With continued growth and success, Amazon has gone head-to-head with other major names across different industries. Specifically, Amazon and Walmart’s competition is heating up with both retailers announcing one-day, free shipping. The two continue to one-up each other to try to offer a superior consumer experience. In this blog post, we outline three major reasons why experts believe Amazon has an edge over the competition, despite Walmart’s many steps forward. Continue reading to learn more and gain a deeper understanding of how the two rank differently.  

Amazon and Walmart Aren’t Exactly the Same

Lately, Amazon and Walmart.com have dominated the same headlines. But, experts stress the two aren’t the same and shouldn’t be compared as if they use the same business models. In fact, Gina Sanchez, founder and CEO of Chantico Global, explains how Amazon has become more than an e-commerce platform over the years. Compared to Walmart, Amazon offers a wider range of services.

Eric Jhonsa with TheStreet agrees, in light of Walmart’s earnings report, with the sentiment “Walmart and Amazon's U.S. e-commerce operations are very different”. When compared, Walmart’s e-commerce operations are much smaller, its target demographics are different than Amazon’s, and product offerings are limited next to the different industries Amazon dominates, like cloud computing. Experts don’t view the two in the same category.

Amazon’s Consistency Makes it a Better Stock Market Buy

Amazon’s stock is up by more than 20 percent year to date, and experts credit its consistency to this success. Over the yearsAri Wald, top analyst with Oppenheimer & Co., has seen Walmart and Amazon’s stocks fluctuate and chooses Amazon as the better buy. He believes Amazon’s return to a positive ratio is due to consistently outperforming the rest.

Other investors estimate Walmart to be only a quarter of Amazon’s market valuation of nearly $1 trillion. They also explain how Amazon has set the stage for innovation, transformation, and set the standard for other companies and competitors.

Amazon Earns the Love and Loyalty From its Customers

When experts look at Amazon and Walmart for customer satisfaction and loyalty, there’s a clear winner. Amazon is the preferred retailer for shoppers in the United States by 81 percent. The marketplace giant has become overwhelmingly popular with consumers because it has gone the extra mile to understand and serve its customers.
Nick Statt with The Verge, believes Walmart must work to understand its customers the way Amazon does if there is any hope to compete.

In light of Amazon and Walmart’s rivalry seemingly coming to a head, experts have become outspoken in their opinions. Collectively, most agree Amazon has an edge over the competition, although it's not completely comparable to Walmart. Amazon is the better financial buy, and when it comes to customer satisfaction, it continues to win the battle.

At Marketplace Strategy, we help brands of all sizes and industries reach their full potential. Schedule a free consultation to learn more about how we can build a strategic partnership.

Image Credit: Comparably

Related Resources

View All

Piqued Your Interest?

Connect with a coder to talk shop.