Competitors of Amazon (Competitor analysis of Amazon)
This article aims to explore the main competitors of Amazon in different markets. Amazon is one of the most valuable brands in the world. It is an American multinational technology company, headquartered in Seattle, Washington (the USA). It was founded in 1994 by Jeff Bezos. It competes neck and neck for market share with some of the largest companies in the world. It was recognized in 2019 as a LinkedIn Top Company (most desirable place to work) in nine countries i.e. the U.S., UK, Australia, India, Japan, China, Canada, Germany, and Mexico (Amazon, 2020).
Who are Amazon’s main competitors?
In order to identify the main competitors of Amazon and carry out a competitor analysis, this article looks into the products and services of Amazon from four main perspectives i.e. e-commerce, physical stores, webservices and streaming service.
Competitors of Amazon in e-commerce
Amazon is the leading online retailer in the USA, the UK, and many other countries. According to Clement (2019) the company’s e-commerce retail market share in the USA was 37% in 2017 which is expected to increase significantly by 2021. The writer also reports that 62% of Amazon’s customers in the USA are Amazon Prime members. Butler (2019) reports that 90% of British shoppers use Amazon, while 40% are Amazon Prime subscribers. Amazon dominates the UK ecommerce retailing with 30.1% market share as of 2019. Its biggest competitor both in the UK and the USA is eBay. Alibaba, a China-based online retailer, is also a big competitor of Amazon in many of its international online retail markets.
Competitors of Amazon in off-line retailing (physical stores)
Though Amazon’s key focus is on online retailing, it has over the years expanded its presence in the high streets as well. It operates different kinds of physical stores particularly in the USA, from booksellers to grocery pickup locations to cashier less convenience stores (Rubin, 2020). In the global off-line retail markets, there are a number of giants whom Amazon competes with. Among the top ones are Walmart, Costco, Kroger, Schwarz Group, Aldi, Carrefour, and Tesco.
Competitors of Amazon in web services
Amazon offers a number of web services, particularly in cloud-based computing. It competes in global markets with giants such as Google Cloud Platform (GCP), Microsoft Azure, IBM Cloud, Oracle Cloud, VMware Cloud, Dell Technologies Cloud, and Alibaba Cloud.
Competitors of Amazon in streaming service
Amazon Prime Video has gained an enormous popularity over the years. Its main competitors in the streaming industry are Netflix, Disney Plus, Hulu, YouTube, Apple TV Plus, Crackle, Crunchyroll, and HBO Go. In video streaming service, Netflix is the market leader and often many people choose between Netflix and Amazon Prime Video without paying much attention to other alternatives that are available in the market.
From the analysis above, it is clear that Amazon competes with a number of competitors both big and small in different markets. For instance, its main competitors in e-commerce are eBay and Alibaba, while Walmart, Costco, Kroger, Schwarz Group, Aldi, Carrefour, and Tesco are in off-line retail industry. It seems virtually impossible for a new competitor to challenge Amazon in e-commerce. Even the existing ones are struggling to keep pace with it!
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Last update: 05 June 2020
Amazon (2020) Amazon recognized as a LinkedIn Top Company in nine countries, available at: https://www.aboutamazon.com/working-at-amazon/get-to-know-us (accessed 05 June 2020)
Butler, S. (2019) Almost 90% of UK shoppers use Amazon, research reveals, available at: https://www.theguardian.com/business/2019/mar/07/almost-90-of-uk-shoppers-use-amazon-research-reveals (accessed 04 June 2020)
Clement, J. (2019) Projected retail e-commerce GMV share of Amazon in the United States from 2016 to 2021, available at: https://www.statista.com/statistics/788109/amazon-retail-market-share-usa/ (accessed 02 June 2020)
Rubin, B. (2020) Amazon now operates seven different kinds of physical stores. Here’s why, available at: https://www.cnet.com/news/amazon-now-operates-seven-different-kinds-of-physical-stores-heres-why/ (accessed 02 June 2020)
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Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.