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Alibaba s model explains the reason why their operating margin is better than amazon s.
Alibaba business model vs amazon. When you don t own warehouses fulfillment centers customer support centers etc. Amazon dominates the american shopping space while alibaba does the same in china. Amazon and alibaba are both e commerce giants operating largely without physical stores.
Also alibaba generates around 86 of total revenues from its core e commerce global. In fact alibaba is able to put up more products than amazon for its consumers due to its business model. This is also the reason why alibaba has just 100 000 employees as compared to amazon s 750 000.
As a consequence amazon is more efficient.
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