Walmart's Online Prices Move a Step Closer to Amazon

Mia Hanson November 27, 2017
Walmart's Online Prices Move a Step Closer to Amazon

It seems like Wal-Mart Stores Inc. could get the title of low price leader back from its e-commerce rival Inc. as analysis presented on Monday showed that the retail company is closing in on the e-commerce group’s online prices for the first time.

According to the study,’s prices on average are now only 0.3 percent higher than the online retailer’s. Its prices were also approximately 3 percent more than Amazon’s in the previous year.

In addition, some product categories suggested that the multinational retail corporation charged items lower than the Seattle-based seller as well.

For wearable technology, like fitness trackers and smartwatches, Walmart priced it 6.4 percent less than Amazon this year compared to 12.6 percent a year ago.

The company is also 1.3 percent cheaper now in sports and outdoor products, against 3.5 percent in 2016.

Walmart’s Consistent Price Cuts


These figures indicated that Walmart was able to constantly reduce its online prices across a number of categories, instead of just offering short-term discounts.

Walmart’s spokesman Dan Toporek stated that they are dedicated to having online prices that meet or surpass prices at other top sites.

Continuous markdown is one of the vital steps the company is using to improve its e-commerce business.

Analysts stated that Walmart invested more than $1 billion last year to make its prices more affordable, affecting its earnings, so as to provide lower prices online.

Walmart’s strategy seems to be working so far, but analysts as well as consultants estimated that it will have to pay about $6 billion over the several years to keep online price parity with Amazon and to contend with the remainder of the retail group.

Sizemore Capital Management’s investment head said that Walmart is better off using its money to rival the online retail giant and to invest that in the business, given that it is the one with the fighting chance to take on Amazon.

Amazon’s spokeswoman Kate Scarpa said that the online retailer’s prices are as low as or lower than any other seller and they work hard for customers to guarantee that it is true every day.

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Mia Hanson


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