If you say that you do not know the name of Amazon and Walmart, then the article about “Amazon vs Walmart” is nothing but a waste of time for you.
But if you are an entrepreneur or a person who is curious about the economic facts and business models, then this article can be a jackpot for you.
Amazon vs Walmart
Here the difference between Walmart and Amazon will be shown and how the competition between the two will be. At first, Patrick Bet David focused on measuring these two companies that are Amazon and Walmart.
Amazon has 650 thousand employees worldwide, and Walmart has 2.2 million employees worldwide, and that’s more than three times.
Amazon is running 75 fulfillment establishments in the US, and Walmart has 42.
Amazon revenue last year was 281, where Walmart this 514 billion dollars in taxes last year.
Amazon’s profits in 2019 were 11.6 billion, where Walmart’s was 6.67 billion.
Let’s get that straight Amazon is doing 281 billion years, but they profiting 11.6 and Walmart did 514 billion, but they are benefiting half twice the revenue half the number of net profits.
Physical stores amazon has shy of 600, including whole foods, which are about 500 or those 600 where Walmart has 11300 stores worldwide.
Five thousand nine hundred in the US and another forty-seven hundred outside the US.
Growth With E-commerce
E-commerce business amazon added their two hundred eighty billion dollars of revenue, and 141 more than 50 percent came just from online e-commerce, but for Walmart, it’s only 22.4 billion.
The number to keep in mind for Walmart on the online e-commerce business, that’s coming in as the following.
They did 22.4 billion last year in 2019, but they did 11.5 billion a year before that means they are doubling their plane offense to get that number going up.
Amazon can sell three hundred and fifty-three million different products, where Walmart sells 35 million different products. (According to the companies daily sales report)
In their physical stores, it’s only a hundred and twenty thousand different products in-store. It’s essential to keep this number of mind one thousand twenty thousand products within the store thirty-five million online.
Amazon’s and Walmart’s Competition
Amazon’s place is fourteen in website ranking, and Walmart is in the 135th position, which is not good.
So here, Amazon is trying to be Walmart, and Walmart is trying to be amazon. Amazon is looking at Walmart’s, and this was not thinkable that they would-be competitors. But they have 11 thousand physical stores.
So if Walmart wanted to do immediate same day shipping and delivery to you, they could do it. At Walmart, 90 percent of Americans have a Walmart within 10 miles, and 140 million people shop at Walmart every week, and that scare Amazon a little bit.
But on the other side, Walmart is sitting there saying they are more prominent, but if they don’t get their act together, these guys are going to pass them up in no time. So it’s better to learn what they are doing.
Now look at the revenues, Amazon revenue, and Walmart revenue; we are going to go back to 2014. In 2014, Amazon revenue was only eighty-nine million dollars, and they then lost 241 million dollars, and this is that calls on amazon investor call everybody used to say jeff what are we going to start seeing profits.
What are we going to start viewing prophecy would say just trust me, trust me long term, long term, and long time. Next, he gets 596 million dollars of profits next year 135 and 2.4 billion benefits 177 3 billion profits 232 out of 10.1 billion dollars in profits more than three times per year prior.
Then he goes to 280.5 billion and 11.6 billion dollars of profits. So now 11.6 billion dollars of profits. It’s nearly twice as much as Walmart. Now look at Walmart 2014, Walmart’s already knew in fallen and 76 B dollars.
It’s not a big difference, but their profits are 16 billion per year. Next year they go to 485 little growth still 16 billion. Next year they go to 495 benefits go lower 14.6 make sure they go to 485 profits go lower 13.6.
Next year they go 500 billion profits goal or 9.8 and the last year 2019 they go to 514, but profits go lower to 6.6. Revenues are going like these profits going like this what is happening. Here is what is taking place.
They are making a play out of their playback. They are saying listen Just be patient we are going to get there because they are taking the money, and they are investing in online e-commerce to try to compete with these other guys, and it’s not just online e-commerce when you see what’s taking place.
Let’s go to Amazon or Amazon’s game. It is amazon’s revenue of where the revenue comes from remembering how we said, 281 billion dollars, and I told 141 billion dollars of that as e-commerce that’s the number one revenue more than 50%.
Still, the one part that we did not include in this 141 billion is the fact that third-party sellers for amazon sell another 53 billion dollars on amazon.
Which you include those two to get it’s about one hundred 94 billion dollars per year added a 281. So keep that part, we simply separated it to say that’s Amazon’s online stores.
So 53 billion there, then you are going to AWS, which is amazon web services, which we will get into that one in q4 of 2019.
I think it did 9.6 billion, and it grew by 35%, which is insane when you hear those numbers, we will get into what that is I am a customer of AWS on two different companies then you have the subscription which is the prime 19 billion per year.
Nineteen billion is just prime subscription, then you have their physical store 17.19 a big part of it is whole foods, and last but not least is other 14.9 billion whatever another kind of income. Let’s go back to AWS.
List of the companies that use amazon web services
- Airbnb relies on AWS. Netflix is hosted on AWS.
- Shopify AWS, NASA, on AWS as well.
- Adobe, GE, Monstrosity all are on AWS.
- British petroleum relies on the Amazon web services department of state. Amazon web services Ministry of Justice.
- Bank of Singapore.
DBS is the department bank of Singapore. It’s the bank of Singapore that uses AWS. It is allowing amazon to make money and lose in other areas.
It’s a cash cow, and this is something where a lot of people can do that and has the advantage for them where they have money coming in from certain places, and they can lose money in other sites.
They don’t care because they have money coming in. It’s an advantage that they have a very very big power that they have AWS. These are the companies that some of the places that revenue is coming from.
Companies Amazon Owns
- Amazon owns wholefoods
- Zappos that amazon holds shoes.
- SOUQ that’s an e-commerce platform, like google or amazon, in the middle east.
Services Amazon Do Offer
To make our life easy, amazon is developing new services. Some of the most promising services of amazon has been listed here.
- Amazon Kindle
- Amazon Prime Video
- Amazon Prime Music
- Amazon Business
- Amazon Twitch Prime
- Amazon Gift Cards
- Amazon Used Textbook (Save 90%)
- Amazon Home Services
- Amazon Weeding Registry
- Amazon Baby Registry
Walmart Owned Companies
- Sam’s club
- Jet-It was a form of amazon, and they pay 3.3 billion dollars.
- Vudu.com it’s like Netflix, prime. They compete in the market place.
How Are The Things Taking Place?
America spent last year 800 billion dollars on groceries. Only 2% is online. Walmart is trying to get that market like they want to get 10 to 50%. If that gets to 50%, that’s 400 billion dollars.
The entire retail industry was $5 trillion last year. 10% was e-commerce. If the 10% goes to 25%, it would be 5 trillion dollars; that’s a lot of money. They are trying to compete for that marketplace, and both of them are alright.
Now we know how big Walmart is with 90% of Americans have a Walmart within 10 miles radius of a Walmart, and 140 million people shop at Walmart every week.
A lot of people fall in love with Walmart, like Amazon is creating a lot of enemies such as google. Google partners with Walmart on voice-enabled grocery shopping. Walmart got 11,000 formal fulfillments.
There are twenty thousand most popular products that you want to buy. You can order online as Walmart is only ten miles away from you.
The real heavyweight fight is because Amazon’s 650,000 employees are going against 2.2 million employees.
So before you say, Amazon’s going to kill everybody, you should know that there are a lot of Amazon’s enemies behind closed doors are now helping Walmart beating amazon.
Digital marketing is the backbone of Amazon when Walmart is concerned about every type of marketing.
One thing is common in both of the companies. Both of them have a strong presence in the affiliate marketing world, where product reviews are the fundamental source of customer acquisition.
Amazon’s affiliate program is more popular than Walmart, which made the battle of Amazon vs Walmart more dangerous.
As if a woman wants to buy perfumes, then she must search on google as “best perfumes for women,” and she will get the best source to pick up her favorite one.