Top eCommerce Companies To Look Out For in 2023
ByDanica Djokic
March 07,2023
Today, eCommerce is revolutionizing the way we shop. No longer do we have to trek to the mall or stand in line at the store. We can simply sit at our computers or use our smartphones to purchase whatever we want with just a few clicks.
The ease and convenience of online shopping have made it one of the most popular shopping methods, and businesses have taken notice. The top eCommerce companies are now worth billions of dollars, and they’re only getting bigger.
To save you the trouble of scouring the internet for the best online shopping venues, we’ve compiled a list of the top six.
1. Amazon - The King of Market Dominance
Market cap: $1.168 trillion
Revenue: $469.8 billion
Monthly visits: 2.4 billion
No list of eCommerce retailers would be complete without Amazon. This online store is the undisputed king of eCommerce, with a staggering market cap of $1.168 trillion, a dominance of the market with 44% of all eCommerce sales, and over 12 million products on its shelves.
What started as a small online book store in Jeff Bezos’ garage has now grown into a multi-billion-dollar empire that sells everything from books and electronics to clothing and groceries. Amazon operates in 20 countries across five continents and is one of the largest eCommerce companies in the US and the rest of the world.
The retailer’s total monthly visits in the US reached a whopping 2.4 billion in May 2022, making Amazon one of the most visited sites in the country. Part of Amazon’s success can be attributed to its retail-oriented services, such as Fulfillment by Amazon and Amazon Web Services. The former lets businesses store and ship their products through Amazon, while the latter provides businesses with cloud computing services.
Another game-changer in the competitive landscape of eCommerce is Amazon Prime. For an annual fee of $139 or a $14.99 monthly subscription, members get free shipping, access to Prime Video and Prime Music streaming services, extra discounts, and coupons, thus generating additional revenue for the company. Speaking of which, the company reported $469.8 billion in revenue in 2021.
Despite being one of the top eCommerce companies in the world, Amazon didn’t make it through the COVID-19 pandemic unscathed. Even though the outbreak led to a surge in online shopping as people avoided going to physical stores, the retailer had to deal with a significant strain on its resources, leading to delays in shipping times and limited stock.
2. eBay - The Pioneer of Online Shopping
Market cap: $25.56 billion
Revenue: $10.42 billion
Monthly visits: 753.5 million
eBay is one of the oldest and best-rated eCommerce platforms. The online marketplace was founded back in 1995 and was one of the first to capitalize on the power of the internet for the purposes of shopping.
Today, eBay is a behemoth with a market cap of more than $25 billion as of July 2022, becoming one of the largest eCommerce brands with over 159 million active users and availability in over 180 countries. The site accumulated 753.5 million worldwide monthly visits in April 2022, thus becoming one of the most visited websites globally.
The company operates as a marketplace, allowing individuals and businesses to sell almost anything, from cars and clothing to antiques and art.
What sets eBay apart from other eCommerce companies is its auction system. This lets sellers set a starting price for their product and allows potential buyers to bid on it, with the product ultimately going to the highest bidder.
However, the company has been pushed to adapt in recent years, as Amazon and other top eCommerce companies have gained ground. To stay competitive, eBay has introduced features such as “Buy It Now,” which lets buyers purchase items immediately at a set price, as well as “Best Offer,” which allows consumers to negotiate with sellers.
Yet another benefit eBay users can count on is its “Best Price Guarantee.” If shoppers find a product they purchased on eBay for a lower price at another online retailer within 48 hours, eBay will offer a coupon worth 110 percent difference in price. Along with the guaranteed delivery scheme, which guarantees a refund if delivery takes more than three days, these initiatives make for a very customer-centric approach.
3. Alibaba - The Chinese eCommerce Dragon
Market cap: $278 billion
Revenue: $129.44 billion
Monthly visits: 138.4 million
The next entry on our handpicked list of eCommerce companies is a Chinese brand that has taken the world by storm - Alibaba. It was founded in 1999 as a business-to-business portal meant to connect Chinese manufacturers with overseas buyers.
Starting as a rags-to-riches story, the company has since transformed into a massive eCommerce empire with a market cap of over $278 billion. Currently, Alibaba is the largest eCommerce company in China and the world’s third-largest Infrastructure-as-a-Service provider by revenue.
The company operates a range of websites, including Taobao, DingTalk, AliExpress, and Tmall, which have a combined active user base of 1.31 billion, including 305 million overseas consumers. It operates in over 190 countries, offering online shopping, cloud services, logistics networks, digital media, entertainment, and more.
Alibaba is one of the eCommerce retail companies that has been incredibly successful in China thanks to its focus on the country’s vast and growing middle class. The company has also been very innovative, introducing features such as Tmall, which provides a platform for businesses to sell to consumers, and AliExpress, which lets small businesses sell to buyers outside of China.
In recent years, Alibaba has been expanding aggressively outside of China. The company has made a number of high-profile acquisitions, such as the purchase of the South China Morning Post in 2015. Alibaba has also invested heavily in overseas eCommerce companies, such as Lazada in Southeast Asia, further cementing itself as one of the top 5 eCommerce companies worldwide.
In 2021, the company reported $129.44 billion in revenue, representing a considerable increase compared to the previous year’s $94.46 billion. We expect the upward trend to continue as Alibaba continues to capitalize on the growing global middle class and new international ventures.
4. Rakuten - The Amazon of Japan
Market cap: $7.36 billion
Revenue: $15 billion
Monthly visits: 542.7 million
Founded in 1997, Rakuten is a Japanese eCommerce company that is often referred to as the “Amazon of Japan.” The firm operates over 70 services, including an online marketplace, Japan’s largest online bank, the Viber messaging app, an e-book store, and Rakuten Mobile, a mobile carrier.
Today, Rakuten is the largest eCommerce company in Japan and one of the top 10 eCommerce companies in the world, with a market cap of $7.36 billion. The company’s website got a total of 542.7 million visits in April 2022, many of which were searching for Rakuten Travel services, which is Japan's largest online hotel reservation website.
The ground-breaking acquisition of Viber in 2014 for $900 million was a strong statement of Rakuten’s ambitions to become a global player in the tech industry. The messaging app has since been integrated into Rakuten’s ecosystem and is used by over one billion people worldwide.
Rakuten’s online marketplace is the company’s largest business and accounts for the lion’s share of its revenue. Being one of the best eCommerce brands, it sells everything from books and clothes to electronics and furniture. Rakuten is also known for its cashback program, which gives shoppers a percentage of their purchase back in the form of Rakuten Points.
In 2021, Rakuten’s annual revenue amounted to $15 billion, having increased over the previous decade. With that in mind, and given that the name “Rakuten” means “optimism” in Japanese, we expect this upward trend to continue.
5. Walmart - The eCommerce Pioneer
Market cap: $361.80 billion
Revenue: $571.96 billion
Monthly visits: 407.8 million
Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Headquartered in Bentonville, Arkansas, the company was founded in 1962 and currently has around 10,500 locations in 24 countries.
Being one of the top eCommerce companies in the USA, the total number of visits to its website was 407.8 million, according to the May 2022 data. Walmart’s online sales in the US amounted to around 47.8 billion dollars, which is an increase of about 11% compared to the previous year’s figures. Moreover, the company has a market cap of $361.80 billion and has been ranked 1st on the Fortune 500 list for 10 consecutive years.
The continued, steady growth encouraged the company to invest in its eCommerce resources by focusing on expanding and improving its delivery services and grocery pickup. This, combined with Walmart’s wide range of available products and its competitive prices, makes it one of the dominant entries on the eCommerce companies list.
Overall, Walmart offers a great customer experience, provides convenient delivery options, and has an impressive supply chain of 210 distribution centers and a fleet of almost 90,000 vehicles that deliver products to stores and customers.
6. The Home Depot - Everyone’s Favorite Home Improvement Store
Market cap: $306.45 billion
Revenue: $147.69 billion
Monthly visits: 203.6 million
Founded in 1978, The Home Depot is the world’s largest home improvement retailer, with more than 2,000 stores in the United States, Canada, and Mexico. The company offers a wide range of products, including tools, building materials, furniture, lawn and garden products, and appliances.
When it comes to eCommerce services, Home Depot is currently one of the top eCommerce furniture companies, along with IKEA, with a website that received around 203.6 million visits in June 2022.
In recent years, Home Depot has put a lot of focus on its eCommerce business, investing in initiatives such as same-day delivery and in-store pick-up. One of the newest additions to its online services, the “Rent Online, Pick-up In Store” feature, has become quite popular among customers.
ROPIS allows customers to reserve items online and then pick them up at their nearest store. This service is highly convenient for customers who don’t have time to wait for delivery or wait in queues, as well as those who live in rural areas.
Combined with its mixed cart selling scheme, whereby customers can purchase both physical and digital items in one transaction, Home Depot’s online presence among other top eCommerce retailers is becoming quite strong.
Final Thoughts
Many factors have been contributing to the growing popularity of eCommerce in the world. The COVID-19 pandemic has played a significant role in this, as people started turning to online shopping out of necessity. In addition, the availability and popularity of contactless payment options, such as Apple Pay and Amazon Pay, have made it easier and more convenient for people to shop online.
In times of drastic changes in the business world, it is hard to imagine the eCommerce industry without the six online sales companies we listed above, as they have all played a significant role in shaping the eCommerce landscape as we know it today.
FAQ
Who is the largest eCommerce company?
The world's largest ad most influential eCommerce company is Amazon, with a whopping market cap of $1.168 trillion. The company dominates the market with 44% of all eCommerce sales. It operates in over 20 countries across five continents and sells over 12 million products, thus proving to be one of the top eCommerce fulfillment companies.
What is the best company for eCommerce?
There is no definite answer as to what the best company for eCommerce is. It all depends on your individual needs and preferences. Some might prefer Amazon for its vast selection of products, while others might prefer eBay for its auction-style listings. If you're into home improvement, you might go for Home Depot, and if you're looking for furniture, IKEA might be a better option.
Ultimately, the top eCommerce companies are the ones that offer the products or services you're looking for at the best price. Make sure to familiarize yourself with how eCommerce companies work before making your final choice.
Is Alibaba bigger than Amazon?
If we compare the market capitalization, Amazon sweeps the board with a market cap of $1.168 trillion. At the same time, Alibaba's eCommerce empire is worth over $278 billion. If we compare the two companies by revenue, Amazon again comes out on top, with a reported $469.8 billion in revenue, compared to Alibaba's $129.44 billion in 2021.
Comparing the top eCommerce companies isn't a simple matter, as they all offer a variety of products and services in different markets.
More From Our Blog
In business, there are always risks that something could go wrong. A natural disaster could strike, a key employee could leave, or your computer system could crash - any of these things could cause severe disruption to your company.
That’s why it’s important to have a business continuity plan in place. Not only will it give you peace of mind knowing that your company can make it through difficult times, but it can also be useful for keeping things on track during a high-risk period.
But what is a business continuity plan? And how do you create one? We’ll discuss all this, as well as the benefits of having a continuity plan in place.
Definition of a Business Continuity Plan
A business continuity plan is a document that outlines how a business will continue to operate during and after an unexpected event. The goal of a continuity plan is to keep the company running, even if some aspects of the business are disrupted.
Continuity plans are important because they help businesses avoid or minimize downtime and financial losses. They also help to protect employees, customers, and other stakeholders.
Business Continuity Plans - Now and Then
It all started in the 1970s when businesses started to become more reliant on computer systems. At the time, there was a lot of uncertainty about how these systems would work and whether or not they would be reliable. As a result, companies began to develop contingency plans in cases of computer system failure.
These early continuity plans were mostly focused on technology, but over time, they have evolved to encompass all aspects of the business. Nowadays, business continuity planning, by definition, takes into account things like natural disasters, power outages, pandemics, or cyberattacks.
For example, according to the IDC research survey conducted in 2014, an infrastructure failure can cost USD $100,000 per hour. Since then, technology has developed exponentially, and the costs may be even higher now.
The risk of cyberattacks has also increased significantly over the years. Companies are now hiring business continuity teams and automating recovery processes using different software solutions that can help companies assess risks, process relevant data, as well as recover and protect critical business functions.
Why Your Business Needs a BCP
There are two main benefits to having this type of plan in place.
The most important benefit is the fact that it can help keep your business running during and after an unexpected event. By minimizing downtime and financial losses that may burden your operating budget, you can protect your employees, customers, and stakeholders.
Unexpected events can range from minor setbacks to disasters that could cost you your business altogether. Either way, having a business continuity management plan will allow you to focus on running your business more efficiently.
Besides, although having to define a business continuity plan can be tedious, it will help you comply with regulations. In some industries, having a business continuity plan is required by law.
Typically, businesses that operate in health care, financial, and government sectors are legally required to have a continuity plan in place. Otherwise, they face severe penalties from federal, state, or local governments.
What Does a Business Continuity Plan Typically Include?
There are four key components to a successful business continuity plan:
Risk assessment: Identifying and assessing the risks that could potentially disrupt your business.
Business impact analysis: Determining how a business disruption would impact operations. Sometimes, the disruption could be a minor one, e.g., having to hire a new person for a role. At other times, the disruption could be large enough to force you into bankruptcy.
Recovery plan: This document should always be within the scope of a business continuity plan. It outlines the steps that need to be taken to recover from an interruption.
Testing and maintenance: This is the process of testing the continuity plan to ensure that it’s effective and up-to-date.
Tips for Maintaining Business Continuity
To maintain business continuity, it’s essential to:
Review the plan regularly: Just like when writing a business plan, you should review your continuity plan at least once per year. This will help to ensure that it’s up-to-date and effective.
Test the plan regularly: This will help to identify any weaknesses or gaps in your continuity business plan.
Train employees: Your employees should be familiar with the continuity plan for your business. This will help ensure that they know what to do in the event of an interruption.
By following these tips, you can ensure that your continuity plan is effective and up-to-date.
All in All
Creating a business continuity plan for your company is one of the most important steps you can take to ensure the future success of your organization. By having a clear plan in place, you will be able to minimize the impact of any potential disruptions and keep your business running smoothly.
By Vladana Donevski ·
July 18,2022
If you're running a business, knowing how to pay yourself as a business owner is essential. This can be a tricky process, as there are several factors to consider, such as tax implications and the best interests of your business.
This article will discuss the different ways small business owners can pay themselves and help you decide which method is suitable for you. We will also take a quick look at each payment method's tax implications and give you tips on avoiding mistakes while doing so.
Paying Yourself as a Business Owner: The Two Options
One of the first things you need to decide when figuring out how to get paid for your work as a business owner is whether you want to take a salary or an owner's draw.
Paying Yourself a Salary
A salary is a regular paycheck taxed like any other employee's income.
For the self-employed, salary can mean different things. While some may take home whatever is left after they pay taxes and handle all the business expenses, others may set aside a specific monthly amount that goes towards their personal expenses.
Paying yourself a salary when self-employed should not pose a problem, provided that you maintain accurate financial records. One method of calculating compensation is to calculate your net income first, which is your total revenue minus any business expenses. The other is relying on the average market salary for your position so you can get an idea about the appropriate amount.
Whichever method you choose, it is crucial to maintain accurate financial records and ensure that you have separate personal and business accounts.
Relying On an Owner's Draw
An owner's draw is money you take out of your company's profits and is not subject to payroll taxes. The owner's draw is the amount of money you, as your business owner, pay yourself from your business each year for basic expenses.
The IRS doesn't require business owners to pay themselves a salary, but if they don't, they may have to pay self-employment taxes on their net earnings from the company. This is why even self-employed people often allocate a salary for themselves.
The amount of the owner's draw should be based on the needs of the business and the owner equally. It's important to remember that taking too much out of your business can jeopardize its financial health.
The Best Way To Pay Yourself as a Business Owner - Factors To Consider
You need to think about a few things when deciding which payment method suits you best.
Type of Business Structure
As an owner, one of the first decisions you'll need to make is what type of legal business entity your business will be. This decision will have significant implications for how much you'll pay yourself and affect factors such as liability protection and tax treatment.
So, how do business owners get paid? In general, sole proprietorship and partnership offer the most flexibility when setting your salary, while corporations have more restrictions.
Sole Proprietorship or Partnership
If you're operating as a sole proprietorship, you can rely on the owner's draw from the owner's equity balance and business profits. The partnership also doesn't allow a salary, as you are both a partner and an employee.
C-corp and S-corp
Both C-corp and S-corp allow you to set a salary for yourself. If you've set up a C-corporation, you can rely on salary and distributions. In the case of an S-corporation, you can pay yourself a market-rate wage as an employee and take dividend income as a shareholder.
Limited Liability Company (LLC)
An LLC is the only business structure where you can pick sides in the owner's draw vs. salary debate. If you've established an LLC, you'll again be both an employee and a company member. However, LLCs offer more flexibility in how profits are distributed, as according to the IRS, they can be taxed as a sole proprietorship, partnership, or corporation.
How Much You Need vs. How Much Your Business Needs
Second, you must consider how much money you need to take out of your business each month. Taking funds in the form of a regular salary might be the best option if you only need a small amount. However, if you are trying to figure out how much you should pay yourself from your business because you need a larger sum, an owner's draw might be a better option.
Another thing to consider is your current business situation. If the cash flow of your business has seen better days, then taking an owner's draw might not be a good idea.
If you take too much money out of your business, you might reduce its profits and affect its performance negatively. This will mean you’ll get fewer profits in the long run and might have to dip into your own wallet to pay operating expenses down the line.
Understanding Tax and Compliance Implications Behind Paying Yourself From Your Business
When you are paying yourself, it is crucial to understand the tax rules of each payment method.
The sole proprietor and partner will have to pay self-employment tax, including Social Security and Medicare taxes. These taxes are also included in the salary withholdings if the business structure allows this kind of payment. Different implications apply to different types of businesses, so you should inform yourself about the right way to file taxes as a small business owner.
It is essential, especially if you are a small business owner, to get tax advice when figuring out what type of business structure would be right for you. You must understand how you will have to pay taxes with a specific business structure before you even get to your first tax report.
Mistakes To Avoid When Paying Yourself As a Business Owner
There are a few mistakes new business owners often make, so let’s take a look at how you can avoid them.
Make Sure You're Not Overpaying or Underpaying Yourself
First, you must ensure you are paying yourself reasonable compensation. Consistency is the key here, and you should ensure that you are paying yourself the same amount at the same intervals.
While the owner's draw might seem like a good idea initially, it often pays to leave money in your business account to cover unexpected expenses instead of drawing it for personal needs.
Calculate the Taxes Into Your Budget
You need to make sure that you comply with all the payroll and tax regulations when paying yourself as self-employed. You might have to pay penalties or get a sizable tax bill if you do not.
It’s advisable, especially for new business owners, to rely on accounting software to help you budget everything.
Not Paying Yourself at All
The third and final mistake to avoid is not paying yourself at all! While many new business owners initially hold out on receiving a salary, calculating the owner's compensation into your operating budget should happen as soon as the business is profitable enough to allow it.
Conclusion
Figuring out how to pay yourself as a business owner is a difficult task, and you must consider several factors to find an optimal sum and compensation method.
It is always worth consulting with an experienced accountant and seeking advice before forming your business. They can help you avoid the most common mistakes and give some tips based on your specific situation.
By Vladana Donevski ·
October 12,2022
If your sources of income are compromised and you’re unable to pay your debts back, you might consider filing for bankruptcy. Bankruptcy may look like the only way to get a breather, but before you do that, you must understand what the consequences of such an action could be.
So, what is the downside of filing for bankruptcy? We will discuss that in this article, so read on.
What Is Bankruptcy?
Bankruptcy is a legal process that can be initiated when a person or business entity is financially unable to settle debts. When an individual or company files a petition for bankruptcy, the court evaluates their assets. If the assets are deemed to be of enough substantial value, they can be sold off to pay off some of the debt.
The relationship between bankruptcy and debt is a serious one. Filing for bankruptcy is a negative implication regarding your ability to pay back future debts and it affects your credit score, so you shouldn’t resort to it lightly.
To properly utilize bankruptcy in debt settlement, you should first know what types of bankruptcy exist.
Types of Bankruptcy
There are two types of personal bankruptcy you should consider when it comes to debt settlement. In most cases, it is either a Chapter 7 or Chapter 13 filing. For businesses, there’s Chapter 11.
Chapter 7
Most people tend to file a Chapter 7 when it comes to bankruptcy and debt. Filing for a Chapter 7 bankruptcy usually does not result in your property being sold to cover portions of your debt, but it is still a possibility depending on the specifics of the case. The filing takes three to five months.
Chapter 13
A Chapter 13 bankruptcy is usually filed to enable reorganization. This means that you seek some time to plan out how your debt settlement will go. It’s the less common type of bankruptcy filing. Your property or assets are not going to be sold to pay off debts, but this filing requires that you and your creditors agree to a repayment plan bound by the court.
Chapter 11
This bankruptcy filing isn’t that much different from a Chapter 13 filing. They both involve reorganization, but while Chapter 13 is meant for individuals, Chapter 11 is applied to business interests. It is more complex than any other type of bankruptcy and gives businesses in serious debt the chance to keep operations running, while they restructure to pay off their creditors.
The cost to file a bankruptcy varies, but on average, you would be looking at around $1,500-$4,000. These cover court filing and attorney fees.
Now that we’ve considered the most common types of bankruptcy, let’s look at the pros and cons of bankruptcies.
Benefits and Downsides of Filing for Bankruptcy
Filing for bankruptcy can be a good thing, but it can also have many disadvantages. Here’s what you can gain or lose from filing a Chapter 7, 11, or 13.
Pros
Filing for bankruptcy can help you save your property or assets from being sold off to settle debts. It’s a second chance for you to handle debts without throwing your life into disarray.
Bankruptcy is a useful tool for relieving you of the legal obligation to pay off a credit facility, taking pressure from creditors off you until you’re able to reorganize your finances.
A bankruptcy filing can help your business stay in operation even when you can’t repay debts. It’s a good way to protect the income in your business checking account.
Cons
On the other hand, filing for bankruptcy can lower your credit score rating. This is one of the biggest drawbacks of bankruptcy. How low your rating can drop depends on your score. A good credit score rating is estimated to drop by up to 200 points, although the effect is less severe the lower the credit score is.
Bad credit scores, in turn, have several financial implications. It would be difficult to qualify for loans, mortgages, credit cards, or to even purchase or rent a property. If you do qualify for a loan, your interest rates would be much higher. However, there is a way out, as you could apply and get loans even with a bad credit score.
Bankruptcy Consequences
Bankruptcy may be a second chance, but it could also be a financial nightmare. For one, they stay on your credit report for a long time. Chapter 7 bankruptcies stay on credit reports for about 10 years, while Chapter 13 bankruptcies stay for about 7 years.
Even so, the negative impacts are reduced over time, especially since filing for bankruptcy usually means some of your debt is written off.
Alternatives to Bankruptcy
Before you jump straight to filing for bankruptcy, there may be other ways to handle your debt problems.
Debt Settlement
With debt settlement, creditors agree to accept a large portion of your debt in order to settle the full balance. It is only applicable in situations where you have defaulted repayments. You can try and negotiate with your debtors on your own, or hire a debt settlement company.
Debt Consolidation
With debt consolidation, you combine various debts into one payment. You typically get more favorable interest rates and can settle debts more quickly. However, it requires you to have a credit line or a loan that you can use to pay off these debts.
Credit Counseling
This plan involves turning to credit counselors, who can help you devise a plan to manage your debt and pay it off in affordable installments. Credit counselors can reach agreements with creditors to lower interest rates and payments, so you don’t need to file for bankruptcy. However, their services are not free.
Conclusion
As tempting as it may be to jump on the bankruptcy train, it’s wise to consider if the repercussions of filing a bankruptcy are worth it. You should always keep in mind that there are alternatives, such as borrowing from family, selling off certain properties, or looking for additional sources of income. Even a change in your lifestyle can be enough for you to avoid bankruptcy in some cases.
By Julija A. ·
July 18,2022
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