According to our latest ecommerce estimates, companies in China continue to lead the pack in terms of online transactions. (Note that the figures above are for total in-market sales for each company in its home country, not its global sales.)
For reference, we project that Amazon’s total worldwide ecommerce sales will reach $416.48 billion this year, which means that China’s second-largest player, JD.com, transacts almost as much inside China as Amazon does globally. China’s third-largest player, Pinduoduo (PDD), dwarfs every other American company besides Amazon. Each of these companies does a large majority of its ecommerce business in its home market, so the relative stature of each is representative of its global position.It’s important to note that gross merchandise value (GMV)—as reflected in our data—is a very different metric from revenues or profit. To put that into perspective, Amazon makes money much more efficiently than Alibaba, JD.com or PDD, hence its ability to generate greater revenues and higher profit margins than its peers—despite its relatively lower transaction volumes.
Amazon is also a much bigger company than Alibaba, which is indicative of how poorly the latter profits off its inflated GMV. However, when it comes to ecommerce activity, the winner is clear.China’s companies are excelling in the ecommerce game for a number of reasons.
For one, while they do most of their business in a walled-off, protected marketplace, that market is enormous, hyper-competitive and demands constant innovation.