In this article, we will discuss the 17 Most Valuable E-Commerce Companies in the World. You can skip our industry overview and go directly to the 5 Most Valuable E-Commerce Companies in the World.
The eCommerce market was valued at $16.6 trillion in 2022. As per Imarc Group, the eCommerce industry will be worth $70.9 trillion by 2028, expected to grow at a compound annual growth rate (CAGR) of 27.43% from 2023 to 2028. Rapid urbanization, rising internet penetration, and integration of eCommerce platforms with devices such as smartphones and laptops are boosting this market’s growth.
According to UNCTAD projections, the surge in eCommerce after the outbreak of COVID-19 increased the percentage of online retail sales in overall retail sales from 16% to 19% in 2020. The increase in digitization after the outbreak of the global pandemic proved favorable for this sector, with McKinsey claiming that e-commerce has risen 2 to 5 times faster than before the pandemic.
According to Statista, the eCommerce market size by country indicates that China will remain the world’s largest e-commerce market in 2022, with an estimated value of $1.5 trillion. With $875 billion in sales revenue, the United States is the second-largest e-commerce market behind China. Japan is ranked second in terms of e-commerce market size by country, followed by two European countries, Germany and the United Kingdom. South Korea is in sixth place, and India is ranked seventh.
The last few years also saw the rise of social commerce, with the market predicted to reach $1.2 trillion by 2025. This phenomenon combines online purchasing with the use of social media platforms; vendors use it to promote their items and redirect the user to their webpage, while customers use it to write and read product reviews. This also makes social media platforms a threat to these specialized e-commerce giants in cases where the actual purchase takes place on social media. Chinese social commerce on platforms such as Alibaba’s Taobao Live and Xiaohongshu alone produced over $400 billion in sales in 2021.
Biggest ecommerce companies
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There are many established companies operating in the e-commerce market, like Amazon.com, Inc. (NASDAQ:AMZN) and Alibaba Group Holding Limited (NYSE:BABA). However, these established companies face a challenge from emerging startups that are targeting the gaps in the market and coming up with innovative offerings. For example, the US startup Rent the Runway offers luxury fashion pieces for rent, making high-end fashion more accessible to people. Another startup, Cazoo, provides a platform where you can buy used cars. This sector is also no stranger to unicorns, with unicorns making a revenue of $114 billion in 2021. Chinese startup Shein, which provides fast fashion at affordable prices, is the leading startup in the space with an expected valuation of $100 billion.
Amazon.com, Inc. (NASDAQ:AMZN) is the largest e-commerce company in the world in terms of both market cap and revenue. With its international operations, Amazon beats China’s market leaders in terms of revenue. While in Asia, Alibaba Group Holding Limited (NYSE:BABA), Pinduoduo Inc. (NASDAQ:PDD), and JD.com, Inc. (NASDAQ:JD) hold most of the market share.