The contest between the three American online retailers: Walmart, Amazon, eBay is a fight that is hard to determine on the winner. Screening of most of their strategies seems to be a satisfactory effort by both of them to dominate the market; however, the firm whose strategies will gain the greatest follow-up from American buyers will automatically succeed. This study analyzes the crucial features that could potentially lead to America’s king on Internet retailing being crowned.
If precedent should have been a decisive influence, Amazon may have seized hold of online retailing due to its extensive historical record and expertise with an online business. The company has grown from a tiny online bookshop in the 1990s. It is currently the Americas largest online retailer. Amazon has constantly adopted low pricing technique for its e-commerce services. While Walmart has established itself as the worlds the world biggest offline retailer and store, its online presence establishment came late. The company emerged strongly in 2010. Walmart has attacked the Amazon from nearly all sides in online retail business and in 2011 eBay entered the online retail business. eBay holds the title of being the most prosperous internet auction firm and also provides a wide marketplace that hosts multiple online storefronts globally. Since inception, the companys management has since realized that e-commerce is mainly functional on the fixed price setting as opposed to auctions.
In 2012, Walmart retails stores generated $460 billion in revenues which was nine times the revenue that Amazon amassed, but on the online retail, all three firms have equal ground for competition. Amazon and eBay have developed prosperous brands in the internet retailing (Wolfinbarger & Gilly, 2013). Amazon has created a mix of intertwined strategies through creating of a widespread warehousing structures, designed a powerful technology stage, and a tremendously resourceful distribution system precisely designed for the online shopping experience.
On the contrary, eBay has huge support from a vast network of enthusiastic clients and suppliers who have added on the existent 100 million vigorous auction services consumers. Walmart is yet to build its internet brand name as eBay and Amazon have done (Gillenson & Sherrell, 2015). Walmart approach is even enthralling, with the adoption of the low pricing strategy, the firm aims at establishing itself and gaining a huge chunk of the online retail market. The firm has a remarkable history of ensuring high efficiency, increased flexibility and excellent tuning of the inventory which has been touted as the main source of the companys resilience. The company has its stores spread all over the world, unlike its competitors. Critics acknowledge Walmarts low pricing approach as unsustainable in the end; however, Walmart views it as the easiest way to gain online market penetration and huge customer following.
Walmart paid over $300 million back in in 2011 to purchase five technology companies which include Small Society and others. It has consistently amplified the connection between its store inventory, Web site platform, and mobile phone applications to enable multiple customer order in the internet and pick up their goods in their stores. The tactic worked since currently nearly half of the customers do that.
Smartphones have highly simplified access to the internet, and every company is fighting for it. All the three companies have invested heavily in the smartphone apps and phone websites that have attractive multitudes to their businesses. However, according to the study conducted by BI Intelligence Amazon has over 85 million people in its online customer audience, while eBay has 45 million and lastly Walmart the least amongst the three competitors at 29 online customer audience (Workman &Ballve, 2014). It is hardly possible to gauge the future trend amongst the three online retailers; however, if statistics are to increase in a current manner then Amazon might still as well be leading in the years to come. American consumers will benefit the most from the battle but there will no loser.
Wolfinbarger, M., & Gilly, M. C. (2013). Shopping online for freedom, control, and fun. California Management Review, 43(2), 34-55.
Gillenson, M. L., & Sherrell, D. L. (2015). Enticing online consumers: an extended technology acceptance perspective. Information & management, 39(8), 705-719.
Workman, B and Ballve, M. (2014), Amazon, eBay, And Wal-Mart Are The Best Examples Of How Retailers Can Win On Mobile, BI Intelligence, 2017 Business Insider Inc.