Wal-Mart Lagging Behind in E-Commerce

Wal-Mart is by far the leading retailer in the United States and in terms of total worldwide revenues. Yet, it lags behind Amazon.com when it comes to online sales. In 2012, Amazon.com generated online revenues of $61 billion, while Wal-Mart’s online revenues were just $8 billion. As a result, Wal-Mart is spending considerable resources to improve the situation.
According to Shelly Banjo, reporting for the Wall Street Journal:
“Amazon.com has become the runaway leader in online sales thanks to a network of more than 40 U.S. warehouses, some employing robotic assistants, which speeds orders to homes with ruthless efficiency. As it seeks to play catch-up in E-commerce, Wal-Mart Stores Inc. has concluded it doesn’t want to simply clone Amazon’s model since it also has to worry about supplying its stores.”
“Instead, Wal-Mart is creating a vast new logistics system that includes building new warehouses for Web orders, but also uses workers in stores to pack and mail items to customers, because Wal-Mart has determined it is faster and cheaper to send some shipments from its more than 4,000 U.S. stores. Wal-Mart is being forced to invent its own solution because it still hasn’t figured out how to economically deliver all its products into the hands of online shoppers, current and former executives say. It is a remarkable admission for the Bentonville, Ark., company, which became the world’s largest retailer in part by the efficiency of its supply chain.”
Click the image to see a WSJ video clip. 
Photo by Wesley Hitt for the Wall Street Journal

 

 

This entry was posted in Global Retailing, Online Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together and tagged , , , , , , , , , , , , , . Bookmark the permalink.

One Response to Wal-Mart Lagging Behind in E-Commerce

  1. Debbie says:

    Amazon.com is ahead in online sales because they are the best, they have excellent customer service, amazing selection of items and are tuned into customer needs. Unfortunately Walmart.com is not their biggest problem starts at their customer service it sucks, is not tuned into customer needs and their inventory selection is back in the 1970’s, half of the time you can’t get items that are current. For example I have noticed Amazon.com has now started what they call add in items which are other sellers bringing in current items for customers. I was looking for John Frieda spiral style Walmart.com and Walmart stores stopped carrying it yet Amazon brought it in as add on now that is customer service thinking. Walmart needs to overhaul its system starting from the bottom up because after all we as customers deal with customer service reps first and if they are clueless as to how to handle customer needs then Walmart.com myswell close up shop. It has nothing to do with warehouse stocking etc it is their overhaul way of doing business and that is why Amazon is fast rising to the top.

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