ESIC Digital Economy and Innovation Journal

Amazon, Aliexpress and Ebay: Analysis of the presence of the main e-commerce platforms on Facebook and Instagram in the Spanish context

Javier Bustos Díaz

ESIC Business & Marketing School
ESIC University
Corresponding author: javier.bustos@esic.edu
http://orcid.org/0000-0001-7932-7986

Ruben Nicolas-Sans

ESIC Business & Marketing School
ESIC University
ruben.nicolas@esic.edu
https://orcid.org/0000-0002-9234-5764

Received: 25-03-2021
Accepted: 16-12-2021
Published: 23-03-2022

DOI: 10.55234/edeij-1-2-049

ABSTRACT

E-commerce platforms have transformed the way we understand commerce today. In addition, given the effects of the confinement caused by the SARS-CoV-2 virus, these have been confirmed as the purchase option as they are not affected by closures due to their nature. Along with this, there has been an increase in the number of users of social networks, a fact that undoubtedly shows a change in the current trend of young people when it comes to consumption. This phenomenon where social networks emerge as a central element of communication is present in all advanced countries, and likewise in Spain, where this paper is focused. In this sense, positioning on social networks is an essential task, which is key to any company’s marketing strategy nowadays, above all, due to the link with young consumers. Based on this idea, the purpose of this article is to analyse the presence of Amazon, eBay and Aliexpress on social networks, specifically on Facebook and Instagram in Spain. To do so, a quantitative methodology based on massive data collection using the FanPage Karma tool is used. The results show that Aliexpress is the most influential B2C in Spain, while at the same time it reveals that posts on Facebook and Instagram that contain some kind of visual element, i.e., image or video, are the usual trend in the management of communication on these platforms, obviating the use of text.

KEYWORDS

Social networks; marketing strategies; communication; integrated marketing communication; digital ecosystem

JEL CODES

M16; M31; Y80

1. INTRODUCTION

The evolution and impact of technology is evident and increasingly accentuated in the Spanish context; in fact, 81.4% of Spanish households with at least one member aged 16 to 74 have some type of computer (desktop, laptop and/or tablet), which represents an increase of 0.5 per cent compared to 2019, according to the Spanish Institute of National Statistics (INE).

This, among other consequences, has an impact on e-commerce, specifically B2C, i.e.: cross-border business-to-consumer e-commerce, which mainly applies to companies selling directly to consumers on a global scale (Wang, et al., 2018). The motivations that lead users to purchase products through e-commerce are several, highlighting, among others: convenience, value for money, range and positive consumer experience (Lukicheva & Semenovich, 2019).

In this sense, authors such as Dhobe, et al., (2020, p. 602) conclude that “advances in e-commerce, expansion of modern technologies and global communication provide a large number of business opportunities, as well as new threats for the banking and financial services”. In regard to the Spanish case, as can be seen in Graph 1, the statistics show the evolution of the percentage that e-commerce purchases and sales accounted for out of the total purchases and sales made in Spain from 2008-2019. Both the percentage of purchases and the percentage of sales experienced an upward trend until 2013, only to start to fall from that moment onwards, although in recent years a boom has been observed with the highest figures of the period analysed.

In other words, although there was a slight decline in e-commerce purchases in Spain, the fact is that since 2017 it has undergone a new transformation, reaching its best figures to date. Among the best-known marketplaces with the greatest economic impact in the world, the following stand out: Amazon, AliExpress and eBay. All of them have official accounts in Spain.

As we have seen so far, the current trend revolves around e-commerce. This raises the following question: how to reach users? While it is true that Amazon, AliExpress and eBay are popular, as Chugá, et al. (2021, p. 520) point out, “marketing is today a fundamental axis of the economic growth of organisations and of all identifiable strata in the life of a society”. Within marketing, digital marketing, and specifically the use of social networks, have become an essential element within any brand management strategy. In data, 85% of internet users in Spain aged 16-70 years use social networks, which represents about 27 million individuals according to the Social Networking Study prepared by Iab.Spain (2021).

In short, the aim of this study is to analyse the impact of Amazon, Aliexpress and eBay on Facebook and Instragram in Spain. This allows us to find out which of the three marketplaces has the best communication management.

Similarly, through the use of the Fanpage Karma tool, it will be possible to find out the strategies followed by the official profiles of each of the companies studied, which will provide us with results of great academic and professional value, as it applies a methodology used in a series of other important academic studies in different areas such as education (Ferrer-Serrano, et al., 2020), politics (Bustos Díaz & Ruiz del Olmo, 2021), or the main podcast platforms (Caballero-Escusol et al., 2021) and OTT platforms (Martínez-Sánchez et al., 2021).

Based on this methodological foundation, it will be possible to contrast whether the trends in communication management in social networks that have been experienced in social networks, in terms of the type of information, are maintained, i.e. text, image or video, and which has the greatest repercussion in networks?

2. LITERATURE REVIEW

Digitalisation and the way products are purchased are intrinsically linked. Some authors such as Tseng conclude “for expanding the international markets for surviving, the better and easy way for the startup to enter global markets is to cross border the e-commerce internet world” (Tseng, 2019, p. 138). It is clear that the world is becoming increasingly digital and even governments are becoming increasingly aware of this fact. In the specific case in question, the Spanish government has chosen to launch the Digital Spain 2025 programme. Among the objectives set out in the programme’s report is the commitment to “accelerate the digitalisation of companies, with special attention to micro-SMEs and start-ups. The goal is that at least 25% of the turnover of SMEs should come from e-commerce by 2025” (Ministerio de Asuntos Económicos y Transformación Digital, 2020, p. 5).

This is a shift from the physical to a digital world, but one that in theory favours trade, including retailers, as “multi-sided digital platforms can bridge millions of buyers and sellers together, however shifting the inventory risk back to the supplier” (Hänninen et al., 2018, p. 1). Indeed, some studies suggest that, even with a wide range of suppliers available through large marketplaces, buyers tend to purchase products that are geographically close to them, i.e. they use the platform to search for the consumable. However, they do not only look at the price but also at their provenance, mainly purchasing those that are closest to them (Hortaçsu et al., 2009). In line with these issues, Majed, et al. (2018) warn of the need for small businesses to be present in the B2C digital world and explain, “for the smaller firms, the road may be rough and unpleasant to keep up with Amazon. To remain on the market, they will have to re-invent themselves by providing E-retail equal to the competitive market” (p. 69).

However, why do consumers choose to shop through these platforms? Kiu and Lee (2017) effectively answer this question and explain that “customers can obtain information and seek feedback from e-commerce retailers more efficiently and quickly, saving time, reducing shopper frustration and shopping cart abandonment. To gain a sustainable competitive advantage, companies must evaluate future innovations in Web 2.0 technologies based on customer needs” (Kiu and Lee, 2017, p. 299).

Beyond the advantages or possible opportunities that may arise from this paradigm shift, what is certain is that there are currently three large companies that bring together B2C commerce in the world and also in Spain: Amazon, eBay and AliExpress (Wang, et al., 2018). While it is true that Amazon has become a familiar and everyday name among consumers (Majed, et al., 2018), it is true that the rest of the platforms enjoy a very similar popularity, and this is reported in the economic impact they generate, such as AliExpress, the representative of China’s third-party B2C cross-border e-commerce (Wang, et al., 2018,). In addition, the user perceives the brand beyond the online world, since, on many occasionsthe platform moves from the virtual to the physical world, generating a positive economic impact, as in the specific case of Amazon in Spain, where it has created 5,000 permanent jobs in 2020, from software engineers to logistics professionals, and 82,000 indirect jobs.

Finally, and within the strategies developed by each of these three marketplace giants, “eBay has focused heavily as a service provider. The major variation of this strategy has been the purchase of Half.com, which is a fixed-price retail operation” (Krishnamurthy, 2004).

In short, these three companies represent the three common points of online shopping for users in the digital age.

2.1 The online shop in search of the online customer

The scientific literature linked to Amazon, eBay and AliExpress focuses on many technical aspects linked to the technical or economic management of the company. In this sense, there is work on fraud and its detection (Sundaram et al., 2020), the ways in which they allow products to be purchased by auction (Roth & Ockenfels, 2002), and even Semantic Web Service Selection at the Process-Level has been examined (Pietro et al., 2008). But there is an interesting element that has been little analysed by academia, and that is the impact that such companies have on social networks.

Uribe and Sabogal (2021) argue that the concept of digital marketing encompasses the technological part, which directly and indirectly involves social networks.

As described above, a 85% of internet users in Spain aged 16-70 years use social networks. Beyond the knowledge that any person may have of these spaces to buy products, there are many studies that point out the importance of social networks as a crucial element when it comes to disseminating a brand (Chugá et al., 2021).

On this issue, Hugo et al., (2019) argue that social media is an alternative and high-impact channel to reach consumers. In addition, they add that “they are the most prominent place where consumers exchange opinions and ideas about companies’ products and services and where companies have no ability to control this information” (Hugo et al, 2019, p. 175).

Another significant fact is that this is not only a mass of potential customers with an account on a social network, but also very active users of social media. Specifically, in the case of Spain, the intensity of use this year remains the same in 2021 as in the previous year: 1h 21 min this year vs. 1h 19 min in 2020 (iab.Spain, 2021). Along with this, the report presents a series of conclusions that should be taken into account. Firstly, Spanish users say that researching on social networks before making a purchase is a fact for almost 50%. On the other hand, the main channel for searching for information is Instagram (no longer Facebook, as it was since 2008), with YouTube and Facebook decreasing, while TikTok appears in the ranking. Finally, 37% leave comments, mention their problems and doubts about their purchases on the platforms (-7pp vs. 2020).

In short, as the report points out, almost 50% state that social networks have influenced their final purchase of products/services, which is why this study, whose main objective is to measure the impact of the main Marketplaces in Spain on social networks, acquires an interest that can generate both scientific and professional interest.

3. METHODOLOGY

The aim of this paper is to examine the impact of these platforms on Facebook and Instagram in Spain. This responds to two main questions. Firstly, as has already been described in greater depth in previous sections, 85% of internet users in Spain aged 16-70 use social networks. Secondly, focusing the field of study on the two social networks, Facebook and Instagram, is due to the fact that, according to the latest report on social networks produced by iab.Spain, they are the two most used networks by Spanish cybernauts.

In order to measure the impact of each of the platforms that are part of the study (mazon, eBay and AliExpress), the work is approached from a quantitative methodology and based on the data collection tool Fanpage Karma which is an online tool for analysis and monitoring of social networks. Although initially, it allows a better connection with fans and reach a growing community on social media, it in addition also provides valuable information on posting strategies and performance of profiles on social networks such as Facebook, Instagram or YouTube (Bustos Díaz and Ruiz del Olmo, 2021).

The use of this tool, in academic terms, responds to a whole line of high impact articles that have used it to solve social, economic, political and branding problems (Martínez-Sánchez, et al., 2021; Caballero-Escusol, et al., 2021, Bustos Díaz & Ruiz del Olmo, 2021; Ferrer-Serrano, et al., 2020).

Specifically, this study focuses on the period from 1^st March to 30^th April 2021, which has allowed a two-month follow-up to be carried out, enabling the evolution of these platforms on social networks to be analysed and, on the other hand, the study focuses on a period of analysis with current events (at the time the study was carried out), which enables an X-ray of the situation outside the post-confinement period to be taken.

As everyone knows, during the period from March to May 2020, most European governments, including Spain, opted for the measure of home confinement to prevent the spread of the pandemic derived from the SARS-CoV-2 virus, which led to an unusual increase in the use of social networks. The study period presented here was collected just one year later, thus avoiding the data being contaminated or supercharged by a specific moment of confinement.

Table 1 below, shows all the variables used in the study of the social network strategy of the different profiles analysed and their description. As can be seen, those variables that are common to both social networks taken as a reference are grouped together; but, subsequently, other variables specific to each of them are taken into account.

4. RESULTS

Based on the established methodology, the research focused on the analysis of the different variables defined, as well as on some of the resulting aspects that are of interest to the study. As can be seen in Table 2, in terms of volume of followers, the AliExpress profiles in Spain are the most representative of the three profiles studied.

Beyond this initial data, Table 2 raises a series of questions linked to the previous sections. In this sense, it has been described that Facebook is the social network that continues to have the largest number of followers in Spain, although its use is decreasing. This is also reflected in the way in which Amazon, AliExpress and eBay are growing in this network, none of them reaching a growth of more than 1% (0.17%, 0.82% and 0.2% respectively).

On the other hand, the variable relating to Facebook comments is of interest. As shown in Table 2, AliExpress is the platform with the highest number of followers (38,734,746) followed by Amazon (2,070,823); however, Amazon generates a higher number of comments (5,564) than AliExpress (1,918). This leads to a first conclusion, which is that the interactivity and impact that can be generated depends not only on the number of followers, but also on the type and management of the brand on social networks.

eBay’s Facebook profile comes in third place. However, beyond the gap in terms of followers (306,776) or comments (299), a striking fact is that it is the most active profile of the three selected for the study, with an average of 0.704918 posts per day. In this case, as in the previous one, we can see at an early stage that it is not only the quantity of posts that matters, but also the way they are managed, as well as their type. In the case of Instagram, we can see that some patterns from Facebook are repeated, but with some relevant nuances. Firstly, AliExpress also leads on this social network with 746,598 followers, followed by Amazon 58,301 and finally eBay with 32,022 followers on the image social network. However, a striking fact that did not appear in the previous case is found in the growth of the profile within the social network itself. On Facebook, AliExpress, which is the profile with the highest number of followers, had the highest growth, this time, Amazon is the network with the highest growth with 12.54% compared to 7.7% for AliExpress.

As with Facebook, the number of daily posts is low, with none of the social networks exceeding daily posts (AliExpress 0.4, Amazon 0.5 and eBay 0.5). Finally, to conclude this first section, it is interesting to note that the page that generates the most comments is once again Amazon, with 2,864, compared to 1,394 for AliExpress and 211 for eBay, which is once again the profile with the least impact of the three analysed.

4.1 Types of Facebook content

In this section we analyse the strategy employed by each of the marketplaces’ accounts studied in this social network.

Firstly, it should be noted that, given that Facebook and Instagram are networks with different functions and nature, the typology of content on Facebook and Instagram differs. In this case, it is summarised in four blocks: images, videos, links and statuses.

The most significant fact, at least for the period analysed, is that none of the profiles analysed published any status. In other words, this type of post tends to be used less frequently, although it does have a regular presence, albeit a minor one. Therefore, in the first conclusion of this section, it can be pointed out that this type of post may be falling into disuse.

With regard to the type of publication most used, Table 3 shows that there are different strategies, although the typology that stands out most in terms of use is the image. This has two implications. On the one hand, it is the typology most used by Amazon (17) and eBay (21) and to a lesser extent by AliExpress (7). However, one fact that stands out above the rest is the number of reactions linked to this typology, which is the one that arouses most interest among users. Thus, AliExpress generated a total of 252 reactions, Amazon 470 and eBay 282. This indicates that a static image is the type that generates the most activity, in terms of interactivity, on social networks.

Videos are the main alternative to images. In this respect, AliExpress, with 22 posts of this nature, was the most active in this section, followed by Amazon with 16 and eBay with 14. As for reactions, Table 3 shows how AliExpress and Amazon, with 120 reactions and 157 respectively, managed to have a greater impact among internet users with a Facebook profile, compared to eBay, which only had 20 reactions.

Finally, with regard to links, it can be seen that they follow a similar trend to that of statuses. In this case, it seems to be a typology, the use of which is decreasing and tends to become extinct. This, as an initial conclusion, may be largely due to the functioning of Facebook’s algorithm in terms of positioning, which penalises those publications that contain links that take users outside the social network.

4.2 Typology of content on Instagram

As has been pointed out, the typology/type of content on Instagram and Facebook is different- in this case the following list of variables is applied: images, videos and carousel. All of them, as in the case of Facebook, can be accompanied by text explaining the image or video.

In the case we are analysing now, Instagram, it is interesting to observe in Table 4 how the profiles of the main Marketplaces in Spain manage their presence on this social network in the opposite way to the nature of the network itself. That is, the most used typology is video, as we will now analyse, as opposed to images or the carousel.

As was argued, during the study period, AliExpress published a total of 5 images compared to 13 videos and 12 carousel-type images. Amazon followed a very similar strategy, publishing a total of 8 images, 15 videos and 10 carousels.

Finally, it is striking to see how eBay emerges as the most active platform on this social network, although it has had the impact one might expect, i.e., it is the third platform in terms of followers on Instagram, as can be seen in Table 2. In figures, eBay has posted 21 images, 24 videos and 18 carousels.

4.3 The most used Hashtags and words on Facebook

With regard to the way in which the platforms have been able to get their content to the public and include it within the dynamics of the social network itself, the hashtags most used by each of the platforms on Facebook, as well as the most used word, are presented in Table 5.

In this case, the words most used by each of the platforms in a preferential manner on this social network emerge as interesting. Each of them has followed a strategy focused on its nature or brand.

In this sense, AliExpress has used, during the period of study, the word “product” over others. It is clear that this is a way of positioning the word and making it linkable to the brand. A similar strategy has been followed by eBay whose most used word has been “auction”. It is striking to contrast these two visions, as they refer to the nature of their brands, as opposed to Amazon whose most used word is “Amazon”.

As for the use of hashtags in Table 5, three different strategies can be observed. Firstly, AliExpress bets on its brand, while seeking interactivity with its followers, and presents hashtags such as #sorteazos and #sorteo. As for Amazon, it has a strategy focused on local businesses, insisting that users can buy local products through its platform with hashtags such as #apoyopymes and #apoyoanuespymes.

Finally, eBay is committed to a strategy that is very focused on the events that are happening at the time, such as the following hashtags #diainternacionaldelamujer, #mifanfestival2021 #mujersingenio, and #26deabrildiadelniño.

4.4 Hashtags and words most used on Instagram

As in the case of Facebook, the table below (Table 6) shows which hashtags were the most used by the platforms analysed and which was the most used word, but in this case, on Instagram.

As can be seen, there is a replication; therefore, what we can initially conclude is that a strategy is predefined and then duplicated in both social networks.

5. CONCLUSIONS

The aim of this study was to measure the impact of AliExpress, Amazon and eBay on the main social networks Instagram and Facebook in Spain. The objective, materialised through the methodology, has led to a series of results that bring us to the following conclusions:

Firstly, there is a clear leader in terms of followers within the framework of social networks in Spain, AliExpress. The Chinese e-commerce platform has the most engagement with the Spanish community on Facebook and Instagram.

On the other hand, eBay is the one with the fewest users and, as a result, the least influence. Amazon remains in a very interesting second position, as it has a great engagement with the public; however, it is far behind AliExpress in terms of followers, both on Facebook and Instagram.

With regard to the use and management of social networks, especially in the case of Facebook, it is worth noting that the “status” type of post has disappeared from marketing strategies in favour of images or videos. On the other hand, links are becoming less and less frequent. As noted above, this may be due to Facebook’s algorithm, which penalises posts containing links that take users of the network off the platform.

As far as Instagram is concerned, there are a number of issues that are relevant. On the one hand, in a social network where the use of images prevails, the three companies analysed have opted for greater use of video. On the other hand, what is known as the carousel continues to be used regularly.

In terms of the main words and types of hashtags used most frequently, two initial approaches emerge. The most prominent is, as can be seen in Tables 5 and 6, the strategy implemented in one platform is replicated in the other. On the other hand, each company approaches the use of hashtags in a different way, and three types stand out: a commitment to local (Amazon), sweepstakes and activities with users (AliExpress), and current events (eBay). Based on the data obtained in the results, there is a lack of involvement from AliExpress, Amazon and eBay in the management of their social media profiles in the Spanish context.

In academic terms, as noted in previous paragraphs, it confirms the trend set by other studies regarding the prevalence of certain types of formats when it comes to establishing communication between the company and the public. Although this trend has been studied for more than five years from an academic point of view (Ruiz del Olmo & Bustos Díaz, 2016), it is also of great value from a professional point of view. That is, this paper presents a study on the social media communication strategy of the main ecommerce platforms in the world and, specifically, their management in Spain.

Finally, the main implication of the research carried out is to understand the influence of social networks in the field of e-commerce. The interest in this type of study is motivated by similar works that analyse the involvement of social networks in digital environments. This is the case, for example, of the work by Caballero-Escusol et al. (2021) where, using the same experimental methodology, the impact of podcast platforms in Spain is analysed. Similarly, Martínez-Sánchez et al. (2021) address the same research, but analysing OTT platforms (Netflix, Amazon Prime, etc.). Therefore, this work is approached from a contrasted methodological perspective that can be used in future research and, at the same time, it investigates an area of knowledge of interest, such as the impact of social networks, and also novel by applying it to a new research environment, which is e-commerce. One of the main limitations of this work is its geographical scope. While it is true that the work contains relevant information or information of interest to the general academic public, as it addresses positions and other extrapolated premises, the lack of a comparison with neighbouring countries is evident.

On the other hand, as far as future research is concerned, it would be interesting to address communication management from a qualitative perspective. Similarly, it would be interesting to extend the study sample and to analyse and compare other companies.

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