Archive for February, 2015
e-Commerce is already big in many countries around the world. In this post, I am going to write about the top ten e-Commerce companies in the world today. In October last year, Hamburg based market intelligence organization yStats.com published a report titled “The World’s Leading E-Commerce Companies 2014” which contained a list of top ten e-Commerce companies in terms of revenue. For the readers of ecombd.net.
Amazon.com is the largest internet-based retailer in the U.S. The company was established in 1994. Initially it sold books online. In January this year, Amazon posted financial results of last quarter. The company had a “higher-than-expected net income” but sales did not grow as expected. The company saw a 15% rise in sales in the Christmas. Net profit was $214 million. Not very impressive but far better than the 3rd quarter when Amazon made a net loss of $437 million. Overall, the company posted a loss of $241 billion as a whole.
JD.com or Jingdong Mall is the second largest e-Commerce companies in China after Alibaba. It was established by Liu Qiangdong aka Richard Liu in July 1998. The company launched its online sales operation in 2004. As of 2014, the company has a 54.3% market share in China. In order to supply products to its customers on time, JD.com maintains 97warehouses with a floor area of approximately 1.8 million square meters, 1,808 delivery stations and 715 pickup stations across China. As of July 2014, the company had 62,061 full-time employees. In its recent effort to diversify its business, the company partnered with the food producers in the U.S., Australia, Canada, Chile, France and New Zealand.
Wal-Mart Stores Inc.
Established by Sam Walton in 1962, Wal-Mart is the largest retail chain operator in the world. It is also one of the top buyers of Bangladesh’s readymade garments products. The company reported a 12% increase its profit in the fourth quarter of the last fiscal year. The company earned $4.97 billion compared to $4.43 billion in the same quarter previous year. Overall revenue stood at $131.57 billion an increase of 1.4% compared to last year. The hike in holiday season sales can be contribute to the lower price of gas and recovering economy. Recently, the company announced to increase its lowest wage to $9 an hour for its half million workers in USA.
Founded by Pierre Omidyar in 1995, eBay Inc. is another top earning e-Commerce website. The last year was not so good the company. In the fourth quarter, the company’s net income was $936 million, a 10% rise from $850 million in the same quarter last year. Revenue rose 9% to $4.9 billion. In the current quarter the company forecast revenue was $4.35 billion to $4.45 billion falling below Wall Street analysts’ prediction of $4.7 billion. Due to poor business the company announced to lay off 2,400 jobs; 7% of its current workforce. eBay also decided to split up its online payment gateway brand PayPal and make it and independent business.
The Otto Group is a German company. Established in 1949, the company currently has 123 companies with more than 50,000 employees. It is the largest mail order company in the world. The company started its online business in 1995. e-Commerce is currently the fastest growing sales channel of the company generating 60% of its total sales. Otto group is the world’s second-largest online retailer and the largest online retailer of fashion and lifestyle products in Europe. The company is planning to invest 300 million Euros within this year in online retail. However, the company is facing increasing competition from Amazon.com. In 2013, Amzon’s average operating margin on worldwide sales was 0.9% while Otto’s was 6%.
Alibaba Group Holding Limited
Alibaba Group Holding Limited is the largest e-Commerce site in China. It was founded by Jack Ma, a former English teacher from Hangzhou China. He established the company with a goal to further improve the capability of the small businesses through internet. Today, Alibaba is the largest e-Commerce company in China and one of the largest in the world. Its e-Commerce business is more than Amazon and eBay combined and the company is still growing. In November last year, on Singles’ Day the company sold more than $9billion. Yet, in the December quarter the company’s revenue fell short of analysts’ estimates. The average analyst estimate was $4.45 billion against Alibaba’s $4.22 billion.
Cnova N.V is a French e-Commerce company and one of the largests in the world. It has operations in Brazil, France, Colombia, Ecuador, Thailand, Vietnam, Ivory Coast, Belgium, Senegal and Cameroon, Cnova covering 530 million people. As of 2013, the company had a gross merchandise volume of U.S $4.9 billion. In Brazil and France, the company operates under sites like Extra.com.br, Pontofrio.com, Casasbahia.com.br, Comptoirsante.com, Moncornerdeco.com, Monshowroom.com, Barateiro.com.br. It also has B2B solutions such a eHub, an e-Commerce platform solution for third parties. Last year, the company online sales stood at $4.01 billion a 19.8% rise from 2013. Overall sales combining online and gross merchandise value was $5.22 billion.
Tesco PLC is a British multinational grocery and general merchandise retailer. The company was founded by Jack Cohen. The company currently operates more than 3,300 stores across the UK. The company is undergoing a tough period. Last year, the company’s name came up in an accounting scandal. Poor sales was another big company. In July last year, Dave Lewis was appointed CEO. Earlier this year, under his leadership, Tesco announced to shut 43 unprofitable stores across the UK. He also halted plans to open up 49 new stores.
Established in 1997 Rakuten is the largest e-Commerce site of Japan(www.rakuten.co.jp, www.rakuten.com). In the last quarter of 2014, the company performed well. The company’s fourth quarter profit rose 73% with an operating profit of 33.3 billion yen. Last year the company also observed 14% increase in domestic e-Commerce gross merchandise sales to $16.5billion. In order to boost its business, Rakuten is now focusing on smartphone users. At present smartphone transactions account for 44% of gross merchandise sales. However, there is huge challenge ahead. 90% of the Rakuten’s business is based in Japan and shrinking population is affecting consumer spending. Hence, it is now planning to spread its business outside the country.
Best Buy Co.:
Best Buy Co. is retail outlet selling consumer electronic goods. A traditional brick and mortar store, it also has its online business. In the holiday season of 2014, the company observed a 13.4% rise in online sales compared to store sales. It is now reconsidering to improve its online business. Best Buy’s holiday sales was $11.4 billion in U.S. Large screen TVs and mobile phones were the most popular product. Despite good sales, the company announced that this year there would not be much sales growth.