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

Abstract

This study investigates the trend analysis of the e-commerce companies over the 5-year period, the number of companies by country, the effect of revenue and earnings for the top 3 leading e-commerce companies, and measures the profitability of the companies based on the net profit margin (%). Data were obtained from a 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 for Amazon, Jingdong Mall, and Alibaba, while earnings for only Amazon and Alibaba are shown. There is a significant effect was found for revenue for both Amazon and Jingdong Mall companies, while there is no significant influence was found across the years for the revenue and earnings for Alibaba. However, the measures of profitability indicate 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 with a competitive market. In conclusion, the outcomes of this study analyze its profitability, which can be useful for future marketing plans for business owners. Future studies are 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 adopting qualitative research such as interviewing corporate financial leaders, which allows more deeper analysis in terms of investigating the profitability of e-commerce companies.