Amazon, eBay and PayPay Mall have been able to make the most of this new type of business, the marketplace, responding to an increasingly dynamic and circular economy. This has allowed them to become the marketplace leaders, accounting for 60% of the sector's business. The concept of Marketplace as a web platform became very relevant, as analyzed in the Market Research conducted by Baker Tilly, after the appearance of the first smartphones that gave users the possibility to access the Internet in a quick and easy way.
The main objective of the circular economy is to make 100% use of the company's available resources, with emphasis on the generation of a benefit for society, beyond the economic one, and on the reduction of waste that companies may produce resulting from their activity. Marketplaces, being online platforms, drastically reduce this possible waste, creating an increasingly sustainable environment.
Moreover, these types of platforms are the result of the continuous search for zero-marginal cost, i.e., to minimize their costs by making the most of each of their available resources. Thanks to the digital transformation of Industry 4.0, there are now companies that achieve this zero-marginal cost without any effort, i.e., they do not have a fixed cost when including a new product in their sales catalogue, since they only have to describe the item on their website and that's it!
The ultimate goal of these marketplaces, as their name suggests, is to offer a platform where sellers and buyers meet so that the former can satisfy the desires or needs of the second through their offer. The offering on these platforms is immensely greater than what anyone can find in an establishment, which is the key to their success.
Throughout this article, we identify and define the 3 leaders of this sector which, as we will discuss in other articles concerning the sector, is in continuous growth as can be seen in the image above regarding expected profits for 2024, estimating a compound annual growth rate of 8.76%.
Let's start with the third of the marketplace leaders, PayPay Mall. You may not know the name of this Japanese company, but it ranks third according to the number of revenues it earned in 2019, just over $10 billion. This company launched by Yahoo group in 2018, has already established itself in the Japanese market and in the global market, getting more than 2 billion visits every month, being almost all of them in its native country. As defined simply by Softbank, the company's main investor, PayPay Mall has created a direct sales mall that mainly uses PayPay, an online payment application.
The second on the list of marketplace leaders is eBay. The well-known marketplace founded in 1995 and IPO'd in September 1998, connects a worldwide network of buyers and sellers, who sell or buy products through auctions using the PayPal payment application to ensure secure transactions. eBay earned a total revenue of nearly $11 billion in 2019 and all this thanks to more than 1.5 billion monthly page views in the same year.
Finally, the number one of marketplace leaders list is the giant Amazon. Founded in 1994 and IPO on May 15, 1997, it presented an exorbitant revenue in 2019: 280 billion dollars. This is how Amazon consolidates its position as the world's largest marketplace. In turn, as is logical, it is also the leader in terms of monthly visits to its page; 5.7 billion, more visits than the sum of its two direct competitors already mentioned.
The leaders in the sector are shown below, together with their date of foundation, the location of their headquarters and the latest revenues obtained: