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Amazon versus Wal-Mart - good article

     
7:30 pm on Nov 24, 2009 (gmt 0)

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Hi Guys, here's a good article from the New York Times.

[nytimes.com...]

It shows the battle going on between Walmart and Amazon.

What I can't believe is their figures that on-line retailing is now 4% of all retail sales !

That to me is either a mistake or it is surely a very poor figure, after 15 years of online sales we have only managed to gain a 4% share of the retail market ! ?

7:36 pm on Nov 24, 2009 (gmt 0)

WebmasterWorld Senior Member ken_b is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



That article requires a "member login" and/or accepting cookies.

Is there another source that doesn't have those requirements?

8:13 pm on Nov 24, 2009 (gmt 0)

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Hi Ken-b

They sent me that article ! were you able to read it ?
I suppose I could copy and paste it ?

9:06 pm on Nov 24, 2009 (gmt 0)

WebmasterWorld Senior Member sem4u is a WebmasterWorld Top Contributor of All Time 10+ Year Member



It does not matter to Amazon...their margins are currently running at about 3%...they are more about 'data' and 'web services' at this time IMO.
9:34 pm on Nov 24, 2009 (gmt 0)

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That to me is either a mistake or it is surely a very poor figure, after 15 years of online sales we have only managed to gain a 4% share of the retail market ! ?

I can believe it. The vast majority of retail sales are probably for food, clothing, and other consumables. When I need to go shopping, I still think "mall" not "computer", and I've been in this business for years.
10:04 am on Nov 25, 2009 (gmt 0)

WebmasterWorld Senior Member piatkow is a WebmasterWorld Top Contributor of All Time 5+ Year Member



I hate having to arrange my life around other people's delivery schedules so food always means B&M shopping for me. For anything of value I go for click and collect and deliveries are generally resricted to small items that can come in the mail and low value bulk items that can be left in the porch. (If somebody wants to try and steal 20 kilos of pet food, good luck to them)

What I have noticed is with the loss of specialist book, music and video stores the only place in the UK where you can get a decent choice is on Amazon.

12:18 pm on Nov 25, 2009 (gmt 0)

WebmasterWorld Senior Member topr8 is a WebmasterWorld Top Contributor of All Time 10+ Year Member



yes until deliveries are sorted out properly then online won't make major dents in the retail market.

i work from home and can receive shipments any time, so it suits me, but most people would need to receive packages in the evening or first thing in the morning before work ... when shipping/mail companies resolve this then internet sales will leap ahead.

5:37 pm on Nov 25, 2009 (gmt 0)

WebmasterWorld Administrator lifeinasia is a WebmasterWorld Top Contributor of All Time 5+ Year Member Top Contributors Of The Month



It's believable. Amazon sells "wants." The local grocery stores, gas stations, restaurants, and drug stores sell "needs" (with some "wants" thrown in). And if you include in retail big ticket items like cars, then it makes even more sense.
5:07 pm on Nov 26, 2009 (gmt 0)

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A 4% average for ecommerce sounds about right. It can be higher for specialized niche markets and for highly branded companies.

The big problem, is that shopping is a impulse and tactile decision. They need to touch and feel the product or the box that the product is in.

Even if I know I can save a few bucks, I tend to buy retail, because I want it now, and I want to be able to touch and feel the product.

It's only for the small minority, that price outweights the impulse or tactile mindset.

We have probably reach a plateau for ecommerce sales (as percentage of retail B&M).

4:05 am on Nov 27, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



but most people would need to receive packages in the evening or first thing in the morning before work ... when shipping/mail companies resolve this then internet sales will leap ahead.

I don't see what shipping/mail companies have to do with 'resolving'. They ship where they are told to ship, and keep the best schedules that they can. They already ship coast to coast in 3 - 5 days, depending upon service selection. We ship a very high percentage of shipments to work addresses. People feel safer having deliveries made at work and it is extremely common in US. A business that didn't allow employees to receive shipments would have issues wit irritated employees.

(I won't shop Amazon because I don't trust Amazon. Good luck getting off all of their email lists. You can opt-out forever and still get spammed with pitches.)

7:22 am on Nov 27, 2009 (gmt 0)

WebmasterWorld Senior Member jane_doe is a WebmasterWorld Top Contributor of All Time 10+ Year Member



I shop online as much as possible. Easy comparative shopping, no sales tax, no extra shipping charges with Amazon prime, rebates with an Amazon charge card, less time for me spent shopping, no gas expense and everything just gets left on my doorstep. I even just bought a refrigerator online.
8:51 am on Nov 27, 2009 (gmt 0)

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To get 4% they have to be including retail food and other items that are rarely sold online.

In the context of a competition between Amazon and Wal-Mart it doesn't make sense to include figures from markets where they don't compete.

10:12 am on Nov 27, 2009 (gmt 0)

WebmasterWorld Administrator incredibill is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



Pay attention to what 4% is...

They estimate this holiday season sales at $437.6 billion.

Wal-Mart, with $405 billion in sales

Leaving $32.6 billion for everyone else, online or offline

1:10 pm on Nov 27, 2009 (gmt 0)

10+ Year Member



pay attention to what 4% is...

They estimate this holiday season sales at $437.6 billion.

Wal-Mart, with $405 billion in sales

Leaving $32.6 billion for everyone else, online or offline

Those are annual sales for Walmart versus a several week holiday season for the total. The annual market for sales in the US is approximately 3 trillion. Walmart has an estimated 11.3% of that markets. That leaves about $2.6 trillion for the rest of us.

1:43 pm on Nov 27, 2009 (gmt 0)

WebmasterWorld Administrator incredibill is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



Those are annual sales for Walmart versus a several week holiday season for the total. The annual market for sales in the US is approximately 3 trillion. Walmart has an estimated 11.3% of that markets. That leaves about $2.6 trillion for the rest of us.

True - I reread it and they mixed and matched holiday vs. annual stats in the same paragraph.

Hard to get your facts straight when the source is blending things that don't match. ;)

9:56 pm on Nov 27, 2009 (gmt 0)

10+ Year Member



Having sold expensive B2B hardware online I found people will use the internet to do everything BUT pay for the $35,000 equipment online.

For me the internet is still a research tool for wants and needs... But I do use the Sam's Club Click n' Pull feature quite often - its very useful in long road trips or vacations when its cheaper to buy almost everything you need rather than ship or drag it with you. My dream is when Costco does it too.

Haven't bought anything from Amazon in years, I get lost or distracted on their site to fast and forget why I was there. I have used the Wal-Mart site-to-store for some gift items that I needed to hide creatively.

12:48 am on Nov 28, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I only go to B&M to buy clothes & food. Everything else is online unless its an emergency (car repair, home repair or whatnot..)
7:18 am on Nov 28, 2009 (gmt 0)

5+ Year Member



And where does mail order come in to these retail figures ?

And MLM ?

And As seen on tv ?

 

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