Amazon and Walmart are two international businesses that offer retail and e-commerce services worldwide. Walmart leads retail trade, while Amazon rules the world of purchasing goods online. But both businesses are competing for positions in the other’s domain. In the retail space, Amazon is making waves. And Walmart is becoming more and more significant in the e-commerce space. Amazon and Walmart are facing greater competition than ever Because of their tremendous success in both retail and e-commerce.
Walmart is popular because of its low prices and personalized services. On the other side, Amazon is preferred by customers because of its large collection and ease of use. These two businesses are fighting it out to be the best in the retail industry. So let’s evaluate the competition between the two pillars of the industry such as Amazon and Walmart. And compare the different markets they both compete in.
Amazon:
Jeff Bezos founded the company named Amazon in 1994. It was only an online bookshop. It grew into a worldwide marketplace over time. It starts selling everything from consumer items to online technology services. Amazon currently controls the majority of the American e-commerce market with a huge global expansion.
Key Features of Amazon:
Amazon’s AI capabilities have their own benefits due to its automated warehouses and tailored suggestions. The foundation of Amazon’s business is AI. The buying of Kiva Systems led to the development of Amazon Robotics in 2012, which improved warehouse productivity.
One of the main reasons for Amazon’s supremacy is its membership base which has over 200 million members worldwide. Amazon Prime provides different features such as free two-day shipping, unique offers, and streaming service access. AI-powered personalization guarantees that Prime members receive relevant service and product recommendations. It also increases member loyalty.
Amazon is present in more than 18 nations including important ones like the US, UK, Germany and India. Its global network of fulfilment facilities and logistical hubs provides rapid shipment and effective global operations.
Amazon Web Services (AWS) also supports Amazon’s e-commerce business. The activities are technologically a major source of its revenue. Amazon has a competitive advantage in technical innovation because of AWS. It provides the cloud infrastructure that inspires its analytics, AI, and data processing.
Third-party retailers access millions of customers through Amazon’s marketplace planning. Amazon has a sophisticated and logistical network of storing its products in its warehouses. These sellers can take advantage of Fulfillment by Amazon (FBA). This strategy has increased Amazon’s dominance in international e-commerce and contributed to its huge variety of products.
Walmart:
Walmart was founded by Sam Walton in 1962. Walmart is the largest retailer in the world in terms of net revenue. It combines a vast physical store network and a quickly expanding e-commerce presence. Walmart dominated traditional retail for decades, but in recent years it has turned its attention to become a strong e-commerce competitor.
Key Features of Walmart:
Walmart’s global approach improves inventory availability and facilitates online shopping. It is just done with the help of an AI-driven supply chain and physical stores. Walmart’s version of Amazon Prime was introduced in 2020. Members get free delivery, fuel discounts, and the ability to scan and go to Walmart shops for a lower monthly cost.
Walmart continues to lead the grocery sales market. Walmart made quick and on the same day grocery deliveries because of Walmart’s huge commerce network and its agreements with food delivery services like DoorDash. In order to ensure product freshness and optimize inventory management, the business has integrated AI.
Walmart is investing greatly in robotics and artificial intelligence to improve operational efficiency. The company used robots to fulfil the centers to perform activities like product sorting and restocking due to a collaboration with Symbiotic.
Profitability between Amazon and Walmart:
Amazon leads the e-commerce industry with more than 9 million sellers and 1.5 million active sellers on its marketplace. Third-party vendors make up more than 82% of these sellers. Sales of Amazon have increased rapidly in both the retail and e-commerce industries. Walmart’s net income is less than that of Amazon. Amazon made over 33.36 billion USD in net profits during the previous financial year. On the other hand, Walmart made over 13.67 billion USD. Amazon’s net income is higher due to its majority of sellers being third-party sellers. It also handles processing and order fulfilment. It reduces Amazon’s expenditures and increases its net income.
Who’s winning the battle for AI-driven E-commerce domination?
Walmart and Amazon have recently started to compete for the leading position in the digital sphere. Amazon’s sales increased by 40% in Q2 2020 mainly due to the pandemic. On the other side, Walmart’s revenue rose by 5.65% year-over-year. Amazon has expanded its business strategies and become one of the leading eCommerce businesses globally. It makes almost 50% of all US eCommerce sales. Walmart remains loyal to its low-price business model and attracts customers with its affordable products.
