Analyzing the Profitability of Large E-commerce Companies through Revenue and Earnings from 2020-2025

Nathan Andrie C. Ama

doi:10.64229/nrwfcf05

Authors

Nathan Andrie C. Ama Department of Agribusiness, Southern Leyte State University, Hinunangan Southern Leyte, Philippines Author

DOI:

https://doi.org/10.64229/nrwfcf05

Keywords:

E-commerce, Profitability, Business, Amazon

Abstract

This study investigates the trend analysis of the e-commerce companies over the 5-year period, the number of companies by country, effect of revenue and earnings for the top 3 leading e-commerce companies and measure the profitability of the companies based on the net profit margin (%). Data were obtained from a reliable reputable source Companiesmarketcap.com where revenue and earnings data were collected from the year 2020 to 2025 and analyzed using appropriate statistical software. Results show a higher mean revenue and earnings to Amazon, Jingdong Mall and Alibaba while for earnings are only Amazon and Alibaba. There is a significant effect was found for revenue both Amazon and Jingdong Mall company while there is no significant influence was found across the years for the revenue and earnings for Alibaba. However, the measures of profitability indicates that PDD Holdings (Pinduoduo) dominates among all e-commerce companies with the highest net profit margin of 25.02%, reflecting the strategic marketing that aligns in a competitive market. In conclusion, outcomes of this study analyze its profitability which can be useful for future marketing plan for business owners. Future studies also needed in this study by incorporating other non-financial indicators (user growth, repurchase rate), segmented industries (cross-border, e-commerce, fresh e-commerce), or adopt qualitative research such as interviewing corporate financial leaders which allows more deeper analysis in terms of investigating the profitability of e-commerce companies.

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