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.
Source: 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.
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.
Source: Alibaba SEC Filing