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Alibaba vs Amazon: A Battle Of Two E-Commerce Giants

<br>Have you ever bought something from Amazon or Alibaba? Which of these e-Commerce giants do you prefer and why? If you're not sure, see the presentation to find out Amazon and Alibaba pros and cons.<br>Full info can be found here: https://roobykon.com/blog/posts/67-alibaba-vs-amazon-a-battle-of-two-e-commerce-giants

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Alibaba vs Amazon: A Battle Of Two E-Commerce Giants

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  1. Alibaba is often mistakenly thought of as ‘the Chinese Amazon’. It’s easy to see how people arrive at this description: after all, the two companies each dominate their respective primary markets. Quick look at the numbers for 2016 shows: Amazon.com Alibaba.com 2015 99,28bn 12,88bn 2016 $136bn ↑to 27% $23bn ↑to 56% Amazon had 310m customers to Alibaba’s 454m – most of whom are in China.

  2. The Distributor vs The Marketplace Amazon makes the bulk of its revenue on items from its own inventory. “Amazon buys and resells stock: it’s retailer logic”, explains Yves Martin, director of analysts Wavestone and a specialist in mass consumption. For its part, Alibaba focuses on connecting buyers and sellers – much like eBay. Each year, its platform processes transactions adding up to $547bn. The site has more than 20 million active sellers, and 507 million monthly users on mobile alone. 40 million packages are shipped each day following transactions that take place via its services. And though income from third-party sales via its marketplace are now nudging 50% of Amazon’s revenues, it retains close control over these via Fulfilment by Amazon, which allows other sellers using its platform to store stock in its warehouses. “In the fourth quarter of 2016, FBA units represented over 55% of total units sold by third parties”, the group announced at the start of this year. But it’s important to remember that Alibaba restricts itself to the role of intermediary: as Yves Martin puts it, “it’s more of a technical platform in the first place, like a virtual shopping mall.” The company doesn’t control the delivery of products, and this makes for lower costs and bigger margins – the bottom line being a whopping $5.9bn profit on last year’s $23bn turnover...Continue reading As a retailer, Amazon has really made its mark with things like its Kindle e-reader, which it followed up with a range of tablets and even smartphones...Continue reading

  3. Subscription vs Commission & Advertizing Find out this info and even more here: https://roobykon.com/blog/posts/67-alibaba-vs-amazon-a-battle-of-two-e-commerce-giants

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