Data gathered by Learnbonds.com shows that Chinese internet company Alibaba registered 9.3 percent lower profits compared to United States’ Amazon. The data further shows that there is a significant gap in revenues between the two companies by at least four times for the financial year ending March 31, 2020.
For the period under review, Alibaba’s operating profit was US$ 12.9 billion, while Amazon had US$ 14.1 billion. In general, Amazon’s total revenue was US$ 296.3 billion compared to Alibaba’s US$ 72 billion. The revenues for the two companies come from different diversified products like online and offline retail as well as seller and logistics services.
The Learnbonds.com research notes that: “Chinese e-commerce giant Alibaba registered a slightly lower margin in operating profits compared to Amazon, but there exists a huge difference in total revenue between the two platforms.”
Under the core commerce revenue Amazon registered US$ 223 billion while Alibaba had US$ 61.6 billion. For the cloud revenue, Amazon had profits of US$ 37.5 billion, a difference of 147.2 percent compared to Alibaba’s US$ 5.7 billion. Under other revenues, Amazon recorded US$ 35.7 billion while Alibaba had US$ 4.7 billion.
The Learnbonds.com research also overviewed the revenue for the two companies over the last three financial years. In general Amazon remains dominant but both companies keep growing in revenues.
Alibaba’s current revenue of US$ 72 billion is a growth of 36.62 percent from 2019’s US$ 52.7 billion. For Amazon, this year’s revenue grew slightly by 5.6 percent from last year’s US$ 280.5 billion. In 2018, Amazon’s revenue stood at US$ 232.8 billion while Alibaba had US$ 35 billion. Between 2017 and 2020’s financial year Amazon’s revenue has grown by 66.64 percent compared to Alibaba’s 225.79 percent.
Both Amazon and Alibaba have a similar business model but the American company has an established footing globally. In recent years, Alibaba has been making attempts to overhaul its business model to march Amazon.