Amazon, a global giant, has made significant strides in various industries, including retailing, video streaming, and cloud services. Is selling on Amazon worth it?The answer is yes. However, a game always has more than one player. The Amazon competition is no exception. In each industry where Amazon operates, Amazon competitors always find a way to grow in number and size to keep up with this giant.
So, who are Amazon’s competitors to keep an eye on in 2023? In this article, we will explore the significant Amazon rivals, which include:
- 6 Amazon competitors in the retail industry
- 4 Amazon competitors in the streaming competition
- 2 Amazon competitors in the web service category
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6+ Amazon Competitors in Retail Game
First, let’s look at the retail industry, which Amazon has entirely transformed since its inception in 1995. After nearly 30 years, Amazon has established and still remains a dominant force in this industry, especially in eCommerce. However, some companies like Amazon have emerged to challenge Amazon’s dominance in recent years.
In this Amazon competitors analysis, we will take a closer look at some of the most popular Amazon competitors in both the eCommerce game and traditional brick-and-mortar retailing model.
1. eBay
Among the best selling platforms in the eCommerce world, eBay is obviously one of the Amazon direct competitors. Being a company similar to Amazon, it is one of the oldest and most popular online marketplaces, where buyers and sellers can trade new and used goods. And Amazon vs eBay competition has never stopped ever since their foundation.
Up to Q1 2023, this platform has made about $9.79 billion yearly and has over one billion monthly visitors. Even though they’ve seen a drop in revenue lately, eBay is still one of the strong Amazon competitors in online shopping. One of the eBay benefits that sets eBay apart from Amazon is its auction model, which allows buyers to bid on items and sellers to set their own prices.
Check out the listing methods on eBay: eBay Auction or Buy It Now.
2. Walmart
Regarding Amazon competitors in USA, you should not miss out on Walmart. Walmart vs Amazon competition has been increasing recently. Walmart is definitely the answer to the question, “Who is Amazon’s biggest competitor in the traditional retailing industry?”. Born in 1662, with a long growth history, Walmart now operates approximately 10,500 physical stores and warehouse clubs in 19 countries.
Meanwhile, Amazon seems to have a relatively small retail footprint of physical stores across the globe. As of August 2023, there are 43 Amazon Go and Amazon Fresh store locations in the US and UK, and 2 Amazon Style stores that are for fashion.
On the other hand, Walmart Marketplace is one of the best eCommerce platforms that allows third-party sellers to offer their products on Walmart.com. They have millions of customers and become the major Amazon competitor in the industry.
When it comes to selling fees, Amazon’s Professional selling plan costs $39.99 a month while Walmart Marketplace doesn’t charge any setup or monthly seller fees. Walmart fees are taken once sellers make sales, the referral fees range between 8% and 15%, which is quite similar to Amazon.
If you want to start your business with Walmart, check out our guide on How to Sell Products on Walmart.
3. Target
Besides Walmart, Target is one of the largest and most popular Amazon competitors in traditional retailing in the United States. Founded in 1902, Target has over 1,900 stores nationwide and a loyal customer base that values its quality, affordability, and convenience.
In 2019, Target launched its online marketplace platform called Target Plus, making it a competitor to Amazon. It is a way for Target to expand its online selection, offering more choices to its shoppers. Target Plus’s main advantage over Amazon is its ability to provide customers with a service offering similar to what they would experience in-store.
Another difference between Target Plus and Amazon is that Target Plus operates on an invitation-only basis. Target+ takes this cautious approach to ensure that its customers get high-quality product assortments and convenient experiences. Moreover, Target Plus does not charge any fees to sellers.
4. Etsy
Like eBay, Etsy is one of Amazon competitors in terms of best online marketplaces. However, this marketplace specializes in handmade, vintage, and craft supplies and thus directly competes with Amazon Handmade. Both Etsy and Amazon Handmade offer various products, from jewelry and clothing to art and home decor.
Comparing Amazon Handmade vs. Etsy, Etsy is the winner regarding pricing and the creativity level of products. It doesn’t cost a penny to open an Etsy store. The listing fee is also super cheap – just 20 cents. Moreover, known as a shop of unique stuff, this marketplace attracts customers who look for personalized products with high-level creativity.
Check out Etsy selling fees and Etsy review to make an informed decision when starting your Etsy business.
5. Shopify
Regarding the big players in the eCommerce industry, Shopify is a vital Amazon competitor. Shopify will be an alternative to Amazon when businesses are looking to find a platform for businesses to create and manage their own online stores.
The model of Amazon is like a mall where business owners rent space to build their shop. In comparison, selling on Shopify is more likely to rent a building to set up a business, and buyers can find your brand through your domain name. With more independence and better payment of Shopify fees, Shopify can win over Amazon when sellers need a standalone site or a more customizable, on-brand presence.
If you want to take a closer investigation at Shopify vs Amazon, we’ve got your back! The LitCommerce team has already published an article on the topic. Come and check it out!
6. AliExpress
Regarding Amazon competitors in China, AliExpress is a huge online retail service that started in 2010. It has since grown exponentially to become one of Amazon biggest competitors, with more than 15 languages and 20 countries supported. AliExpress differs from Amazon because it does not sell its products to consumers. Moreover, sellers can set their own prices without following the platform’s rules.
One of the positive aspects of AliExpress compared to Amazon is that there is no fixed cost for sellers on AliExpress. You will only pay for each product you sell. Commissions vary between 5% and 8%, depending on the product category. In contrast, selling on Amazon requires a subscription plan containing several Amazon selling fees.
7. Some other local Amazon competitors
When Amazon expands their market to new countries, it’s undeniable that Amazon will have to compete with the locals.
- Rakuten in Japan: Established in 1997 and now used by 80% of the country’s population, Rakuten is Amazon’s biggest competitor in Japan. Amazon and Rakuten can be seen as neck and neck as the most popular marketplaces in Japan. While Amazon has 556 million monthly visits, Rakuten has 544 million. This Amazon competitor is different because it provides personalized support to its sellers, including a dedicated account manager.
- Flipkart: Flipkart, a subsidiary of Walmart, is one of Amazon’s main competitors in India. Walmart’s investment allowed Flipkart to leverage the former’s omnichannel retail expertise and general merchandise supply-chain knowledge.
- Shopee and Lazada: Regarding the Southeast Asia market, Lazada and Shopee are the two main Amazon competitors. Like Amazon, it offers various products, including electronic devices & accessories, fashion & accessories, groceries, babies & toys, home & living, and more.
Check out the guide on How to start selling on Shopee if you want to expand your market to Southeast Asia.
To sum up, Amazon competitors in operating physical retail stores include Walmart and Target. Amazon competes with eBay, Etsy, Shopify, and other local platforms for marketplaces and eCommerce platforms when this giant decides to jump into a new market.
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4 Amazon Competitors in Video Streaming
Besides dominating the online shopping market, Amazon also jumped into the TV streaming arena with Amazon Prime Video.
In this industry, what makes Amazon different from its competitors is the mixed bag that keeps viewers streaming from classic shows like The Office to cinema blockbusters like Everything, Everywhere, All at Once. Amazon Prime Video also has some really successful exclusives such as The Rings of Power, Mr. Robot, and Vikings. In 2022, Amazon spent nearly $7 billion on content for its Prime Video.
Regarding the subscription-based streaming service in 2023, some of Amazon’s biggest competitors include Netflix, Disney+1, Max, and Apple TV+. Each brand offers something unique to attract their users. Let’s discover what it is.
1. Netflix
Regarding streaming services, Netflix is obviously the first name on the Amazon competitors list. Available in more than 200 countries worldwide, this platform offers viewers a wide range of series, movies, and documentaries. To maintain its uniqueness, Netflix expanded its library of original content. Some well-known Netflix originals are Stranger Things, Orange Is The New Black, The Crown, and Tiger King.
Due to this expansive array of content, in 2022, this company’s annual revenue reached around 31.6 billion U.S. dollars, leaving Amazon Prime Video far away with only 5.16 billion.
2. Disney+1
Besides the premier Netflix, the second name on the Amazon competitors list in the streaming industry is Disney+. It has recently become more competitive with Amazon Prime Video. This Amazon rival creates its own unique content with the biggest debut Star Wars show, The Mandalorian. Moreover, it has a whole library of MCU, Disney Channel, Pixar, and Fox content, attracting viewers looking for more than just classic films and TV series on Amazon.
Disney+ had 157.8 million subscribers in the second quarter of 2023 and is estimated to have 209.16 million users by the end of 2023, demonstrating how successfully they entered the streaming wars.
3. Max
Another Amazon competitor in the streaming industry is Max (formerly HBO Max). This streaming brand has a big collection of movies and TV shows from HBO and Warner Bros. Some special Max shows are House of the Dragon, Succession, The Last of Us, Veep, and The Wire. Not many other streaming services, including Amazon Prime Video, have this much.
Even though last year, Max dropped a lot of its popular shows, such as Westworld, its unique content still makes it one of Amazon’s rivals to watch out for in 2023.
4. Apple TV+
The last name in the Amazon competitors list in the streaming industry is Apple TV+.
Launched in 2019, the selection of shows and movies on Apple TV+ is pretty tiny compared to Amazon Prime Video. Some others with limited content, like Ted Lasso, The Morning Show, and Severance.
Apple TV+ is a name that Amazon should keep an eye on in this competition as this service is so convenient for Apple fans. Apple TV+ users can use it on multiple devices and watch in ultra-HD. Plus, they can get a whole year for free if they’re a new Apple customer. This platform attracts more users with the cheap-price strategy, which costs only $6.99 per month.
2 Biggest Amazon Web Services Competitors
Besides the commerce and streaming industry, Amazon has expanded its operations into the field of cloud computing through its Amazon Web Services (AWS). Companies can utilize various AWS services such as computing power, storage, and databases instead of buying and managing their own IT equipment and maintaining a complex IT infrastructure.
While Amazon leads the cloud market with a 34% market share, it does not go unchallenged. So, who competes with Amazon in the area of cloud computing? Some of the major Amazon competitors within this field are the following:
1. Microsoft Azure
Microsoft Azure is second to Amazon in terms of market share, with over 20% in 2022. This Amazon competitor provides a comprehensive cloud computing platform with various services, including virtual machines, storage, databases, analytics, and Artificial Intelligence (AI). These capabilities are increasingly appealing to businesses of all sizes seeking a flexible and secure cloud environment.
Compared to Amazon’s AWS, Azure’s pricing structure is a key advantage, making it particularly attractive for those seeking cost-effective solutions for services like storage and bulk data processing.
2. Google Cloud Platform
Launched in 2008 with relatively cheaper pricing, Google Cloud Platform (GCP) makes it a formidable Amazon alternative. Google Cloud Platform has gained traction in the cloud services market, holding a 10% share and generating $26.28 billion in 2022.
GCP’s strength lies in its unified technological infrastructure, promoting interconnectivity, a superior user experience, and faster innovation compared to AWS. However, GCP offers fewer services than AWS, particularly in computing, IoT, and enterprise applications.
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Amazon Competitors – FAQs
- What are some popular competitors of Amazon?
In the eCommerce competition, Amazon is one of the world’s largest and most successful online marketplaces. However, he is not the only player in the game. Several other eCommerce platforms also compete in the market, offering unique value propositions to customers and sellers. Some of the direct competitors of Amazon include:
- eBay
- Walmart
- Target
- Etsy
- Shopify
- AliExpress
- Are Amazon competitors as reliable as Amazon?
Yes, in terms of reliability, most of the main competitors of Amazon have a strong reputation for reliability, such as eBay, Walmart, Target, Etsy, Netflix, Disney+1, and Microsoft Azure.
- Are there any companies like Amazon that offer free shipping?
Yes, there are companies and online stores like Amazon that offer free shipping. For example, Walmart offers free two-day shipping on orders over $35, and Target offers free two-day shipping on orders over $35 for RedCard holders. Chewy also offers free one to two-day shipping on orders over $49.
- Who is Amazon’s biggest competitor?
Amazon’s biggest competitor changes due to the industry. Regarding the eCommerce industry, eBay is Amazon’s biggest competitor. For video streaming services, Netflix is. As for the web service, Microsoft Azure is the biggest competitor of Amazon.
- What is Amazon’s new competitor?
A remarkable new competitor that Amazon faces in the retail industry is Temu. The most appealing point of Temu is that products in this marketplace are extremely cheap. This marketplace has shot to the top of the App store in June 2023.
Moreover, when Amazon jumps into a new country, the local companies similar to Amazon are obviously Amazon’s new competitors. For example, when Amazon steps into the Southeast Asia market, Lazada and Shopee are two main Amazon competitors.
Amazon Competitors in Summary
In conclusion, although Amazon is the strongest player in both eCommerce and cloud computing and remains a key player in streaming services, there are plenty of Amazon competitors in these fields. Each player keeps leveraging their strengths and creating their unique value to compete with Amazon.
The competition has become intensively pressing, and these are the main competitors that pose a severe challenge to Amazon in specific markets:
- In retail and eCommerce: eBay, Alibaba, Walmart, Target, Etsy, and Shopify.
- In streaming services: Netflix, Disney+, Max and Apple TV+.
- In web services: Microsoft and Google.
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