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$ 74.1 billion. It is the gross volume of goods gained by Ali Baba (NYSE: BABA) alone during the 2020 Singles Day vacation.
The Chinese online shopping event, which takes place every November 11, generates sales figures of staggering magnitude.
Alibaba’s transport is more than seven times larger than the estimated GMV earned by Amazon (NASDAQ: AMZN) during his Prime Day vacation.
But which shopping vacations have grown the fastest in the past five years? The answer – perhaps surprisingly – is not the Chinese answer.
Prime Day is growing much faster than Singles Day: Alibaba’s $ 74.1 billion in 2020 revenue is certainly an impressive growth rate from its $ 17.7 billion GMV on Singles Day 2016. In fact, it represents a rate of growth. compound annual growth of 33.16% per year.
But according to Digital Commerce 360 estimates, Prime Day 2020 grossed $ 10.4 billion for Amazon – which, while smaller, represents a 46.91% CAGR of Amazon’s transport of 1.52 billion. dollars as of Prime Day 2016.
If we look at the growth over the past year, we can see that Alibaba’s singles day sales growth has accelerated compared to Amazon’s day one sales; the former grew by 92.97% last year, while the latter only grew by 45.25%.
But much of this recent catch-up in growth is attributable to Alibaba’s extension of vacations to a 12-day period from November 1 to November 12, which Amazon did not do with Prime Day.
Why is this important: This data calls into question the narrative that Alibaba is growing faster than Amazon as a retailer – especially when you consider the two companies’ market shares in their respective countries.
According to eMarketer data, Alibaba accounted for 55.9% of all online retail sales in China in 2019, while Amazon accounted for 37.3% of online retail sales in the United States that year.
Amazon still has a lot more market share to capture than Alibaba.
This market share data, combined with Prime Day and Singles Day growth data, paints a picture of an Alibaba that will either need to drive the growth of its e-commerce to remain competitive with Amazon in the years to come or a company that will need to grow. will need to focus on other sources of revenue, such as its struggling financial services subsidiary Ant Group.
Photo courtesy of Amazon.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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