WalMart vs. Amazon: the Future of Global Commerce

DotcomWeavers

Feb 22, 2017

The rivalry between Amazon.com, the undisputed champion of online commerce, and WalMart, the largest brick-and-mortar retailer in the world, is the great economic contest of our time.

The competition is changing the nature of commerce and the victor will emerge as the most influential commercial entity in history. Each company has market dominance in an area that the other wants. Whichever one can successfully master the entire supply chain first, will win.

The only question is: can Amazon develop its physical distribution and retail network before WalMart’s eCommerce platform catches up with its brick-and-mortar business?

Right now, it could go either way.

Who has the advantage?

Amazon dominates the online retail space. One reason for its success is its unmatched ability to leverage information to influence customer behavior. Amazon’s platform presents preference-specific products to users based on sophisticated algorithms, while it parses real-time data to drive dynamic pricing.

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Now, the Seattle-based powerhouse is rushing to perfect its logistical, distribution and shipping capabilities through the acquisition of new warehouse facilities and retail locations, the development of shipping resources like Prime Air, and, of course, delivery drones.

Amazon is also in the midst of a hiring rush, looking to add more than 100,000 new employees to their current 306,000 by the end of 2017.

Set against Amazon’s undisputed digital might and growing mastery of the physical supply chain is WalMart and its brick-and-mortar retail empire.

With more than 2.2 million employees worldwide, and yearly revenues nearing $500 billion, almost 95% of which belonging to brick-and-mortar sales, WalMart has the numbers to prove that its supply and distribution capabilities, as well as ability to influence on-site customer buying decisions, are unmatched.

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Of course, WalMart is also making moves to disrupt Amazon’s domination of the eCommerce environment.

It recently bought Jet for $3.3 billion and so acquired a platform with which to fight Amazon on its home turf. Because Jet holds no inventory but is rather a network of sellers, it can often offer lower prices than Amazon, which may prove decisive in the ongoing price war.

How will the winner be determined?

Since both companies have already set the precedent for their respective area of experience, the best way to make an impact will be to do something altogether different and innovative.

It is a new idea, a new convenience, that in an untapped market environment will a real impact on the supply chain and, in turn, the individual consumer – thereby securing the victory.

Both companies are working to perfect their drone technology: Amazon to create fully autonomous package delivery options, WalMart to develop machines to optimize its warehouse systems.

They are also both seeking ways to revolutionize mobile advertising methods and shopping convenience as smartphone and tablet usage continues to surge upwards.

“This situation isn’t unprecedented,” says Amit Bhaiya, CEO of DotcomWeavers. “Throughout history, major corporations like Standard Oil or the Carnegie Steel Company, who were on the cutting edge of current technologies, have always sought to out-innovate their competition. What is unprecedented are the methods by which they will succeed and the scope of the impact that a clear victory will have on the entire world.”

The stakes on the macro and micro levels, from the transformation of global markets to the steadily falling price of consumer goods, have never been higher.

To capitalize on the rapid changes occurring in the retail environment (web and mobile) it is essential that you have a responsive and scalable solution. At DotcomWeavers, we have the capabilities to develop powerful and modern eCommerce websites and apps that will propel your business into the forefront of your industry.

Fore more information about how we can boost your conversions and marketing returns, please contact us today.

  • eCommerce
  • Marketplaces

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