No better “marketplace” for Wal-Mart than the web – WMT, AMZN, SHLD, BBY, EBAY & GOOG
Northern, WI 03/05/2013 (gdpwatch) – Online marketing has immense growth potential and Amazon.com, Inc (NASDAQ:AMZN)’s Marketplace is an excellent example of what Ecommerce can do for a company. Independent merchants can sell millions of products via this site. Wal-Mart Stores, Inc (NYSE:WMT) is all set to follow in Amazon’s footsteps. The retail giant is extremely anxious to compete in this market and create a niche for itself. The shipping costs that Amazon saves on, are immense and add to the company’s profit margins. Over the four years that Wal-Mart launched its own version of Amazon.com, Inc (NASDAQ:AMZN)’s Marketplace it has managed to sign up only six outside merchants one of which sells sports memorabilia.
Online shopping craze
In comparison Amazon has 2 million merchants that sell products ranging from mobile phone cases to clothing. An increasing number of Wal-Mart customers are also now shopping at Amazon. Despite this, Wal-Mart Stores, Inc (NYSE:WMT) continues its investment in physical stores and in the pipeline are 130 supercenters, which according to the company are considered to be its primary growth vehicle. Every retailer including Wal-Mart Stores, Inc (NYSE:WMT), Sears Holdings Corporation (NASDAQ:SHLD) and Best Buy Co., Inc (NYSE:BBY) have been struggling to keep above the competition and re-invent themselves even as a larger percentage of shoppers are leaning towards online shopping.
There was an increase of 17 percent in online sales from 2011-2012 which was over four times higher than what retail sales could manage. Wal-Mart Stores, Inc (NYSE:WMT) is keeping its Seattle-based rival under close scrutiny as the latter seems to be gaining muscle with every passing day. Market biggies like eBay Inc (NASDAQ:EBAY) and Google Inc (NASDAQ:GOOG) have also been boosting efforts to put up a tough fight against Amazon.com, Inc (NASDAQ:AMZN). Close to 53 percent of Walmart customers in 2012 said that they shopped at Amazon and this figure stood only at 47 percent last year.
Online shopping Vs in-store shopping
Over the past five years Amazon.com, Inc (NASDAQ:AMZN) shares have almost quadrupled while Wal-Mart Stores, Inc (NYSE:WMT) gained 45 percent. After 12 years of its online store launch, around 2 percent or $5.15 billion of its sales are generated from there while Amazon’s last years sales alone stood at $34.8 billion. Walmart defended its supercenter strategy saying that the stores ended up in reducing shipping costs as they doubled as pick-up and distribution centers for merchandise. The company however is trying to improve and enhance its Ecommerce initiatives. The catch-22 situation for Wal-Mart is that the larger the number of its online shoppers the fewer the footfalls at its physical stores.
Shares of Wal-Mart Stores, Inc (NYSE:WMT) went up by 2.12% to close at $73. 26
Shares of Amazon.com, Inc (NASDAQ:AMZN) went up by 2.77% to close at $273.11
Shares of Sears Holdings Corporation (NASDAQ:SHLD) went down by 0.43% to close at $44.17
Shares of Best Buy Co., Inc (NYSE:BBY) went up by 3.55% to close at $17.77
Shares of eBay Inc (NASDAQ:EBAY) went up by 1.06% to close at $55.48
Shares of Google Inc (NASDAQ:GOOG) went up by 1.90% to close at $821.50
Tagged Amazon.com Inc (NASDAQ:AMZN), Best Buy Co. Inc (NYSE:BBY), eBay Inc (NASDAQ:EBAY), Google inc. (NASDAQ:GOOG), NASDAQ:AMZN, NASDAQ:EBAY, NASDAQ:GOOG, NASDAQ:SHLD, NYSE:BBY, NYSE:WMT, Sears Holdings Corporation (NASDAQ:SHLD), Wal-Mart Stores Inc (NYSE:WMT)