Walmart vs Amazon: Statista says that by June 2022, Amazon will control 37.8% of the US retail e-commerce market. This is mostly due to the success of its Amazon Prime program, which has more than 200 million users.
With 6.3%, Walmart has the second-largest share of the market. Walmart+ (opens in a new window), its main competitor, debuted in 2020 after losing $3 billion on the failed Jet.com venture.
Walmart may be the retail industry’s underdog when it comes to market share, but it is a juggernaut in its own right. Currently, estimates of subscribers range from 11.5 million(Opens in a new window) to 32 million (Opens in a new window). Factors to Consider When Choosing Between Amazon and Walmart.
There is intense competition between the two stores in the online shopping sector.
One of the five largest affiliate programmes is shared by Amazon and Walmart, which indicates they are in direct competition with one another.
When it comes to overall traffic on the internet, Walmart is slowly but surely starting to pass Amazon as the most popular site, especially in the United States.
The major retailers, Walmart and Amazon, made about $1 trillion in sales in 2017. Amazon is in second place with a market cap of $386 billion, behind Walmart’s $559 billion. In Japan, Mercari is a legitimate website, competing these giants.
Amazon vs. Walmart: Who Will Come Out on Top?
We’ll use Market Knowledge, one of our internet tools for online sellers and brands, to evaluate the history, strategy, and digital effectiveness of Amazon and Walmart to help you identify which retailer may be the best match for your product.
Let’s see how this fight pans out.
Two decades into their conflict, Amazon and Walmart show no signs of backing down. Shares of both Amazon and Walmart are on the line in this battle for retail and online supremacy.
The Wall Street Journal reports that Amazon (AMZN) is planning to construct its first large-format retail outlets. Amazon’s newest attempt to compete with Walmart on the ground, the shops, would be a significant step in that direction (WMT).
While Walmart’s standard shops average 100,000 square feet, Amazon’s new locations in California and Ohio will be just 30,000 square feet.
The size is around a sixth of that of a Walmart Supercenter. Yet, by doing so, Amazon takes a major risk and enters the territory of its enemies. Also, the company is putting this plan into action right as it is about to pass Walmart.
The New York Times reported on Tuesday that, for the 12 months ending in June, Amazon’s sales, including those of third-party vendors on its platform, surpassed Walmart’s.
From June of 2020 to June of 2021, customers spent $610 billion on Amazon. According to the research, customers spent $566 billion at Walmart within the same time period.
Comparing Walmart’s Fulfillment Services (WFS) to Amazon’s Fulfillment Services (FBA)
With that in mind, let’s compare and contrast Walmart’s Fulfillment Services (WFS) to Amazon’s Fulfillment by Amazon (FBA).
There are currently numerous parallels between WFS and FBA. Both options provide a place for independent sellers to have their goods warehoused until they are acquired. It’s expected that both of these things will happen:
- Handle product picking, inventory management, packing, shipping, and tracking.
- Take care of deliveries, exchanges, and refunds.
- Give the option of a 2-day shipment.
- Make it possible to have orders sent the same day to certain locations.
- All Walmart.com orders can be picked up at a store, but Amazon’s in-store pickup options are more limited.
Ebook Comparison of WFS and FBA and Online Training
In our free e-book, we compare and contrast WFS and FBA in detail. Watch our on-demand WFS webinar, which we co-hosted with Walmart’s VP of WFS, if you want to find out more about WFS.
Distinctive Features of Each Store
Walmart’s inventory of over 4 million consumables covers a wide variety of market segments but is still far less than those of its main rivals.
On the other hand, Amazon offers more than 250 million products throughout the globe and adds more than 50,000 new product lines daily.
More than 27 nations are served by Walmart’s network of more than 11,000 stores. While Amazon only has a handful of brick-and-mortar locations in the United States, the corporation serves customers in more than 180 countries.
Except for “refreshment drinks and packaged meals,” Walmart is somewhat cheaper overall. Amazon has much lower prices, especially in the “Foods & Beverages” section, but higher prices in other categories.
Approximately 56% of Walmart’s best-sellers are grocery bags, which have helped make the retailer renowned throughout the globe.
Books and electronics, on the other hand, account for 16 and 13 percent of Amazon sales, respectively. Books and electronics, on the other hand, account for 16 and 13 percent of Amazon sales, respectively.
Walmart first opened in 1962, which is a long time before Amazon. In contrast, the online retailer Amazon.com was established in 1994.
Comparison between Amazon vs. Walmart
While Amazon is a huge online retailer with a small number of physical shops, Walmart originated as a physical store chain and has just recently introduced a retail site.
The total quantity of goods
Walmart stocks about 4 million items in a wide variety of categories for its customers. Amazon now has over 250 million things for sale on its website, and it adds another 50,000 new items every single day.
Compensation for membership
In contrast to Amazon Prime, which costs $12.99 per month or $99.
For online purchases made at Walmart, shipping is free if the total is above $35, while Amazon Prime members get free one-day, two-day, and next-day shipping.
- More than 11,000 Walmart shops may be found in about 27 different countries.
- Although Amazon stores are few and far between in the United States, people from more than 180 other nations may shop on the website.
Except for “Meals & Spirits,” Walmart is the most cost-effective option. Amazon has lower prices in the “Foods & Beverages” section but higher prices elsewhere.
Amazon’s Advertising Pros and Cons
Amazon’s massive user base means that your items will get more exposure than they would on any other e-commerce platform.
Customers may easily access your online store from the Amazon product pages.
Advertising space on Amazon is more plentiful than on most other websites. It has added more sponsored search and advertising options to its pay-per-click platform so that it can attract buyers at every step of the buying process.
Amazon’s marketing weaknesses
- Due to its limited physical presence, Amazon has higher shipping costs and doesn’t reach out to customers in stores as much as it could.
- Amazon not only sells its own products but also hosts third-party sellers. This means that your company could face competition from Amazon’s own prices, which could be lower.