SIMONE DEL ROSARIO:
AMAZON IS THE KING OF E-COMMERCE. BUT THE KING OF BRICK AND MORTAR – WALMART – IS TRYING TO TAKE ON AMAZON’S TURF. WE’VE GOT THE WAYS WALMART IS COMPETING TO REPLACE AMAZON IN THIS WEEK’S FIVE FOR FRIDAY.
AMAZON IS SYNONYMOUS WITH PRIME, SO ENTER WALMART PLUS. JUST LIKE PRIME, WALMART PLUS GIVES YOU FREE NEXT DAY OR TWO DAY SHIPPING, I WONDER WHERE THEY GOT THAT IDEA. BUT WALMART ONE UPS WITH DISCOUNTS ON GAS. THEY’RE ALSO EDGING OUT AMAZON IN PRICE TOO, IT’S JUST 98 BUCKS A YEAR FOR PLUS, WHILE PRIME IS GONNA SET YOU BACK 139.
HERE’S ANOTHER PAGE FROM AMAZON PRIME’S BOOK. THIS MONTH WALMART REACHED A DEAL WITH PARAMOUNT PLUS TO OFFER FREE STREAMING FOR ITS PLUS MEMBERS. IT’S A START, BUT THEY’VE GOT A LONG WAY TO GO TO REACH THE LEVELS OF THE AMAZON PRIME VIDEO LIBRARY WHICH INCLUDES EXCLUSIVE RIGHTS TO THURSDAY NIGHT FOOTBALL FOR THE NEXT 11 SEASONS.
FORGET GOING TO THE GROCERY STORE TO GET THOSE GAME SNACKS. E-GROCERY IS STIFF WITH COMPETITION FROM WALMART AND AMAZON. WALMART’S DELIVERY IS FREE FOR PLUS MEMBERS, WHILE AMAZON ENDED FREE DELIVERY FOR WHOLE FOODS ORDERS LAST YEAR. AMAZON FRESH ORDERS ARE STILL GRATIS. WALMART IS DOMINATING ON ONLINE UNITS SOLD SINCE 2020 BUT AMAZON HAS THEM DOUBLY BEAT IN REVENUE .
ENTER THE ROBOT RACE. BETWEEN AMAZON PLANNING TO DROP PACKAGES ON YOUR HEAD WITH A FLEET OF DELIVERY DRONES, TO WALMART HAVING LOGISTICS ROBOTS ON LOCK… BOTH COMPANIES ARE ON THE CUTTING EDGE OF RETAIL TECHNOLOGY. WALMART’S ALPHABOT CAN PACK AND DELIVER GROCERIES BETTER THAN HUMANS. AND WHILE AMAZON HAS A HEAD START ON WAREHOUSE ROBOTS, WALMART HOPES TO CLOSE THE GAP WITH ITS GROWING STAKE IN SYMBOTIC.
ALL OF THESE STRIDES COME TO A HEAD WITH WALMART’S PANDEMIC-INDUCED SHIFT INTO E-COMMERCE. RIGHT NOW AMAZON ACCOUNTS FOR 40% OF U-S SALES IN THE SPACE, BUT WALMART’S CHUNK IS GROWING, WITH SALES UP 12% ON THE YEAR. AT THE SAME TIME, AMAZON’S SALES WERE DOWN 4%. BOTH TAKE UNIQUE APPROACHES TO FILLING THE SPACE, AMAZON WITH ITS MASSIVE FULFILLMENT CENTERS, AND WALMART WITH THOUSANDS OF STORES AT ITS DISPOSAL.
THEY MIGHT BE STEPPING ON EACH OTHER’S TOES IN A LOT OF WAYS, BUT THAT’S THE BEAUTY OF COMPETITION. LET ME KNOW WHO HAS YOUR BUSINESS. THAT’S YOUR FIVE FOR FRIDAY, I’M SIMONE DEL ROSARIO AND IT IS JUST BUSINESS.