Alibaba Records Only 9% Lower Profit Than Amazon

Data gathered by shows that Chinese internet company Alibaba registered 9.3% lower profits compared to United States’ Amazon. The data further shows that there is a significant gap in revenues between the two companies by at least four times for the financial year ending March 31, 2020.

For the period under review, Alibaba’s operating profit was $12.9 billion, while Amazon had $14.1 billion. In general, Amazon’s total revenue was $296.3 billion compared to Alibaba’s $72 billion. The revenues for the two companies come from different diversified products like online and offline retail as well as seller and logistics services.

The research notes that, “Chinese e-commerce giant Alibaba registered a slightly lower margin in operating profits compared to Amazon, but there exists a huge difference in total revenue between the two platforms.”

Under the core commerce revenue Amazon registered $223 billion while Alibaba had $61.6 billion. For the cloud revenue, Amazon had profits of $37.5 billion, a difference of 147.2% compared to Ali baba’s $5.7 billion. Under other revenues, Amazon recorded $35.7 billion while Alibaba had $4.7 billion.

The research also overviewed the revenue for the twp companies over the last three financial years. In general Amazon remains dominant but both companies keep growing in revenues.

Alibaba’s current revenue of $72 billion is a growth of 36.62% from 2019’s $52.7 billion. For Amazon, this year’s revenue grew slightly by 5.6% from last year’s $280.5 billion. In 2018, Amazon’s revenue stood at $232.8 billion while Alibaba had $35 billion. Between 2017 and 2020’s financial year Amazon’s revenue has grown by 66.64% compared to Ali baba’s 225.79%.

Both Amazon and Alibaba have a similar business model but the American company has an established footing globally. In recent years, Alibaba has been making attempts to overhaul its business model to march Amazon.