Amazon is poised to become king of the mountain in retail after decades in business. Their rise wasn’t as fast as current king, Walmart, but it’s an amazing feat!
By Brenden James Martel (@lwiclassic on Twitter)
Email: lwiclassic@protonmail.com
Zelle: lwiclassic@protonmail.com
- Introduction
- AWS is a Powerhouse – $90 Billion in Sales
- Advertising on Amazon.Com
- Third-Party Sellers Platform
- Great Customer Service
- Amazon Prime
- Conclusion
Introduction
There has been a business battle reckoning for ages. Walmart (WMT) vs. Amazon.Com (AMZN), traditional retailing, versus eCommerce. They are very different plays and both parties want what the other one has in some places. Amazon would like the share of groceries sales that Walmart sees and their delivery ease from storefronts. Walmart would like a powerhouse like Amazon Web Services (AWS), advertising, and third-party seller sales to soar. Through all of this, the battle has gotten closer than it’s ever been, with many analysts saying 2024 is the year that Amazon will finally best Walmart. My people, the world has changed and it’s a digital one, now!
AWS is a Powerhouse – $90 Billion in Sales
AWS has seen constant growth over the years. It is what makes people value Amazon.Com as a tech play in investing. It is a behemoth of a venture, bringing in revenue of $90 billion recently in 2022. AWS provides web service tools to developers and website owners, like website hosting and other tools. Walmart has nothing to battle this really and this is the biggest key reason that Walmart is lagging behind, nearly.
Advertising on Amazon.Com
Amazon is also one of the top advertising platforms. Most US homes use Amazon and there are a ton of third-party sellers that use the site to sell items. This leaves them having to battle it out with their competitors for keyword advertising to best them in displaying their goods first. The only constant with advertising platforms is that eventually the price is going to go up per ad/keyword and the platform will be the only winner. We’ve seen this with platforms like Google Ads. With the exception of YouTube ads, it’s not really worth it on a cost benefit margin term. Walmart now has a third-party seller platform added within Walmart.Com, however, there ads revenue is a fraction of that of Amazon.Com, which boasts being one of the largest in the world!
Third-Party Sellers Platform
The third-party sellers platform is what made Amazon.Com, Amazon.Com. People could cheaply find books, originally, for pennies on the dollar. I am an avid reader and have spent a pretty penny on books at Amazon, especially after the introduction of Kindle. Amazon and Walmart charge fees to sellers for various things and that adds to their bottom lines. Amazon is killing it in this space, again with Walmart lagging behind.
Great Customer Service
We all know the stereotype of the typical Walmart customer service representative at their stores. They leave much to be desired, to say the least. This is another place that Amazon.Com has them beat. Amazon, through founder, Jeff Bezos, had the innovative flywheel approach, that placed customer service as the chief mission of the company, nearly. Other than seeking profits, they wanted to be all about great customer service. And, though, in recent years there has been some complaints that their customer service is lagging from times past, it still is among the best in the world! I’ve used them several times in the past to satisfactory endings.
Amazon Prime
Amazon Prime is the number one reason that the Amazon.Com beats Walmart in retail, probably. Though Prime is pricier than Walmart+, many people just cannot resist all that comes with it. There’s free shipping, TV/films, music and more! It’s a no brainer for many. Walmart’s stubborn resistance to innovate its model in recent decades, to compete with this has left it a laggard here, as well. Somewhere, Walmart founder Sam Walton is rolling over in his grave, as he prided himself on being ahead of the trends in his great autobiography, Made in America.
Conclusion
So, it is simple to see why Amazon.Com will soon overtake Walmart this year of 2024. They are executing at a higher level than Walmart in nearly every sector and are still seeing wild growth many places. There’s still room for growth, whereas Walmart’s room for growth is solely online, by now. Amazon.Com still wants to move into brick and mortar more successfully, but I think for now it is safe to say, they’ll take the number one retailer place with happiness enough.
Resources:
Amazon Will Soon Overtake Walmart…
Amazon Should Surpass Walmart…
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