Table of Contents

Who Are Amazon's (AMZN) Main Competitors?

Learn wh♏ich top companies Amazon competes with to e🅰arn revenue

By

澳洲幸运5官方开奖结果体彩网:Troy Segal

Updated December 31, 2022

Reviewed by Charles Potters

Fact checked by

Amanda Jackson

Amazon (AMZN) competes head-to-head for market share with some of the largest corporations in the world. Competition might be the company's 澳洲幸运5官方开奖结果体彩网:greatest operational risk factor. While Amazon started out as an online retailer of books, it has grown over the decades to become the 澳洲幸运5官方开奖结果体彩网:largest e-commerce company by revenue in the United States.

In its quarterly and annual financial statements, Amazon breaks down where it receives its revenue into five🔜 major categories:𓄧

Online stores
Physical stores
Third-party seller services
Subscription services
Amazon Web Services (AWS)

Below, we'll describe each of these 澳洲幸运5官方开奖结果体彩网:revenue streams and list which companies are Amazon﷽'s bigges🦂t rivals per category.

Key Takeaways

Amazon is the world's largest online retailer and is rapidly growing its footprint in other areas, such as physical retail stores, subscription services, and web services.
Amazon's retail store rivals include Target, Walmart, Best Buy, and Costco.
For subscription services, Amazon competes with Netflix, Apple, and Google.
In the web services category, Amazon has several rivals, including Oracle, Microsoft, and IBM.

Online Stores

This category includes product and digital media sales from Amazon's 澳洲幸运5官方开奖结果体彩网:e-commerce website. The company offers its customers a wide selection of durable and consumer goods—along with digital-format products, s💙uch as e-books, videos, software, music, and games.

Amazon's competition in this segment includes LightInTheBox Holding Co. (LITB), Overstock.com (OSTK), Vipshop Holdings Ltd. (VIPS), JD.com (JD), Wayfair Inc. (W), and Etsy (ETSY).

Physical Stores

Although sales from online purchases represent the bulk of the company's revenue, Amazon greatly expanded its presence in the physical retail space after its 2017 acquisition of grocery retailer 澳洲幸运5官方开奖结果体彩网:Whole Foods Market. Amazon also operates five other types oꦕf ꧙physical stores: Amazon Books, Amazon Fresh Store, Amazon Go, Amazon Pop Up electronics stores, and Amazon Style fashion stores.

In the physical stores category, Amazon competes with Best Buy (BBY), Costco (COST), Target (TGT), Walmart Inc. (WMT), and Big Lots (BIG).

3,500+

The number of U.S. cities and towns where Amazon Prime members have access to two-hour grocery delivery via Amazon Fresh and Whole Foods Market (as of September 2024).

Third-Party Seller Services

Third-party vendors sell their products using Amazon's online marketplace platform. Amazon's popularity as an e-commerce site enables many third-party sellers to reach a wider customer base and grow their businesses. For this service, Amazon charges commission fees, shipping fees, and related fulfillment costs.

In the third-party marketplace business, founder Jeff Bezos has stated Amazon's main competitor is 澳洲幸运5官方开奖结果体彩网:auction site eBay.

Subscription Services

Amazon sells a variety of subscription services. Its most popular paid subscription service is Amazon Prime, which has over 200 million members around the world in 2024. The company also sells subscriptions for e-books,🅺 audiobooks, digital video, and digital music.

Amazon's main competitors in the subscription services sector are media game-changer Netflix (NFLX), Apple (AAPL) (iTunes), and Google's (GOOG) Play Store.

Amazon Web Services (AWS)

Amazon Web Services (AWS) is the company's cloud platform, offering over 200 services to its subscribers, including 澳洲幸运5官方开奖结果体彩网:machine learning, artificial intelligence, storage, and analytics. AWS customers include startups, enterprises, and government agencies.

Amazon's main competitors in the web services sector are Alibaba Group (BABA), Oracle (ORCL), Microsoft (MSFT), International Business Machines Corporation (IBM), and Google (GOOG).

What Is Amazon's Competitive Position?

Amazon has continuously made investments in automation, robotics, and supply chain optimization. It has gained a competitive edg🌠e in the marketplace because of its ability to optimize its operations and drive down costs. Additionally, one of its main competitive advantages is its focus on customer service, including fast delivery, extended return policies, and personalized recommendations.

What Is Amazon's Position in the Market?

Amazon is a leader in the e-commerce market, with a large share of the market in the United States and a significant global presence. Amazon has positioned itself as one of the most customer-centric companies in the world and has remained focused on providing great value, convenience, and selection. This has resulted in steadily increasing sales figures.

Is Amazon the World's Largest Online Retailer?

Amazon is the world's largest online retailer; in 2023, Amazon's revenue was $574.785 billion.

The Bottom Line

Amazon is a well-diversified company that benefits from several profitable revenue streams. The company specializes in disruptive innovation and can afford to fund forays into new industries in order to take market share away from its competitors. Amazon ended the third quarter of 2022 with sales up 15% to $127.1 billion from $110.8 billion in the third quarter of 2021.

The company reached a 澳洲幸运5官方开奖结果体彩网:market capitalization of $1 trillion for the first time ever in September 2018. Amazon ended the year 2022 with a market cap of approximately $857 billion, down nearly 50% from the $1.70 trillion it hit at the end of 2021.

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