If the competition within Amazon is tough, the one outside Amazon is tougher. We’re talking about our favorite ecommerce frontrunner going against other multi-million retailers! 🥊
And because that’s a story worth telling, today’s about the competitors Amazon faced and conquered this year. Join us in decoding their strategies to make a mark in the ecommerce industry. Who knows, maybe you’ll learn a thing or two about survival from them.
Amazon has ruled the retail scene for years now—both in popularity and revenue. In 2022, they raked in a crazy $469 billion in sales! And with increasing consumer spending, this number will go up this year.
👑 But this doesn't mean no one's gunning for the ecommerce crown. 5 contenders went close to snatching it, as dished out by Mayple:
Amazon and eBay were born around the same time, yet the former quickly sprinted ahead. But like a competitive sibling, eBay's making a slow but steady comeback by reaffirming its unique charm of letting shoppers buy and sell products at a fixed price or via auctions.
- Revenue/net worth: $21.34 billion as of December 12, 2023.
- Main advantage: Sellers can lock in fixed prices or toss their products into the auction mix.
Once just brick-and-mortar, Walmart has adapted to the online shopping domain and now stands as Amazon's top competitor in North America. Recently, it went head-to-head with Amazon in terms of fulfillment to level the playing field.
- Revenue/net worth: $152.8 billion for Q3 2023.
- Main advantage: Strong physical presence and a stellar online shopping experience.
3. Alibaba Group
Ecommerce rivalry is global, as proven by Alibaba Group taking down eBay in the Chinese market in 2014. Despite focusing on a business-to-business (B2B) model, the company has been the go-to platform for direct customers looking to buy bulk items with good discounts.
- Revenue/net worth: $35.92 billion for Q3 2023.
- Main advantage: Branched out brands that have specific target markets.
Temu may still be young, but its aggressive advertising stance won the attention of many consumers this year. It even shook Amazon up a little bit, leading the latter to exclude it from competitive price checks.
- Revenue/net worth: $7.6 billion for Q3 2023.
- Main advantage: Budget-friendly alternatives to pricey popular items.
5. TikTok Shop
- Revenue/net worth: TikTok Shop just entered the U.S. market in September, so what we have is its expectation for a $20 billion revenue this year.
- Main advantage: Effective combination of social media and ecommerce.
🥊 So you see, even an industry giant like Amazon struggles with competition. But it's holding on firmly to its place, beating the tough 5 above with ground-breaking innovations and better customer service—two things you should aim for to beat your rivals for good.
TOGETHER WITH STACK INFLUENCE
Get your dose of marketing success before 2023 ends
With social media on the rise, influencer marketing has become the secret sauce to brands' success. And believe it or not, micro-influencers are the secret ingredient to make your brand stand out!
However, setting up and launching campaigns that click can be challenging. You'd have to find influencers, handle collaborations, and analyze results—a handful without help.
🤝 The partner you need …
… is Stack Influence!
To help run your campaign, Stack Influence will:
- Meet with you to discuss your brand and find your target audience.
- Strategize, develop a timeline, and find the right micro-influencers for your brand.
- Manage micro-influencers from start to finish.
- Analyze your data by tracking your engagement rates and generate reports after campaigns.
But the best part?
You don't need to spend your hard-earned money on hefty 'talent fees.' Their influencer army accepts in-kind payments, such as free product samples!
So, sit back and let Start Influence do all the work for you. Set up your campaign today!
BITES OF THE WEEK
- Twinning: Walmart and Target are looking alike after adopting similar strategies.
- Ecommerce Kings: Here are the top 40 U.S. ecommerce companies in terms of web sales.
- ICYDK: DTC brands face several pros and cons when selling on Amazon.
- 2024 Calendar: Stay ahead of important shopping and inventory dates this coming 2024.
Can TikTok Shop compete with Amazon?
Imagine influencers showing products via livestreams and shoppers buying them on the spot (virtual spot, anyway). That's the vision that gave birth to TikTok Shop earlier this year.
According to Bizz Buzz, TikTok is now ready to harness the full power of social commerce. In fact, it's planning to tap into its 150 million monthly active users in the U.S. after a successful trial run in Southeast Asia. 🤔
So, the big question now is: Could it be a threat to Amazon?
❌ Not quite there yet…
While TikTok Shop injects fresh energy, the West has shown a lukewarm reception to live shopping features. Aside from that, Amazon is not one to back down on showdowns. Its merge with Meta to support and simplify in-app purchases put a direct question mark on TikTok's game plan.
However, it's not the only thing throwing down the gauntlet to the platform's ambitions. There are several roadblocks ahead, including:
- Data security issues and China connections that led to calls for TikTok bans in some regions.
- Complications due to additional shopping features, especially those involving payments.
- Indonesia's ban on social commerce transactions, which forced TikTok Shop to stop its services in the country.
So, can TikTok topple Amazon?
In all fairness, TikTok Shop is admirable for its ambition to make a mark in ecommerce as early as now. Still, it shouldn't forget that success depends on overcoming challenges like user preferences, competition, and rules.
With or without social commerce prowess, only time will tell if TikTok Shop can compete with Amazon.
5 things to consider when choosing between selling on Amazon and your own website
Enough about Amazon's competitors. Let's talk about a not-so-obvious rivalry that isn't tackled enough: you vs. Amazon.
When starting an online selling business, you need to decide whether to set up shop on Amazon or build your online store. Choosing the first one lets you share Amazon's explosive 84% growth in net profit. If you go for the second, you'll face costly investments, but you're not bound by fees or unfair rules.
If you're curious about the nitty-gritty, Mayple's got a side-by-side comparison.
💰 Upfront costs
- Amazon: A monthly fee of $39.99 for professional seller plans or $0.99 per item for individual sellers.
- Own store: You must cover the costs of website setup, hosting, and software. The expenses would vary based on whether you're DIY-ing or hiring professional services.
🚦 Customer base and traffic
- Amazon: Access to over 197 million monthly users and 150 million Prime members.
- Your website: Expect low traffic in the early stages; it takes time for SEO efforts to rev up.
- Amazon: The platform houses 6.3 million online sellers worldwide. To say that the competition is tough is an understatement.
- Your website: You're calling the shots in your products' exclusive sales and pricing. No need to worry about internal competitors, but you must be sharp to beat external ones.
🏷️ Selling fees
- Amazon: Sale-related fees can stretch from 8% to 45% of each product's selling price, depending on product categories.
- Your website: You'll only need to shed cash for essential services like taxes and credit card fees.
- Amazon: Feel free to tap into diverse ad types and a massive audience with Amazon's well-crafted advertising platform!
- Your website: You can access a broader range of advertising channels. Quick heads up, though: PPC ads can burn a hole in your pocket without a solid strategy.
The final decision…
…should be based on your niche, resources, and goals.
The smart play? Work from both angles—kick things off on Amazon to reach its massive audience, then shift to your website as your brand gains traction.
Because why choose when you can win in both worlds?