With a market share of only 1/7 of Amazon, Walmart still has a long way to go in e-commerce

According to data released by the analysis company PYMTS , although Walmart's investment in e-commerce is increasing , Amazon still far exceeds the former in sales .

According to previous surveys , by combining the revenue data of Amazon and Walmart with data from the U.S. Census Bureau, it can be found that there is a clear gap between the two retailers.

After investigation, PYMNTS found that Amazon currently accounts for about 48% of online retail spending in the United States , while Walmart accounts for only 7%, which is one-seventh of Amazon.

Furthermore, Amazon’s share of U.S. e-commerce increased from 43.7% to 47.9% from the first quarter of 2022 to the first quarter of 2023. During the same period, Walmart’s share increased by only about one percentage point (from 5.7% to 6.7%).

The report also noted signs that Walmart, which said its e-commerce sales grew 27% year-over-year in the first quarter, was trying to poach some of Amazon’s online sales, according to its most recent earnings call.

On the other hand, a survey of nearly 2,700 U.S. consumers conducted last month showed that 61% of them are Amazon Prime members, 26% subscribe to Walmart+, and 35% say they do not subscribe to either service, indicating that there is still a lot of room for growth in the membership subscription services of the two e-commerce giants.

Amazon President and CEO Andy Jassy said in the annual earnings conference that Amazon's platform has more than 3 million products, and the rich categories can meet almost all the needs of consumers.

John Furner, president and CEO of Walmart U.S., also puts product variety first. Furner said: "The expansion of market sellers has helped stimulate the growth of our e-commerce business. Walmart can now provide more categories of goods for "one to two days delivery". When sellers use our fulfillment services and can deliver within two days, the conversion rate will increase significantly . "

PYMNTS believes that although Walmart's omni-channel strategy has been successful, it is difficult to determine whether the growth in Walmart's online sales is due to the emergence of the grocery category or the increase in e-commerce market share.

However, judging from the current market situation, Walmart's e-commerce journey does not seem to be as smooth as imagined. If it wants to compete with the industry's big brothers, it may still have a long way to go.

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