The Top 3 E-commerce. Which is Great? Who is Greater?
SHOPEE vs LAZADA vs AMAZON
Ever thinking of buying something but feeling lazy to go out? Just a few swipes and clicks can make you spend money in just a matter of minutes without even standing up. Yes! I am talking about online shopping. These days a lot of things are done online, especially shopping, BUT have we ever thought which one is better? Today, we are going to look at the 3 similar e-commerce platforms and compare them to see who's the best among Shopee, Lazada and Amazon.
BACKGROUND
Before we get into the main comparison part let's learn that how they started their business through their backgrounds.
SHOPEE
Shopee Private Limited is a Singaporean multinational technology company which focuses mainly on e-commerce. Currently it is headquartered under Sea Group, previously known as Garena which made mobile-based games. Shopee was first launched in Singapore in 2015, and later expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Vietnam, the Philippines, Brazil, Mexico, Chile, and Colombia. It is also available in mainland China, Hong Kong, Japan, and South Korea as seller centres. Shopee was known as one of the five disruptive e-commerce startups in 2015 by Tech In Asia for its technical advancement and mass scale due to the mobile and social elements integrated into the model.
LAZADA
Founded in 2012 by Rocket Internet, Lazada Group is Southeast Asia’s leading e-commerce platform, which is currently presence in six countries – Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. In 2016, Lazada became the regional flagship of the Alibaba Group, and is backed by Alibaba’s best-in-class technology infrastructure. Today, the group is known to have the largest selection of brands and sellers in the South East Asia.
AMAZON
Amazon was founded in Jeff Bezos's garage on July 5, 1994 as an online marketplace for books. Gradually expanded as a marketplace for more of other products and later surpassed Walmart as the most valuable retailer in the United States by market capitalization. It is known for its disruption of well-established industries through technological innovation and mass scale. Today Amazon.com, Inc. is an American multinational conglomerate which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.
COMPARISON
Declaration
Moving on to the comparison of the famous e-commerce sites based on their web traffic and sales data and graphs. Before we start comparing, I have to declare that all the information gathered for this comparison is based on data found openly on the internet. I have tried my best in collecting data from the best reliable sources available. There are chances of inaccuracy of the data, so please bear in mind that this is only for general knowledge reading and not to be used for actual research.
Why Compare these 3?
The reason for choosing these 3 platforms is very simple because they are all very similar to each other. All of them are both e-commerce and marketplace and have the similar methods of working processes. Now, let's look at the comparison.
Income comparison
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| Shopee and Lazada yearly income 2015-2019 (top), quarterly user base 2019-2020 (bottom) |
Based on the graphs above we can see that Amazon is way ahead the two e-commerce of South East Asia due to many reasons. As stated in the background, it started way back in the 90s and serves many more countries in several regions, so the net sales numbers are way above the other two platforms by hundreds of billions USD.
For Shopee and Lazada, they are the in the same competition in the South East Asian market. Being rivals of each other, they have the extremely same promotions and campaigns for customers. Lazada started 3 years earlier which made them have a larger customer base and brands. Shopee that launched in 2015 grew rapidly due to using the mobile-based application as their starting platform and backed up by the web-based site for seekers that come through search engines. As we can see in 2015, the income of Shopee started with less than US$10,000 and gradually increased to over US$139 million within two years pulling down part of Lazada's income between 2016-2017 by over US$2.5 billions. Later with the backup from Alibaba, Lazada boast up by over US$6.4 billion within only one year until 2018. In the meantime, Shopee's income gradually increased accordingly until the proper commission fees collection in 2019 which rose up the numbers by over a billion.
User base comparison
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| Shopee and Lazada yearly income 2015-2019 (top), quarterly user base 2019-2020 (bottom) |
On the user base side, Amazon web visits or traffic is far beyond reach for other two platforms at the moment by over 2 billions. The numbers are gradually increasing and decreasing accordingly. In present, it is known as the top 5 leading companies in technology.
Back to the two rivals, we can see from the graph that in the Q1 2019 Shopee had 10 million users lower than Lazada. The numbers rose up and fell down until the start of 2020 where both lines crossed in the first quarter decreasing Lazada's users and rapidly increasing Shopee's users. After that up to the Q4 2020, Shopee's users were higher than Lazada's by around 10 million.
Summary
All 3 platforms stated are great in their own position. At the end of the day, it all depends on the products you want to purchase, the delivery fees and the availability of the platform in your country. I am resided in South East Asia, so I will definitely be using one of the two orange platforms. If the product is not available, then you can try the ginormous platform of America, but do keep in mind that it comes with longer shipment time and higher shipment rates depending on your location.
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