Even though in this fierce and fast-changing pricing environment, through immense buying power and efficient operations Walmart is trying to win the price war by keeping the costs low, Amazon still has the upper hand since they don’t have to worry about the costs of running physical stores.
Getty Images/AFP/JOHANNES EISELE
Amazon is known for its customer-first approach, they have expanded grocery delivery and product delivery options to better serve customers, including delivering straight inside customers’ garages. Walmart has tried to outdo Amazon but, Amazon has been untouchable with its convenient and innovative customer experience. Moreover, logistically Amazon has also gotten the edge over Walmart. The organization is working out its planned operations arm to equal conveyance organizations and set the norm for quick and imaginative conveyance choices. In numerous ways, Amazon is present as a very coordinated operations organization as it is a web-based business organization. Amazon keeps its promise of efficient online distribution network speeds to buyers’ homes. Thus, giving an edge over Walmart when it comes to online shopping, as it continues to grow towards groceries and further segment other items as well.
However, despite launching itself into e-commerce technology, Walmart struggles to keep up with the delivery timings. Amazon ensures customer satisfaction and convenience by having its own mobile app that lets the customers shop even when they are running errands at Walmart. Since Amazon was already a giant in online retail, it has optimized its distribution network for online shopping, offering same-day and Sunday delivery in some markets along with an unmatched, big data-driven customer interface creating a personalized, highly satisfying online buying experience. While Walmart dominates offline retailing, it is playing catch-up with Amazon online, pouring billions of dollars into e-commerce. Walmart is using aggressive pricing in a same-for-less positioning to compete with Amazon online, with the two giants engaging in a price war across a broad range of products.