YCD News – According to eMarketer, the three major U.S. e-commerce giants are in a fierce battle for market dominance. While Amazon currently dominates the U.S. e-commerce market, Walmart and Shopify are also chipping away at Amazon’s revenue share. Here are the latest developments in e-commerce sales, advertising and partnerships from these major players.
- Walmart vs. Amazon
Amazon is predicted to be ahead of Walmart in U.S. retail e-commerce sales ($431.11 billion and $73.45 billion, respectively).
However, Walmart has recently revamped its website to make its e-commerce shopping experience better than Amazon’s. In addition to a better visual appearance experience, more importantly, Walmart’s advertised products account for less than Amazon. Previously, Amazon has been criticized by consumers for flooding the platform with too many ads.
eMarketer predicts that in 2023, Amazon’s advertising business in the United States far exceeds the size of Walmart ($33.96 billion and $3.16 billion, respectively). According to StreetAccount data cited by CNBC, Amazon’s advertising revenue reached $9.5 billion in the first quarter, higher than the expected $9.1 billion.
2, Amazon vs. Shopify
Amazon and Shopify are battling it out in the DTC space. Amazon launched BuyWithPrime in April last year, a feature designed to allow Prime members to enjoy Amazon’s membership services in branded shopping sites outside the platform.
However, since the launch of BuyWithPrime, only a few hundred brands have signed up for the feature, one reason being the barriers put up by Shopify. When merchants or users use the feature, Shopify pops up a warning that the feature violates its terms of service.
According to an analysis by UBS, Amazon BuyWithPrime could lose 8 to 18 percent of its annual revenue to Amazon if it gets adopted, Insider reported. Currently, Shopify and Amazon are reportedly discussing some form of integration.
3, Walmart vs. Shopify
Walmart and Shopify began working together in 2020, with Shopify sellers having access to Walmart’s third-party platform for sales. At the time, Shopify was slightly smaller, and this cooperation made sense.
However, data shows that Shopify achieved nearly 100% growth in U.S. e-commerce sales in 2020 and 40% growth in 2021, surpassing Walmart in e-commerce scale. Competition between the two is intensifying, which could affect the partnership between the two.
This year, Shopify’s U.S. e-commerce sales will reach $108.15 billion, compared to Walmart’s $73.45 billion. It’s worth noting that Shopify’s figures include sales on the retailer’s own website, while Walmart is limited to its own site.
YCD has learned that Shopify is streamlining its logistics and Walmart is beefing up its logistics side by adding more automated equipment, but both are cutting back on logistics employees.