How Amazon actually beats Walmart’s grocery deals

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Say what you will about Amazon, but the e-commerce giant has figured out how to get products to customers faster and often at a lower price than its competitors. And Amazon has the numbers to prove it. The company was responsible for more than half of online sales in the United States in the first quarter of 2022, while Walmart trailed around 6% (via PYMNES). While Amazon overtakes Walmart in total online sales, the store holds nearly 20% of the food and beverage market, while the online giant holds around 2%. Don’t let that number fool you: PYMNTS claims Amazon is the second-largest retail grocer in the United States, even surpassing Costco, Kroger, and Target.

Walmart has the advantage of shopping in-store over Amazon, but according to PYMNES, Walmart has not seen a corresponding increase in revenue from customers returning to stores. It’s a compounded challenge for Walmart because customers are presented with another shopping option: Amazon’s Subscribe & Save. Not only does this option save customers money at checkout, but if they subscribe to five or more items, they can save up to 15% off their order total (via Amazon). The online retailer hopes consumers won’t even have to think about ordering items, and they choose to have products presented to their doorsteps. It’s a whole new level of convenience in this evolving e-commerce space.

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