In efforts to keep up with its main rival, Amazon, Walmart has invested millions of dollars into its e-commerce platform. With new executives and five straight quarters of losses in the US, Walmart e-commerce could transform and enter the mainstream online retail world. However, with a track record as bad as Walmart’s, is a total e-commerce overhaul possible? And would it be a success
Walmart E-Commerce: What Happens Next
Last year, Walmart invested $500 million into its e-commerce sector, still with little noticeable improvements. With a new forward-thinking CEO, Walmart is seeking to launch its e-commerce efforts into the 21st century. With features like competitor pricing on their website, experts predict that Walmart e-commerce is looking to both match and overcome its opponent in the online world, Amazon.
The Current State of Walmart vs. Amazon
Walmart is the world’s largest and richest retailer. With thousands of retail stores and supercenters worldwide, it dominates the in-store retail market and maintains a commanding lead. However, Walmart’s e-commerce platform doesn’t reflect the global dominance that its stores represent, letting Amazon run the show online. Of course, Amazon doesn’t have an in-store presence, so the two sides are basically split—Walmart owns in-store retail, while Amazon is on top of e-commerce.
Can Walmart Challenge Amazon?
Amazon is a difficult company to challenge regardless of size or spending ability. In a meteoric rise over the past 15 years, Amazon has surpassed eBay and established itself not only as the preferred online marketplace for consumers and merchants, but a multimedia tech giant now making tablets and smartphones.
Walmart will need significant work done to its e-commerce platform in order to properly challenge Amazon. Not only will their site need to be functional, streamlined, and efficient, but they will need to make online shoppers aware of the new makeover. This means millions of dollars in marketing costs as well, which increases the possibility of negative ROI.
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