Walmart and Amazon are two of the biggest firms in retail marketing. Amazon is the leader when it comes to on-line retail, while Walmart is the name everyone knows when it comes to brick and mortar retail. Walmart has taken its business model a step further in selling merchandise on-line. Walmart was once a brick and mortar retail store, but over the years if you were to take a look at Walmart.com one could see a website that offers many of the same goods that a Walmart Supercenter would offer. One could even order merchandise on-line and pay for it at a physical Walmart location. However, Walmart is not the only retail giant stepping up its game. Amazon is also making changes to its on-line retail experience. They offer low cost shipping,
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In the United States the unemployment rate is at 5.1 percent, according to the Bureau of Labor Statistics. Many Americans are out of work which would cause consumers to look for the lowest prices possible. Amazon is able to offer low prices because they do not have to pay the same amount of overhead in keeping up with the brick and mortar retail supercenters. Walmart is able to keep prices low because they are able to obtain their merchandise from low cost producers, which would allow Walmart to sell at a fairly low price and still turn out a profit. Second, the rising cost of food is causing Amazon and Walmart to look into different ideas to provide perishable items to their consumers. According to the USDA Economic Research Service (ERS) food prices are expected to increase from 1.5 to 2.5 percent in 2015. In order for Walmart and Amazon to better provide to their customers Amazon is offering fresh delivery service which would allow Amazon to offer their low cost of perishable items. However, Amazon only offers this service in the Seattle market and soon to California. Walmart is not quite there yet, but it is something that they are looking into for the …show more content…
Walmart is already testing on-line grocery retailing in about 35 stores and is already planning to expand that number. Amazon; on the other hand, is only testing this service in the Seattle market and is looking to expand into California and 20 other urban areas (Walmart vs Amazon). Walmart already has an established reputation and a physical distribution system that is incredibly extensive (Walmart vs Amazon). Not only will Walmart dominate the on-line market for perishables in the United States they will dominate the market in China as well. Walmart currently has a 51 percent stake in a company known as Yihaodian, which is a fast growing on-line grocer in China (Walmart vs Amazon). Currently from both amazon.com and Walmart.com I was able to purchase green beans, but it was clear to see that Walmart had the advantage because I could order the items on-line and by tomorrow I could go to the store and have my items and not pay any shipping cost. Amazon, on the other hand, I would have to sign up for their “prime service”. In today’s e-commerce not only do the consumers want convenience, but they also want the fastest delivery possible and at the cheapest cost. I do not know about others, but in the case above I would have ordered the green beans from
In the United States the unemployment rate is at 5.1 percent, according to the Bureau of Labor Statistics. Many Americans are out of work which would cause consumers to look for the lowest prices possible. Amazon is able to offer low prices because they do not have to pay the same amount of overhead in keeping up with the brick and mortar retail supercenters. Walmart is able to keep prices low because they are able to obtain their merchandise from low cost producers, which would allow Walmart to sell at a fairly low price and still turn out a profit. Second, the rising cost of food is causing Amazon and Walmart to look into different ideas to provide perishable items to their consumers. According to the USDA Economic Research Service (ERS) food prices are expected to increase from 1.5 to 2.5 percent in 2015. In order for Walmart and Amazon to better provide to their customers Amazon is offering fresh delivery service which would allow Amazon to offer their low cost of perishable items. However, Amazon only offers this service in the Seattle market and soon to California. Walmart is not quite there yet, but it is something that they are looking into for the …show more content…
Walmart is already testing on-line grocery retailing in about 35 stores and is already planning to expand that number. Amazon; on the other hand, is only testing this service in the Seattle market and is looking to expand into California and 20 other urban areas (Walmart vs Amazon). Walmart already has an established reputation and a physical distribution system that is incredibly extensive (Walmart vs Amazon). Not only will Walmart dominate the on-line market for perishables in the United States they will dominate the market in China as well. Walmart currently has a 51 percent stake in a company known as Yihaodian, which is a fast growing on-line grocer in China (Walmart vs Amazon). Currently from both amazon.com and Walmart.com I was able to purchase green beans, but it was clear to see that Walmart had the advantage because I could order the items on-line and by tomorrow I could go to the store and have my items and not pay any shipping cost. Amazon, on the other hand, I would have to sign up for their “prime service”. In today’s e-commerce not only do the consumers want convenience, but they also want the fastest delivery possible and at the cheapest cost. I do not know about others, but in the case above I would have ordered the green beans from