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10 of Amazon’s Biggest Competitors: Who are They and to What do They Owe their Success?

Table of Contents
  • Otto
  • Poshmark
  • Flipkart
  • Facebook Marketplace
  • Walmart
  • Zalando
  • eBay
  • Target
  • Rakuten
  • Catch
  • To sum things up

When looking at online marketplaces, there’s one platform that immediately catches our attention: Amazon, a multinational titan that, over the years, has become a driving force in the online business sector. Established by Jeff Bezos in 1994, the company is indisputably one of the largest corporations presiding over the eCommerce industry. As of 2022, Amazon has been valued at over 700 billion USD, compared to a decade ago when its value wouldn’t surpass more than 5 billion USD. Additionally, with revenue exceeding 400 billion USD in 2021, the company has secured itself a place in the top-earning eCommerce platforms of all time.

Find more statistics at Statista

Nevertheless, even Amazon isn’t unbeatable as the marketplace has a generous number of contenders as well. Today, we’re going to be looking at Amazon’s competitors and run a small competitor analysis of our own to try to unpuzzle the ways they’ve become as successful as Jeff’s enterprise and how they’re even able to keep up with a giant like Amazon. So, let’s get into the companies that have been butting heads with Amazon and find out their secrets to success.

Based in the metropolis Hamburg, Otto is one of the biggest eCommerce platforms both in Germany and Europe, offering entrepreneurs the possibility to sell almost anything: from apparel and footwear, household goods and furniture, and bathroom accessories to electronics, DIY materials, and toy collections. Established in 1949 by Werner Otto, what started out as a mail-order company was soon transformed into an international online selling platform, earning over 5 million USD in 2021.

The platform owes its success to its variety of categories, and especially the abundance of subcategories, particularly those present in the clothing category as well as in the rest of the product sections. Having these few pieces of information in mind, it should come as no surprise why Otto is so popular among European customers. Therefore, if you plan on targeting consumers based throughout Europe, the Otto platform is a great way to start off and work your way up from there.

Although Amazon is well known as a platform that offers buying and selling services of just about anything you could think of, when it comes to the apparel section, the online marketplace Poshmark is one of the eCommerce companies that have dominance over this particular segment.

Retailers interested in starting a remote clothing business should undoubtedly consider Poshmark among their first choices because of the platform’s many advantages. Some of them include free product listings for sales over 15 USD, prepaid and pre-addressed parcel labels, and an incredibly convenient and customer-attracting Poshmark mobile app where people can host virtual shopping Posh Parties. Currently, the app has over 10 million downloads on Google Play and a rating of 4.8 on the App Store.

Founded in 2007 in India by Sachin and Binny Bansal, Flipkart is one more eCommerce platform closely competing with Amazon. Online retailers can offer for sale many types of products, including fashion items, house appliances, and mobile phones as well as other tech devices. Having an increase in sales of 25% from the previous year, Flipkart is a promising online platform that has been bringing so far exceedingly pleasant experiences for both sellers and buyers.

Customers are able to easily navigate through both the website and their mobile app, get to enjoy multiple discounts, and benefit from various shopping coupons. Retailers, on the other hand, are offered convenient and effortless registration with a 0% sales commission and over 3000 delivery hubs.

If you’re looking to explore social media-based selling platforms, then there’s no more prominent contender than Facebook Marketplace. After launching the Facebook app in 2004, Mark Zuckerberg’s inventiveness didn’t stop there. His vision kept expanding, which in 2016 ultimately led to the creation of a global marketplace where Facebook users could sell and purchase products from one another and easily set in motion their own online businesses.

Because of the massive network of users the platform has accumulated from its conception up until this moment, Facebook Marketplace quickly became one of the main attractions in the eCommerce world. The platform allows sellers to create product listings for no fee by simply setting up an active account. From there on, they can effortlessly reach thousands of Facebook users and generate their target profits.

According to Datareportal, with over 2.9 billion monthly active users registered in April of this year, Facebook has ranked first in the race of most used social networks on a global scale. This, in turn, puts Facebook Marketplace in the group of most popular eCommerce sites for selling and purchasing products from almost any kind of category.

American giant retail corporation Walmart deserves a place on the list of Amazon’s biggest competitors as well. Headquartered in the state of Arkansas, despite owning a highly-competitive online marketplace, Walmart also runs a chain of grocery stores, department stores, and hypermarkets across the US, UK, Canada, and other countries.

Having already established a loyal audience through its 10,000 brick-and-mortar stores, the company’s eCommerce market became a sensation in no time, alluring not only shoppers but retailers as well. With referral fees varying from 6 to 20% depending on the category you’re working with, Walmart offers affordable selling conditions and quite a straightforward registration process which includes filling out an application and setting up your seller account.

As stated by GlobeNewswire, in the fiscal year of 2022, the company’s online net sales amount to 47.8 billion USD in the US alone. These figure prove Walmart’s success in the eCommerce field and show prospective entrepreneurs that Amazon isn’t the only platform offering great online sales opportunities.

Another fashion giant Amazon competes with in the apparel sector is German online retailer Zalando. With 14 years of experience in the eCommerce industry, the company successfully operates across 23 European countries, making it unquestionably one of the largest digital shopping platforms on the continent.

Having the possibility to work through their partner program or choose to collaborate with the company as a connected retailer or wholesaler, Zalando has been alluring many sellers, exposing them to close to 49 million active consumers. Store owners are given the liberty to integrate all items directly into the platform, be in charge of price setting, and let the payment process be handled by the platform.

Expected to maintain a growing revenue of 3% in 2022, increasing the company’s profits from 10.4 to 10.7 billion euros, Zalando is on the road to becoming a leading fashion eCommerce platform.

Situated second right after Amazon on the list of most popular online shopping sites based on the share of visits, American company eBay is a massive online platform that has been competing face-to-face with Amazon for quite a long period of time (check out eBay vs. Amazon).

Having been launched in the days when eCommerce selling was still a fairly new business sector that was just starting to accumulate popularity, eBay used the opportunity to become one of the first companies to offer people the service of product listing for small fees, which are still applicable today, ranging from 7 to 15%. Nowadays, eBay is available to retailers and buyers across every continent, enabling users to use the platform from anywhere in the world.

Target is well known among end consumers as one of the biggest department stores in the US, offering an incredibly wide selection of items to shop from. With main offices located in Minnesota, believe it or not, Target has been in business for well over 100 years, starting in 1902 under the name of Goodfellow Dry Goods.

In 2019, Target launched its own online marketplace called Target Plus, where sellers are invited to develop their online businesses and offer customers their unique brands and products. Insider Intelligence predicts a 22.3% growth in eCommerce sales, expecting the platform to reach a profit of 24 billion USD this year. Being fairly new, Target Plus still has a lot of growing up to do, but it has been showing great potential and competitiveness by providing interested sellers with great support and assistance in building up their virtual stores.

Being fairly new, Target Plus still has a lot of growing up to do, but it has been showing great potential and competitiveness by providing interested sellers with great support and assistance in building up their virtual stores.

After its foundation in 1997 by Hiroshi Mikinati, it didn’t take long for the Japanese eCommerce website Rakuten to start climbing the stairs of success. With over 15 different item categories offered at the disposal to buyers and retailers, the company soon became a participant in the race for the best online marketplaces worldwide.

Additionally to its wide collection of product sections, other features that assisted Rakuten in building a strong eCommerce presence are the platform’s cash-back program and bonus offers. In 2022, the Rakuten group has earned well over 1.5 million JPY, displaying a positive leap in its financial status in comparison to the profits produced in 2019 and 2020.

Created by Gabby and Hezi Leibovich, Catch is an online B2C platform that has been dominating the Australian eCommerce market since 2006.

Offering almost the same range of product categories as Amazon, the platform has been racing with Bezos’ business for quite some time.  Some of the main reasons that have contributed to its worldwide acclaim are the no-fee product listings, a 2-month free trial period, and the exposure to over 3 million active customers.

To sum things up

Although Amazon reigns over the eCommerce market, that doesn’t mean that the platform is untouchable by anyone. It’s true that the company has set up some pretty high standards other businesses might struggle to keep up with. However, this makes competitors feel even more motivated to keep on competing for their spots in the world of online marketplaces. So, if you’re looking for other great selling platforms out there that share similar business strategies as Amazon, you can take a look at our comprehensive list of Amazon competitors and give some of them a shot.

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About the Author

Nedina Gjorgjieva

Proud bookworm, passionate content writer and devoted Arctic Monkeys fan. Always in the mood for travel and sightseeing.

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