Question

Amazon Vs Walmart which giant will dominate E-Commerce?

Answer 1

Amazon.com has grown from a small online bookseller to one of the largest retailers in the world, and easily the largest e-commerce retailer since it arrived on the dot-com scene in 1995. As a small Internet start-up selling books online the business has come a long way from its beginnings. Amazon also offers millions of new, used and collectible goods in categories such as clothing and accessories, electronics , computers, kitchen and household appliances, music, DVDs, videos, cameras, office supplies, toys and baby things, hardware, apps, etc.

The technology infrastructure of Amazon is huge and strong enough to help not just the sales of its own goods, but also those of small and large third-party businesses that incorporate their products into Amazon's marketplace and use their order entry and payment systems to process their own sales. (Amazon does not own such items and distribution is done by a third party and Amazon receives 10-20 per cent on the sale). This helps Amazon to sell an ever broader variety of items than it would bring on its own while maintaining low inventory costs and increasing revenues

In late 2009, Walmart.com began aggressively reducing prices on a wide variety of famous products , making sure to match Amazon 's price in each case. The types of discounted Walmart products included books, DVDs, other electronics, and toys. The message was clear: Walmart doesn't go down on e-commerce without a fight. Walmart would change its rates to be the "low-cost pioneer" on the Market, "as small as we need to." In other words, the two firms are now caught up in a price war and they are determined to take both sites

Amazon has managed to map a path to market dominance, with the number of Americans subscribing to Amazon in 2019 peaking at 100 million. The organization has expanded its annual membership benefits in an attempt to make it a must-have in every home, such as providing exclusive discounts at Whole Foods, investing extensively in Television and movies, and increasing free shipping. Amazon announced in April that it will spend $800 million to make free one-day delivery the new normal, up from the regular two-day shipping that the company currently provides.