Amazon Competitors

Amazon is a consumer e-commerce platform with a diversified business model spanning across e-commerce, cloud, advertising, streaming, and more. Over the years, Amazon acquired several companies. As it operates across several industries, Amazon has a wide range of competitors across each of those industries. For instance, Amazon’s E-commerce competes with Shopify, Wix, Google, Etsy, eBay, and BigCommerce.

CompetitorDescriptionKey InsightsCompetitive OverlapDifferentiation
WalmartA multinational retail corporation with both physical stores and an e-commerce presence, offering a wide range of products.Walmart’s extensive retail network and e-commerce platform make it a direct competitor to Amazon.Both offer a vast range of products and compete in online retail.Walmart’s physical presence, in-store pickup options, and pricing strategies.
eBayAn online marketplace that allows users to buy and sell a wide range of products, including new and used items, through auctions and fixed-price listings.eBay’s user-to-user selling model overlaps with Amazon’s third-party seller platform.Both facilitate online buying and selling, with eBay’s auction-style listings as a differentiator.eBay’s auction-style listings, collectibles, and unique items.
AlibabaA Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology. It operates various online marketplaces, including, Taobao, and Tmall.Alibaba’s diverse ecosystem includes B2B and B2C marketplaces and competes with Amazon on a global scale.Both are global e-commerce giants, but Alibaba primarily targets the Chinese market.Alibaba’s strong presence in China, global reach, and B2B focus.
TargetA retail corporation with a mix of physical stores and an e-commerce platform, offering a wide array of products, including clothing, electronics, and groceries.Target’s omnichannel strategy combines physical and online retail, directly competing with Amazon.Both offer a wide range of products and have both physical and online retail presence.Target’s physical stores, in-store pickup options, and exclusive partnerships.
ShopifyAn e-commerce platform that enables businesses to set up their own online stores. Shopify indirectly competes with Amazon by providing businesses with the tools to establish their e-commerce presence.Shopify’s platform empowers businesses to compete with Amazon by creating their online stores.Both play roles in the e-commerce ecosystem, but Shopify enables businesses to operate independently.Shopify’s focus on enabling businesses to build their brands and websites.
NetflixA subscription-based streaming service for movies and television series. While not a direct retail competitor, Amazon Prime Video competes with Netflix in the streaming content space.Amazon Prime Video competes with Netflix in the streaming content industry.Both offer streaming content, but their primary focus differs, with Amazon’s broader e-commerce ecosystem.Netflix’s focus on streaming entertainment content.
GoogleA multinational technology company that operates a search engine, online advertising services, and offers Google Shopping for product searches.Google Shopping competes with Amazon as a product search and advertising platform.Both offer product search and advertising services, with Google’s primary focus on search.Google’s search engine dominance and advertising services.
Best BuyAn electronics retailer with both physical stores and an online presence, specializing in consumer electronics, appliances, and services.Best Buy competes with Amazon in the consumer electronics and appliances market.Both offer consumer electronics, but Best Buy has a strong physical presence.Best Buy’s in-store customer experience and technical services.
RakutenA Japanese e-commerce and online retail company that operates a global online marketplace similar to Amazon.Rakuten’s marketplace competes with Amazon in various regions, offering products and services worldwide.Both operate global online marketplaces, but Rakuten has a significant presence in Japan.Rakuten’s Japanese roots and global marketplace approach.
ZalandoA European e-commerce company specializing in fashion and clothing, competing with Amazon’s fashion retail segment.Zalando competes with Amazon in the European fashion e-commerce market.Both offer fashion and clothing products, but Zalando’s primary focus is on fashion.Zalando’s European presence and fashion-oriented platform.

How to analyze a company with tentacles across many industries

Analyzing a company can be done from several perspectives. For a diversified business model, like Amazon, things can get even more complicated. Indeed, over the years, Amazon started with a simple use case (books), and it expanded in all directions on online commerce. At the same time, over the years, Amazon also bought several companies,

Amazon is a consumer e-commerce platform with a diversified business model spanning across e-commerce, cloud, advertising, streaming, and more. Over the years Amazon acquired several companies. Among its 12 subsidiaries, Amazon has, Audible, CamiXology,, IMDb, PillPack, Shopbop,, Twitch, Whole Foods Market, Woot! and Zappos.

Amazon expanded in several verticals, and for each vertical, we can identify different competitors:

  • E-commerce ( Shopify, Wix, Google, Etsy, eBay, BigCommerce.
  • Physical retail (Whole Foods): Target, Walmart, BestBuy, The Home Depot, Costco, Walgreens, Kroger, Trader Joe’s.
  • Last-mile delivery: Flipkart, Instacart, Doordash.
  • Streaming (Prime): Netflix, Spotify, YouTube (Google), Disney+, Hulu, HBO.
  • Cloud (Amazon AWS): Microsoft, Google, IBM.
  • Digital advertising: Google, YouTube, Facebook (Instagram), Bing (Microsoft), Twitter, Pinterest.

We could expand the analysis further if we were to zoom further from the perspective of all of Amazon’s subsidiaries.


  • Shopify: A popular e-commerce platform for businesses of all sizes, offering customizable online stores and a range of tools.
  • Wix: Website builder that also enables e-commerce functionality, catering to individuals and small businesses.
  • Google: Through Google Shopping, it provides a platform for product listings and comparison shopping.
  • Etsy: A marketplace focused on handmade and unique products, appealing to a niche audience.
  • eBay: A well-known online auction and shopping platform, facilitating both new and used product sales.
  • BigCommerce: Offers e-commerce solutions with customizable storefronts, suited for mid-sized businesses.

Physical Retail:

  • Target: A large retail chain offering a wide range of products, including groceries, clothing, and electronics.
  • Walmart: One of the world’s largest retail corporations, known for its extensive product selection and low prices.
  • Best Buy: Specializes in consumer electronics and appliances, with both physical stores and online presence.
  • The Home Depot: Focuses on home improvement products and services, catering to DIY enthusiasts.
  • Costco: A membership-based warehouse club offering bulk purchases and a variety of products.
  • Walgreens: A pharmacy retail chain that also sells health and wellness products.

Last-Mile Delivery:

  • Flipkart: An Indian e-commerce company offering a wide range of products and delivery services.
  • Instacart: An on-demand grocery delivery and pickup service, partnering with various retailers.
  • Doordash: A food delivery platform connecting customers with local restaurants and eateries.


  • Netflix: A leading subscription-based streaming service known for its original content and extensive library.
  • Spotify: Offers a vast music library with both free and premium subscription options.
  • YouTube (Google): The world’s largest video-sharing platform, offering a mix of user-generated and professional content.
  • Disney+: Disney’s streaming service featuring its iconic movies, TV shows, and original content.
  • Hulu: Provides a variety of on-demand streaming options, including current TV episodes and original content.
  • HBO: Offers premium content including original series, movies, and documentaries.


  • Microsoft (Azure): A major cloud services provider offering a wide range of solutions, including infrastructure and software.
  • Google Cloud: Google’s cloud computing platform providing storage, data analytics, and machine learning services.
  • IBM Cloud: Offers a suite of cloud computing solutions, including AI and analytics services.

Digital Advertising:

  • Google: Dominant in online advertising with search and display ads, along with YouTube advertising.
  • YouTube: Offers video advertising and monetization options for content creators.
  • Facebook (Instagram): A major player in social media advertising, with a focus on targeted ads.
  • Bing (Microsoft): Provides search and display advertising services as an alternative to Google.
  • Twitter: Offers advertising opportunities through promoted tweets and trends.
  • Pinterest: Known for visual discovery and shopping, offering advertising options for brands.

More on Amazon

Amazon has a diversified business model. Amazon’s primary revenue streams comprise its e-commerce platform, made of Amazon labeled products and Amazon third-party stores. In addition to that, Amazon makes money via third-party seller services (like fulfilled by Amazon), advertising on its platform, AWS cloud platform, and Prime membership.
Amazon has a diversified business model. In 2022 Amazon posted over $514 billion in revenues, while it posted a net loss of over $2.7 billion. Online stores contributed almost 43% of Amazon revenues. The remaining was generated by Third-party Seller Services, and Physical Stores. While  Amazon AWS, Subscription Services, and Advertising revenues play a significant role within Amazon as fast-growing segments.
Amazon is among the most diversified business model in the tech industry. The company is well-positioned to dominate e-commerce further. And while its online stores have tight profit margins, Amazon still unlocks cash for growth, while consolidating its dominance in the cloud and grabbing new opportunities like voice.
Amazon future success is influenced by Political (new regulations and potential breakups of the company), Economic (new global economic dynamics influencing e-commerce adoption), Social (changing consumer behavior at a global level), Technological (new technological challenges, like last-mile delivery at scale), Environmental (enabling sustainable operations), and Legal (compliance with international laws).

More about Amazon:

Connected to Amazon Business Model

Amazon Business Model

Amazon has a diversified business model. In 2022 Amazon posted over $514 billion in revenues, while it posted a net loss of over $2.7 billion. Online stores contributed almost 43% of Amazon revenues. The remaining was generated by Third-party Seller Services, and Physical Stores. While  Amazon AWS, Subscription Services, and Advertising revenues play a significant role within Amazon as fast-growing segments.

Amazon Revenue By Country

Amazon Revenue By Country
In 2022, most of Amazon’s revenue came from the US, with over $356 billion in revenue, followed by Germany with $33.6 billion, the UK with $30 billion, Japan with $24.4 billion, and the rest of the world generated almost $70 billion in net sales.

Amazon Cost Structure

Both the North American and International segment of Amazon are running at negative margins. Indeed, in 2022, for the North American segments, of almost $316 billion in revenue, Amazon spent almost $319 billion in operating costs to run it, thus it generated $2 billion in operating losses in 2022. For its International segment, of $118 billion in revenue, Amazon spent almost $126 billion to operate it. Thus, it reported a $7.7 billion operating loss. While for AWS, with $80 billion in revenue, Amazon spent $57 billion to operate it, thus generating almost $23 billion in operating income. The high operating costs are primarily due to the high cost of running Amazon’s inventory and fulfillment infrastructure behind its e-commerce operations. Indeed, Amazon is as much as a physical player as a digital one.

Is Amazon Profitable Without AWS?

Amazon was not profitable once AWS was removed in 2022. In fact, Amazon, without AWS generated $10.6 billion in operating losses. While Amazon, without AWS, generated $12.2. billion operating income.

Amazon Profit Breakdown

Amazon is subdivided into three operating profit segments: North America, International, and AWS. Amazon AWS is the most profitable segment, with almost $23 billion in operating profit in 2022. While Both the North American and International segments run at negative operating losses, with $2 billion and $7.74 billion in operating losses, respectively, in 2022.

Amazon Revenue Breakdown


Amazon Revenue Per Employee


Amazon vs. Walmart


eBay vs. Amazon

In 2021, Amazon generated almost $470 billion in revenue, vs. eBay’s over $10.4 billion. In comparison, looking at revenues, Amazon was 45x times larger than eBay.

Amazon Mission Statement

amazon-vision-statement-mission-statement (1)
Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” 

Customer Obsession

In the Amazon Shareholders’ Letter for 2018, Jeff Bezos analyzed the Amazon business model, and it also focused on a few key lessons that Amazon as a company has learned over the years. These lessons are fundamental for any entrepreneur, of small or large organization to understand the pitfalls to avoid to run a successful company!

Amazon Revenues

Amazon has a business model with many moving parts. The e-commerce platform generated $220 billion in 2022, followed by third-party stores services which generated over $117 billion; Amazon AWS, which generated over $80 billion; Amazon advertising which generated almost $38 billion and Amazon Prime, which generated over $35 billion, and physical stores which generated almost $19 billion.

Amazon Cash Conversion


Working Backwards

The Amazon Working Backwards Method is a product development methodology that advocates building a product based on customer needs. The Amazon Working Backwards Method gained traction after notable Amazon employee Ian McAllister shared the company’s product development approach on Quora. McAllister noted that the method seeks “to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.”

Amazon Flywheel

The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.

Jeff Bezos Day One

In the letter to shareholders in 2016, Jeff Bezos addressed a topic he had been thinking quite profoundly in the last decades as he led Amazon: Day 1. As Jeff Bezos put it “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.”

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