Every day of all verticals and sizes they digitize their businesses: a great diversity of options and full opportunity for those who want to start their business online. However, a study carried out by the consultancy has revealed that the vast majority of global eCommerce is divided between only 6 companies.
Only a few global eCommerce giants control the market
The study reports that e-commerce reached 3.4 trillion dollars (about 2.4 trillion “European” euros) during the last 12 months. However, a huge 58% of global eCommerce transactions are concentrated in 6 companies, four of the Chinese companies account for almost half of global eCommerce sales and two of them are from Group.
In the meantime, thousands of brands and retailers share the remaining 37% of this sales share. But what could be the reason behind China being so powerful in global eCommerce? One of the keys is that retail in China is generally much more digital than in Europe and North America.
China and its great power within the World eCommerce
The digital commerce companies that have managed to capture the largest percentage of the global e-commerce market in the world are:
- Taobao: 15%
- TMall: 14%
- Amazon: 13%
- JD: 9%
- Pinduoduo: 4%
- eBay: 3%
As can be seen in the graph, each and every one of the 6 global eCommerce sales giants they are marketplaces, that is to say, these are not traditional retail sales, but rather digital markets that connect consumers with vendors, allowing transactions between them, and whose products were never sold directly,
In addition, we can also see that approximately 5% share of global eCommerce it is occupied by a small group of companies, which despite obtaining less of the pie, are massive: Rakuten, Walmart, VIP.com (from private sales)sunning (one of the big retailers in China, with hundreds of physical stores in the country), Apple and Shopee (a huge Singaporean marketplace).
Meet the 6 companies that manage to capture 58% of the world’s eCommerce transactions
Taobao
Taobao is a marketplace based in Hangzhou and part of the Alibaba Group, it is the largest eCommerce in the world and the seventh most visited according to .
It focuses on offering products of all kinds, an equivalent to what we know as eBay, with a large quantity and diversity of products in its immense catalog. Currently the Chinese marketplace Taobao captures 15% of global eCommerce transaction volume
TMall
Formerly known as Taobao Mall, this another subsidiary of Alibaba Group is intended for local Chinese and international companies to sell branded products directly to consumers, with a multi-product approach, and only companies that are registered in China sell on this platform.
According to him, it is the third most visited website in the world and has more than 500 million monthly active users, and has managed to capture 14% of the global eCommerce share.
amazon
The great American eCommerce and services company, Amazon, is recognized worldwide. Founded by the company, it managed to surpass Walmart as the most valuable retailer in the United States. In addition to being recognized for its disruption in different industries of technological innovation and on a massive scale, andIt is the largest online marketplace in the world due to its reach.
Amazon achieved revenue for 280,500 million dollars (about 230,000 million euros) in 2019 according to published figures, while currently capturing 13% of global eCommerce volume.
JD.Com
Even though it is also a Chinese company, JD.com has attempted to differentiate itself from Alibaba by managing its own inventory to ship directly to consumers, With which, in addition to being a marketplace, it also manages to sell its own products, and has managed to be the second in importance in the eCommerce sector in the Asian country.
Like Amazon, the company has invested in high technology and drone delivery, artificial intelligence, and other services aimed at improving the customer experience. In August 2020, net of 2.3 billion dollars, while capturing 9% of the world’s e-commerce transactions.
pinduoduo
Launched in 2015, Pinduoduo has quickly positioned itself as one of the most important marketplaces in China, especially because it is very popular in the rural communities of the Asian country. Its success is based on its offer of low-priced products, offering rewards to users who make clients of their relatives or acquaintances, and group discounts.
currently reports more than 600 million active consumers, with which it captures 4% of the volume of transactions worldwide.
eBay
A great reference to eCommerce and specifically to the world’s marketplaces is eBay, a platform that was born with the aim of creating a market that would promote secure exchange between users via the Internet in 1995, and that after these years has become a multi-billion dollar company with operations in 32 countries and with revenue of in 2019. eBay now captures 3% of eCommerce transactions in the world.
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