Global ecommerce is dominated by just six companies which control nearly 60 per cent of the world’s digital sales, according to new research.
A whopping 58 per cent of global online sales, which totalled $3.4 trillion last year, were made from six leading companies, four of which were Chinese.
Amazon, by far the biggest ecommerce retailer outside of China, accounted for 13 per cent of global online sales, while its closest western rival Ebay accounted for just three per cent.
The remaining 42 per cent of is made up of just four Chinese ecommerce platforms, according to a new report from Activate Consulting.
Taoboa and Tmall, both part of the Alibaba Group, accounted for 15 per cent and 14 per cent respectively, while JD.com and Pinduoduo accounted for nine per cent and four per cent.
A further five per cent of global online sales are made up by a small group of companies, including Walmart, Apple, VIP.com, Rakuten, Shopee and Sunning.com.
Thousands of retailers and brands account for the remaining 37 per cent.
According to the study, China’s dominance is largely due to the fact that online retail in the country is far more prominent than elsewhere in the world.
The majority of Chinese ecommerce sales are also made via marketplaces which enable transactions by connecting buyers and sellers, rather than companies selling directly to consumers.
Activate Consulting expects online to take a far larger percentage of total retail sales this year thanks to the pandemic, rising to 18 per cent in 2020 and to 23 per cent by 2024.