As the holiday shopping season approaches, the competition between retail giants Walmart and Amazon intensifies, shaping the eCommerce landscape. Both companies have established themselves as formidable players, offering extensive product assortments, competitive pricing and efficient logistics networks that ensure quick delivery. This rivalry is particularly pronounced in categories like electronics and household essentials, where consumers often compare prices and availability across both platforms before making a purchase decision.
Amazon snared 24% of new retail growth in the third quarter, while Walmart secured 12.2%. What does this mean for the holiday season?
In an interview with PYMNTS, Greg Zakowicz, senior eCommerce expert at Omnisend, said from an eCommerce standpoint, “Walmart and Amazon are closer to each other than ever. Both companies offer a wide assortment of products, low prices and robust logistics networks that deliver orders quickly. For example, if someone is shopping for a TV, they’ll likely search both stores for the item and may find similar or exact products and prices. At that point, it might come down to delivery time, return policies, and the overall reputation of the company and its product quality.”
Walmart has an advantage over Amazon in terms of last-minute necessities, tactile experience, and groceries, Zakowicz said.
“Because of their brick-and-mortar presence and same-day grocery deliveries, filling those last-minute or household essentials needs makes Walmart an obvious choice for shoppers,” he said. “For those looking for a tactile experience, whether looking at the quality of a shower caddy or television picture, the in-store experience is readily available.”
In contrast, Amazon’s vast marketplace provides a distinct advantage with its expansive product range, offering shoppers a wealth of options to explore, particularly when they’re uncertain about the exact item they need, Zakowicz said.
“The size and consistency of Amazon’s marketplace offer it a competitive edge over Walmart,” he said. “This can be very useful for shoppers who know the type of product they want but are not sure of the exact product. The side selection gives shoppers a variety of products and price points to choose from. From a product discovery standpoint, this helps create a more enjoyable user experience.”
In terms of loyalty, “If someone is a member of either loyalty program, they’ll likely turn to that store as a first option,” Zakowicz said. “For those who are members of both, it likely comes down to the product and needs of the individual. For small consumer electronics, because of the selection, Amazon may be the go-to choice. For last-minute needs or commodity products found on both sites, Walmart may be the preferred location due to its local presence.”
Zakowicz expects both Walmart and Amazon to be “significant winners” this holiday season, “especially compared to competitors like Target. Both retailers have established their value propositions and reputations, and as consumers continue to look for value among all else, these two are the lead dogs.”
Here’s a look at other notable developments from Amazon and Walmart in the past week:
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