AMAZON V/S WALMART

Walmart

Sam Walton started Walmart in 1962 with the intention of delivering low-cost goods and

excellent service to customers. He was able to show that his plan was effective by generating

over $12 billion in revenue by the time the company went public in 1970. To better compete with

Amazon, which had been successfully enticing people to its website, Walmart has recently taken

moves to expand its online retail operation (at walmart.com). By investing $3.3 billion in jet.com

in 2016, Walmart gained an early foothold in the e-commerce market and its own e-commerce

platform.

Amazon

In contrast to Walmart, which got its start as a physical store, Amazon started out solely through

its website, amazon.com. Bookseller Amazon.com was founded by Jeff Bezos on July 5, 1994.

Bezos's original vision for Amazon, though, was for it to become a one-stop shop. Indeed, this is

shown in Amazon's lengthy track record of continuous expansion. The movie company MGM

was acquired this year, along with Whole Foods and the relatively small online drugstore Pill

Pack. By contrast to Walmart's approach, which was to build a physical presence in retail before

expanding online, Amazon went in the opposite way and opened a network of traditional grocery

stores across the United States under the Amazon Fresh brand.
 Fig 1. Market capitalization of Amazon and Walmart

Digital Growth Amazon Vs Walmart

When comparing the two retailers, it is clear that Amazon receives a much larger volume of

direct traffic than Walmart does around the world. The majority of Amazon's desktop visitors

(57.9 percent, or 5.7 billion) came from direct sources, whereas Walmart only managed 46.8

percent (465 million). Alternatively, Walmart appears to be the winner when considering organic

search results. Walmart's website receives about 32% of its total traffic from organic sources,

whereas Amazon's website receives about 25%.

Comparing the two sites' traffic over the previous six months reveals that amazon.com has

created nearly six times as much interest as walmart.com. Amazon.com users typically see four

more pages than Walmart.com users do during their session. Although Amazon remained the

most visited shopping site in the United States, Walmart U.S. fell to third place on the list of the

top 100 shopping websites in the country.

 Fig 2. Digital growth of Amazon and Walmart
Social Media platform of Amazon
According to Amazon, Spark is "a stream of tales and photos from Amazon customers

showcasing things available for purchase." Amazon encourages Spark users to post pictures,

products, stories, and the like, and gives them the opportunity to tag products while doing so.

The readers are then able to express their opinions by participating in surveys, leaving comments

on articles, adding "likes" to content and products they appreciate, and "hearting" items they find

especially endearing. 90 million Amazon Prime members spend an average of $1,300 annually

on the platform, while the remaining 220 million spend an average of $700.

Fig 3. Social media platform of Amazon

Social Media platform of Walmart

Walmart currently works with influencers to promote its food, clothes, and Walmart+ customer

loyalty services. When influencers endorse products on their popular social media channels like

Instagram, YouTube, or TikTok, they often include affiliate links in their posts. If a user clicks

on their link and successfully makes a purchase, they will receive a commission. About 240

million customers every week shop at Walmart's 11,400 physical locations and many online

outlets.

Fig 4.. Social media platform of Walmart

Conclusion

In comparison to Amazon's 7% growth to $121.2 billion, Walmart's latest quarterly revenue

report of $152.86 billion is an 8.4% increase year over year (YOY). Walmart is the best option

for fresh, inexpensive grocery delivery. Amazon is the best option if you're looking for a wide

selection of products (including handcrafted artisanal items), a wide variety of streaming

services, and great bargains from Whole Foods Market.

 Fig 3. Comparison of Amazon and Walmart

Reference
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Cavallo, A. (2018). More Amazon effects: online competition and pricing behaviors (No.
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