Amazon and Walmart compete in North American retail market! Who is the real winner?

According to news, it was reported not long ago that Amazon officially surpassed Walmart in terms of retail sales to become the largest retailer in the United States, including offline retail and e-commerce sales.

According to the latest report from Jungle Scout, Amazon's global e-commerce revenue will exceed $468 billion by the end of 2021, while Walmart's will reach $75 billion. Despite the large difference in total volume, Walmart's e-commerce growth rate is five times faster than Amazon's. At this rate of growth, Walmart's e-commerce sales are expected to surpass Amazon within four years.

The advantages of each

According to Jungle Scout's research, the biggest motivation for consumers to shop on Walmart.com is price, followed by familiarity with its products and proximity to Walmart stores for easy pickup and returns. 31% of people prefer Walmart.com because of Walmart's stores. The huge offline store network is Walmart's main advantage in the minds of online shoppers.

Walmart has over 5,000 stores in the U.S., while Amazon has less than 600 (over 80% of which are Whole Foods WFM0.0% stores). Stores provide consumers with dedicated customer service and allow inventory to be dispersed and delivered nearby. In an average year, over 95% of U.S. consumers shop at Walmart stores, and over 90% live within 10 miles of a Walmart store.

Walmart's physical stores are also a major advantage in its competition with Amazon. 57% of consumers who shop on Amazon but not on Walmart.com will shop at Walmart stores. Walmart accelerates the development of its e-commerce business by heavily advertising in its stores to attract consumers to its e-commerce website.

But Amazon also has its own unique advantages. 33% of consumers shop on Amazon because of its Prime membership and lower shipping costs. Among the reasons for shopping on these two e-commerce websites, brand selection is not dominant. Only 25% or less of consumers will shop on these platforms because of the wide range of brand selection.

Currently, 35% of consumers shop on Amazon and not on Walmart.com, but only 9% of consumers shop on Walmart.com and not on Amazon.

The two retailers' membership services have many similarities, such as fast and free shipping and product discounts. But the additional services they each offer are different. Walmart offers gas savings and makes it easier for consumers to check out when shopping at Walmart stores. Amazon's additional services include easier ordering of streaming media and smart devices.

Different audiences

The reason why Amazon and Walmart are able to grow despite fierce competition is that they attract consumers with different needs.

The products most frequently purchased on Walmart.com by consumers who do not shop on Amazon are groceries (Walmart is the largest grocer in the U.S.), cleaning supplies, and over-the-counter medicines, while the products most frequently purchased on Amazon by consumers who do not shop on Walmart.com are apparel (Amazon is the largest apparel seller in the U.S.), vitamins/supplements, and beauty and personal care products.

Additionally, when it comes to third-party sellers, only 7% of third-party sellers on Amazon sell on Walmart.com, but almost 40% of these Amazon sellers are considering selling on Walmart.com as well.

Next Step

Both retailers are leveraging their strengths to grow. During the pandemic, Amazon increased its air cargo fleet from 50 to 70 aircraft and opened a central air cargo hub in downtown Cincinnati, leveraging its advantage in fast delivery. Walmart has leveraged its advantage in groceries, adding micro-fulfillment centers to speed up orders and expanding curbside pickup on its grocery app to include non-grocery items.

It is worth noting that Amazon and Walmart are both leaders in their respective strengths. In the retail field, neither of them has encountered a second strong competitor like the other. Whether the situation of Amazon and Walmart competing for the top spot in North American retail can be broken, and whether Walmart can surpass Amazon in e-commerce, no one can give a definite answer.

Editor ✎ Xiao Zhu/

Disclaimer: This article is copyrighted and may not be reproduced without permission.