A Digital Marketplace Revolution: E-Commerce Companies That Are Shaping the Industry Today
We all love the ease of access that comes with sites like Amazon, and their influence is easy to see when driving around any major metropolitan area in the United States. You can’t go very far without spotting an Amazon delivery truck working its way over to another delivery. Amazon alone worked to deliver over 1.9 billion packages in 2019 and this number is expected to rise in the report for 2021.
This growing field of digital marketplaces that sell and distribute goods make up the current e-commerce industry. E-commerce is an integral part of the current American and global market. It allows for goods to be purchased and distributed to buyers in an extremely efficient and easy-to-use platform. This field has also seen significant growth over the last year in light of the Coronavirus pandemic.
With this, numerous companies focus on e-commerce. While some focus on specific, regional markets, others ship to buyers across the world. But this variety becomes a daunting challenge for many new investors to the industry who have no clue where to start. Here are some of the e-commerce companies that are helping to shape the industry today.
Amazon
Amazon.com, Inc. (AMZN) is an American company based out of Seattle, WA that focuses primarily on e-commerce, hosting services, and artificial intelligence. Amazon has current revenue of $386 billion and its share price sits around $3,344.
Amazon is a giant in the industry and is considered to be one of the “big five” companies in the United States information technology industry. This has allowed it to grow substantially over the year and it continues to employ a little less than 1 million people. With this growth has come massive upward mobility concerning their share value. Amazon stock is a hot commodity in the trading scene and this is because of their past success and future outlook within the field of e-commerce. Amazon’s expansion into fields like cloud computing and artificial intelligence has allowed for its processes to be streamlined more effectively.
Walmart
Walmart Inc. (WMT) is an American company based out of Bentonville, AR that focuses on the operation of numerous physical locations around the United States and e-commerce. Walmart has current revenue of $559.2 billion and its share price currently sits around $145. On top of this, Walmart employs a staggering 2.3 million people across the United States.
Walmart is a prevalent company around the United States and makes massive profit returns during big events like Christmas. Many families have a kid who is busy writing a letter to Santa, and as a result, millions of adults around the United States are rushing out (or rushing online) to buy the corresponding gift, to bring joy to their little one. As such, during this time, the purchasing process through Walmart is expedited and made extremely easy, no matter which route is taken. Fast shipping is afforded to those who purchase online and the online store allows buyers to find items in-store with ease. This ease affords Walmart massive profit and a position among the biggest in the industry, especially during the Christmas season.
Alibaba
Alibaba Group Holding Limited (BABA) is a Chinese company that focuses on e-commerce, retail, and marketplace technology/innovation. Alibaba has current revenue of around $110 billion and its share price sits near $196. It also employs around 117,000 people throughout China.
Alibaba is a titan in the e-commerce scene around the world, but its target audience lies in the Chinese market. This massive size has afforded them the nickname of “the Amazon of China” and for good reason. Alibaba has specific traits that set it apart from its competitors. For one, it utilizes a specific payment method called AliPay that is similar to PayPal in many regards. This payment method allows users to pay online or through mobile devices. Their presence using platforms like TaoBao allows for their products and vendors to gain exposure through social media-related content. Alibaba has also started to expand into other areas like cloud computing which could afford them serious advancement in their ability to pair buyers with sellers.
With all of these picks in mind, it is important to discuss investments with a financial advisor before going all in. This can allow for an individualized investment strategy to be crafted around your goals for the future.
The industry of e-commerce is an ever-growing one. While the industry giants like Amazon continue to grow significantly over time, there are always new companies trying to burst into the field. These picks are only some of the more recent companies to make waves across the field of digital marketplaces and they are subject to change over time. The industry is constantly changing and some companies might step into the spotlight soon. One thing is for certain; we are living through a revolution in the online marketplace industry that will impact the market for years to come.