Amazon and Alibaba are both online retail heavyweights deriving a majority of their revenues and value from e-commerce sales. While Amazon’s business includes both first-party sales as well as third-party sellers, Alibaba’s e-commerce business relies solely on third-party sales in China. Therefore, Alibaba generates considerably less revenue and EBITDA for every transaction dollar on its website (Gross Merchandise Value, GMV), shown below as the GMV/Revenue ratio and GMV/EBITDA ratio.
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