What is the difference between Amazon and Alibaba?

The difference between Amazon and Alibaba: Amazon adopts a self-operated method and controls everything. The buying and selling process goes through them, owns warehouses, and sells its own products; while Alibaba acts as a platform and does not participate Sales only provides a platform for small businesses and brand manufacturers to contact consumers. The subsequent buying and selling process involves direct communication between sellers and buyers.

Alibaba and Amazon both focus on e-commerce, supplemented by cloud services and digital media. Their main similarities are e-commerce. and cloud computing business. The two e-commerce companies look similar at first glance, but they are actually completely different.

The difference between Amazon and Alibaba

1. Business difference

Amazon adopts a self-operated method and controls everything, and the transaction process goes through them owns a warehouse and sells its own products.

Alibaba acts as a platform and does not participate in sales. It only provides a platform for small businesses and brand manufacturers to contact consumers. The subsequent purchase and sale process involves direct communication between sellers and buyers.

2. Political situation

Currently, as Amazon further develops locally, the risk of government interference is also increasing.

And Alibaba has a very good partnership with the Chinese government.

3. The retail industry accounts for 40%~50% of Amazon’s US online retail business.

Alibaba’s online retail business in China accounts for approximately 80%.

At present, the two e-commerce companies have matured in their respective local markets. The next step for both companies is to expand the international market, so competition is inevitable.

Competition between Amazon and Alibaba

1. Market competition

In the expansion of the global market, Australia, Singapore and India are about to become two The e-commerce battlefield where giants compete.

Amazon currently mainly occupies the North American and European markets. Now it has fully entered the Australian market and is fully recruiting investment. It is working hard to enter the Indian market and has also taken some actions in Singapore.

Alibaba has entered the Southeast Asian market through Lazada and already holds 83% of Lazada’s shares. Like Amazon, Alibaba has also made bets in India and is entering the Australian market.

2. AWS VS Alibaba Cloud

In addition to competing in e-commerce business, Amazon and Alibaba also have cloud computing business that is likely to become the next main battlefield.

Amazon is not only an e-commerce company, but also leads the world in ASW. Amazon Cloud Computing Services (AWS), as the world's largest cloud service provider, is a cash cow that drives Amazon's continuous expansion.

According to news on February 6, 2018, Amazon AWS cloud ranked first with US$17.4 billion and continued to lead the cloud service industry.

Alibaba is also vigorously developing its own Alibaba Cloud services. According to the financial report for the first quarter of fiscal year 2018, Alibaba Cloud’s revenue in the fourth quarter of fiscal year 2018 (the first quarter of the natural year) was 4.385 billion yuan. .

3. FBA VS Cainiao Logistics

Now Alibaba has also begun to develop its own Cainiao Logistics. Will it be able to compete with Amazon's FBA service in the future?

The above is the detailed content of What is the difference between Amazon and Alibaba?. For more information, please follow other related articles on the PHP Chinese website!