E-commerce retailers have been known to struggle for better positions in new markets, but Amazon is usually among the winners. The American multinational technology company is not only one of the best known retailers in the world, but it was also the leading online store worldwide in 2020, based on net e-commerce sales. According to Statista, Amazon topped the global online retail market in 2020, boasting revenues of $ 120,968 million. Jd.com followed as the second biggest online store in the world, with a revenue of $ 83,058 million, while Walmart.com ranked third at “only” US$ 41,114 million.
While Amazon’s reign as the biggest online retailer in the US is certain, the same cannot be said about the European market. Although the retailer is projected to be raking in more than 40% of the nation’s e-commerce sales by the end of 2021, it may have a worthy rival in Alibaba, especially in eastern Europe. With the COVID-19 pandemic still disrupting online retail and Black Friday and Singles Day just around the corner, it remains to be seen if the American company will ultimately hold on to its top position.
Investing in European Markets
Alibaba continues to invest in Europe for Singles Day 2021, as the Chinese retail giant competes with Amazon for the European Union’s (EU) booming e-commerce market. Although still small when compared to the American market, Alibaba was one of the top three online sellers of consumer goods in eastern Europe in 2020, according to Euromonitor International. In contrast, Amazon did not manage to become one of the top 10 online retailers in the region, which includes countries like Poland and the Czech Republic. The competition for Europe may become even harder in 2021, as online shopping in the region is booming this year.
As remote work has changed shopping habits around the world, and other social distancing rules continue to emerge, online shopping continues to grow. Faced with new waves of COVID-19 outbreaks, people in Europe and around the world struggle to adapt to the “new normal”. Alibaba seems eager to take advantage of this wave of growth that may ultimately change the future of online retail in Europe. Numerous Alibaba business units have already expressed that they are expanding into Europe during the weeks prior to the Singles Day shopping festival. And that may be bad news for the American tech rival.
Singles Day or Black Friday?
The Singles Day shopping event was originally promoted by Alibaba in China, but it quickly made its way into Europe and America. The shopping festival is quite similar to Black Friday in the US or even with Amazon’s own Prime Day. Singles Day is celebrated on November 11 of every year because the date 11.11 represents four ones, or four singles, standing together. While the unofficial holiday was originally a kind of anti-Valentine’s Day, it has grown to become the world’s biggest shopping event. Last year alone, Alibaba said orders on its online platform during the Singles’ Day shopping festival hit $70.6 billion.
By comparison, Amazon’s Prime Day sales barely totaled $11.19 billion in 2021, a modest growth when compared with its previous shopping events. Prime Day, a shopping event that promotes deals on many of the products on the shopping platform, began in 2015 as a new way of celebrating Amazon’s 20th anniversary. The celebration quickly turned into a summer sales event created to boost Amazon’s business before the start of the holiday shopping season. However, Prime Day is not the only American shopping event now celebrated around the world. In fact, Black Friday is still one of the most popular shopping holidays in the world, traditionally celebrated the Friday following Thanksgiving Day in the US.
Black Friday 2021
While the official Black Friday starts on November 26, Amazon Black Friday early deals are already available. The American tech company offers important discounts for numerous products such as TV sets, home appliances, clothing, laptops, smart devices, and more. Even by extending this important shopping event, it remains to be seen if Amazon will eventually manage to keep its top position on the global online retail market. For now, the online retail giant is not only competing with Alibaba on the European market, but is also facing numerous problems at home. Amazon is struggling with easing the pandemic-induced shopping spending, surging costs caused by supply chain problems and a shortage of workers.
Another issue that may prove more important is that, according to a new Accenture study, many US customers plan to shop earlier this season, due to concerns about supply and transportation issues. Furthermore, Black Friday and Cyber Monday seem to continue to lose their appeal among Americans, as just 22% of the people questioned by Accenture said they plan to shop for the holiday on these two occasions.
