Global eCommerce Marketplaces: Amazon, Shopee, and the Rise of Local Champions

while giants like Amazon continue to shape the eCommerce landscape, regional powerhouses and local marketplaces are thriving by catering to specific geographic and cultural needs. Amazon’s global gross merchandise volume (GMV) is a staggering $728.782 billion [1], but companies like Shopee and Bol.com are proving that localized strategies can effectively compete.

eCommerce Giants Dominate Core Regions

Amazon’s early launch and rapid expansion have made it the leading marketplace in over 16 countries. Its influence is so widespread that it serves as a role model for eCommerce businesses worldwide. In 2024, Shopee generated a GMV of US$100.5 billion, while MercadoLibre generated US$51.5 billion. These companies cater to a wide range of needs with their extensive product selections.

Did You Know? Amazon’s biggest category is Hobby & Leisure (37.1%),making it a key destination for books and gaming [1].

These marketplaces exhibit distinct spatial distribution patterns.Amazon excels in Western countries, MercadoLibre dominates South America, and shopee leads in Southeast Asia.

Walmart and PDD Holdings Challenge Amazon’s Supremacy

In Asia,notably in India and China,local players are challenging Amazon’s dominance. Walmart, through its subsidiary Flipkart, has gained a strong foothold in India. In China, PDD Holdings, with its marketplace pinduoduo, is the market leader. PDD Holdings is expanding globally with Temu, which is currently the number one marketplace in Finland. Temu’s rapid growth since its 2022 launch positions PDD Holdings as a notable contender against Amazon.

Local Marketplaces Retain Power

Despite the dominance of global conglomerates,local marketplaces continue to thrive,particularly in smaller countries. These “Gallic villages” resist takeover by larger players by focusing on local conditions and customer needs.

Bol.com in the Netherlands, originally launched by Bertelsmann, aimed to be a European version of Amazon. After being acquired by Koninklijke Ahold Delhaize N.V., it narrowed its focus to the Benelux region and maintained its leading position in the Netherlands.Other examples include Coupang in South Korea,Takealot.com in south Africa, and Allegro in Poland.

The Advantage of Locality

Local conditions, such as geography and logistics, play a crucial role in the success of these marketplaces. In Greece, the complex geography with numerous islands made it difficult for amazon to establish a financially viable logistics network. This benefited Skroutz A.E.,which was founded in 2005 and achieved a GMV of US$1.5 billion last year.

Pro Tip: Marketplaces that center on a specific country can improve logistics and respond more effectively to local customer needs.

By focusing on specific countries, these marketplaces can optimize their logistics and quickly adapt to local customer needs. This localized approach allows them to build strong customer relationships and maintain a competitive edge against global giants.

what strategies do you think are most effective for local marketplaces to compete with global giants? How will the rise of mobile commerce impact the future of eCommerce marketplaces?

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