Amazon vs Walmart, how’s the war of the titans going?

Amazon has never ceased to be the king of the online channel in the United States, but there are other companies like Walmart that follow closely. A recent study of JungleScout shows the conclusions of the in-depth analysis that they have carried out on the two companies.

It is important to note that Walmart is still developing its strategy in the online channel, but more and more sellers are betting on this Marketplace as it is less crowded. Walmart predicts that it will close 2021 with a turnover of 559,000 million dollars and approximately 13.4% of this will come from online sales.

How is the war of the titans going?

Among the data of the study, it can be seen that one of Walmart’s strengths is the number of logistics centers it owns, which are mostly its stores. And is that 57% of Amazon consumers also go to physical Walmart stores. However, this situation could be reversed, because Amazon is working on its expansion of physical spaces, especially Whole Foods Market and Amazon Fresh.

Just as Amazon is working on its physical presence, Walmart is doing it online. About a year ago it launched its subscription service similar to Amazon’s Prime. Currently, the supermarket chain has not managed to surpass its rival in subscribers, but it is still working on it. The main differences between Amazon Prime and Walmart Plus they are the price, the streaming services of Amazon and the advantages of Walmart in stores.

The most prominent Amazon projects in the last year are:

  • Build a broader digital ecosystem: gaming on Twitch, media with Amazon Music and Amazon Studios, and healthcare.
  • Amazon Alexa to expand the reach of advertising.

On the other hand, Walmart has stood out for:

  • Will partner with Meredith to offer AI-based meal planning tools to shoppers.
  • Reinforcement of advertising with Walmart Connect.

In figures

Amazon

Amazon (1994) was born many years after Walmart (1962), but unlike this, its business has always been focused on online sales. For this reason, the company founded by Jeff Bezos has always been leading the online channel in the United States.

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Some of the figures offered by JungleScout in the study on Amazon’s business are:

  • Amazon closed 2020 with about $ 404.4 trillion revenue.
  • Has 6.3 billion sellers worldwide (It means that it has 40.4% of the market share worldwide).
  • Sell ​​in more than 100 countries.
  • It has 110 logistics centers.

Walmart

Walmart did not launch its online sales until 2007 and only allowed online purchase and store pickup. In 2009 was when he launched his Marketplace and allowed to be incorporated sellers. This means that it began with its strategy in the online channel 7 years later, one of the reasons why it remains behind Amazon.

Some of the Walmart figures they share in the study:

  • They ended 2020 with a billing in the online channel of $ 39.7 trillion.
  • Walmart has 114,700 sellers worldwide, a figure well below that of Amazon.
  • It only sells in 24 countries.
  • They have more than 150 logistics centers, the only figure in which they surpass Amazon.
Graph of the report JungleScout

What do consumers value on each platform?

Most of the consumers who go to Walmart also shop on Amazon and vice versa. However, consumers often have a favorite Marketplace, what stands out from each one?

Amazon has 35% loyal consumers, who do not buy from Walmart. While the number of loyal buyers of Walmart is much smaller, only reaches 9%. Consumers are loyal to Amazon for its Prime service, the pricing of shipments, the ease of use of its website, and ease of reordering or setting up recurring orders. On the other hand, fans Walmart chooses it based on the price of their products, the application, the brands in the marketplace, familiarity with the products, proximity to physical stores or discounts.

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