Can Wal-Mart’s Expensive New E-Commerce Operation Compete With Amazon?

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Both Giants do not require me to introduce them in their respective fields which are in this case the same that is E-Commerce. Who does not know about them, well there could be people who are not aware of Walmart but I could hardly think of anyone who is not aware of Amazon.  Jeff Bezos the CEO of Amazon has a net worth of about $143 Billion according to the recent reports and is the richest man in the world, while Walmart’s CEO Doug Mcmillon a fortune of $22.4 Million.

The Walmart’s collective profit for the year 2017 was $386 Billion whereas Amazon crossed the1 Trillion dollar market cap recently. These stats are easy to understand and portray who is getting more profit year by year and day by day.

A new deal of Walmart actually deals, first was to buy Jet.com which has been trusted and proven right in satisfying Walmart’s requirements of digital drawback and recently it acquired Flipkart as well, The the deal was worth every penny.  The decision was believed to take Walmart to new heights so that it could stand tall with Amazon which is the world’s largest and most profitable E-commerce platform in the world.

In the past few years, Walmart has acquired a lot of companies, it launched a website as a separate company in the year 2000 funded by the Silicon Valley Firm Accel Partners but the idea was not received very well by the target audience. The sale was disappointingly low about $25 Million in 2000 were in clothes it was $100 Million, According to the reports a former employee claimed that they built a fulfillment for apparel but the demand came in for electronics or digital things.

The company considered buying GAP Inc. and even Netflix Inc., the former says. But the prime decision makers were made blind by the idea of constructing super profitable stores and sublimed the idea of giving comfort to the people so that they could shop from their homes or offices.

Amazon sells all sorts of things from needles to all electronics u name it and you get it on the website. Amazon has not shown interest in occupying large stores or outlets, the customers are enabled to shop online also, buying items worth a specific amount, deliveries are free for the users which really attract a lot of customers whereas Walmart executives think of giving offer like free deliveries for the orders above $25 through the amount is higher as compared to that of Amazon but they have at least taken an initiative in these days. Walmart also provides a lot of discounts but limited to stores only which makes it lag behind.

The main concern was to meet the price range of Amazon, the prices of the products that were sold had a significant difference. Walmart’s products were way costlier than that of Amazon. Although Walmart sets everyday low price offers for the customers still the sales of Amazon are way higher. The main problem was when the prices on the websites were lowered for Walmart than that in the stores it created a problem which siphoned off the customers which included the 97% of sales for Walmart.

Whereas Amazon sets its prizes by complex algorithms with the help of which the lowest possible price found was chosen for a particular word or item.

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