As we all know that Amazon is dominating in the US but not so much on other markets. For instance, the most powerful e-commerce giant in India is “Flipkart” which has been in close talk with Walmart. How huge is this deal? Well… in 10 years, Indian ecommerce market is expecting to be worth about $200 billion (that’s right… it’s a letter “B”). Also, things are looking pretty good in the United States for Walmart as well… thanks to their recent e-commerce efforts along with their supreme advantage of thousands of brick-and-mortar store locations. So … it looked like Walmart was falling about 2 or 3 years ago because of the lack of presence in the e-commerce scene in the US… now … everything looks like … they are all on Walmart’s side.
Consumers’ Are Buying From Walmart (Online)
If we stated this about 2 years ago, most of you might think that we were on drugs or something. The “one and only” goto place was Amazon.com. Most of the US consumers were purchasing stuff from Amazon not from Walmart albeit Walmart tried to pour more resources on its ecommerce business. Now… consumers are making purchases from Walmart all the time… the reasons are … really … the products are the same… the pricing Amazon.com offers isn’t competitive anymore (well… it reached a point that Amazon does NOT need to be cheap to get users hooked up)… also… the shipping is usually faster thanks to the store locations all over the US. Wait… do we mention that … “FREE” Shipping when you make purchase over $35 and usually consumers will make that sort of purchases (and tons of free shipping codes online that you can find … so … it’s really not a factor for being an Amazon member to get Free shipping anymore).
Prime Benefits From Amazon?
That’s right… Amazon memebers have tons of benefits but there is none from Walmart compared with what Amazon is offering. Well… this might be true if you really are using those benefits at all. However, most of consumers really don’t even ever touch those benefits. They are there for the beauty show only (meaning that … to show you and others that you have all sorts of stuff that you can enjoy but really… you don’t do any of them at all).
“Video streaming” is the biggest pull for consumers who really consider to have Amazon prime but … most US household would really choose Netflix over Amazon when it comes to the video streaming service. Therefore, if you don’t make purchases that often, you really don’t need to pay $99 annually (or $12.89 monthly) for Amazon prime.
Flipkart Deal… Might be The Real Deal Breaker For Amazon & Walmart
It’s not just the market share anymore. Walmart has been trying to present the same image as Amazon has over the years … you can see the efforts from the acquisition of the “Jet.com”. Therefore, the brand, the technology, the vendor relationships, and everything behind the curtains are what Walmart wants. Think about it… if Walmart can swallow the Indian ecommerce market and push Amazon aside… what’s Walmart’s next move? Well… probably Walmart will try to squeeze enough room for itself in the US market as well. If Walmart can really be in the 2nd place (not a distant 2nd place… but a close 2nd place), Amazon really should be worrying about its future no matter how many industries they have their foot in already. Since… ecommerce was the core for Amazon, it is the core for Amazon, and it will be still the deciding point for Amazon in the future. Brand image/culture is the key and is hard to change once it’s in consumers’ minds … and “Amazon is E-Commerce; E-Commerce is Amazon”… this image will NOT be changed no matter what.