October 30, 2017

Amazon and Walmart Continue to Duel for Retail Dominance

Amazon Beats Walmart Prices But Gap Is Narrowing: Profitero Study


Remember when Walmart was the evil empire destroying small businesses across America? Today the $500 billion behemoth has somehow morphed into a spunky underdog fighting Amazon.com ($136 billion revenue). One dimension to the duel is pricing, where Amazon continues to undercut Walmart’s core promise of being cheaper than anyone else. This new study from Profitero finds that Amazon underpriced Walmart in 12 of 13 categories, although the average difference is just 3%. Walmart still beats the prices of other retailers.

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Walmart Converts Customer Data to Advertising Revenue


Walmart may be on the defensive with prices, but it’s attacking on other fronts. Here’s a piece about its effort to grow its advertising business, leveraging its massive history of online and offline customer purchases. Amazon is growing its advertising revenues as well, although it’s still far behind Facebook and Google. Other major retailers are also using their customer data and Web reach to sell ads.

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Amazon Challenges In-Store Convenience with In-Home Delivery


Amazon, in turn, keeps attacking physical retailers’ advantage in convenience. Its latest thrust is Amazon Key, which will combine a smart lock and indoor security camera to allow Amazon to place packages inside a customer’s home. Remote control means that Amazon drivers can’t open doors by themselves and the security camera keeps an eye on their in-home behavior. If that’s all you need to feel comfortable with this idea, don't read this article pointing out that most Internet of Things devices don't meet even the most basic security standrds.

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