Walmart's online business will continue to undermine Amazon's dominance

While it’s unlikely that brick-and-mortar retailer Walmart will replace Amazon as the leading online retailer anytime soon, some details about the two platforms suggest Walmart is at least posing a threat to Amazon’s dominance .

According to market research firm Jungle Scout , many American consumers are fans of the Walmart platform. Walmart's subscription-based delivery program, Walmart+, is gaining favor with Amazon Prime members , and shoppers are gradually moving toward Walmart 's ecosystem .

Here are three compelling points Jungle Scout made in its survey .

Amazon’s third-party sellers take notice of the growth of alternative marketplaces

Amazon is improving its relationship with third-party sellers, who have been frustrated with the Amazon marketplace for years. While only 7% of Amazon sellers currently also sell on Walmart , 39% of third-party sellers are considering using Walmart as a sales platform by the end of this year, according to a survey .

Amazon shoppers aren't totally against Walmart

According to Jungle Scout survey data , 65% of American consumers shop on Amazon, and only one-third of consumers use Walmart . Among consumers who shop on these two platforms , 35 % only shop on Amazon, while only 9% are loyal users of Walmart.

However, many of the Amazon users who do not shop on the Walmart website are fans of Walmart's physical stores, with 57% of Amazon users still shopping in Walmart's physical stores.

Walmart has the opportunity to convert these Amazon shoppers into Walmart.com shoppers , an advantage Amazon doesn’t have because it has few physical stores. At the same time, convenient pickup and return services are also reasons why shoppers choose to shop at Walmart.com .

Walmart + is catching up

According to Jungle Scout, while 59% of U.S. consumers are Amazon Prime users, 35% of them are also Walmart+ members. Discounts on gas and free delivery of fresh food from nearby stores are highlights of the Walmart+ subscription service.

However, despite Walmart's rapid growth, Jungle Scout estimates that Amazon's e-commerce sales are still about six times Walmart's online revenue. Moreover, Amazon has never been a company that rests on its laurels , and it will also launch various new services to compete with other retailers in the market.

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