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Amazon versus Alibaba: the battle of The E-Commerce giants

Amazon is after market value is the third-most valuable company in the world. In Germany alone, half of the E-Commerce sales accounted for almost the US giant. Alibaba is relatively unknown in Europe. But for how long?

Jeff Bezos, Amazon

Amazon and Alibaba - two success stories. On 5. July 1994, entrepreneur Jeff Bezos, impressed by the growth of the new technology of the Internet, a Online based trading for books. Five years later, the former English teacher Jack Ma created the 4. April 1999 in Hangzhou, a similar company.

Today, Amazon and Alibaba are the largest Online retailer in the world. Ma, the richest man in China, Bezos will be the richest man ever. Both formed their groups on their own way. Amazon provides a platform for third-party vendors who pay a fee. Essentially, the group buys but even a wide range of products and passes it on to its customers. This accounts for about half of the business and means business.

Alibaba owes its success to a different strategy. The Chinese giant does not sell its own Goods, but is restricted mainly to the Job of the mediator. Alibaba needs no expensive logistics centers. This makes the company much more profitable. For comparison: Amazon has about eleven times as many employees as Alibaba, at a only slightly higher profit.

race opened come

Alibaba chief Jack Ma

so Far the two companies have little in the way of that. Always was clear: Amazon is the number 1 in Europe and the USA. In Germany alone, Amazon accounts, according to an analysis of the Payback and the University of St. Gallen for almost 50 percent of the total E-Commerce sales.

But now is trying to push Alibaba in the next few years, including through investments, in the amount of about 15 billion dollars - to Europe. "We set new rules for the future," said Jack Ma in the last year. With a large-scale Initiative, the group aims to build a global Online trading platform ("the electronic World Trade Platform", a short eWTP). By the end of 2018, the "Chinese Amazon announced" that in Belgium, a Logistics hub is to be built.

Alibaba wants to conquer Europe

liège had been selected as the new hub of the global network, said Europe chief Terry from Bibra to the Belgian economic newspaper "L'echo". From the planned logistics centre European companies should be able to deliver in the next five years, products to the value of 200 billion euros to China.

the other way around, Chinese manufacturers are to receive a simplified access to the European market. The long-term goal: orders from China will be processed within 24 hours and in the rest of the world within three days. The strategy also includes Acquisitions, a rumour of the purchase of Europe's largest Online fashion retailer Zalando.

Amazon includes Chinese marketplace

Amazon looking for a 15-year-old race in China. Against the Chinese competitor Alibaba, and the US group has no Chance. Last year, Amazon had a market share of only 0.7 percent. Alibaba, with 58.2 percent and JD with 16.3 percent are miles in front. Overall, the Chinese companies have, according to the analysts from iResearch Global, the own Land of just under 82 percent.

for More price information to Amazon

Further course information, to Alibaba ADR

for More course information ADR

Therefore, Amazon closes at its service centers and reduced the cooperation with Chinese sellers. Although Amazon online China and other areas of the business will remain the same, customers can buy the Goods from a third party.

want to Instead focus Amazon on promising markets such as India. The investment Bank Morgan Stanley estimates that by 2026 over half of the Indian Internet users ' Online purchases will, in 2016, there were still 14 percent.

the Chinese market is gigantic

The first round went to Alibaba. However, Alibaba has not yet set the Format of Amazon. 2017 line of the U.S. group 177,9 billion Dollar in sales, Alibaba, by contrast, only modest 39,9 billion dollars. Through the different business model of Alibaba is much more profitable. Amazon earned in the same year, the bottom line is that three billion dollars, the Chinese competitor managed the operating result (before interest, taxes, depreciation and amortization) and an increase of 2.68 billion dollars.

Recently overtook Alibaba on the annual BrandZ list Tencent most valuable Chinese brand. The broad-based Internet group, he was previously for four years at the front. Alibaba was able to increase the value of its brand compared to the previous year by 59 percent to 141 billion dollars. In the meantime, Alibaba is not in addition, the value of American retail brand in the world the most -.

Alibaba versus online trading USA

No wonder The Chinese Online market is not in vain, the largest in the world. According to the China Internet Networks more than 800 million User at the Online since 2018-Shopping. This poses a huge potential for Alibaba. According to its own information, the company has already reached 636 million active users, significantly more than half a billion people.

Shopping Event, Singles Day, the Chinese equivalent of the American Black Friday, put Alibaba in the past year over a billion Euro within two minutes. At the end of the day of 30.7 billion dollars stood to beech. Of all the Western action days, the Online retailers in the United States, have achieved only 21.8 billion dollars (see chart).

Amazon came out on Black Friday or Cyber Monday on well over a billion dollars in sales. The self-invented Prime Day with special Offers for the world's more than 100 million Prime customers of the retail giant generated about four billion dollars.

Amazon, with a record profit

for The full fiscal year 2018 Amazon rose sharply. The Surplus increased from 3.0 billion to 10.1 billion dollars. And also, revenue climbed by 31 percent to 232,9 billion dollars. Can Alibaba keep up more with this record profit? The Chinese expect for the full year to March 2019, despite a reduction in forecast revenue growth of about 35 percent.

In the traditionally important Christmas quarter is no match for Alibaba because of the trade conflict between China and the USA as strong as in the past three years. For the group of free trade is extremely important, duties of harming the business. The revenue and profit ultimately failed, Alibaba on Wednesday. The fight goes in the next round.

source: Amazon Prime wants to halve delivery time, 26.04.2019 Alibaba chief Ma 2019 gives up his Post, 10.09.2018 The hope is back 5G-auction slows United Internet German economy regaining momentum as a ...

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