Can Walmart Outperform Amazon?

Can Walmart Outperform Amazon?

Howdy !

We are seeing an exciting match between Walmart and Amazon as the former aims to position itself ahead of the latter in eCommerce.

Following its $3.3 billion acquisition of eCommerce start-up Jet.com last month, Walmart said it is investing $11 billion in capital spending for fiscal year 2018 to boost its online sales.

Besides opening fewer bricks-and-mortar stores in 2018, part of Walmart’s strategy is to double the number of its warehouses for online orders to 10 before the end of the year.

According to Walmart President and CEO Doug McMillion, they simply want to provide their customers with great eCommerce experience and value for their money.

“We are encouraged by the progress we’re seeing across our business and we’re moving with speed to position the company to win the future of retail. Our customers want us to run great stores, provide a great e-commerce experience and find ways to save them money and time seamlessly. So that’s what we’re doing.”

 

Walmart vs. Amazon

Although not a stranger to eCommerce, for it’s been around the industry for 15 years now, Walmart still trails behind Amazon in terms of logistics and customers.

Amazon Prime currently has a total of 60 million customers, which could only get bigger by the day.

And with 40 warehouses in different locations, Amazon remains to be the king of eCommerce.

However, these statistics just aren’t enough to make Walmart back down.

After all, the company has 11,528 stores worldwide which it can readily use for omnichannel marketing.

In addition to that, Walmart has acquired a total of 15 eCommerce start-ups since 2011, one of which even cleared the way for its Silicon Valley-based firm @WalmartLabs.

Reviving its Lacklustre eCommerce Business

Walmart’s 10 warehouses are meant to ensure faster delivery as well as lower shipping costs for orders with multiple items.

Out of sheer determination to take the lead in eCommerce, it has also employed new technology for automated product sorting and item tracking last year.

As for the company’s physical stores, 35 new Supercenters and 20 Neighborhood Markets are expected to rise in 2018; these figures are only a fraction of those built last year.

With all these big preparations, do you think Walmart can surpass Amazon this time?

Let us know your thoughts in the comments.

To your continued success,

Dave & Matt

3 replies
  1. Alex Plotnikov
    Alex Plotnikov says:

    Thank you for the assessment Dave and Matt,
    There’s a couple of big problems that also prevent Wal-Mart from unveiling their full eCommerce potential:

    – Reputation. Online shoppers are getting savvier and Wal-Mart has a history of law suits and bad business practices that don’t encourage people to buy from them. At the same time, Amazon’s reputation is relatively clean.

    – Wal-Mart isn’t a strong innovator, like Amazon – just look at all the eCommerce innovations Amazon is putting out: logistics and its fundamental innovative nature is really the driver of Amazon’s success. Wal-Mart can bridge the gap by acquisitions, but that doesn’t necessary lead to any real innovations.

    Thanks for sharing!

    Reply
    • Dave Furness
      Dave Furness says:

      Hi Colin,

      The honest answer is I don’t know, right now the Walmart Marketplace is invitation only so I haven’t seen the terms and conditions or category rules of what you can and can’t sell.

      Dave

      Reply

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