Amazon Vs. Walmart—Goliath Vs. Goliath (2024)

FAQs

Is Walmart more powerful than Amazon? ›

Amazon dominates the online shopping sphere, and Walmart dominates retail commerce. However, both companies are competing for a foothold on the other's turf. Amazon is emerging in the retail market, while Walmart is gaining prominence in the e-commerce sector.

If both companies keep growing at the same rate between 2024 and 2026, Amazon could top Walmart with $808 billion in 2026 revenue — $36 billion more than the big-box retailer's 2026 revenue, according to my estimate.

For years, Walmart has held the title of America's biggest retailer by revenue, with sales reaching $648 billion last year. But Amazon is closing in fast with $575 billion in revenue, growing at a rate of 12% compared to Walmart's 6%. If this trend continues, Amazon could soon overtake Walmart.

The tech giant, founded by Jeff Bezos, is now worth $1.59 trillion, four times Walmart's $416bn valuation. Walmart has invested heavily in its online operations in recent years to meet the challenge from Amazon, although its internet business remains a fraction of the size.

While the digitally native retailer tries to make the conversion to brick-and-mortar, though, Walmart has been sailing ahead. By the end of 2024, Walmart is expected to control 26.9% of the grocery market, leaving Amazon with 18.5%.

If current sales trends persist, Amazon AMZN -1.24%decrease; red down pointing triangle is likely to overtake Walmart soon. Amazon reported $575 billion in total revenue last year, up 12% from the previous year, compared with Walmart's revenue growth of 6%.

Overall, Amazon is growing faster than Walmart, with a 14% year-over-year revenue increase in 2023, and outside of pressure it experienced in 2022, it also usually reports a higher operating margin. Amazon has tailwinds from its many businesses, in particular from its investment in artificial intelligence (AI).

Walmart remains the world's largest retailer domestically and internationally, with significant commitments to a new online marketplace and fulfillment model. Within the Top 50, Walmart continues to face competition from Amazon, Schwarz Group, Aldi and Costco.

Walmart's Proximity Advantage

With 4,756 stores in the U.S. alone, Walmart has a significant physical presence, allowing for rapid delivery times, potentially even one-hour deliveries. This network gives Walmart a logistical edge over Amazon, whose warehouse network, though extensive, can't match Walmart's store count.

Can Amazon do what Walmart couldn't stop the wheel of retailing? ›

The general consensus among those commenting on the question was that Amazon, even with its newly-acquired might, will not be able to stop the wheel. “Waves of technological change bring new disruptors along,” as Gadi BenMark put it.

Amazon currently dominates the US e-commerce market with roughly 40% market share. Walmart has less than 10% but has grown faster than Amazon over the past five years—even surpassing it in 2022 revenue—due to its smaller start online and recently refocused efforts on e-commerce.

According to estimates, Amazon claimed the top spot among online retailers in the United States in 2023, capturing 37.6 percent of the market. Second place was occupied by the e-commerce site of the retail chain Walmart, with a 6.4 percent market share, followed in third place by Apple, with 3.6 percent.

In summary, Walmart has a more consistent financial performance than Amazon, with steadier profitability despite Amazon having a stronger cash flow position in 2023, but also has a higher debt load.

Walmart has lately attempted to expand its online retail company — walmart.com — to compete with Amazon, which is luring customers online. Walmart paid $3.3 billion acquiring its e-commerce platform jet.com in 2016, gaining a competitive advantage in the e-commerce market (Hunt, 2021).

With nearly 640 billion U.S. dollars in revenue, Walmart topped the ranking of the hundred largest companies globally, followed by Amazon. Walmart was also the largest company in the world based on its number of employees, with some 2.3 million all over the world.

Key Takeaways

There are cases when buying from online stores, TikTok, eBay, Temu, etc. is better, but only Walmart comes close to being a meaningful competitor for Amazon. A bigger Walmart will only create a better alternative to Amazon, leveling out market share and leading to a better e-commerce market overall.

Walmart's Proximity Advantage

With 4,756 stores in the U.S. alone, Walmart has a significant physical presence, allowing for rapid delivery times, potentially even one-hour deliveries. This network gives Walmart a logistical edge over Amazon, whose warehouse network, though extensive, can't match Walmart's store count.