In this article, we will take a look at the 15 Fastest Growing E-Commerce Companies in 2020. You can skip our detailed analysis of the e-commerce industry and trends and head to the 5 Fastest Growing E-Commerce Companies in 2020.
The coronavirus pandemic left a tremendous impact on a lot of industries and businesses in 2020. But one that benefited the most from the pandemic is the e-commerce industry. With the stay-at-home orders in place all over the world, online retail stores and platforms grew in the number of active consumers in a very short amount of time. According to eMarketer data, global retail e-commerce sales increased by 27.6% in 2020 to $4.3 trillion. Now many businesses are shifting to an e-commerce platform to join the revolutionary growth of the industry that is most likely to continue in the coming years.
The e-commerce industry played a vital role in containing the spread of COVID-19. Online grocery shopping, telemedicine, together with video streaming, video conference platforms, and distant learning the local government was able to impose an effective physical distancing practice. When 11 million Wuhan citizens were placed in a 60-day strict quarantine, China’s biggest e-commerce companies were to the rescue. Alibaba (NYSE: BABA) was able to deliver face masks, sanitizers, and other critical supplies in Wuhan. JD.com (NASDAQ: JD) on the other hand delivered medical and food supplies by deploying autonomous robot vehicles.
On the other hand, Walmart came up with an innovative solution to minimize the in-person contact in grocery shopping. In early 2020, Walmart unveiled Alphabot, a 20,000-square-foot automated facility attached to a New Hampshire store. The automated made grocery pickup faster and efficient with robotic carts.
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Since the pandemic accelerated the growth of the e-commerce industry in only a matter of months, almost every business is scrambling to increase its online presence. In 2020, products purchased online have increased by 24 % globally, while store-based sales decreased by 7%. According to Statista, the number of consumers who shop online will grow to 2.14 billion in 2021, up from 2.05 billion in 2020. With more and more people shopping online each year, there’s never been a better time to start investing in the fastest growing e-commerce companies. In a survey conducted by United Nations Conference on Trade and Development (UNCTAD) and Observatory NetComm Suisse in 2020, more than 50% of the consumers said that they will continue to adopt the digital habits of purchasing essential products online even after the pandemic.
Moreover, the continuous demand for smartphones and mobile phones across the world pushes the demand for e-commerce apps that can be easily downloaded on a mobile device. According to data from eMarketer, 45% of e-commerce sales in the US were processed using a mobile device. As a result, the annual mobile e-commerce sales in the US are forecasted to grow from $284 billion in 2020 to $488 billion in 2024.
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The Fastest Growing E-commerce Companies in 2020
We ranked the 15 fastest growing e-commerce companies based on revenue growth in 2020. We also included the market cap of each company. The Asia Pacific leads as the fastest-growing region for the e-commerce market. As you go through the list, you will notice several Chinese e-commerce companies as China is the world’s largest e-commerce market.
Let's start our list of 15 fastest growing e-commerce companies in 2020 starting from number 15.
Ranking 15th on the list of the 15 fastest growing e-commerce companies in 2020 is Walmart. Walmart is the largest retailer in the world with over 11,500 stores and 2.2 million employees worldwide. The retail store offers food and groceries and an assortment of merchandise from apparel, appliances, instruments, and electronics.
The company had revenue of $524 billion in 2020 where the Walmart U.S. eCommerce sales grew 37% fueled by online groceries revenue. Shares of WMT increased 15.59% over the past twelve months.
Chinese internet and AI company Baidu ranks 14th on the list of the 15 fastest growing e-commerce companies in 2020. The Chinese tech firm specializes in internet search and marketing services. Baidu had revenue of $16.4 billion in 2020. According to Statista, Baidu holds the largest share in the search engine market in China in 2020 accounting for 74%.
Earlier this year, the company announced its plans of entering the EV market with its partnership with Geely Automobile. BIDU stock has gained 190% over the last twelve months.
One of the largest service platforms for online sellers in the world, GoDaddy Inc, ranks 13th on our list of the 15 fastest growing e-commerce companies in 2020. GoDaddy E-store provides online sellers a platform and tools to offer their products globally. The company’s revenue for 2020 was $3.3 billion with approximately 1.4 million new users. The stock has gained 50% over the past twelve months.
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12. Rakuten
Market cap: $18.2 billion
Revenue Growth in 2020: 15.2%
Rakuten is one of the fastest-growing e-commerce companies in 2020 with a revenue of 1,455,538 million yen. The Japanese internet giants operate in internet services, fintech, and mobile segments. Rakuten holds 55% of the e-commerce market in Japan followed by Amazon Japan and Yahoo Japan. Rakuten has over 1 billion members around the world.
In 2020, domestic e-commerce gross merchandise sales (GMS) saw enormous growth, reaching $41 billion, an increase of 19.9%. The stock has gained 115% over the last 12 months.
California-based eBay is one of the fastest-growing e-commerce companies in 2020. Founded in 1995, the American e-commerce platform connects millions of consumers in over 190 markets around the world. The multi-national e-commerce company had revenue of $10.2 billion in 2020 with global gross merchandise volume amounting to $100 billion.
By the end of 2020, eBay had 185 million active consumers, up 11 million compared to the same period in 2019. Shares of eBay jumped 116% over the past twelve months.
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Minneapolis-based Target Corp ranks 10th on the list of the 15 fastest growing e-commerce companies in 2020 with over 1,900 stores across the US. The retail giant offers general merchandise and food grocery at a lower price.
In the fourth quarter of 2020, Target's total comparable sales went up by 20.5%, with comparable-store sales increasing by 6.9% and digital sales increasing by 118%. Target’s revenue in 2020 was $92.4 billion. Shares of TGT have gained 92% over the last twelve months.
biggest eCommerce websites in the world
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9. Suning.com Co. Ltd
Market cap: $10 billion
Revenue Growth in 2020: 20%
Chinese e-commerce site Suning.com ranks 9th on the list of our 15 fastest growing e-commerce companies in 2020. The company sells consumer electronic products such as telecom and digital equipment and home appliances. The stock fell 21% over the last 12 months. The Fortune 500 company had revenue of approximately $39.7 billion in 2020.
One of the strengths of Suning.com is its online presence as the company saw a spike of 52% year-on-year in the number of shoppers. In the fourth quarter of 2020, Suning.com’s retail cloud platform increased by 33.6% while physical stores increased by 45%, year-on-year.
Social networking site Facebook ranks 8th on the list of the 15 fastest growing e-commerce companies in 2020. Facebook is engaged in developing social media apps such as Facebook, Instagram, and WhatsApp. As of December 2020, Facebook has 1.84 billion daily active users. Facebook Marketplace is the online platform of FB where any user can list an item for buy and sell. In 2020, Facebook’s revenue from advertising alone was $84.1 billion.
The social media networking giant had revenue of $85.9 billion in 2020. Shares of FB jumped 95.9% over the last twelve months.
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7. Tencent (OTC: TCEHY)
Market cap: $769.8 billion
Revenue Growth in 2020: 29%
Chinese tech company Tencent ranks 7th on the list of the 15 fastest growing e-commerce companies in 2020 with a revenue of $18.4 billion in the third quarter of 2020. Shenzhen-based Tencent operates as an internet service company and engages in e-commerce, mobile games publishing, artificial intelligence, and payment system solutions. In the third quarter of 2020, Tencent’s WeChat had over 1.4 billion monthly active users. Through WeChat’s Mini Shop, one can create an online store in an instant and have a wide reach across the WeChat app.
The stock has gained 84% over the last twelve months.
Beijing-based JD.com is one of the biggest tech-driven e-commerce platforms in the world and ranks as one of the fastest-growing e-commerce companies in 2020. The company sells electronic and general merchandise products domestically and internationally. The Fortune 500 company is one of the largest retailers in China today.
The Chinese e-commerce company’s revenue in 2020 was $114.3 billion. Shares of JD jumped 125% over the last twelve months.
