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Home>Blogs>Marketing >Amazon Competitors

Top 11 Amazon Competitors & Ecommerce Gaints (2023 Critical Analysis)

Top 11 Amazon Competitors & Ecommerce Gaints  (2023 Critical Analysis)

"Is it possible to become one of the Amazon competitors?" you have certainly wondered as a small company owner at least once. If you are an online shop or even operate a physical store that caters to a specific niche, Amazon is likely to be a significant part of your business.

Jeff Bezos' brainchild has its fingers in a lot of pies. Amazon, on the other hand, is not fully impenetrable. Even though many firms are direct rivals in some form, they nonetheless make a lot of money.

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In this guide, we will look at some of Amazon's biggest rivals in different industries and explain why they are so successful. Then we will use what we have learned to see how small companies may compete with the internet retail behemoth.

What is Amazon?

What is Amazon.

Amazon is a worldwide eCommerce behemoth founded by president and CEO Jeff Bezos in 1994 just across from Seattle, Washington. With annual net sales of $232 billion, Amazon is the most dominant online retailer in the world today.

Indeed, according to Forbes, Amazon overtook Walmart to be the world's largest retailer in May. Every eCommerce business owner must accept the fact that they are in a competitive market with Amazon.

It makes no difference what industry you are in or how big your company is. you are up against Amazon if you sell actual things online. They offer everything, including pre-built small homes, on their website.

Amazon has 45 per cent of the eCommerce business in the United States alone. This is grown from 34% in 2016 and is predicted to reach 50% by 2021. Simply said, Amazon does not appear to be slowing down anytime soon. Amazon, despite its size, is not without competition. Netflix competes with Amazon Prime Video as a streaming service.

Alexa, Amazon's virtual assistant, competes with Google Home. Microsoft Azure and Google Cloud content with Amazon Web Services in the cloud computing space (AWS). And that's just on the technological side; lots of B2-B and B2C eCommerce companies are competing with Amazon and succeeding.

We have chosen Amazon's main competitors to demonstrate how other websites may still succeed in this market. We will also provide concrete, fact-based advice on how eCommerce stores may compete with Amazon in this article.

The Timeline And History Of Amazon

The annual net sales of aazon fro 2004 to 2021.

Amazon has grown rapidly over the years and is now one of the world's top five corporations. It is easy to forget that Amazon began in a garage when considering the company's amazing growth over the years.

Even though Amazon's growth looks to have been constant, it was not all rainbows and sunshine. Amazon had several issues, setbacks, and legal battles in its early years. Even with all of this, they seem to have been able to successfully negotiate all of the treacherous waters and emerge triumphant on the other side.

Where Does Amazon Stand Today?

Top 5 Ecommerce giants.

When Amazon went public in 1997, they were upfront about its stance and told investors that the stock would take a significant drop before rising. This is due to their plans to spend a lot of money on technology and marketing.

Nonetheless, if you would have bought $1,000 in Amazon shares when they went public in 1997, these shares might have been worth nearly $1,170,000 by the end of 2019.

Whenever we think of Amazon, almost all of us think of their retail division since it is the portion of their company from which we directly profit. Amazon, on the other hand, has expanded significantly.

Amazon video streaming, Amazon cloud computing, Amazon basics, Amazon music streaming, Amazon games studio, Amazon Fresh, Amazon Drive, and Amazon online services are some of their other goods. Amazon has now expanded into almost every imaginable category and has been successful in the majority of them.

Many firms experienced significant losses and had a difficult time even before the outbreak. Amazon, on the other hand, was able to not only stay afloat but also generate a significant profit.

Model of Amazon's Business

Amazon has a relatively straightforward business plan that focuses on three primary value propositions: low prices, fast delivery, and a large product selection. This appears to be working very well for them since their online stores account for more than half of their annual income.

Third-party vendors, Amazon online services, subscription services, and other services account for the remaining 50%. This demonstrates that Amazon generates the majority of its money from its sales as well as commissions from third-party vendors.

The Advantages and Disadvantages of Selling on Amazon

Advantages and Disadvantages of Amazon.

Here are some of the advantages and disadvantages of selling on Amazon that you should be aware of before getting started.

Pros -

  • Amazon has a fantastic reputation that you may capitalise on when beginning your own company.
  • The quantity of daily traffic that Amazon receives is simply impossible to match!
  • Amazon Seller Central is extremely user-friendly. They also feature several tools to help with the listing process.
  • Flexibility: When it comes to scheduling, location, currency, and so much more, selling online gives you a lot of options.
  • If you opt to sell via FBA, you may just sit back and relax while Amazon takes care of the details.

Cons -

  • Hefty fees: in addition to membership fees, Amazon charges high fees for FBA, promotion fees, adviser fees, and a variety of additional expenses.
  • You have no leverage when selling on Amazon since you do not influence the business. You must follow Amazon's instructions.
  • High competition: selling on Amazon pits you against a slew of other merchants, including Amazon.
  • Low-profit margins: it is nearly hard to produce a profit on Amazon if you are selling little, low-cost items.
  • Inventory management may get quite complex and chaotic if you offer your items on various sites.

Amazon's Main Rivals

When we look at Amazon's rivals, we can observe that they are mostly divided into three groups.

  • Competitors in eCommerce
  • Stores with a physical location
  • Video, music, and e-books are all available.

So, without further ado, here is the list of competitors:

Competitors in eCommerce

Even though Amazon has established itself as a technology firm, it still makes the majority of its money from the eCommerce industry. Here are a few of its direct rivals in this market.

Shops on the Internet

Let us begin with the most apparent competitors: internet store operators (a.k.a. you). Ecommerce has exploded in popularity in recent years, accounting for 21% of the overall sales market.

Even though Amazon is the biggest consumer platform online, small businesses have one strong benefit. Online retailers that sell one-of-a-kind, hard-to-find items will still have an advantage against Amazon's mass-produced commodities.

Take, for example, TREEHOUSE child & craft. The Georgia-based small firm has a distinct advantage over Amazon and other large internet marketplaces. It focuses on high-quality children's toys, art, and literature, carrying "unique, kindly-made things from across the world," according to its website.

Tools and assecories

"Design and make your things that Amazon cannot stock," Rhiannon Taylor, CEO of online boutique RT1home, advises eCommerce entrepreneurs. If that is not a possibility, do your homework and only sell a product that is not accessible on Amazon."

Sure, you will not be able to match Amazon's prices or delivery schedules. Amazon is practically unlimited in terms of scope, size, and logistics. You may, however, outperform Amazon in terms of unique items and personalised shopping experiences that keep customers satisfied and returning for more.

Ecommerce Shops That Cater To A Certain Niche

When Amazon initially started selling books online in 1994, it was a niche market. Today, however, the firm does not have clear-cut expertise. They sell everything, as we already stated. Some customers, however, will always choose to shop at speciality stores, brands, and producers.

Amazon is an expert at what they do. They can not compete with smaller specialist firms that specialise in a certain area in terms of understanding and quality. Beard oil, CBD for dogs, and vegan cosmetics are just a few examples of niche items. Consumers are more inclined to purchase items such as these from a firm that specialises in those areas.

Public interest on beard oil over time.

Furthermore, 66% of global customers, including 73% of Millennials, believe they are prepared to spend extra money on sustainability. As a result, specialised eCommerce businesses may demand higher prices for their goods.

Finding a Niche for Your Online Business Has Its Advantages

A girl thinking about finding a niche.

So, what are the advantages of identifying a niche that no one else has exploited? As with any other business, you must conduct due diligence to ensure that you will be able to profit from it. The following are some of the most compelling reasons to begin selling in a niche market.

1. Advertising Expenditures are Reduced

You do not need to promote to everyone because you only have a small number of individuals who might be interested in your goods. We would usually recommend starting with Google Adwords, but depending on the niche product you are offering, you may discover that there are other paid advertising options. Both Facebook and Pinterest are viable options, and depending on the product, you won't have to spend a lot of money to have a high return on investment.

2. Increase The Number Of Loyal Customers

Customers are devoted to everything from vegan dog treats to hemp backpacks, especially because they are specialised. The more particular and narrow a company or product is, the more committed clients will be to purchasing entirely from them.

Furthermore, you may easily work with influencers that fulfil the niche you are pursuing from a marketing standpoint. This increases traffic to your online business while also enhancing the legitimacy and trustworthiness of the goods you are selling.

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3. Make A Name For Yourself In Your Field

Not only will your potential consumers notice this when they see it, but they will also be more inclined to tell others about it. Customers promoting your items on social networking platforms and old-fashioned word of mouth may both benefit from being unique and sticking out.

4. Participate In Successful Trends

Trends come and go, but some might stick around for a long time. If your specialised product rides the wave of a popular trend, it may attract a large number of potential clients.

5. Inventory With A Higher Price Tag

Because niche items are not normally mass-produced, they are more restricted and hence more expensive. As a result, you may be a more expensive alternative for some. People are prepared to spend a little bit extra for things that aren't readily available elsewhere.

1. eBay

Homepage of eBay.
  • Founded year – 1995
  • Headquarters – California, USA
  • Current Revenue – the US $10.2 billion

eBay is a name that everyone is acquainted with. This website was a forerunner in online marketplaces for consumer-to-consumer sales. eBay has developed through time to become more than simply a place for people to purchase and sell new and old goods. In parallel to its typical C2C paradigm, eBay is now utilised for B2C sales.

With slightly under 20% of the market share, eBay is second only to Amazon in terms of marketplace website visitors. The amount of visitors to eBay's website is astonishing. it is roughly twice as much as Walmart, and we have already seen how effective Walmart is online.

Share of marketplace site visit.

eBay is a strong rival to Amazon, with the opportunity to bid on things and a unique approach for consumers and sellers to connect online. On eBay, sellers list items for sale, and buyers explore the community for them.

eBay vendors provide items that are comparable to those supplied by Amazon sellers. What is the big deal? Sellers on eBay have the option of auctioning their items or setting a fixed price. Amazon does not hold auctions. eBay has a distinct advantage over Amazon since it functions more like a giant yard sale than a marketplace.

List of Benefits of Selling on eBay

1. You May Instantly Benefit From Their Scale

One of the most appealing aspects of selling on eBay is that you may immediately benefit from the marketplace's size. During any given month, the website has around 160 million active buyers. That implies you have access to a large number of potential consumers, which may lead to increased sales volume for your company or individual sales efforts.

2. It Is A Simple Method Of Acquiring New Consumers

If someone is looking for your store, they are unlikely to go to eBay to complete the deal. By becoming a seller on the site, you have access to the additional exposure of product discovery. Customers may be looking for the things you sell right now and will find them through your auction ad.

3. People Like To Shop For Your Stuff

As a customer, you are taking advantage of an area where there is strength in numbers when you purchase at the marketplace. It is nice to have a lot of options to choose from since it makes it easier to find what you are looking for.

List of Disadvantages of Selling on eBay

1. Even If You Do Not Sell Anything, You Must Pay A Variety Of Seller Fees

When you first start selling on eBay, you should be aware of the seller fees that come with the deal. You will get 50 free listings every month, but after that, you will have to pay $0.35 for each additional listing in most categories. After that, there are final value costs to pay, which may be as high as 10% for sellers. There are even greater expenses to consider in other areas.

2. Your Ultimate Value Fees Are Determined By Your Track Record

If your eBay account fails to reach or exceed the platform's minimal performance criteria in the United States, you will be charged an extra four percentage points on top of the usual final value fees you will be charged when the item sells.

3. You Only Have A Limited Amount Of Control Over Your Postings

It is important to keep in mind that marketplaces are not designed to assist you as a vendor. The primary concern for them is to assist themselves. When working with eBay, they want to ensure that the focus is on the items rather than the sellers in each listing. That implies they have the authority to limit the amount of branding you may do on each item you sell.

2. Flipkart

Homepage of Flipkart.
  • Founded year – 2007
  • Headquarters – Bengaluru, India
  • Current Revenue – US $6.1 Billion

Flipkart is a very new eCommerce firm when compared to some of our other competitors. This Indian eCommerce platform was established in 2007 and swiftly grew to become India's largest online retailer.

Walmart bought 77 per cent of Flipkart's stock in 2018, valuing the firm at $22 billion. There is no knowing where Flipkart will go now that Walmart owns a majority investment in the firm.

Flipkart has about 100 million registered users. The platform's user-friendly design, mobile app, and customer support distinguish it as an Amazon rival on the rise. Flipkart is primed for continuing growth in the next years, thanks to the large selection of items it offers.

3. Rakuten

Homepage of rakuten.

Rakuten is a Japanese online retailer. Returning to the eCommerce area, Rakuten, founded in 1997 in Tokyo, Japan, is another major competitor. Rakuten is more than simply an eCommerce firm; its ecosystem also includes a streaming service (Rakuten TV), banking and payments, telecommunications, and even health and life insurance.

Rakuten has a very distinct business model in terms of retail strategy, as you can see in the graphic. Customers are enticed to buy via Rakuten rather than directly with brands through a cash-back system.

Retail eCommerce sales amount to more than $2.3 trillion each year in this industry. In terms of retail sales, Rakuten held 14.1 per cent of the overall worldwide e-commerce market in 2019. Furthermore, they account for roughly 10% of Japan's overall online retail market share.

In 2019, Rakuten alone produced over $134 billion in Japanese eCommerce sales. They bought in 2010 to boost their global footprint in the United States. Rakuten has bought additional e-commerce startups such as PriceMinister (France) and in addition to (UK).

They have also made purchases such as Ebates (cash back incentives) and Viber (VoIP software). Rakuten will try to stay up with Amazon as they continue to develop and purchase businesses in a variety of sectors and areas.

4. Newegg

Homepage of Newegg.

Newegg is a global leader in online sales of goods such as computers, televisions, cameras, phones, and computer hardware. By selling devices at a low price, the corporation earns $2.7 billion in sales. The idea is that Newegg is a successful electronics retailer that poses a danger to Amazon.

This is because Amazon's most popular category is electronics. In the United States, 44 per cent of Amazon customers have purchased an electronic item. Amazon is reliant on these sales. In this sector, Newegg's market dominance deprives Amazon of billions of dollars.

5. Walmart

Homepage of Walmart.
  • Founded year – 1962
  • Headquarters – Arkansas, USA
  • Current Revenue – the US $559 billion

Edging closer to the notion of a budget department store, Walmart is a perfect illustration of an Amazon rival. It was created in 1962 by Sam Walton in Rogers, Arkansas, and is one of the oldest firms on this list. Amazon and Walmart do seem to be two of the largest merchants in the United States, and they are always competing.

Walmart is the king of the physical world, while Amazon is the king of the internet. Even though Walmart has been operating for 30 years longer, the two companies are now competing for the same clients. Innovation, digital growth, logistics, and sustainability are all areas where the two businesses compete.

Walmart generated $524 billion in revenue in 2020, up to $138 billion over Amazon's $386 billion in the same year.

6. Target

Homepage of Target.
  • Founded year – 1902
  • Headquarters – Minnesota, USA
  • Current Revenue – the US $93.56 billion

Target, which was founded in Minneapolis, Minnesota, less than a year after Walmart (1962), is another corporation with a lengthy history. Target bills itself as a "general merchandise shop," claiming that 75% of the US population resides within 10 miles of a Target store.

In 2020, it recorded $93.6 billion in revenue, representing a 19.3 per cent increase in sales over the previous year. Target is not big enough to contend with Walmart and Amazon. Target, on the other hand, has a devoted following that other stores lack. Target has evolved into an extraordinarily handy location to shop, and its consumers even consider it a suitable date night.

Target has joined the list of eCommerce giants by introducing same-day delivery, order collecting, and drive-up pickup options. These services grew by over 270 per cent in 2020 compared to the previous year, but they still account for a small portion of the market compared to Amazon.

7. Alibaba

Homepage of Alibaba.
  • Founded year – 1999
  • Headquarters – Hangzhou, China
  • Current Revenue – the US $165.39 billion

There in the United States, Amazon is a giant, while in China, the Alibaba Group seems to be a monster. Its primary retail divisions are AliExpress, Taobao, and Tmall, and it was established in 1999 by Jack Ma (who has faced criticism for statements against the Chinese legal mechanism).

Each subsidiary competes with Amazon in its unique way. For example, Taobao, a B2C (business to customer) operation, competes with Amazon in selling low-cost clothing, accessories, electronics, and computer gear.

Alibaba is one of Amazon Web Services major rivals, with cloud computing sales of $2.24 billion in the three months ended September 30, up 60% year on year. That was quicker than the revenue increases of Amazon Web Services and Microsoft Azure, which were 29 per cent and 48 per cent, respectively. In 2020, the Alibaba Group is expected to generate $109 billion in sales, with a 55.9% retail digital commerce share of the market in China in 2019.

8. Otto

Homepage of Otto.

Otto, one of Europe's largest eCommerce firms, was founded in Hamburg, Germany, in 1949. Its items were first ordered by mail and later by phone before the firm shifted to internet shopping in 1995, making it the oldest company on our list.

While it is known as a one-stop-shop for technology (such as Apple and Microsoft), clothing, and sports equipment, its largest market (especially in Germany) is furnishings and home goods. The Otto Group recorded total revenue of €15.6 billion ($18.5 billion) in 2020, placing it second only to Amazon in Germany in terms of online sales.

9. JD (JingDong)

Homepage of JingDong.
  • Founded year – 1998
  • Headquarters – Beijing, China
  • Current Revenue – US $108.3 Billion

JD (JingDong), also recognized by its URL,, is the next rival on our list. It is a Chinese eCommerce retail website that was created in 1998 in Beijing. Beyond being a major rival of Amazon, it is also a major rival of Tmall (both are Chinese B2C e-commerce enterprises).

JD is distinguished from Amazon by its capacity to purchase things in volume (similar to Costco) and its commanding logistical infrastructure in China. As a consequence, generated $114.3 billion in sales in 2020 (yep, more than Alibaba), a massive 29.3 per cent rise from the previous year.

10. Netflix

Homepage of Netflix.
  • Founded year – 1997
  • Headquarters – California, USA
  • Current Revenue – the US $28.63 billion

Taking a break from tangible goods, we look at Amazon Prime Video's main rival, Netflix. The video-on-demand business began in 1997, when Reed Hastings and Marc Randolph in Scotts Valley, California, mailed themselves a DVD. Since then, the corporation has grown year after year, with revenue expected to reach $25 billion by 2020.

Original material, which it produces at a pace of little above one original title per day, is popular among its approximately 208 million users. While numerous new video streaming competitors have sliced into its market share in the United States, it still has a sizable 20 per cent.

11. Costco

Homepage of Costco.

Costco is one of the world's largest retail businesses, with over 100 sites throughout the world. They sell a variety of items such as electronics, furniture, books, gifts, apparel, and baby supplies, among other things. One of their distinguishing characteristics is that their items are affordable to all clients.

Best Buy is a retailer that specialises in electrical products and operates outlets both online and offline. They are technologically advanced, and their automated brand identification technology is widely regarded as being superior to that of all competitors, including Amazon.

Amazon generates a lot of money via subscription services like Amazon Video, Amazon Music, and Amazon kindle ebooks, in addition to retail sales. These identical firms have made a name for themselves in the industry, proving to be formidable competitors to Amazon's offerings.

What Strategies May Small Enterprises Use To Get A Competitive Advantage?

As we can see from the examples above, there are many successful brands out there. Each of them has a distinct selling feature that offers them an advantage against larger companies like Amazon. When you examine the business as a whole, it is virtually difficult not to notice that, while making a solid profit year after year, being a vendor on any of these channels is not at all gratifying.

These platforms have certain very common downsides from the perspective of a seller or a merchant, including:

  • Exorbitant membership fees
  • Every sale comes with a large commission.
  • All leverage is lost.
  • Loss of their company's or identity brand's
  • Inadequate seller assistance

You are not the first individual to be fed up with large platforms like Amazon retaining a significant portion of your profit margins. Thousands of other merchants and company owners believe the same thing.

People choose to open their online store on a reputable eCommerce platform instead of selling on Amazon for these reasons. Some of the better characteristics of these Amazon competitors might be drawn. You may create your internet store and create your brand with these teachings.

To accomplish so, you will need to pick an eCommerce platform which understands all of your problems and delivers value to both you and your company. There are various top eCommerce systems available, each with its own set of advantages and disadvantages.

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Of course, there are traditional solutions like Shopify, BigCommerce, and so on. These platforms, however, are rather costly, and most of them need merchants to have the technical expertise to establish their online business.

Because not all retailers and small company owners have technical or coding expertise, a platform like the Fynd platform is the greatest new-age solution.

Utilise The Fynd Platform

Fynd platform makes it incredibly simple to start an online business. It is as easy as setting up a WhatsApp group. All you have to do is create an account on the Fynd platform, log in using your phone number, give your business a name, and select a business type. That is all there is to it. Your online shop is now up and running.

You may now begin adding goods to your store's inventory. To build up a business, you do not even need any technical knowledge. There are a variety of ready-to-use themes available to make your store seem professional and appealing. Fynd platform's pre-made product lists make adding goods to your store a breeze.

You may select from a variety of items listed in several categories. Fynd platform is, above all, a platform committed to offering a useful platform for merchants and retailers all over the globe. they are always trying to figure out what a seller's problems are and how they might solve them.

What Is The Most Effective Method Of Selling On The Fynd Platform?

The selling process on the Fynd platform has been made as simple as possible for your convenience, so you may start selling right away, even if you have no prior website construction knowledge! You may entrust us with creating a user-friendly and SEO-friendly web store for you!

Small companies may use the Fynd Platform to become digital and sell their products using current channels like Whatsapp. The Fynd platform can be useful, especially if you are not extremely tech-savvy.

You may simply create an internet website by following the steps below:

Step 1: Log in to your Fynd Platform account first. If you do not currently have one, you can easily create one. Visit and register in under a minute.

Login page of Fynd Platform.

Step 2: Look for a "+" icon next to the Sales Channel selection. Then, from the Online Store, select New Application.

New application clicking on "+" icon

Step 3: A popup will appear, prompting you to enter your information, select what you wish to put on your website, and then click Next.

Step 3 of selling products online on Fynd Platform.

Step 4: Now look for the domain name of your website. Choose your domain name from the list of options. That will be the web URL for your shop.

Step of choosing domain name.

Step 5: Next, select "Digital" as the Type from the Products category. Then, before entering the product name, choose the appropriate Department. After that, add the Item’s Name.

Choosing Product type on Fynd Platform

Step 6: To make it more enticing, include some images or media, and then give a brief description of your product. Then, press the Save button. Make sure you have included enough photographs and given a straightforward explanation.

Explaining media and product on Fynd platform.

If you have a variety of items to sell, repeat Steps 5 and 6. After the procedure is finished, just share the online store's URL with customers using WhatsApp.

Successful Stories From Fynd Sellers

With Fynd, Ruosh Increased Their Omnichannel Sales By 300 Percent

Ruosh is a famous luxury footwear brand based in Bangalore, India. Rush has swiftly increased its footprint across key account channels, with 35 company-owned stores across 13 cities and 300+ places of sale, including all major Indian e-commerce platforms.

The firm, which is committed to innovation, comfort, and craftsmanship, has seen a 300 per cent increase in multichannel sales since the first epidemic wave (July 2020 to July 2021).

What has the Fynd platform done?

In June 2018, Ruosh teamed up with Fynd. Since then, Fynd has played a key role in helping Ruosh expand and stabilise its business by offering ground-breaking technology solutions and overcoming a variety of problems.

Roush's omnichannel approach was improved by multi-stock point connections on their company website and third-party markets. Over the last three years, there has been a significant shift in the impact of omnichannel business, fueled by Fynd -

Omnichannel business fueled by Fynd Platform.

Fynd assigns a Growth Manager to each brand to help them grow through activities including frequent business review calls, stock health sanity checks, discount planning insights, and daily store operations checks. All of this, as well as other tailored offers, has had a significant influence on Ruosh.

These measures assisted Ruosh in tackling the below-mentioned challenging issues, in addition to achieving a milestone sale of 1 crore in November 2020.

How Spykar's Omnichannel Shift Resulted In A 200 Percent Boost In Sales

Spykar, a major denim brand in India, was founded in 1992 with a passion for design innovation and a desire to stay up with an ever-changing dynamic global fashion market for today's 'Young & Restless' generation.

Spykar operates via franchisees, but unlike huge retailers, they partner with smaller independent establishments to serve a younger demographic of customers. The company also sells online through partner agencies that retain stock in warehouses, such as Myntra, Amazon, Flipkart, Tata CLiQ, Nykaa, Ajio, and others.

The necessity to make systematic modifications to their omnichannel selling approach emerged as a result of the conversations. This included altering how they engaged and worked with markets and franchisees, eliminating intermediaries to improve inventory management, and gaining ultimate control.

Fynd's team talked with Spykar about possible options, which led to them strategizing their omnichannel transition. We divided this stage into two parts: identifying clear objectives for what we intended to accomplish, and then gradually incorporating the necessary modifications into the model without disrupting present sales.

How Can Online Retailers Compete With Amazon?

Now that you have seen some of Amazon's biggest rivals, it is time for me to show you how online retailers can compete with Amazon. To be successful selling online, you do not have to be the next Walmart, Alibaba, or eBay. To compete with this worldwide behemoth, you do not need a billion dollars in revenue.

All you have to do is follow in the footsteps of the industry's most successful businesses. You may even take the playbook directly from Amazon and apply it to your company.

These are the top 12 online strategies for competing with Amazon.

1. Create a Brand

Make a name for yourself! Branding is quite effective. Starbucks can pay $5 for coffee and Gucci could sell t-shirts for $500 because of their brand. You must create a brand which your customers identify with and believe in. Customers who are devoted to a brand will not purchase elsewhere, even if a cheaper or more accessible alternative is available.

Amazon sells items from a wide range of companies. However, the structure of Amazon's marketplace makes all products feel generic. When people purchase on Amazon, it is difficult for them to recognize the difference between one brand and another. As a result, other B2-B eCommerce companies will have a big chance to differentiate themselves with their distinct branding.

2. Put a Premium on Client Retention

Marketing Chart.

To be successful, everyone believes they must go out and discover new consumers. While new clients are certainly desirable, you cannot afford to overlook your existing consumers. When compared to new consumers, repeat customers spend a lot of money and convert at a greater rate.

A consumer who has previously purchased from your website is already acquainted with your brand and items. It is a lot simpler to sell to them again than it is to teach others about who you are or what you do.

According to research, you have a 70 per cent probability of selling to a recurring client, but just a 5 per cent chance of selling to a new consumer. Returning consumers are 50% more probable than new customers to try new items and spend 31% more money.

Amazon's Prime subscriptions are a tool for the company to keep consumers. To boost client retention with your online store, you should create a customer loyalty programme.

3. Concentrate on eCommerce SEO

In 2020, eCommerce SEO should be a top goal for all B2B eCommerce businesses.

  • The structure of the website.
  • The user's perspective.
  • Blogs.
  • Descriptions of the categories.
  • Descriptions of the products
  • Do some keyword research.
  • Creating a network of connections.

All these are aspects of on-page plus mechanical SEO for your site. You will rank high in SERPs for relevant keywords in your industry if you perfect your SEO approach. 71 per cent of clicks go to the first page of a Search engine results page. If you do not show on this page, there is a low likelihood that a buyer will go straight to your website.

You are depending on customers browsing straight to your website and skipping the search engine if you do not prioritise organic search traffic. But what about customers who have not heard of your company? You are driving those folks away.

The figures are self-evident. A search engine is the starting point for 93% of all internet experiences. Customers are interested in how much you have to provide. All you have to do now is make sure your eCommerce site appears in organic search results.

4. Create a Mailing List

Contrary to popular belief, email marketing is very far from gone. It is one of the most effective methods for businesses to reach out to their consumers. When you get an email address from a consumer, you can use it to notify them about offers or promotions that would tempt them to buy.

Your brand is on your mind all the time, but your consumers are not. Do not simply sit back and hope they come to your site. To get things started, send them an email. Here are two of my favourite eCommerce email list-building tactics. To begin, gather email addresses from customers throughout the checkout process.

For receipts, purchase confirmations, and shipment updates, the consumer must supply their email address. It makes it simple for the consumer to subscribe by including this single checkbox in the process. It will not be necessary for them to go out of their way to opt-in.

Giving them a reason to join your list is another wonderful strategy to get more subscribers. When someone visits your website, you may give a 20 per cent discount to new subscribers. Not only will this encourage your clients to sign up, but it will also encourage them to buy right away.

5. Provide Tempting Discounts

Graph of discounts

When buying something, everyone deserves to feel like they received a good bargain. You do not want your clients to suffer buyer's regret after purchasing on your website. They will have an unfavourable opinion of your firm as a result of this.

The fact that Amazon's pricing is so low is one of the reasons for its success. Here are the most critical criteria that influence Amazon's buying decisions. The top two comments on the list, as you can see, are both about money.

You must provide appealing offers on your eCommerce website to compete with Amazon's low rates. When a consumer perceives that they are getting a good bargain, they are more likely to convert.

6. Make The Customer Experience On Your Website A Top Priority

Amazon is a genius at persuading customers to buy. The group's website, smartphone apps, and separate checkout mechanisms all contribute to its popularity. Your website must be able to accommodate your consumers to combat this. The web pages must run quickly, and navigation should be as straightforward as feasible.

If your clients can not locate what they are seeking in a matter of seconds, they will go somewhere else. People have no incentive to put up with a vexing purchasing experience. Countless websites, like Amazon, make shopping online a breeze. First impressions are crucial. A person's first impression of a website takes about 0.05 seconds.

Consumers abandon websites with an ugly design 38% of the time. In addition, 88% of consumers will not return to a website after a negative encounter. People will quit your website if it is not user-friendly — it is that simple.

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7. Do Not Sell The Identical Items That Amazon Does

We have previously established the size of Amazon's product catalogue. They appear to be selling anything and everything. However, especially if you are an online reseller, you should strive to avoid offering the same things that Amazon sells.

Try to create your product if you have the resources. Instead, figure out where to create out a place for yourself in your industry. You would not establish a fast-food burger joint right next to McDonald's, would you? So do not try to compete with Amazon online by selling everything they sell. Be one of a kind.

8. Do Not Go Low On Your Profit Margins

It might be tempting to lower your pricing to compete with Amazon. Reduced earnings, on the other hand, is not a successful approach. Because of the huge number of sales, Amazon can keep its pricing low. However, an independent internet store cannot afford to maintain such cheap costs.

Your firm will be at risk of going out of business if your profit margins are too low. Sure, if you have cheaper pricing for competing items than Amazon, customers could prefer you over them. However, if you are not producing enough money to keep the lights on, this is not a long-term viable strategy. Determine a reasonable profit margin. Then, even after sales, promotions, or discounts, devise a pricing plan that satisfies those margins.

9. Pay Attention To Conversions And Funnels

An online store's lifeblood is conversions. It is fantastic to have a lot of visitors, but it is pointless if they do not convert. The typical e-commerce benchmarks for each stage of the conversion funnel are listed below.

Ecommerce benchmarks for each stage f conversion.

What does Amazon's performance look like when compared to the overall average? The rate of exchange for Amazon Prime members is astonishingly high at 74%. In respect of sales, Amazon easily outperforms its competition. However, by patterning your sales funnel like Amazon's, you may be able to increase your sales.

While a conversion rate of 74% may appear impossible, consider how much more money you can generate by boosting your conversion rate by only 5% or 10%. How much more money could you make if your conversions were doubled? Focusing on funnels and leading your consumers through the checkout process will help you enhance eCommerce conversion rates.

The goal is to figure out where in the funnel you are losing consumers. Simplify the procedure so that the conversion may be completed in a matter of seconds. Each additional step allows the buyer to alter their mind and abandon their shopping basket.

10. Make It Simple To Return Items

Returns are an unavoidable feature of the internet selling process. Rather than attempting to prevent them, you should make it as simple as possible for customers to return items. Return policies that are favourable to customers might be the difference between a conversion and a wasted chance.

Before making a purchase, 66% of customers look into a company's return policy. 80 per cent of customers are put off by firms that have a difficult return policy. For a minute, put yourself in the shoes of a customer. They bought something they desired and now want to return it for one reason or another. In some situations, the product may be defective or fall short of the customer's expectations.

Whatever the cause, the buyer is already dissatisfied. Do not aggravate the situation by making them pay for returns. More than 41% of customers will only purchase at online stores that provide free returns. Allow them to print a return mailing label for free. Restocking and other return costs should be eliminated.

Do not let a return cost you a customer. Consumers will continue to purchase from your online business if the method is straightforward, even if their intended goal was unsatisfying.

11. Make Two-day Delivery Available

Amazon's delivery company has raised the bar for online delivery. Prime members may get their orders delivered in two days. In the opinion of customers, this has become the new norm.

To compete with Amazon, you must also provide two-day shipping. The only limit is that you must do it at no charge. The number one reason for shopping cart abandonment is additional fees, such as delivery. Another 18% of customers abandon their shopping cart since the delivery time is too long.

According to a recent survey, free delivery is the most important motivator for people to purchase online more frequently. Do not be concerned about shipping costs. Simply include delivery fees in your product's base price. Furthermore, when free delivery is given, 93 per cent of buyers are attracted to buy additional things.

Free-shipping orders have a 30 per cent greater average value. There is no getting around it: if you want to compete with Amazon, you have to ship for free and quickly.

12. Use Markets to Your Advantage

You may deal with other online marketplaces besides Amazon if you do not want to sell directly from your website. Smaller companies in specific sectors should use this method.

  • Etsy is one of the best markets to consider listing on.
  • Touch of Modern
  • Fancy.
  • Wayfair.

So, look for an online marketplace that focuses on your expertise. These platforms are already recognisable to shoppers, who utilise them to purchase online.

13. Deliver A Fantastic Customer Experience

As a small company owner, one of the most valuable assets you have is the ability to get to know your customers as individuals rather than just order numbers. Impersonal purchasing experiences irritate 71 per cent of surveyed shoppers, according to a recent Segment analysis. After having a customised encounter with a brand, 44 per cent are more inclined to become repeat purchasers.

The following are some simple techniques to produce positive client experiences:

  • Handwrite thank-you cards and include them with their orders.
  • Directly address them and inquire about their opinions.
  • Send tailored emails that are relevant.
  • Resolve consumer concerns quickly and in a relevant way.

14. Maintain An Active Presence In The Community

The capacity to have an active local community presence is likely the most significant benefit a small firm has over large corporations. Small company owners have a greater grasp of their community's issues, and what better way to inspire than by helping to improve it or conveying a good message?

You may help in a variety of ways, including:

  • For the first time, you will be hosting events relevant to your business (or for charity)
  • Taking part in or supporting current events
  • Employers should be able to participate in a volunteer programme or get a monetary reward for their efforts.
  • Donate to a local charity (as a one-off or pledge a portion of your profits)

Join any community boards or groups where your company may lend a hand (such as the council of arts or music, boards of health, and so on).

15. Make The Switch To Omnichannel

This is true for both physical and online-only shops. Having an omnichannel experience is critical for obtaining an edge over the competition when it comes to recruiting new consumers and maintaining existing ones.

According to our data, 73% of customers use numerous channels before completing a purchase. Retailers who sell across several channels (marketplaces, smartphones, social media, and physical stores) see a 190 per cent boost in income.

You don't have to be everywhere in omnichannel retail—just where your consumers are. It entails integrating all touchpoints to provide clients with exactly what they want, when they require it, and on any device.

Furthermore, they claim that adopting an omnichannel approach provides the following advantages:

  • Increases the lifetime value of customers
  • reaches out to new client groups
  • Increases sales by increasing operational efficiency
  • Improves the turnover of your inventory

European retailers reasons for implementing omnichannel.

Why is omnichannel marketing critical to a company's success?

Customers' demands are met by omnichannel marketing, which accommodates a variety of shopping alternatives and preferences. According to a Raydiant survey from 2023, 56.6 per cent of customers prefer to purchase online. Shopping online, on the other hand, might refer to purchases made through a website, TikTok, Instagram, Amazon, email, or SMS.

And just because customers prefer to shop online does not imply they only do so. According to a Shopify survey, 47 per cent of customers prefer to buy from firms with a strong local presence. Customers, in summary, have a wide range of buyer tastes. Brands engage in omnichannel marketing to match customer needs, regardless of where or how they purchase.

"With the implementation of a novel number of websites and the acceleration of customer expectations, businesses must now create overall brand ecosystems that utilise the right channels and texts at the right time to create a smooth customer experience," says Emily Fontana, 1 Rockwell's head of digital marketing

Customers have a consistent and tailored experience when they use omnichannel. The rise of retail sales is exploding across all platforms. According to Commerce Department data, overall retail sales in the United States reached $1.1 trillion in Q1 2023, up 7.9% from 2021.

With sales statistics soaring into the trillions of dollars, there is no shortage of retail competitiveness. Loyalty is awarded to brands that create personal needs across all customer touchpoints.

91% of customers think they are more inclined to buy from a company that offers personalised service. Moreover, organisations that provide multichannel customer service keep 89 per cent of their consumers.

GetResponse's CMO, Aleksandra Korczynska, outlines why omnichannel marketing is essential for satisfying customers' needs for tailored experiences.

"Customer-centric omnichannel marketing emphasises providing only highly tailored messaging," explains Korczynska. "The key principle is to tailor every marketing channel, as well as the information sent via it, to the user's point of contact with the company."

"Omnichannel marketing offers a fully personalised immersive element in which a consumer's activity directly affects which level of the funnel they'll enter next," says Aaron Gray, co-founder of NO-BS Marketplace.

What are the advantages of an omnichannel marketing strategy?

1. Sales are driven by omnichannel marketing

Retailers have never had a greater marketing toolset than they have now. The growth of omnichannel marketing allows eCommerce merchants, brands, and retailers to reach out to customers no matter where they are.

As a result, sales are up and engagement is up. An investigation of 421 million shopping baskets by Symphony RetailAI in 2021 indicated that multichannel grocery shoppers spend 20% more than those who just shop in shops.

According to a survey conducted by CMO Council and Pitney Bowes, 85 per cent of customers enjoy connecting with companies through both digital and physical channels.

2. Omnichannel marketing connects with customers on a personal level

According to Sprout Social, 64 per cent of customers want companies to connect with them. Senior director at marketing platform AdRoll, Gavin Flood, agrees. "Customers want interaction. "We no longer like being acknowledged by the firms we promote; we want to have it," Flood says.

"Brands that do not engage people are forgotten." With an omnichannel approach, you can be everywhere [customers] are, increasing interaction and driving goodwill toward your brand. One way to positively engage your audience is to provide precise, tailored marketing across platforms, and customers like it.

According to Epsilon, 80% of respondents said they were more inclined to do business with a company that provided individualised experiences, whereas 90% said they were more likely to do business with a firm that provided personalised experiences.

Restaurant Clicks' CEO, Brian Nagele, outlines why omnichannel marketing is critical to giving better personalisation. He argues that "Omni - channel is much more focused with linking channels into a workable solution with each other to improve the complete consumer experience."

"Rather than diluting your influence by spreading resources across various media, you may design funnels that are tailored to your clients."

Customer happiness and revenues are also boosted by personalization. According to McKinsey, 71% of customers want businesses to tailor their experiences, and businesses that provide exceptional personalisation create 40% more revenue.

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3. Cross-platform customers would appreciate the convenience of omnichannel marketing

According to McKinsey, approximately 75% of customers have attempted a new purchasing behaviour since 2020, and cross-platform shopping is on the rise, with 60% to 70% of today's consumers buying both online and in-store.

Furthermore, 83 per cent of shoppers say convenience is more essential to them now than it was five years ago, and 97 per cent say they have cancelled an uncomfortable purchase. Consumers today have different buying habits, and they value convenience more than ever.

"The major goal of omnichannel marketing is to simplify the purchasing experience, which necessitates continual interaction, regardless of where or how a consumer interacts with you," says Travis Lindemoen, managing director of Nexus IT Group.

The key to helping e-commerce retailers nurture clients throughout their purchase experience and meeting them with a consistent message and attention across platforms is omnichannel marketing.

"With an omnichannel approach, your employees or goods are always a click, an email, a message directly, or a call away, no issue where they are," explains Dangler CEO Harry Hughes.

4. Customer retention and lifetime value are boosted through omnichannel marketing.

According to research, companies that enhance engagement strategies to maintain 5% more consumers enjoy a 95 per cent gain in profitability. Joe Troyer, CEO of ReviewGrower and a growth strategist, demonstrates how omnichannel marketing boosts loyalty. "Shoppers who utilise many channels are much more likely to stick around for a long time," he explains.

Omnichannel shoppers were 23% more likely to return to the store six months after their first purchase, as well as more likely to recommend the brand." Troyer is supported by Aniel Tejada, co-founder of Straight Up Growth.

"Omnichannel marketing is the way businesses customise a tailored experience to meet each customer's particular expectations and desires as they go from channel to channel along with a device to device," he adds as the overall benefit of omnichannel marketing.

It is like runners carrying the torch from hand to hand forward towards the finish line in a relay race. The finish line, in this situation, stretches beyond the victory to the cheering section of customer advocacy and retention."

How To Arrange Funding For Your Company

To begin with, most small businesses are self- or family-funded. But where can you get money if you need it?

  • Banks.
  • Small firms receive preferential financing from cooperative credit unions.
  • NBFCs are non-banking financial companies (Non-Banking Finance Company).
  • Crowdfunding is a relatively new method of raising funds from friends, partners, or even the entire public in return for shares in your company. It would be advantageous if you had a solid reputation and made a concerted attempt to raise money from the crowd.
  • Angel investors, often known as venture capitalists, are individuals who invest in startups. A new type of financing for small firms that focuses on innovative goods or services. A strong business plan may entice venture investors to invest in the stationery item industry.
  • Several financial technology firms Companies have developed digital financial platforms. They work with NBFCs to provide loans. They are a fantastic resource for small business owners.

Small enterprises are a priority for the Indian government, and several initiatives that provide funding under favourable conditions are accessible to them. Mudra Bank is an example of such a project.

Apart from that, small business owners may take advantage of several advantages, including tax deductions and interest-paid waivers. A word of caution: doing business wholesale will require more investment in inventory and distribution (personnel and logistics), as well as more working cash to pay company credits.

Before starting your firm, you should carefully consider these factors, as well as the cost of materials (furnishings, computers, and delivery trucks).


Amazon has revolutionised the way we shop online. Consumers' expectations have been increased, and the bar has been set for other online shops. Even though Amazon is the world's most dominant eCommerce company, it is not immune to competition. There is a slew of other large corporations out there vying for Amazon's market share.

Amazon competes with every other online retailer on the planet. You must adapt and adjust your method to survive and grow in the future. If you follow the advice in this article, you will be able to compete with Amazon for online sales.


What exactly is the Amazon Marketplace and how will it function?

Amazon Marketplace is an online platform that allows third-party retailers to list their items on Amazon. Even though it is deeply interwoven into the shopping experience, the seller receives a larger percentage of the earnings than Amazon. On the Marketplace, sellers may post both new and used items.

Who is Amazon's most renowned rival?

Alibaba, Target, eBay, Walmart, JD, Flipkart, and Rakuten are among the retail giants. Netflix, AppleTV, Disney+, and Hulu are examples of streaming services. Alibaba Cloud and Microsoft Azure are examples of cloud or online services.

Who are Amazon's indirect rivals?

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Indirect rivals are large businesses in the sector that serves a distinct segment of the market. Here are a few examples: Apple, Google & Shopify.

Who are Amazon's rivals in the United States?

According to Statista, Amazon's major e-retail competitors by market share in 2021 will be Walmart (5.3 per cent), eBay (4.7 per cent), Apple (3.7 per cent), and The Home Depot (1.7 per cent), with Amazon leading by 38.7%.

What exactly can you sell on the internet?

Today, you can sell almost any sort of goods online as long as there is a market for it. Analyze the target market size (the expected number of individuals who would wish to buy from you) and prospective profit margins to establish product feasibility (the amount of money you can make by selling an item at a cost the targeted audience is willing to pay).

Is it possible to establish an internet business without any funds?

In theory, you may start an internet business without spending any money. However, there will be a few modest initial expenditures, such as domain registration, a website builder or platform, and the generation of website content. If you build your company website, you will be able to start an online food business at almost no cost.

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