Can Walmart Beat Amazon? (The Answer Is Not So Simple)

It's the age-old question in retail: can Walmart beat Amazon? The two companies are vastly different, but they're both industry behemoths. Walmart is a brick-and-mortar giant with years of experience, while Amazon is an online upstart that has disrupted the retail landscape. So, which company is better positioned to win in the long run? Let’s look at the two companies and try to answer that question.

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Can Walmart Beat Amazon?

It's no secret that Amazon is the undisputed leader in online retail. In recent years, Walmart has been making big moves to try to catch up to Amazon. It's acquired e-commerce startups like Jet.com and Bonobos, launched its Prime-like membership program called Walmart+, and expanded its grocery delivery and pickup services.

So far, these efforts have been paying off. Walmart's online sales grew 37% in 2022, while Amazon's grew just 24%. And Walmart is now closing the gap on Amazon in terms of total e-commerce sales: according to Statista, Amazon will account for 37.8% of U.S. online retail sales this year, while Walmart will account for 6.3%. There's no doubt that Walmart is a formidable competitor to Amazon.

Does Amazon Beat Walmart?

It is no secret that Amazon has been eating Walmart’s lunch regarding retail sales. But, there are a few areas where Walmart still beats Amazon.

Walmart has a much larger brick-and-mortar footprint. There are over 11,000 Walmart stores in 27 countries, while Amazon has just over 400 Whole Foods stores in the U.S. It gives Walmart a big advantage regarding customer convenience.

Walmart’s prices are generally lower than Amazon’s. It is especially true for items not eligible for free shipping on Amazon.

Walmart offers more products and services than Amazon. In addition to selling groceries and general merchandise, Walmart offers things like optical care, pharmacies, auto services, and financial services.

Who Is the Top Selling Retail Company: Walmart or Amazon?

In the retail world, there is no company more dominant than Walmart. The Arkansas-based behemoth has nearly 12,000 stores around the globe and employs 2.3 million people. In the United States alone, Walmart has a 36 percent grocery market share.

But Walmart is not content to rest on its laurels. The company is locked in a fierce battle with Amazon, the Seattle-based e-commerce giant that has upended traditional retail with its online shopping and delivery services.

Walmart is still the overall king of retail. When considering both online and offline sales, Walmart is the top-selling retailer in the United States.

That’s according to data from eMarketer, which estimates that Walmart accounted for 543 billion retail sales in the United States in 2020, compared to just 263 billion for amazon.

What Advantages Does Walmart Have Over Amazon?

Walmart has several advantages over Amazon.

Walmart has a much larger physical footprint than Amazon. Walmart has over 11,000 stores in 27 countries, while Amazon has just over 300 fulfillment centers in the U.S. It gives Walmart a huge advantage in terms of reach and convenience. Customers can shop at Walmart stores or order online and pick up their orders at their local store.
Walmart is cheaper than Amazon. A recent study found that, on average, Walmart prices were 21% cheaper than Amazon prices. It is a significant difference that will attract price-conscious shoppers.
Walmart offers a broader range of products than Amazon. While Amazon is an online retailer, Walmart offers online and offline shopping experiences. It gives customers more choice and flexibility when shopping for items.
Walmart has a strong brand identity that appeals to many shoppers. The company is known for its low prices and its commitment to customer service. It makes it a trusted name in the retail industry, which gives it an edge over Amazon.
Walmart has a large number of employees – 1.5 million in the U.S. alone – which gives it significant buying power when negotiating with suppliers. It allows the company to keep prices low, which is another advantage it has over Amazon.

What Advantages Does Amazon Have Over Walmart?

There are a few advantages that Amazon has over Walmart.

Prime benefits

Amazon Prime members enjoy free two-day shipping on all eligible items sold on the site. The perk is not available on Walmart’s website or app. While Amazon does offer special pricing for Prime members (such as discounted prices or free shipping), these perks do not apply to non-Prime members who do not have access to these benefits.

Wider Selection of Products

Amazon has a wider selection of products than Walmart and has attracted more customers. In addition to its wide selection of products, Amazon also offers free shipping on orders over $35, which may help it compete with Walmart on price.

What Is the Difference Between Amazon Prime and Walmart +?

Regarding streaming services, there are two major giants: Amazon Prime and Walmart+. Both services offer a variety of features for a monthly or yearly fee. While they share some similarities, there are also key differences between them.

Amazon Prime offers a vast selection of T.V. shows, movies, and music. You can also access exclusive Amazon Originals, which are only available to Prime members. In addition to streaming content, Prime members also get free two-day shipping on eligible items, access to Prime Pantry grocery delivery, and more. Also, prime offers early access to lightning deals, free gaming, and unlimited borrowing of books.

Walmart+, on the other hand, is focused more on giving customers discounts and access to deals. For example, you can get free same-day or next-day delivery on certain items (with no minimum order amount) and fuel discounts at participating gas stations. Walmart+ also includes a service called Scan & Go, which lets you scan items with your phone while you shop in-store and then pay without going through a checkout lane. Walmart+ members also have early access to black Friday deals.

Amazon Prime is the way to go if you’re looking for a comprehensive streaming service with plenty of perks. But if you’re primarily interested in discounts and convenience, Walmart+ might be a better fit.

Which Has Better Deals: Walmart or Amazon?

There are a few key factors to consider when trying to decide between Walmart and Amazon for better deals. Price, selection, and convenience.

Price: When it comes to price, Walmart will almost always be the cheaper option. They have a huge range of products and can keep their prices low by working directly with manufacturers.
Selection: When it comes to selection, Amazon is the clear winner. They have a much wider range of products and are constantly adding new items. Walmart does have a large selection of products, but it can't compete with Amazon's vast catalog.
Convenience: Convenience is where Amazon shines. Their online platform is incredibly easy to use and navigate, and they offer free shipping on millions of items. Walmart's website is not as user-friendly and often charges for shipping.

Which Has Better Customer Service: Walmart or Amazon?

Walmart and Amazon are both retail giants. They have a lot in common, including their focus on customer service.

While Walmart has had its fair share of customer service issues over the years, it seems to be doing better now. You can see this by comparing it with Amazon's customer service records.

Amazon has also worked hard to improve its customer service record over the past few years. It's not easy for any company to compete with Amazon regarding customer service support.

Bottom line

Walmart has a unique experience in shipping, with thousands of locations all over the country and incredible logistics that allow them to get things out quickly and cheaply. The bottom line is that Walmart is positioned as Amazon's leading competitor, now more than ever.

Suppose they focus on creating static pricing, getting new products onto their platform, and improving delivery options. In that case, they're likely to win over many customers who are tired of paying high prices—and receiving less than what they should be receiving.