A former online bookseller and one of the largest brick-and-mortar chains will soon battle it out for e-commerce supremacy. Amazon and Walmart are about to go toe-to-toe to see who reigns supreme. According to an article on Forbes, Walmart clearly dominates in the retail arena, but pales in comparison to Amazon when it comes to the web. Does that give Amazon an advantage when it comes to e-commerce? It might not at the moment, but it could soon.
From the article:
According to Nielsen, e-commerce will gain more ground than any other segment of the retail industry by 2017, with a compound annual growth rate of 11% each year. Supercenters of the kind pioneered by Wal-Mart come in second, with their growth rate projected at only about half that of web shopping.
Wal-Mart is doing all it can to catch up with Amazon online, copycatting some of the Seattle retailer’s most successful tactics.
They’re trying out lockers, one of Amazon’s hallmarks, allowing shoppers to order items online and pick them up in stores — crucial for the Wal-Mart demographic, a quarter of whom reportedly do not use debit or credit cards or even have a bank account.
They’re dabbling in same-day delivery and even going a step further than Amazon by attempting to crowdsource package drop-off among customers. They’re investing in web technology to improve both their site’s appearance and ease of navigation.
What else can Wal-Mart possibly do to win the web? Nielsen’s Todd Hale has one answer. “E-commerce is growing at 11% a year, but sales for consumer packaged goods online — food, groceries, everyday items — are more like high double digits, almost 20%,” said Hale, SVP of consumer and shopping insights. “This is the space Wal-Mart has to go after: perishable items. That’s where they need the infrastructure.”