Walmart's two major advantage areas are "threatened" by Amazon

Walmart's two major advantage areas are "threatened" by Amazon

As two giants in the retail sector, Amazon and Walmart have always been competing with each other in various fields. From an 8 to 1 market share advantage in 2014 to the current 1.6 percentage point profit margin at the end of 2021, Amazon has gradually taken the lead in these fields and continues to achieve results.

  

Data shows that Walmart's revenue in the healthcare and personal care sectors has reached nearly $50 billion , up about 30% over the past five years , nearly a third higher than Amazon's total sales in the sector of about $13 billion .

 


However, despite Walmart's revenue growth in the healthcare sector, the company's pace of gaining market share has slowed due to the rapid market growth in the sector over the past 30 years .

 

In contrast, Amazon's revenue in this area has increased by nearly 340% over the past five years , its share has increased year by year , and the importance of these two areas in Amazon's market is also increasing .



According to statistics, among the seven largest retail sectors, health and personal care is now the fourth largest category with the largest contribution from Amazon. The top three categories are electronics and appliances , sporting goods, music , books and clothing , with market shares of 24.5% , 16.9% and 14.6% respectively.

 

In terms of the overall market, Amazon's overall sales growth accounted for 57% of the US e- commerce platform and captured many Walmart users.

 

In addition to the medical and personal care sectors, Amazon's share of furniture sales in the United States was 2.9% in 2014, far behind Walmart at the time . However, by 2019, its leading position began to emerge. In 2021, Amazon's lead in home office supplies expanded to 14.8%, 6 percentage points ahead of Walmart .

 

In addition, in terms of the domestic sellers’ settlement rate, Amazon is the first choice for more third-party sellers, with about 6.3 million third-party sellers , and buyers also think of Amazon as a cross-border shopping platform. However, Walmart is also striving to catch up, stepping up its pace in terms of product delivery, warehouse expansion, and category expansion .

 

In March this year , Walmart also entered the luxury beauty market for the first time and opened up new sales channels. The competition between the two retail giants seems to be becoming increasingly fierce.


Walmart

Amazon

Medical and Personal Care

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