You are comparing the inventory valuation methods used by two e-commerce giants, Amazon.com, Inc. and Alibaba Group Holding Limited, in the online retail industry.

Requirements:

1. Amazon reported inventory valued at $20.5 billion on its balance sheet as of December 31, 2023. Alibaba's inventory valuation on its balance sheet for the same date amounted to $15.2 billion.
2. Analyze and compare the inventory valuation methods employed by Amazon and Alibaba.
3. Discuss the potential implications of the differences in inventory valuation methods on the financial statements of both companies.