Certainly, the influence of online shopping is rising all around the world!!! The top 10 best eCommerce companies in the world are contributing to stellar growth by providing better technology.
It has blossomed the eCommerce industry to a large extent.
With an increasing craze of purchasing online, daily new and new companies are evolving.
As per the statistics; the global eCommerce market sales have touched USD 3.465 trillion last year, majorly because of the grown customer spending as the improved driving factor for the growth.
- Amazon is the Best eCommerce company globally when it is about revenue and it has noticed USD 280.5 billion in 2019.
- In 2019, global consumers spent US$3.46 trillion online, which is the highest amount than in 2018 which was US$2.93 trillion.
- Amazon’s online sales increased by 20.0% every year.
- Walmart’s e-commerce platform is the fastest growing e-commerce sales platform, with sales increasing by 38.8% from 2018 to 2019.
- 57% of shoppers shop from overseas retailers.
- 4% of European shoppers make up the highest proportion of overseas shoppers in overseas shopping.
- As of August 2020, its market value is as high as 1.645 trillion US dollars.
From the above-mentioned facts, it is evident that the eCommerce era is growing and will continue to grow in the near future as well. There are many leading best eCommerce companies in the world and eCommerce website developers in the world that are known for providing an exceptional and immeasurable benefit to its potential customers.
The preeminent eCommerce companies around the globe are dominated by American companies and at least five of them have HQ’s in the US. Given that the United States is one of the largest eCommerce markets, which is not surprising at all.
What is eCommerce?
eCommerce, in a broad sense, is any transaction of goods and services carried out over the Internet. In colloquial speech, this is usually the name for the purchase of a product or service over the Internet using electronic payments, for example, a credit or debit card or using an electronic wallet service.
When we talk about eCommerce companies, we mean a large number of tools that are needed to create online stores. Payment networks and e-wallet services provide payment processing, shipping, and logistics companies deliver packages, and online stores connect buyers and sellers.
In this article, we are primarily looking at online stores that operate in any of the following types of e-commerce.
- Business to Consumer (B2C): This is the type of e-commerce that most people think of when they hear the word, a business sells a product or service to an individual consumer.
- Business to Business (B2B): A business that sells a product or service to another business. B2B also includes wholesales, which can be found, for example, on Alibaba.com. They can also be companies that offer software (software) as a service to other companies.
- Consumer to Consumer (C2C): C2C e-commerce businesses are creating a marketplace to connect buyers and multiple sellers on the Internet. eBay originally started out as a clearinghouse for a customer where they could sell products they no longer need to other consumers, and this is a prime example of C2C e-commerce. Amazon also offers customers a marketplace to sell unwanted items, while Alibaba operates similar online stores in China. In the context of this article, we are looking at consumer-to-consumer best e-commerce companies as companies that simply simplify eCommerce through their platform.
- Consumer to Business (C2B): A customer-to-business transaction is when a customer sells a product to business. C2B top e-commerce companies buy products directly from customers, then they can resell them on the online marketplace. An example is companies that buy used smartphones. This article will take you through the top 10 best ecommerce companies in the world.
Here are the Leading Top 10 Best eCommerce Companies in the World
Amazon.com, Inc.
Amazon is the world’s largest eCommerce firm by revenue in 2020-revenue in 2019 was $280.5 billion. It is an American multinational technology company headquartered in Seattle, centering on cloud computing, eCommerce, artificial intelligence, and digital streaming.
Amazon stands first among the top 10 online e-commerce companies in the world, ranked by market capitalization and revenue with online markets, real-time streaming media platforms, cloud computing platforms, and artificial intelligence assistants.
Amazon offers to stream and download videos, audiobooks, and music via Amazon Music, Prime Video, Audible, and Twitch subsidiaries. Amazon also has a publishing department, Amazon Publishing Company, Film and Television Studio, Amazon Studio, and cloud computing subsidiary Amazon Web Services.
In terms of market value, Amazon is the third-largest firm in the world after Apple and Microsoft. With the largest e-commerce companies in the world, Amazon’s market capitalization ranks first.
Alibaba
Because of the impeccable records, Alibaba has made its position in the top eCommerce companies in the world. Founded on April 4, 1999, the company provides consumer, business-to-consumer, and business services through its web portals, e-payment, and cloud computing services, and an advanced customer search engine.
Not to mention digital media and entertainment. Alibaba’s Ant Financial subsidiary has quickly become one of the most successful fintech companies in the world. Jack Ma is the name behind Alibaba who has made it the largest online wholesale marketplace. It is not only beneficial for the customers, but the retailers are also leveraging it.
Thinking of a product, Alibaba has several suppliers providing the product in several versions. Indeed, it is valid for all products in the sun. Alibaba’s absolute advantage in China, the world’s third-largest market, is acceptable to integrate it on the top e-commerce companies list.
JD.com
JD.com is very similar to Amazon but operates in China. The company has built an unprecedented logistics network with over 500 warehouses and 7,000 delivery points. Unlike Amazon, JD.com manages all logistics on its own, rather than handing over parcels to third parties for last-mile delivery. This allows JD.com to ship 90% of orders the next day. The company is actively investing in its own logistics.
JD operates the first retail segment similar to Amazon but has also partnered with international brands including Walmart to help reach Chinese consumers. Thus, it is more like an online mall than a centralized store. Walmart, in particular, has a 5% stake in JD.com after the American company sold its Chinese online store Yihaodian JD.com in 2016.
JD launched JD Plus, its version of Amazon Prime in 2016. Plus users receive free shipping up to 60 times a year, free eBooks, special discounts, faster loyalty points accumulation, and premium iQiyi service. iQiyi is the largest online video platform in China. The company currently claims over 10 million members subscribed to JD Plus. JD’s strong logistics network and a growing list of domestic and international retail partners (over 170,000) are helping it rapidly grow its GMV. The company’s GMV grew 30% in the second quarter of 2018, beating Amazon by about 11%. At this pace, JD.com could overtake Amazon by 2019.
eBay
eBay is one of the best eCommerce companies in the world. eBay started out as an online auction house in the 90s when people were selling collectibles and used goods. Today 80% of the products sold on the platform are new, and 89% of the products are sold at a fixed price. eBay is taking steps to make its platform to be the best.
Sellers offer free guaranteed 3-day shipping. The user-friendly interface combines sellers’ product lists with the same product, making it easier for customers to find the best prices. The company also introduced the Best Price Guarantee, offering customers a 110% discount on the difference between an item they bought on eBay and an identical listing on a competitor’s site. eBay increasingly operates as a business-to-customer retailer rather than a marketplace for other businesses.
The change is starting to pay off. GMV growth began to accelerate in 2018, growing 7% in the first half of the year. However, this growth is significantly slower than other companies on this list and slower than the overall growth of the e-commerce industry.
While eBay’s turnover is supported by its growth, the company is also working to increase profits. The company moved to self-service payment processing, starting to sever ties with its former PayPal subsidiary. eBay will process all of its payments in-house by 2021, which the company expects will be of significant value to sellers listing on the platform. This can lead to both increased profits and an increase in profitable results.
Rakuten
Rakuten is a must in any list of the best eCommerce companies in the world. It is very similar to JD.com and Amazon. The Japanese eCommerce company operates an online shopping center for major brands in Japan and also owns several e-commerce operators in other countries, including the US, France, Brazil, and the UK.
Rakuten focuses on its logistics and has implemented One Delivery in the past. It hopes to improve delivery speeds and reduce costs by relying on its own network as well as third parties, in the same way, Amazon does in the US. Amazon itself has done well in the Japanese market thanks to the growth of the Prime segment and its shipping advantage. According to some estimates, Amazon is the largest online retailer in Japan. To combat Amazon’s growth, Rakuten is investing in more than just retail and logistics.
It operates Japan’s largest internet bank and the third-largest credit card company. Rakuten recently started building a wireless network to increase the profitability of its MVNO business. Also, it owns a travel agency, an insurance company, a dating service, and about 60 other companies. Rakuten is a major investor in Lyft and Pinterest and owns 100% of Viber. The goal is to create an ecosystem of services that can provide everything that customers need to promote their brand.
Rakuten’s bottom line has been hit by its large investment lately, and GMV’s growth isn’t as strong as other companies on this list. Domestic GMV grew by just 11.1% in the second quarter of 2018. Moreover, the profitability of its core retail operations is declining as it invests in logistics and other solutions, to get ahead of Amazon. Operating income declined, but a modest increase in income did occur. Rakuten’s global transaction volume, which includes its international transactions as well as credit card payments, digital transactions, and other retail transactions, increased slightly faster, at 16.4%. However, this eCommerce company’s growth remains relatively slow.
Walmart
This eCommerce company is the world’s largest wholesale and retail chain, with nearly $ 500 billion in annual revenue. But only a small fraction of that income comes from online sales. The company has invested heavily in eCommerce over the past few years. It acquired Jet.com in 2016, along with a number of small American e-commerce companies.
It is also rapidly expanding online grocery sales, following the example of Amazon’s push in this direction in 2017. As a result, Walmart has seen significant growth in online sales over the past couple of years. US sales in 2017 were $ 11.5 billion and online sales are expected to grow 40% this year.
Walmart’s latest investment in e-commerce is the acquisition of a 77% stake in Flipkart, one of the leading e-commerce companies in India. The move puts Walmart on a par with Amazon in India, another market where Amazon has grown to outrun the domestic competition. India has tremendous growth potential for online shopping, and Walmart’s stake in Flipkart gives it a huge impact on the market. This company has achieved revenue of $514.4 billion in 2019 which is more than in 2018 ($500.3). It’s global retail sales are projected to be 26.7 trillion US dollars by 2022.
Not all of Walmart’s e-commerce investments have paid off. In 2017, the company made the decision to scale back its first commercial activity in Brazil. Walmart also sold 80% of its business in the country during the recession in Brazil. It has largely increased its e-commerce sales by expanding grocery sales, developing point-of-sale, and delivery networks.
The Flipkart acquisition will provide significant growth in one of the fastest-growing eCommerce markets in the world, but the decision does not protect Walmart’s traditional offline stores from falling sales due to online competition in the other 26 countries where it operates.
Suning.com
It is a non-government retailer in China and is based in Nanjing, Jiangsu Province. Second, only to JD.com and Alibaba, Suning is China’s largest e-commerce platforms, with an output value of more than US$38.06 billion and a market value of US$83.13 billion
Suning.com trades physical goods, like, 3C products, household appliances, daily necessities, books, household goods, cosmetics, content services and products, baby care products in its e-commerce store.
Suning.com was established in 1996 and is based in Nanjing, China. Suning.com holds a revenue of USD 38.06 billion with a market capitalization of USD 83.13 billion. This best eCommerce company deals with 3C products, home appliances, books, household commodities, cosmetics, content products, baby care products and service merchandise, etc.
Jingdong
JD is indispensable among all top e-commerce companies. This works outside of Beijing and shows its speedy growth, several leading eCommerce stores (such as Alibaba) consider it a worthy competitor.
It commenced in 1998 and started an online trading business in 2004-approximately six years later. Even though JD.com’s investment portfolio is not extensive compared to Alibaba, its revenue in 2017 was more than that of Alibaba ($15B). It also has more employees as compared to Alibaba.
JD is known for its technological-oriented delivery systems and is the main leader in the delivery of advanced products with drones. They recently have determined to establish 150 drone launch centers so that they can present a more efficient network of delivery systems in remote areas. It has also cooperated with WalMart, which will moreover unite its supply chain, platform, and Chinese resources.
JD plans to establish a control center and drone airport. They are operating with scientists to create drones that can carry up to 1 metric ton.
Zalando
Zalando ranks eighth in the list of the world’s largest eCommerce companies by revenue and generated $7.26 billion in revenue in 2019. It is a European eCommerce company headquartered in Berlin, Germany. Zalando uses a platform approach to provide customers with lifestyle and fashion products in 17 European stores.
Kinnevik is Zalando’s most substantial shareholder with shares of 26%. The company’s actual market value is 15.72 billion U.S. dollars. In terms of revenue and market value, it is one of the world’s top eCommerce companies.
It was founded in 2008 with Berlin, Germany as its HeadQuarters. The revenue is USD 26 billion; it holds a market capitalization of USD 15.72 billion.
Connected Retail, Zalando Lounge, MyBrands Zalando Verwaltungs GmbH, MyBrands Zalando eLogistics, MyBrands Zalando eServices, MyBrands Zalando eStudios, MyBrands Zalando eProductions, zLabels GmbH, EMEZA and KIOMI are its subsidiaries.
Flipkart
Flipkart is a Singaporean online retail store that operates from Bengaluru, India established in 2007 and it is among the top 10 e-commerce companies in the globe.
Flipkart’s revenue in 2019 was $6.1 billion. Flipkart’s aim is to offer books, consumer electronics, fashion, household necessities, lifestyle products, and groceries. Its current market value is $11 billion-making which makes it one of the world’s best eCommerce companies by market value.
The revenue rate of Flipkart is USD 1 billion with a market capitalization of USD 11 billion; and it has almost 30,000 employees. Myntra, com, PhonePe, Ekart, Jeeves, and 2GUD are some of its subsidiaries.
Wrapping Up
With the continuous development of technology, the future of e-commerce is growing. Customer needs will remain unchanged, and their preferences will shift to online products and services.
These mentioned ten large eCommerce companies are embracing artificial intelligence, virtual assistants, and machine learning technologies to fulfill this demand and do everything possible to improve their products. With top e-commerce companies in 2020 and beyond, the future is bright.
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About The Author
Morris Edwards is a Manager at Awebstar, a web design and development company in Singapore which is dealing with digital marketing, SEO, mobile app development, logo designing, social media marketing and more. Connect with him at Facebook, Twitter and Awebstar.com.sg.
