The ranking of the Fortune Global 500 is based only on revenue, while JD’s revenue is higher than Ali’s. In 2018, JD’s operating income exceeded 460 billion, and Ali’s operating income was only over 370 billion. Therefore, JD’s ranking is higher than Ali’s. That's it.
Then why is Jingdong's revenue higher than Ali?
We know that Jingdong’s revenue is divided into two parts, one is its own revenue as a platform, and the other is its own revenue.
The revenue of the platform refers to the revenue that JD.com provides for third-party stores as an e-commerce platform. The sales of these products are not included in the revenue of JD.com.
The self-employed income refers to Jingdong itself as a supplier, selling goods to customers, and the sales of this product are counted as Jingdong's revenue.
For e-commerce platforms, product sales are the bulk, and platform revenue is relatively small, while Ali’s revenue is mainly concentrated on platform revenue, and product sales revenue is not counted. Therefore, Jingdong's revenue will be higher than Ali.
Why is Jingdong's revenue higher than Ali, but its market value is so much lower?
At present, the market value of Ali is about 440 billion U.S. dollars, and JD is about 44 billion U.S. dollars, only one-tenth of Ali.
Because the company's market value is not only based on revenue, but also on profit, development prospects, potential, etc., among which profit is a very critical evaluation indicator.
Although JD’s revenue is high, its profit is not high. In 2018, JD’s profit was only 3.5 billion yuan, while Ali’s 2018 profit was 80.234 billion yuan.
Therefore, although JD’s revenue is higher than Ali, its profit is much lower than Ali, so the market value is much lower than Ali and far lower than Ali.