 13.7% annual development charge. 72% of their gross sales come from furnishings, home equipment, and style purchases. This makes them distinctive in comparison with Amazon.



Formally 360purchase, JD (Jingdong) is one other Chinese ecommerce enterprise. This Fortune Global 500 firm is a direct competitor of Tmall, which is run by Alibaba.

At JD.com, customers can purchase a big selection of merchandise at an inexpensive charge. The web site additionally has a “buy in bulk” class, which is one more reason why it goes head-to-head with Alibaba.

Joybuy.com can be an affiliate of JD. This web site is in English and ships to greater than 200 nations worldwide. It additionally affords 24/7 customer support and 30-day returns.

Jingdong has greater than 305 million energetic prospects. Its quarterly energetic buyer accounts are rising at a 22% year-over-year development charge.


Everyone is conversant in eBay. This web site was a pioneer in consumer-to-consumer promoting by way of a web-based market. Over time, eBay has developed and turn out to be greater than only a manner for customers to purchase and promote their very own new or used merchandise.

Today, eBay is used for B2C gross sales along with its conventional C2C mannequin.

In phrases of market web site visits, eBay is second to Amazon, with slightly below 20% of the market share.


The web site visitors to eBay is spectacular. It’s practically double Walmart, and we’ve already established how profitable Walmart is within the on-line area.

With the power to bid on merchandise and the distinctive manner for consumers and sellers to attach on-line, eBay is a prime competitor to Amazon.



Flipkart is a more moderen ecommerce firm in comparison with a few of the different opponents on our record. This Indian-based ecommerce platform was based in 2007 and shortly grew to become the biggest on-line retailer in India.

In 2018, Walmart acquired 77% of Flipkart’s shares, valuing the corporate at $22 billion.

With Walmart controlling the bulk stake of Flipkart, there’s no telling the place the corporate can go from right here.

More than 100 million customers are registered on Flipkart. The platform’s user-friendly design, cellular app, and customer support make it one of many up-and-coming Amazon opponents. With such a variety of merchandise provided by way of Flipkart, the corporate is poised for continued success within the coming years.



Rakuten is a Japanese ecommerce firm.

The enterprise generates greater than $2.three trillion per yr in retail ecommerce gross sales. In 2019, Rakuten managed 14.1% of the full world ecommerce market by way of retail gross sales. Furthermore, they are liable for practically 10% of the full ecommerce retail share in Japan.

Rakuten generated greater than $134 billion in Japanese ecommerce gross sales alone in 2019.

In 2010 they bought purchase.com to increase its world presence within the United States. Aside from purchase.com, Rakuten has acquired different ecommerce firms like PriceMinster (France) and Play.com (UK). They additionally ventured into acquisitions like Ebates (cash-back rewards) and Viber (VoIP software program).

As Rakuten continues to increase and purchase firms throughout various industries and areas, they may try and hold tempo with Amazon.



Newegg is a world chief in promoting electronics like laptops, TVs, cameras, telephones, and laptop merchandise on-line. The firm generates $2.7 billion in income by providing electronics at an inexpensive charge.

The undeniable fact that Newegg is profitable within the electronics area is threatening for Amazon. That’s as a result of electronics is Amazon’s hottest class.

44% of Amazon consumers within the U.S. have bought an electronics product by way of the platform. Clearly, Amazon depends on these gross sales.

Newegg’s market share takes billions away from Amazon on this class.

How Online Stores Can Compete With Amazon

Now that you simply’ve had an opportunity to see a few of Amazon’s prime opponents, it’s time for me to indicate you the way on-line shops can compete with Amazon.

You don’t should be the subsequent Walmart, Alibaba, or eBay to have success promoting on-line. Your on-line retailer doesn’t want $1 billion in income to go up towards this world large.

All it is advisable do is comply with the lead of profitable manufacturers within the area. You may even steal the playbook from Amazon straight and apply it to your online business.

These are the highest 12 ideas for competing with Amazon on-line.

1. Build a model. Be the model!

Branding is highly effective. Branding is the explanation why Starbucks is ready to cost $5 for espresso and why Gucci can promote t-shirts for $500.

You want to ascertain a model that your prospects acknowledge and belief. When prospects are loyal to a model, they received’t store elsewhere, even when the choice choice is cheaper or extra handy.

Amazon sells merchandise manufactured by many various kinds of manufacturers. But the character of Amazon’s platform makes each product really feel brandless.

It’s robust for purchasers to inform the distinction between one model or one other after they’re procuring on Amazon.

As a consequence, this creates a major alternative for different B2B ecommerce shops to face out with their distinctive manufacturers.

2. Focus on buyer retention.

Everyone thinks they should exit and discover new prospects to achieve success. While first-time prospects are clearly nice, you’ll be able to’t afford to disregard your current prospects.

Repeat consumers spend more cash and convert at the next charge in comparison with new prospects.

ecommerce KPIsecommerce KPIs

Source: Softclouds

A buyer who has bought one thing out of your web site as soon as is already conversant in your model and merchandise. It’s a lot simpler to promote to them once more, versus making an attempt to teach another person about who you are and what you do.

Research reveals that you’ve as much as a 70% probability of promoting to a repeat buyer, however that quantity drops as little as 5% for brand spanking new prospects.

Returning prospects are 50% extra more likely to attempt new merchandise and spend 31% more cash than new prospects.

Amazon makes use of its Prime memberships as a solution to retain prospects. You ought to give you a buyer loyalty program to encourage buyer retention together with your on-line retailer.

three. Focus on ecommerce search engine optimisation

ecommerce search engine optimisation is one thing that must be a precedence for all B2B ecommerce shops in 2020.

  • Site structure.
  • User expertise.
  • Blogs.
  • Category descriptions.
  • Product descriptions.
  • Keyword analysis.
  • Link constructing.

These are all elements of the on-page and technical search engine optimisation of your web site. If you’ll be able to grasp your search engine optimisation technique, you’ll rank excessive in SERPs for related key phrases in your class.

The first web page of a Google search consequence captures 71% of clicks. If you don’t seem on this web page, the probabilities of a buyer navigating on to your web site are slim.

Without an emphasis on natural search visitors, you’re counting on prospects navigating on to your web site and bypassing the search engine. But what about consumers who aren’t conversant in your model? You’re alienating these individuals.

The numbers communicate for themselves. 93% of all on-line experiences start with a search engine.

Consumers are trying to find what you’re promoting. You simply have to ensure that your ecommerce web site is seen in natural search outcomes.

four. Build an e mail record.

Contrary to common perception, e mail advertising is much from lifeless. It’s probably the greatest methods for manufacturers to speak with prospects.

When you seize an e mail tackle, you’re in a position to remind that buyer about gross sales or promotions that may entice them to purchase. You take into consideration your model 24/7, however in actuality, your prospects don’t.

Don’t simply sit again and look ahead to them to go to your web site. Send them an e mail to jumpstart the method.

Here are two of my favourite methods for constructing an ecommerce e mail record. First, acquire e mail addresses through the checkout course of.


This instance was taken from Lululemon. The buyer has to supply their e mail tackle anyway for the receipt, order affirmation, and delivery updates.

By including this easy checkbox to the method, it makes it straightforward for the shopper to subscribe. They received’t should exit of their solution to opt-in.

Another smart way so as to add subscribers to your record is by giving them an incentive to hitch. When somebody lands in your web site, you’ll be able to supply one thing alongside the traces of a 20% low cost for new subscribers.

Not solely will this get your prospects to enroll, but it surely additionally offers them an incentive to purchase instantly.

5. Offer engaging reductions.

Everyone desires to really feel like they’ve gotten an excellent deal after they purchase one thing. The final thing you need is to your prospects to have purchaser’s regret after procuring in your web site. This will give them a nasty affiliation together with your model.

One of the the explanation why Amazon is so profitable is due to their costs. Here’s a take a look at a very powerful components driving buy selections on Amazon.


Source: Statista

As you’ll be able to see, the highest two responses on the record had been associated to value.

To compete with Amazon’s low costs, it is advisable supply engaging reductions in your ecommerce web site. When a buyer looks like they’re getting an excellent deal, it will increase the probability that they may convert.

6. Prioritize web site person expertise.

Amazon is masterful at getting customers to transform. The web site, cellular app, and single-click checkout course of contribute to the corporate’s success.

To beat with that, your web site should accommodate your prospects. The pages have to load shortly, and navigation simplicity needs to be a precedence as properly. If your prospects can’t discover what they’re searching for in only a click on or two, then they’ll go elsewhere for his or her wants.

People don’t have any cause to place up with a irritating procuring course of. Countless web sites, together with Amazon, make it really easy to buy on-line.

First impressions matter. It takes simply zero.05 seconds for an individual to type an opinion a few web site. 38% of customers cease partaking with websites which have an unattractive design. Furthermore, 88% of individuals received’t return to an internet site after having a nasty expertise.

If your web site isn’t user-friendly, individuals will go away — it’s that easy.

7. Don’t promote the very same merchandise as Amazon.

We’ve already established how huge the Amazon product itemizing is. They seemingly promote every thing and something below the solar.

But with that stated, it’s best to attempt to keep away from promoting the very same merchandise provided on Amazon, particularly for those who’re a web-based reseller.

If you could have the assets, attempt to give you your individual product. Otherwise, discover methods to carve out a distinct segment in your trade.

You wouldn’t open up a fast-food burger restaurant and put it subsequent to McDonald’s, would you? So don’t attempt to beat Amazon on-line at their very own recreation by promoting every thing that they do. Be distinctive.

eight. Don’t sacrifice margins on Amazon.

When you’re making an attempt to compete with Amazon, it may be tempting to slash your costs. But that’s not a profitable technique for those who’re sacrificing your revenue margins.

Amazon can hold its costs low primarily based on the sheer quantity of gross sales. But an unbiased on-line retailer can’t afford to maintain costs that low. Minimal revenue margins will put your organization prone to going out of enterprise.

Sure, for those who’re priced decrease than Amazon for competing merchandise, customers would possibly select you over them. But that’s not worthwhile long-term for those who’re not making sufficient cash to maintain the lights on.

Come up with a sensible revenue margin. Then create a pricing technique that meets these margins, even after gross sales, promotions, or reductions.

9. Focus on conversions and funnels.

Conversions are the lifeblood of a web-based retailer. Traffic is nice, but it surely’s ineffective if these guests aren’t changing.

Here’s an summary of the common ecommerce benchmarks at every stage within the conversion funnel.


Source: CrazyEgg

How does Amazon examine to this common? Amazon Prime members convert at a whopping 74% charge.

Amazon blows the competitors out of the water by way of conversions. But fortuitously, you’ll be able to mannequin your conversion funnel after Amazon’s to spice up your gross sales.

While 74% may appear unattainable, simply take into consideration how way more cash you may make by rising your conversion charge by simply 5% or 10%. How a lot would you make for those who doubled your conversions? You can enhance ecommerce conversion charges by specializing in funnels and guiding your prospects by way of the checkout course of.

The concept right here is to determine the place you’re dropping prospects within the funnel. Simplify the method so the conversion might be finalized in simply a few clicks. Each added step offers the shopper an opportunity to alter their thoughts and abandon their cart.

10. Have a straightforward returns course of.

Returns are an inevitable a part of promoting on-line. Rather than making an attempt to keep away from them, it is advisable make returns as straightforward as doable for the shopper.

Customer-friendly return insurance policies might be the distinction between a conversion and a missed alternative.

66% of customers examine an organization’s return coverage earlier than they make a purchase order. 80% of consumers are deterred by manufacturers with an inconvenient return course of.

Put your self into the sneakers of a client for a second. They bought one thing that they wished, and for one cause or one other, they wish to ship it again. In some instances, the product might be defective or wanting the shopper’s requirements.

Regardless of the explanation, the shopper is already sad. Don’t make this worse by forcing them to pay for returns. More than 41% of customers will solely store from on-line retailers that supply free returns.

Let them print a free return delivery label. Eliminate restocking charges or different return charges.

Don’t lose a buyer over a return. If the method is easy, individuals will proceed to purchase out of your on-line retailer, even when their unique objective was unsatisfactory.

11. Offer 2-day delivery.

Amazon’s supply service has raised the bar for on-line delivery practices. Prime members get two-day supply for his or her orders. This has turn out to be the brand new normal within the minds of customers.

To compete with Amazon, it is advisable supply two-day delivery as properly. Here’s the catch — it is advisable do it at no cost.


Extra prices, together with delivery, are the primary cause for procuring cart abandonment.

According to this graph, an extra 18% of customers abandon checkout as a result of the supply time was too sluggish.

A current research means that 9 out of ten prospects say that free delivery is the primary incentive to buy on-line extra ceaselessly.

Don’t fear about dropping cash on delivery. Just construct delivery prices into the bottom worth of your merchandise. Plus, 93% of consumers really feel inspired to purchase extra merchandise when free delivery is obtainable. Orders shipped at no cost common a 30% larger worth.

There’s no manner round it; to compete with Amazon, it is advisable ship free and quick.

12. Work with marketplaces.

Instead of simply promoting straight out of your web site, you’ll be able to work with different on-line marketplaces in addition to Amazon. This is a perfect technique for smaller manufacturers in area of interest classes.

Some of the highest marketplaces to think about itemizing on embrace:

  • Etsy.
  • Touch of Modern.
  • Fancy.
  • Wayfair.

So, discover a web-based market that makes a speciality of your area of interest class. Shoppers are already conversant in these platforms and use them to buy on-line.


Amazon has modified the best way we purchase on-line. They’ve raised the expectations for customers and set the bar for different on-line retailers.

Although Amazon is a robust, world ecommerce chief, it doesn’t imply that they are resistant to competitors. There are loads of different big firms on the market taking a bit out of Amazon’s market share.

Every single on-line retailer in existence is competing with Amazon. To survive and thrive shifting ahead, it is advisable adapt and make adjustments to your course of.

Follow the guidelines that I’ve outlined on this information, and you’ll be capable to compete with Amazon for years to return.

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