How Walmart Is Betting Big On Stores To Catch Amazon In E-commerce

Walmart employs more people than any other company in the world and is the country’s largest grocer. But when it comes to e-commerce, Amazon is the clear leader, with 39.5% of the market share compared to Walmart’s 7%. Now Walmart has ambitious new plans, and new leadership, to try and catch up. CNBC got an exclusive interview with Walmart’s new e-commerce chief Tom Ward to hear how it plans to leverage its 4,700+ U.S. stores to entice sellers to Walmart and speed up local delivery. Because 90% of Americans live within 10 miles of a Walmart, using stores as micro-fulfillment centers is helping Walmart expand programs like drone delivery and InHome delivery straight into customer refrigerators.

00:00 -- Intro
02:03 -- Playing catch-up
05:47 -- Selling on Walmart vs. Amazon
09:25 -- In-store and grocery advantage
12:34 -- Speeding up delivery

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How Walmart Is Betting Big On Stores To Catch Amazon In E-commerce

[Spiritfba]

I would gladly shop online with Walmart if all they sold were products available in their stores. I don’t like having to sift through thousands of third party items and gamble if they will fall apart at first use.

[johnl.]

It’s good that Amazon has major e-commerce competition

[searchingforeverywhere]

Walmart needs to work on their website more than anything! It's a functionless calamity that was suppose to be addressed years ago by partnering with Google. Until then I'll gladly pay the extra money on Amazon.

[Sim]

What walmart thinks I want: More janky third party sellers and needless subscription programs.
What I actually want: free shipping that shows up when I'm actually at home.

[BarnStangz]

IF Walmart was really smart, they would include a Sam's Club membership when you get Walmart +

[signupstuff]

I rediscovered Walmart (and other stores) during the height of the pandemic when Amazon couldn't reliably keep essentials in stock. Also Amazon isn't necessarily the cheapest anymore, *especially* for groceries and household items. And they're not always the fastest either. I don't have a membership with Walmart but sometimes my orders come next day.

[treysowavvy]

For those who don’t know, Walmart has a third party delivery service. Only grocery pickup makes up the largest part of any Walmart’s revenue.

If you work at Walmart you’ll notice “OGP” is the best funded, and most prioritized department in the store. That’s because Walmarts business model is built around that specific department.

When I left Walmart as a marketing manager (July 2022) they were testing and implementing its own delivery service similar to Walmart. Expect to see Walmart delivery associates in the next year or two.

[rachithrr]

Is this the new norm in advertising? Clearly, this video is an advertisement disguised as an informational. W+ event starts tomorrow and CNBC drops this today.

[brandonchristopher]

These are also two of the worst companies to work for maybe of all time as far as retail is concerned. They're also two of the wealthiest companies of all time and they both refused to pay their employees a living wage

[raybod]

If Walmart improved their website, they could grow their online sales several percent. Walmart needs more cutting edge modern online managers.

[Davethreshold]

That was EXCELLENT CNBC!! I always thought the online Walmart stuff was drop shipped only to them, from their other stores. Now I know there are new vendors involved. As I told my friend, when I shopped for chef knives, Walmart stores had 3-4 brands. On Amazon, you get 50-150 brands! I will take another look at WM for ordering stuff. Well done! 🧡

[chanelf.]

It's very true. Now that Walmart has Walmart+, I have been spending more at Walmart because it's cheaper, quicker, and easier. To be fair, I have always grocery shopped at Walmart, but the pandemic put a hamper on that. The fact that I can get stuff faster than Amazon without the price increase AND get groceries at the best price (Let's be real, Walmart is still top dog when it comes to affordable groceries, and we all know things on Amazon are 3x-4x+ times more expensive than items at Walmart and Target.). I get groceries once a week now and I don't have to go to the store. I've ordered things to be shipped from Walmart and got them within hours. One thing I dislike is they put a cap on the tip amount. Those of us that are not physically able to do shopping are super appreciative of our shopper and delivery person.

[sixoffive]

I was a >10 year employee at a Walmart store. AARP once recommended employment at Walmart. My experience was not typical, I once saw and heard the store manager tell his co-managers as he pointed at me I want him out of this store. Two weeks later all those co-managers where gone. Another two weeks there was a different store manager and a few months later I was no longer employed there. Store management tends to be abusive.

[blossomx]

I hope they can catch up a little bit with Amazon. Amazon needs competition which will be good for all of us. Amazon is slagging off a bit. You can’t get anything in 2 days anymore and they are selling used products as new. It’s getting annoying.

[RiVer-Parish]

Wally World is getting tired of Bezos cutting into their profits 😆.

[lotto]

Walmart is usually 50% cheaper and I get my items the next day without any special sign-ups.

[eblair]

I was searching for side view mirrors for a chevy van our company purchased. Found the exact model I desired at Walmart. Everyone in my office thought I would receive an item that would not work. I was very surprised to get the correct item and we saved 100.00 !!

[arigutman]

The big question, will it work?! I think poking at Amazon can be dangerous because they tend to come after such competitors without any care in the world, but heck if any company is to take them on it better be Walmart or Target as some of the biggest retailers with the infrastructure somewhat in place...

[yoli]

Im using Walmart+ more than Amazon lately. Can't beat those groceries at your door step

[SLMK-rkht]

I used Walmart shopping and ordered item for the next day. Got it 3 weeks later. Fix shipping issues and I might reconsider.