Amazon and Walmart are the two most significant rivalries in the retail industry, and their constant rivalry puts them side by side with new offerings and innovations. Although Walmart has been around for 30 more years than Amazon, both companies are fighting for the same customers. Walmart started as a grocery store back in 1962. It relied on physical locations. On the other hand, Amazon started as an online bookseller back in 1994. With the passing time, both the companies started providing additional services such as Amazon web services, video and music, and Walmart pharmacy. Several factors can be used to judge the performance of each company and evaluate their success. One company might dominate in terms of one aspect while the other may dominate in terms of the other. For example, Walmart is the leader in physical space, while Amazon dominates online.Amazon VS Walmart – The Competition for E-Commerce Market Shares Here in this article, we will explore some of the factors that will help us understand which company is better and in terms of which factors.

Finances The total equity of around 79.6 billion dollars while that of Amazon is approximately 43.55 billion dollars. Walmart had 2.2 million employees in 2018, while Amazon had 575000. Both the companies have a reputable online presence while Amazon is still dominant. Although Walmart is showing significant growth in its online sales, it still lies far below Amazon, known for almost half of all the purchases made online. Similarly, when you compare both companies’ customers, you will find Amazon has much more prime customers than Walmart. An average Amazon prime customer spends more than $1300 a year, and there are at least 100 million Amazon Prime members worldwide. On the flip side, you will find that 95% of Americans have shopped at Walmart or Walmart.com at least once.

Customer Satisfaction Customer experience culture is vital for all e-commerce companies; especially, it matters the most for companies like Amazon and Walmart. According to the customer satisfaction index, Amazon is the second-highest rated company in terms of client satisfaction. The company held the top spot for eight years and lost to Costco in 2018. In short, both companies give prime importance to customer satisfaction. The companies value their customers as they value their new products and strategies. In the recent past, Walmart hired a new chief customer officer to compete with Amazon. The updates to the store, improvement in the website layout, enhanced user experience are all designed to ensure 100% customer satisfaction.

Innovation Amazon and Walmart are most of the time matching each other in bringing and implementing innovative ideas. Amazon launched its Amazon Go stores where customers can easily pick up items and walk out without a cashier. Both the companies are placing a large emphasis on improving all the factors that make them lag behind their competitor. For example, Amazon is investing in physical retail and grocery while Walmart improves its e-commerce capabilities. Walmart is also planning to add robots to hundreds of stores around the country. The company has already automated much of its supply chain and online order pickup process. The company is also testing pickup-only locations where customers can pick up orders without interacting with humans. On the flip side, Amazon is working on launching robots at its fulfillment centers. The company has already started using autonomous robots to deliver packages in selected markets. Furthermore, Amazon has expanded its fashion and included try-before-you-buy clothes through Prime Wardrobe.

Supply/Chain Logistics When Amazon discovered it couldn’t compete with the in-store experience, it started offering quick shipping. Amazon announced same-day shipping for its Prime customers in the recent past, which left Walmart scrambling to compete. Right after that, Walmart also announced that it would offer next-day shipping for selected items. Its one-day shipping option covers 75% of the U.S. In the recent past, FedEx also broke up with Amazon, which means Amazon is now entirely in charge of its domestic ground deliveries. The company is building its own fleet of trucks and planes for years and will continue doing so in the upcoming years.

Digital Existence and Growth Undoubtedly, both the stores have heavily invested in digital growth. Walmart is consistently investing in building its popular grocery pickup and delivery services. Amazon, on the other hand, is working to increase its Amazon Go stores. The company is planning to expand its services to airports as well as college campuses. Walmart is improving its online presence by expanding its variety and number of products that it offers online. It is partnering with brands like Lord & Taylor and Fanatics to enhance its inventory selection. In addition to that, Walmart has reshaped its app and digital offerings to provide premium customer solutions.

Sustainability Amazon’s corporate carbon footprint checks out the amount of greenhouse gas emissions attributed to direct and indirect operational activities. The company measures its total impact on the climate and uses this information to develop meaningful carbon reduction goals. The company plans to reach net-zero carbon across Amazon by 2040. Similarly, Walmart is also working to lower its carbon footprint across the globe. The company is working on Project Gigaton, which is oriented to reduce greenhouse gas emissions as much as if more than 200 million cars were removed from the road for a year by 2030. The company is also investing heavily in carbon emission reduction programs throughout its supply chain, especially in China.   

In the race between two giants, i.e., Amazon and Walmart, it isn’t easy to decide who comes at the top. The biggest winner in this competition is the customer. As the two companies compete for market share, the customer gets benefits in terms of better service, expanded product lines, and more innovation. It is quite challenging to find the winner between the two companies. The best thing is that both the companies are changing the retail landscape and are encouraging each other to continue to grow and develop. They both deserve a big round of applause for playing a vital role in the growth and development of the e-commerce industry.