Top 13 E-Commerce Businesses That Are Rapidly Flourishing

The e-commerce industry changes and evolves as much as the internet. Owing to the rapid developments in this field of work, you can expect unique challenges coupled with some incredible opportunities as a first-time entrepreneur. 

According to recent research, global retail e-commerce sales in 2023 reached US$ 5.8 trillion. This number is expected to reach US$ 8 trillion by 2027–showing a 39% growth in just a few years. If you’re still wondering whether investing in an e-commerce business will prove profitable, well the answer is a resounding YES!

However, your online business’s success will depend on several variants, such as the marketing strategies you use or the overall business plan you’ve created.

Need help with your e-commerce business? Partner with experts who can help you reach new heights of success from conception to post-launch phases.

Before you jump on the bandwagon of creating a profitable, scalable e-commerce brand, it’s best to conduct thorough market research and spend considerable time on due diligence. Doing so will help you evaluate all the great opportunities and assess what does and doesn’t work in the world of e-commerce. In turn, you’ll capture some great ideas for online businesses.

To help kickstart your research journey, we’ve compiled a list of all the e-commerce businesses that are expected to make a mark in the industry and go down in the annals. So, are you ready to dive in?

Let’s get started!

A Global View–Current Industry Status

Before we dive into the best e-commerce businesses of this year, let’s discuss some important, noteworthy global stats. With a whopping 23% market share, the Chinese retail giant, Alibaba, is the largest e-commerce retailer this year. However, studies estimate that with US$ 1.2 trillion in online sales by 2027, Amazon is expected to snatch Alibaba’s title.

Moreover, China is also leading the game as the biggest e-commerce market in 2023 with almost half of the country’s sales being conducted online. In second place is Indonesia with a 32% share of online retail sales and both the UK and South Korea are close thirds with more than 30% share of retail sales online.

Last year, Asia proved to be the next up-and-coming e-commerce market. In terms of online sales in the continent, India and the Philippines stood out the most as the quickest-growing countries with an anticipated growth rate surpassing 20%.

As for online shopping behaviour, about 52% of online shoppers reported shopping internationally. Additional costs, such as fees, taxes, and shipping are the primary factors leading to cart abandonment by about 47% of online shoppers.

Alternatively, 25% abandon their carts when asked to create an account before placing their orders. The factors for cart abandonment that follow include slow delivery times, distrust in payment security, and complicated checkout processes.

Top 13 E-Commerce Companies You Must Know

Without any further ado, let’s take a look at some of the best-performing, fastest-growing e-commerce businesses that are expected to make even bigger waves in the upcoming years.

1. PDD Holdings Inc.

With 51.91% latest annual revenue growth, PDD Holdings Inc. stands at the top of our list. This multinational commerce group operates and owns a portfolio of businesses. Their mission is to keep bringing more and more people and businesses into the digital economy. Their efforts will ensure that small businesses and local communities thrive with new opportunities and increased productivity.

In the US market, this firm is one of the hottest e-commerce stocks you can buy as it plans to reach American customers through its Temu platform. Here are some things that worked in this e-commerce business’s favour:

• They challenged the status quo by combining social networking with online retail.
• Its group purchasing model reduces the prices of products as more and more people buy them.
• Its new platform, Temu, was built specifically for the US audience with a focus on convenience and competitive pricing.
• User experience is one of their top priorities as they continue to upgrade technology, diversify into various sectors, and expand their reach.
• In addition to a robust supply chain and technology, the firm also leverages social commerce to enhance engagement and reduce marketing costs.

2. D-Market Elektronik Hizmetler ve Ticaret A.S.

This European electronic commerce company stands in second place with a 36.25% latest annual growth rate. With a key focus on financial health and sustainability, it’s no surprise that this e-commerce business stands as one of the top players in the industry. Their consecutive growth spurt during the year comes despite natural disasters and election-related uncertainties in the country.

Moreover, in addition to effective strategies and execution directly affecting their GMV and EBITDA, the company also prioritises customer satisfaction and loyalty. Here are some key factors to their success to consider:

• It partners with merchants and builds strong, long-lasting relationships by offering comprehensive solutions, such as fulfilment, logistics, and advertising.
• Their payment solutions are innovative and include affordability solutions, such as buy now pay later (BNPL) and general-purpose loans.
• They have their own logistics arm as well as an advertising business that prevents opportunities for revenue growth.
• It continues to expand its portfolio of brands while deepening relationships with existing suppliers.

3. LightInTheBox Holding Co., Ltd.

Following D-Market Elektronik is LightInTheBox Holding Co., Ltd., a Singaporean e-commerce services company that offers numerous goods and online sales services for several goods, including sports, household items, jewellery, toys, electronics, and clothing. Its success in the industry can be associated with its institutional ownership.

The presence of institutional investors in a share registry indicates that the company’s stocks are highly favourable and investors are confident in its future prospects. The following are some noteworthy attributes that you may find helpful as a first-time e-commerce business owner:

• It specialises in low-cost apparel as a discount retailer in the market.
• The company has a global sales footprint which helps mitigate region-specific risks.
• Its lean operational model ensures cost-efficient operations through outsourced manufacturing, third-party partners, and international couriers for shipping.
• Its warehouses are located near its suppliers, which helps optimise logistics and reduce costs.
• It focuses on higher-margin products, such as apparel sales, for improved profitability and financial performance.
• As an international e-commerce business, it’s equipped to adapt to changing market conditions.

4. Global-e Online Ltd.

On #4 is Global-e Online Ltd. with an annual revenue growth of 28.12%. Headquartered in Petah Tikvah, Israel, this Israeli e-commerce company is transforming how global shoppers and merchants engage. The firm creates a seamless local experience for online sellers and buyers by removing barriers between consumers and merchants and simplifying global e-commerce.

Some of its tools and features that enhance the shopper’s experience by localising the buying journey include:

• Customising notifications
• Optimising the checkout processes
• Managing currencies and pricing
• Handling taxes and shipping
• Offering multiple payment options
• Managing returns
• Providing customer support

Furthermore, it uses global datasets to derive insights and analytics for its merchants to optimise their performance in different markets. Here are some other noteworthy strategies and actions that may have contributed to its growth spurt:

• Its multi-country B2C platform, borderfree.com, helps facilitate expansions into new markets.
• It offers merchants access to its border-free network of international shoppers, demand generation programs, and digital marketing services.
• It handles all aspects of international logistics and allows merchants to manage and monitor their global e-commerce activities.
• It offers merchants support from experts who provide personalised recommendations and consulting.

5. MercadoLibre, Inc.

As one of the largest payments and e-commerce ecosystems in Latin America, MercadoLibre, Inc. recorded the latest annual revenue growth at 25.71%. The firm enables users better and easier payment methods and its purpose of selling is democratising commerce and payments in its region.

Its exponential growth can be linked to its learning curve. Here are some things you must know:

• Its SAP SuccessFactors platform was built in 2012 to address the challenges of managing growth and standardising HR processes.
• The platform provided integrated modules for recruiting, compensation, performance management, employee central, and analytics.
• SuccessFactors offers mobile accessibility, multilingual support, and simplified processes, which resonated with the firm’s predominantly millennial workforce.
• With its workforce analytics insights, the platform became vital in decision-making and leadership development processes across the firm’s different departments and business units.
• It partners with nonprofits and supports initiatives for underprivileged youth and new parents to prioritise social responsibility and sustainability.

6. Maplebear Inc.

With the latest annual revenue growth reaching 16%, Maplebear Inc., aka Instacart, stands in 6th place. This American firm lets its customers grocery shop from the comfort of their homes and receive home delivery service for their online purchases.

While it was stationed as a competitor to industry giants, including DoorDash and Amazon in the US and Canada, it wasn’t until the 2020 pandemic that things really started to look up for Instacart. The company’s valuation went from $2 billion in 2016 to a whopping $13 billion in 2020.

Here are some things Instacart did right that many startups can benefit from:

• It prioritises customer convenience and safety. For example, during the pandemic, it introduced the “leave at my door delivery” feature for anxious buyers.
• It quickly adapted its operations and expanded across all US states during the pandemic, proving its ability to seize opportunities.
• To accommodate the varying needs and preferences of different customers, it introduced both advance orders as well as fast and flexible delivery options.
• It leveraged AI to streamline its delivery process, expand its network, and scale its operations and also invested in an upgraded infrastructure.
• The firm has developed multiple revenue streams through different channels, such as advertisements on its platform, placement fees for manufacturers, markups on certain products, partner fees from grocery stores, and delivery fees.
• It teaches us the power of robust business plans centred around mobile applications and the importance of leveraging technology to enhance customer satisfaction and efficiency.

7. Coupang, Inc.

Founded in 2010 and based in Seoul, South Korea and Seattle, WA, Coupang, Inc. recently recorded an annual revenue growth of 12.68%. This online retail platform offers doorstep deliveries. Its product portfolio includes:

• Travel goods
• Sporting goods
• Electronics
• Grocery
• Fresh food
• Decor
• Home goods
• Beauty products
• Apparel

As with most, if not all, successful e-commerce businesses, Coupang prioritises customer experience and continuously innovates to meet the evolving consumer needs and demands. Their core focus is to create memorable customer experiences that drive loyalty and retention.

Here are some other vital success factors to know:

• It proved its adaptability when it pivoted from a Groupon-style website position to reinvent itself as an online retail platform.
• Coupang embraced constraints when it overcame logistical challenges by completely redesigning its delivery system.
• Also instrumental in its success was its robust infrastructure, including a comprehensive delivery network and technological integration, which led to fast and reliable delivery services.
• Its growing workforce and multi-location operational footprint are also a reflection of its rapid expansion.
• The company highlights the importance of continuous innovation and a willingness to challenge the status quo.

8. Liquidity Services, Inc.

Liquidity Services, Inc.’s latest annual revenue growth was recorded at 11.89%. The firm is known for operating a wide network of e-commerce marketplaces and online auction marketplaces. With offices and warehouses throughout the world, it’s continuously expanding its business and finding new growth opportunities.

Here are some key success factors for this e-commerce business:

• Its professional, transparent, and robust solution has transformed the marketplace, which facilitates the efficient disposal of surplus assets for both government agencies and global enterprises.
• It has unique access to global market data generated from each transaction, which equips sellers to set prices based on market dynamics and ensure competitive advantage and fair value.
• Its turnkey solutions streamline the reverse supply chain processes for large sellers.
• It has established its execution excellence, reliability, and competence via numerous large-scale programs for government agencies and Fortune 500 companies. 

9. Amazon.com, Inc.

With 11.89% latest annual revenue growth, this list wouldn’t be complete without the mention of this e-commerce giant. As one of the biggest e-commerce conglomerates in the world, Amazon truly commands the US market.

Here are some key success factors that can help you catapult a successful startup:

• Amazon keeps track of metrics, such as Return Dissatisfaction Rate, Order Defect Rate, and Late Shipment Rate, to gauge and enhance customer satisfaction.
• Enhancing the customer’s experience and providing exceptional services is the primary focus of this e-commerce giant.
• The firm takes a proactive approach to innovation and expansion, diversifying its offerings to cater to evolving consumer demands.
• Operational excellence is ingrained in the firm’s culture, which encourages the company to consistently seek new ways to improve its system and introduce features.
• Adding to its users’ experiences, Amazon continuously adds tools and features to enhance the platform’s functionality.

10. Dada Nexus Limited

With 11.83% growth in the latest annual revenue, Dada Nexus Limited holds the title of the most controversial e-commerce stock this year. This Chinese e-commerce business’s shares tanked in January after “suspicious revenue” was internally discovered.

The local on-demand retail and delivery platform showcases a commitment to responsible business practices and sustainability across environmental, social, and governance dimensions in its 2022 ESG report.

Here’s what e-commerce startups may make note of after evaluating Dada Nexus Limited’s success:

• The firm has formed strategic partnerships with major players, such as JD.com and Walmart, which will offer a pipeline of steady orders, contributing to steady growth and stability.
• Its strategic partnerships and potential for margin expansion help it stand out in a highly saturated industry with little differentiation among competitors.

11. Chewy, Inc.

This pet e-commerce firm saw a 10% annual revenue growth despite its revenue being dependent on discretionary income and inflation. The e-commerce store offers treats, toys, litter, and other items for pets.

One of the primary reasons for its success is its exceptional customer service. This e-commerce business shows an obsession with ensuring its customers are satisfied after each interaction, leading to positive customer experiences. Their loyal customer base is steadily growing thanks to their 24/7 support and commitment to promptly addressing customer needs.

Here are some other factors that significantly contribute to Chewy’s success:

• It incorporates personalisation features to tailor each customer’s shopping experience according to their needs and preferences. It includes things such as personalised pet birthday cards and product recommendations, which lead to lasting emotional connections.
• It has leveraged the power of social media, shared content, and forums to build a community and make it easier for customers to connect and engage.
• Customer’s shopping experiences are further enhanced through innovation and technology, such as its specialised tool “Pet Profile,” which has revolutionised pet shopping.

12. ThredUp Inc.

One of the fastest-growing e-commerce businesses for quite some time now, ThredUp showed a 7.99% annual revenue growth recently. The e-commerce company primarily sells clothing and other associated products and is a sizable firm with thousands of employees.

This online consignment and thrift store is based in the US and its CEO is known for identifying opportunities in challenges. He has a long-term vision, passion, and perseverance that encourage him to turn challenges into competitive advantages and use technology as a catalyst for innovation.

Here are some important success factors that many e-commerce startups can learn and benefit from:

• The CEO found a massive gap in the market with the target audience being unable to sell their gently used clothes, which he turned into a market opportunity, especially with the growing ethical and sustainable needs of current consumers.
• They introduced innovative solutions to real-life problems, such as the Clean Out Kit, which guided users in decluttering their clothes and earning cash or credit for their items.
• Investments were made in computer vision algorithms for efficient processing and listing of items, which consequently enhanced user experience.
• The firm partnered with retail giants such as Target to strategically expand its operations and collaborated with celebrities to attract new customers and enhance brand visibility.
• Their rebranding initiatives, such as the adoption of the #THRIFTLOUDER slogan, challenged stereotypes associated with pre-loved clothing and empowered its customers.
• Its educational marketing strategies spread awareness pertaining to the social and environmental benefits of pre-loved clothing while also debunking misconceptions and myths.
• The educational campaigns also positioned the brand as a trusted authority in the sustainable fashion space.
• From AI-driven pricing algorithms to curated shopping experiences, the e-commerce company invested in several technologies to enhance engagement, personalisation, and convenience.

13. Alibaba Group Holding Limited

With 6.67% annual revenue growth, Alibaba’s success is owed to its diversified business model, which enables the firm to benefit from growth in cloud and other computing areas. This conglomerate is a multinational company specialising in not only e-commerce but also internet, retail, and technology.

Alibaba's success can be attributed to its unique approach and superior execution. Here’s what you need to know:

• Alibaba was able to create a thriving, open, and coordinated ecosystem where various players interact with each other and the environment and benefit from the necessary resources for the success of online businesses.
• It redefined traditional retail by moving various functions online, like advertising, marketing, logistics, finance, affiliate marketing, product recommenders, and social media influencers.
• It uses machine-learning algorithms to analyse transaction data, assess business performance, and calculate credit scores to provide microloans leveraging the vast amounts of data businesses generate on its platform.
• Alibaba has automated decision-making processes by datafying customer exchanges, softwaring every activity, and getting data flowing across its ecosystem.

Concluding Remarks

Most of the e-commerce companies have been around for many years. They’ve made countless mistakes, learned from them, and made massive comebacks. While we are firm believers in learning from our mistakes, we believe it's best to learn from the mistakes of others. Want expert insights and opinions for your new e-commerce venture? Book a call with us now!