The Top 10 Amazon Competitors (2024) – Shopify Canada

As a business owner, you’ve likely wondered, “How can I compete with Amazon?”

It’s a valid concern. Whether you’re an online retailer or run physical stores serving a niche, there’s a good chance Amazon has claimed a chunk of your market share.

Jeff Bezos’s brainchild has its fingers in many pies. However, Amazon isn’t invincible. Many businesses are direct Amazon competitors and still enjoy substantial profits.

This guide explores 10 of Amazon’s top competitors in various areas, explaining what exactly makes them successful. We’ll then apply these lessons to show how you can compete with the online retail giant.

Top 10 leading Amazon competitors

This Amazon competitor analysis includes a mix of online-only business models and hybrid offline/online offerings. Each has unique advantages that position it as an Amazon competitor for online sales.

Online stores

First up, the most obvious group of competitors is online store owners (like you). Ecommerce has surged in recent years, accounting for 20% of total retail sales in the United States alone. 

While Amazon is the largest consumer marketplace in the US, small business owners have a significant advantage: they remain nimble and unique.

Shopify-powered online stores that sell one-of-a-kind can’t-get-anywhere-else products will always have an edge over the mass-produced goods found on Amazon. Take TREEHOUSE kid & craft, for example. The Georgia-based small business has a unique advantage over massive online marketplaces like Amazon. It specializes in high-quality kids’ toys, art, and books, stocking “unique, kindly-made products from around the world.” 

Rhiannon Taylor, founder of online boutique RT1home, advises ecommerce entrepreneurs to “design and manufacture your own products which Amazon cannot carry. If that’s not an option, do your research and only offer a unique product that’s not available on Amazon.”

While you may not be able to compete with Amazon on price or shipping times due to their vast scale and logistics, with an ecommerce platform like Shopify, you can outpace Amazon by offering unique products and personalized shopping experiences that keep customers happy and coming back for more. Shopify’s tools for customer engagement, loyalty programs, and personalized marketing help create these memorable experiences that Amazon often lacks.

eBay

Another major ecommerce platform directly competing with Amazon is eBay. Founded in 1995 and based in San Jose, California, this online marketplace has maintained a strong presence despite recent revenue declines. In 2022, eBay still reported an impressive $10.1 billion in revenue. 

On eBay, sellers list products for sale, and buyers find them in the marketplace. While eBay sellers offer products similar to those on Amazon, the key difference is eBay’s auction option alongside fixed-price listings. Amazon doesn’t offer auction sales. 

This auction feature, reminiscent of a giant online garage sale, gives eBay a unique position in the market compared to Amazon’s more traditional retail approach.

Walmart

Moving closer to the discount department store concept, Walmart stands out as another formidable Amazon competitor. Founded in 1962 by Sam Walton in Rogers, Arkansas, it’s one of the oldest companies on this list.

Amazon and Walmart are two of the biggest retailers in the US, constantly vying for market dominance. While Walmart leads in the physical retail space, Amazon controls online. Despite Walmart’s 30-year head start, the two now compete fiercely for the same customers across various fronts, including innovation, digital growth, logistics, and sustainability. 

In 2023, Walmart reported a staggering revenue of $611 billion, surpassing Amazon’s $574.78 billion and cementing its position as the world’s largest retailer. 

Flipkart

While Amazon has a massive presence in many Western countries, it’s not dominant everywhere. Flipkart, founded in 2007, is one of India’s leading online ecommerce platforms. Walmart became its majority owner in 2018. 

Flipkart’s business model closely resembles Amazon’s, with one notable exception: the Flipkart Plus SuperCoins reward scheme. Unlike Amazon Prime, this loyalty program is earned rather than paid for. 

Flipkart’s revenue has been growing, with a reported 9% increase in 2023 compared to the previous year. As the Indian ecommerce market continues to strengthen, Flipkart stands as one of Amazon’s biggest competitors in the region.

Learn more: A Complete Beginner’s Guide to Selling on Amazon

Target

Target, founded in Minneapolis, Minnesota, the same year as Walmart has a long-standing history in American retail. 

Describing itself as a “general merchandise retailer,” Target boasts that 75% of the US population lives within 10 miles of one of its stores. In 2023, Target reported an impressive $107 billion in revenue.

While Target can’t match the scale of Walmart or Amazon, it has something unique: a fiercely loyal customer base. Target has become synonymous with convenient shopping and has even earned a reputation as an acceptable date night destination among its customers. 

To compete in the ecommerce space, Target now offers same-day delivery, order pickup, and drive-up pickup options. With an increased focus on online sales, Target continues to carve out its share of the market that Amazon once dominated.

Alibaba Group

While Amazon is considered a giant in the US, China has its own ecommerce behemoth: the Alibaba Group. Founded in 1999 by Jack Ma, its main retail subsidiaries are AliExpress, Taobao, and Tmall.

Each subsidiary competes with Amazon in different ways. For example, Taobao, a B2C (business to consumer) operation, rivals Amazon in selling clothes, accessories, gadgets, and computer hardware at competitive prices. 

Alibaba is also one of the biggest competitors to Amazon Web Services, with its cloud computing division generating revenue of $3.5 billion in 2023.

Collectively, the Alibaba Group reported impressive revenue of approximately $130 billion in 2023.

Otto

Otto, one of Europe’s largest ecommerce companies, was founded in 1949 in Hamburg, Germany. As the oldest company on this list, Otto’s products were originally ordered by mail and then telephone before the company embraced online shopping in 1995. 

While Otto is considered a one-stop shop for electronics (including brands like Apple and Microsoft), fashion, and sports gear, its biggest market, particularly in Germany, is in furniture and home furnishings.

In the 2023 financial year, the Otto Group generated substantial revenue of approximately €15 billion ($16.8 billion).

JD

Next on the list is JD (JingDong), also known by its URL, JD.com. Founded in Beijing in 1998, it’s another major Chinese ecommerce platform. 

Beyond competing with Amazon, JD is also a direct rival of the previously mentioned Tmall, as both are Chinese B2C ecommerce companies. 

What sets JD apart from Amazon is its ability to offer bulk purchases (similar to Costco) and its dominating logistics infrastructure in China. These unique features give JD a competitive edge in the Chinese market.

Netflix

Shifting focus from physical products, we turn to Netflix, Amazon Prime Video’s biggest competitor. This video-on-demand service, launched in 1997 when founders Reed Hastings and Marc Randolph mailed themselves a DVD in Scotts Valley, California, is widely regarded as one of the world’s most popular subscription services.

Since its inception, Netflix has experienced consistent overall growth, reporting an impressive $33.7 billion in revenue in 2023. Its original content is particularly popular among its 277.65 million subscribers.

While emerging competitors in the video streaming space have taken a bite out of its US market share, Netflix still maintains a significant 21% of the market.

Rakuten

Returning to the ecommerce realm, another major player is Rakuten, Japan’s top ecommerce company, founded in 1997 in Tokyo. 

However, calling Rakuten just an ecommerce company would be an understatement. Its diverse ecosystem includes a streaming service (Rakuten TV), banking and payments services, telecommunications, and even health and life insurance, making it one of the most versatile ecommerce competitors on this list.

Rakuten’s retail strategy differs significantly from Amazon’s. It employs a cash-back system to incentivize customers to shop through Rakuten instead of directly with brands. 

This innovative model, coupled with its expansive ecosystem, has enabled Rakuten to grow dramatically. In 2023, the company reported earnings of 2.1 trillion yen, representing a 7.8% year-over-year increase.

How small businesses can compete with Amazon

Now that we’ve explored how big companies compete with Amazon and leverage their unique advantages, let’s look at how small businesses can take on the giants without being billion-dollar multinationals or slashing their prices.

Provide an incredible customer experience

One of your biggest advantages as a small business is the ability to know your customers as people, not just order reference numbers.

Here are some easy ways to create exceptional customer experiences:

• Write handwritten thank-you notes with orders
• Engage customers directly and ask for their feedback
• Send relevant, personalized emails 
• Resolve customer complaints promptly with meaningful solutions

For more ways to make customers feel valued, check out our guide on 44 Best “Thank You for Your Purchase” Messages.

Go omnichannel

This strategy applies to both physical and digital-only stores. Providing an omnichannel experience is crucial for acquiring new customers and retaining existing ones, giving you an edge over the competition.

Our research shows that 73% of shoppers use multiple channels before making a purchase. Retailers who sell across multiple channels (marketplaces, mobile, social media, and physical locations) increase revenue by 190%, on average.

Omnichannel retail doesn’t mean being everywhere—just everywhere your customers are. It involves integrating each touchpoint to offer customers exactly what they need, when they need it, on any device.

Businesses report that having an omnichannel strategy offers the following benefits:

• Improves customer lifetime value
• Reaches new customer segments
• Increases operational efficiency
• Boosts sales
• Improves inventory turnover

Advertise on online marketplaces

Amazon isn’t the only marketplace where you can advertise or host your products. Consider using other established marketplaces that customers already know and trust (keeping in mind that using them will come at a cost). 

Here are some popular options, but also look for marketplaces specific to your niche:

You may have noticed the rise of shopping features on social media platforms, such as Facebook Shops and Instagram Shopping. If you’re not keen on setting up your own store (which can sometimes involve significant overhead), these options can be great alternatives with built-in audiences.

Create a great loyalty program

Another way to compete with Amazon is to implement an easy-to-use loyalty program.

Depending on your business type, consider various loyalty program formats:

• Points-based
• Tiered
• Paid (e.g., “plus” or “premium” memberships)
• Spending-based
• Gamified programs
• Value-based programs (e.g., tree-planting initiatives)

Services like Smile can help you create a loyalty program for free, with pro plans available for further customization. If you have a Shopify store, you can add the Smile app to easily set up a loyalty program.

Read more: What Is a Loyalty Program? 4 Best Examples (2024)

Be an active community presence

Perhaps the biggest advantage small businesses have over huge multinationals is the ability to be an active presence in the local community. 

As a small business owner, you have a better understanding of your community’s needs. What better way to inspire loyalty than by getting involved in improving your community or spreading a positive message?

Here are some ways to get involved:

• Host events related to your business or for charity
• Participate in or sponsor existing community events
• Implement a volunteering program or incentive for employees
• Donate to local causes (one-time or ongoing)
• Join community boards or organizations where your business can contribute (such as arts councils, health boards, etc.)

Key strategies of top Amazon competitors

Amazon’s rivals aren’t resting on their laurels. They’re constantly developing new ways to compete with the ecommerce giant. One popular approach is to focus on a specific product area.

Focus on a niche market

Instead of trying to match Amazon’s vast selection, some competitors become experts in niche markets, allowing them to offer:

• A wider range of products in their chosen category
• More in-depth product knowledge
• Specialized customer service

Chewy is an excellent example of a company that has successfully focused on a specific product area to compete with Amazon. Chewy specializes in pet products, carving out a niche in the ecommerce world.

The brand:

• Stocks more than 2,000 brands of pet food, toys, and accessories
• Offers prescription pet medications and veterinary diets
• Provides detailed product information and reviews specific to different types of pets

Chewy also offers personalized services, such as sending handwritten holiday cards to customers and even sympathy flowers when a pet passes away. This level of specialized attention is something Amazon, with its broader focus, struggles to match.

Improve the shopping experience

Many competitors recognize that to win customers, they must offer something Amazon doesn’t. Some tactics include more user-friendly websites and exceptional customer support. 

For retailers with physical stores, combining online and offline experiences is a powerful strategy. They leverage their brick-and-mortar locations as an advantage, allowing customers to:

• See and touch products before buying
• Pick up online orders in-store
• Return or exchange items easily

Offer faster shipping options 

Speed is another competitive front. With fast shipping and easy returns, Amazon sets a high bar, so competitors work hard to match these standards. Some approaches include:

1. Partnering with a 3PL like Shopify Fulfillment Network to offer faster shipping
2. Providing free and simple returns

Run off-Amazon promotions 

Brands can also run promotions exclusively on their websites or through other channels outside of Amazon. This discount strategy drives traffic directly to your website and allows you to avoid Amazon’s fees and restrictions. 

Some popular tactics include:

• Running flash sales or daily deals that aren’t available on Amazon
• Combining products in ways that aren’t possible on Amazon’s platform
• Selling certain items or variations only through owned channels

The rise of niche marketplaces as Amazon alternatives

More shoppers are turning to specialized online stores instead of defaulting to Amazon. These niche marketplaces, or “vertical” marketplaces, focus on specific types of products or cater to certain groups of customers.

They offer:

• A more focused shopping experience
• A community-like feel
• An easier time finding unique products

Think beyond Etsy. Niche marketplaces like Thrive Market offer sustainable and organic products, while subscription-based marketplaces like Cratejoy curate products based on customers’ interests.

Sneaker marketplaces like GOAT and Flight Club also thrive because they know their products inside and out and cater to serious shoe enthusiasts. Each marketplace serves a specific group of shoppers, demonstrating that there’s ample room for alternatives to Amazon.

The rise in niche marketplaces benefits both sides: shoppers have more options to find exactly what they want, and sellers can reach customers who are genuinely interested in their products. 

📚 Learn: 9 Etsy Alternatives for Selling Your Crafts (2024)

Alexa, what’s the best way to compete with Amazon?

It’s clear that Amazon is a powerhouse in many areas—sellers on the marketplace can create and sell their own products or leverage new tools like Amazon dropshipping. While new ecommerce brands and online stores might initially feel intimidated by this behemoth, the truth is there are numerous ways you can compete with Amazon and build a thriving online business. 

The key is to focus on what makes your business unique. Get to know your customers and understand what they truly value. Create distinctive products that can’t be found elsewhere. And above all, provide exceptional customer service that sets you apart. While following these strategies won’t turn you into the next Jeff Bezos overnight, you’ll be well-positioned to carve out your own space in the market, regardless of Amazon’s share.