TOP 5 FINTECH COMPANIES FOR E-COMMERCE
In this article, we prepared to introduce the most successful e-commerce fintech companies in the world and about their products and services, business model and key to success.
1. Amazon
About
The highest-ranking e-commerce company- Amazon has a lot of loyal customers around the world. Amazon was originally founded as an online bookseller by Jeff Bezos on July 16, 1995.
Business model
The company operates as both a B2C (Business-to-customer) and a C2C (Customer-to-customer), meaning it sells products directly to customers and allows users to sell goods themselves.
Key to success
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Seller SKU on Amazon. SKU (Stock Keeping Unit) is a unique code assigned to each of the products and their variants. It’s meant to help sellers keep track of their merchandise. In other words, all products sold on Amazon are required to have a SKU code so that either customer or the seller can generate.
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Amazon caused large barriers for their competitor companies and attracted a lot of customers by offering free delivery service and refund.
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Amazon is the first to offer same-day delivery, meaning your purchased product will be delivered in a very short-time.
2. eBay
About
eBay is an American transnational corporation which means it is a multinational e-commerce company and manages a shopping website. As of 2021, 187 million buyers registered. There are two ways to purchase on eBay: (1) paying a fixed price and buying the item immediately, or (2) bidding on an item and trying to win it for a lower price in an auction. Its commercial market offers various goods, including clothes, plants, electronic goods, artifacts and arts etc.
Business model
eBay facilitates C2C (Customer-to-customer) and B2C (business to customer) sales through its website.
Key to success
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eBay develops their service quality by using 85 technology products, such as HTML5, Google Analytics and jQuery. On the other hand, for the website, they use 29 technologies, namely iPhone/ Mobile Compatible, Viewport Meta and SSL etc.
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Partnership with PayPal. eBay users are able to perform their payment transaction using PayPal, and it is a great advantage for them. For further information about the partnership between PayPal and eBay, please visit our “Success history of Fintechs” article on our website.
3. JD.com
About
JingDong company- known as JD.com- is a Chinese e-commerce retailer that specializes in electronic goods, cell phones and computers.
Business model
JD.com runs their business as a C2C and B2C through a web portal.
Key to success
JD.com is a platform with a very wide and rich product catalog. Not only that, JDcom’s super fast “last-mile” delivery is very beneficial to its customers.
In China, it’s so common for users to avoid online shopping, because they assume if the price is too cheap, then the product might not be qualified enough. However, JDcom has high requirements when it comes to the product’s quality; therefore, customers are always satisfied with the products JDcom offers.
4. Shopify
About
Shopify is an e-commerce platform for online stores and retail point-of-sale systems, owned by Shopify Inc- Canadian multinational company. In terms of the services they offer, Shopify provides marketing, payment transaction, transportation and customer engagement tools.
Business model
Shopify acts as a C2C (Customer-to-customer) platform that enables users to create an online store in order to sell their goods, while helping businesses connect with consumers by providing businesses with the tools necessary to build an e-commerce site. Also, Shopify has a POS system for online stores and retailers.
Key to success
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Easy to use. Shopify’s interface targets more regular users and it’s accessible to add products, allow discounts and process an order.
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Low-cost business. Based on the service package, it costs $29-$79 to start a new business.
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Customer support. Customers are able to get technical support through cell phones, online chat or email, at any time.
5. Walmart
About
The biggest retailer in the world- Walmart’s total income amounted to about half a trillion dollars. For the last few years, Walmart deeply invested in e-commerce and benefited from it. In 2016, Walmart acquired Jet.com and a few other e-commerce companies.
Business model
The company operates as both C2C and B2C. As of 2020, Walmart’s online sales grew by 79% and completes 5.8% of the USA’s total online sales. Walmart became the second biggest e-commerce company, after Amazon.
Walmart Marketplace initiated the opportunity for the global brands to sell their products at Walmart stores, so now it’s available to compete with Chinese manufacturers. However, Walmart requires high standards for businesses, including:
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More than 10 active products collection
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More than 3 years of experience in sales
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Get income from one-person business or only e-commerce business
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More than 15% of profit percentage
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More than $100.000 amount of total sales
Key to success
By limiting the sellers on the online platform, provides access to choose goods from more specific catalogs. Walmart pursues to sell their quality products at reasonable cost, which can represent their motto- “Save money. Live better”. According to the research, 66% of customers say that the three main reasons to choose Walmart are: 1. Product quality; 2. Low-cost; 3. Fast delivery.
6. Rakuten
About
Rakuten, Inc. is the biggest e-commerce company of Japan, based in Tokyo, was founded in 1997. The company acts as B2B2C (Business-to-Business-to-Customer), offering more than 70 services, such as online trade, digital content, telecommunication and Fintech. Rakuten has over 1.2 billion members around the world.
Business model
Rakuten’s business model is B2B2C- also known as B2M (Business-to-many), and based on Rakuten Ichiba, which is one of the biggest online sites of Japan. Besides, the company possesses message app Viber, ebook digital content, distributor Kobo and Rakuten Mobile. Rakuten is also called “Japanese Amazon” and has 14826 employees, 700 million users in 29 regions and over 170 countries.
Key to success
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The website allows businesses to show their unique nature by letting them design their own pages. It helps companies to “stand out from the crowd”.
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Users are able to collect points using Rakuten Super Points Loyalty program. 100 yens (Japanese currency) worth 1 point and that 1 point is equal to JPY, which is used for tourism ordering.
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Low-risk. They protect payment security and provide users with various options of payment. Moreover, based on legislation, they check the seller's product standard on a daily basis, in order to reduce risk.
Resources:
These 8 e-commerce giants are redefining retail around the world - TechRepublic
The 7 Largest E-Commerce Companies in the World | The Motley Fool
5 Largest Ecommerce Companies in the World - Insider Monkey
15 Largest Ecommerce Companies in the World (yahoo.com)
eBay - Crunchbase Company Profile & Funding
Why Is Amazon So Successful? (7 Keys To Amazon’s Success) (scoutsft.com)
JD.com: Building a Chinese E-Commerce Leader - Technology and Operations Management (hbs.edu)
5 Reasons Walmart’s eCommerce Strategy is Winning