Two global e-commerce retailers Amazon and Aliexpress are delivering most possibly good services to customers from various countries. Both companies could grow naturally due to digitalization of consumer markets. Amazon exists since 1990’s and managed to survive Dotcom crisis. On the other hand, Alibaba Group’s subsidiary Aliexpress appeared online nine years ago.
Domestically, Amazon used to have the strong competitor Ebay. By improving shipping system which is controlled by Amazon themselves, Ebay has been losing customers throughout 2010’s. Aliexpress could get a lot of customers loyalty because of low priced items compared to local e-commerce companies. In Russia, Aliexpress won first place among e-commerce retailers and still holds that position. However, Amazon’s diversified range of products and internal competition among sellers caused a major victory of Amazon in U.S.
Fulfilled by Amazon provides max 2 days shipping in US, UK, Canada, Germany and other 11 countries.
Warehouses are located in several states and countries
Audio and video streaming services are available
Anyone can sell
Sells own products like AmazonBasics, Fire devices, Alexa and many more
Highest ad fees from affiliate program
Third-party post services can deliver any product
High quality products
Too many products
Prices depend on Chinese and Indian manufacturers
Returning products can require fees for post
Multiple currencies are supported
Global platform allows anyone see all the products’ listings
Anyone can sell
Ships anywhere using various third-party post services
Products can be delivered directly from manufacturers
Accurate product listing
Fake or low quality products
Poor commisions from affiliate program
Absence of own warehouses
No fulfillment by the company
Shipping can’t be controlled since third-party posts handle logistics
Major products are only from China
Aliexpress is not ripe enough to compete with Amazon in Americas and Europe, although low priced product offerings. Amazon learned hard way to offer the most complete online shopping services. People of the Western countries value their time and fast shipping and Amazon Prime could win their trust. For drop-shipping and arbitraging business Aliexpress is the best to get low prices. Globally, Alibaba Group is still making more revenue than Amazon by using one advantage: initial products are produced in China where Aliexpress and Alibaba were born.