Amazon has always had the upper hand in the online retail war against Walmart. However, Walmart is rising fast. Are they about to overtake Amazon? Find out below.
Who Currently Has The Largest Market Share?
Amazon has the largest market share of about 80% across different product categories.
Household essentials, health, sports and fitness, food, all the way to electronics is dominated by Amazon.
But there’s an interesting development going on as Jumpshot recently analyzed consumer actions on desktop and mobile devices within 500 eCommerce sites and marketplaces in 2018.
Walmart is growing 3.5X faster YoY than Amazon
Amazon had a growth rate that was 1.7X slower than individual category growth.
It seems that Walmart is catching up to Amazon as they had a 3.5X year over year (YoY) increase in growth rate as compared to Amazon.
Walmart had a 34.1% growth rate in furniture products compared to Amazon that recorded a 20.3% growth.
The highest difference recorded was in the category of food and grocery, with Walmart having a soaring 116.2%, leaving Amazon with a measly 26.2% growth.
Remember I said at the beginning of this post that Amazon’s market share was about 80% in all product categories?
Analyzing individual product categories, it has declined by 50% in furniture during 2018 as compared to 2017, and 3% in home improvement products too.
Swedish multinational group that sells furniture and home appliances, Ikea, grew its market share by 57.4% in the furniture category, the same year that Amazon lost 50% of its market share in the furniture products category.
When it came to food retail, big box stores like Walmart and Kroger grew their market share by 20% YoY while Amazon, FreshDirect, and Peapod had a dip in market share.
While Amazon remained the market leader in beauty and cosmetics, they lost 9% market share YoY.
Superstores like Macy, Walmart, and Target took a good chunk of the market share from Amazon and Sephora.
When it came to the fashion and designing industry, especially for women’s clothing, Amazon lost 30% of transaction share despite the portfolio of designers they boast of.
H&M grew its market share to 77%.
Now, that’s a lot of defeat Amazon has had to concede.
Though, it seems as if Amazon is losing ground to stores like Walmart, Amazon has something game-changing they are leveraging on.
They’ve already beaten Google to dominate product searches.
A report from Jumpshot revealed that 54% of all product searches started on Amazon in the second quarter of 2018.
Now, this is something Walmart hasn’t achieved.
But with the present state of things, Walmart will keep gaining ground on Amazon as they have a faster growth rate.
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