Amazon.com, Inc. (NASDAQ:AMZN) is beating Wal-Mart Stores, Inc. (NYSE:WMT) in one key area. A new report finds that the online retail giant is bruising Wal-Mart in online shopping. Even as Wal-Mart invests huge chunks of change in its ecommerce venture, Amazon is still winning by large margins. Wal-Mart is attempting to make a splash in the online world. But Amazon continues to make a tidal wave in the world it dominates. Mizuho, a financial research firm, released the results of a new survey Tuesday. The study found that Amazon users spend an average of $157 per month, up from $130 in Nov. 2015. How much do Wal-Mart users spend on average? About $27 a month, down from $30 in the same time period.
The website is able to grow because of mobile. Two-thirds of the survey respondents said Amazon is their top mobile shopping website. This is up from 61 percent late last year. Wal-Mart garnered 23 percent support.
Of course, when it comes to overall sales, Amazon is slaughtering Wal-Mart. The Jeff Bezos behemoth reported $99.1 billion in online sales during the fiscal year 2015. Wal-Mart’s online sales were a tepid $13.7 billion.
These are huge numbers for Amazon. It’s apparent that Wal-Mart needs to play catchup, which it’s attempting to do. At least, however, Wal-Mart is the biggest brick-and-mortar retailer in the U.S. It can also take solace in the fact that online shopping still accounts for about 10 percent of total retail sales.
Can Wal-Mart Overtake Amazon.com, Inc. Online?
It’s no secret that Wal-Mart wants a greater presence online. But can it beat Amazon?
The global retailer recently announced that it’s investing $900 million in web development over the next two years. It’s also trying to match Amazon’s innovation. Wal-Mart confirmed it’s partnering with Uber and Lyft to expand online delivery. It’s also adding a free two-day shipping feature to rival that of Amazon Prime.
Wal-Mart’s partnership with the ride-sharing apps makes sense. More than 12 percent of U.S. Wal-Mart shoppers use Uber or Lyft.
Even when it comes to drones, Wal-Mart may have come across a more practical and realistic way to take advantage of them.
Instead of using a drone as a delivery tool, Wal-Mart wants to fly drones inside its warehouses. The retailer thinks it can use drones for inventory matters, like checking stock, finding info on in-house products and seeing if anything is running low. For humans, this takes a while, but for drones this takes a day.
As Amazon still fights with the FAA over drone deliveries, Wal-Mart has found a clever way to utilize drones. Of course, it won’t grab as much attention as drones delivering books and DVDs.
Ostensibly, Wal-Mart is employing every trick to gain ground on Amazon. If there is one other area that Wal-Mart will likely never catch up to Amazon is stock valuations.
Although its shares are up 10 percent year-to-date at $71, it’s still far away from Amazon’s $700-plus stock. Unless Wal-Mart suddenly invents something incredible, Amazon will continue to dominate the decades-old retailer online and on the stock market.