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Market

No better “marketplace” for Wal-Mart than the web – WMT, AMZN, SHLD, BBY, EBAY & GOOG

March 5, 2013 by Melissa Michaels in Market, Technology with 0 Comments

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

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About Melissa Michaels

Melissa Michaels joined the NBC Connecticut news team in October 2007. Monica began her career as a general assignment reporter for WCTV in Tallahassee, Florida. During her career, she's covered big stories like the Joseph Smith murder trial. The trial received national attention after a car wash surveillance tape of Smith abducting 12 year old Carlie Brucia became prosecutor's main piece of evidence against him. She contributed to news coverage that gave the station several AP awards, including best continuing coverage.

View all posts by Melissa Michaels →

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