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Can Walmart take Amazon’s e-commerce throne?

Some experts believe that Walmart can finally be a serious competition for Amazon in e-commerce

Amazon enjoyed in this 2018 growth that allowed him to fight for the position of the most valuable company in the world, with Apple and Microsoft. However, Walmart’s strong commitment to e-commerce can make the monster created by Jeff Bezos finally have real competition.

And is that if retail sales talk, Walmart is the giant of the old school and their interest in dominating online trading is something natural. And go that for a couple of years have invested a lot to achieve it. The purchase of Jet.com and even an alliance with Google are part of its efforts to break into this segment of the market.

But despite that, Amazon is the absolute king in this area. While Walmart’s total sales far exceed those of the e-commerce giant, online transactions represent only 3% and do not even represent a threat to its rival.

In counterpart, with Amazon Go, Jeff Bezos seeks to innovate in the world of supermarkets and it is estimated that they will have 3,000 stores by 2021. This new model in which you do not have to stand in line to pay, is very attractive.

However, Walmart also plans to venture into streaming and with it could implement a membership system such as Amazon Prime Video and Amazon Music, something that has helped the e-commerce giant to maintain customer loyalty.

However, shipping costs are a problem that no retailer has managed to solve so far. The fact of having to maintain physical stores makes it difficult for them to reduce costs. However, groceries are the great opportunity of Walmart against Amazon, as it leads in this sector and has more than 6,000 stores at its disposal.

No doubt it is a war with many battles ahead and both sides have arguments to succeed in it. For now, Amazon appeals to the advance that is in the race in online commerce, while Walmart seeks to take advantage of their total earnings are greater by about 300% to cut distance.


Also published on Medium.

Published inE-commerce

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