Clash of the Titans: Alibaba v. Amazon

Think Amazon is the world’s largest online retailer? Think again.  Alibaba, the leading online wholesale marketplace for domestic China trade among small businesses, has officially claimed the #1 spot with its IPO filing.  Last year, the giant did $248 billion of Gross Merchandise Volume (GMV) in its China retail marketplace, more than Amazon and eBay combined.

Alibaba 1Source: Alibaba SEC Filing

That equates to 11.3 billion orders, across 231 million buyers, a small percentage of China’s population.  Alibaba shipped 5.0 billion packages on its China retail marketplace last year, more than the 4.3 billion delivered globally by UPS in 2013.

Alibaba 2

Source: Alibaba SEC Filing

The Chinese eRetailer has a natural advantage in China, as retail infrastructure is severely underdeveloped, driving online purchasing occasions.  With only a small share of the Chinese market tapped, and a small presence in other countries, including the US, Alibaba has room to grow.  Watch out, Amazon.

Alibaba 3

Source: Alibaba SEC Filing