For decades, Walmart has been making waves in the eCommerce industry. From groceries to apparel, electronics, toys, and home furnishings, the brainchild of Sam Walton really has its fingers in many pies. As dominant as it is, though, the company still has its fair share of rivals. Despite going head-to-head with one of the online retail giants, Walmart competitors still manage to thrive.
According to statistics, these marketplaces pose a significant threat to Walmart’s title as the leading online retailer:
In this article, we will go on and take a look at how exactly these brands go up against Walmart. Read on to find out!
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Walmart Competitors: A Walmart SWOT Analysis
Before diving into Walmart competitors, we should admit one thing: The company certainly has a phenomenal success story among the best selling platforms. Within 2022, Walmart U.S. reported eCommerce revenues of 47.8 billion dollars, making up 6.3% of the market share. If you just look at this impressive number, it would be hard to believe that the American superstore rose from a simple mom-and-pop shop in northwest Arkansas.
New to Walmart? You might want to take a look at our detailed Walmart online marketplace reviews. Read more here!
Thus, we have a lot to learn from Walmart SWOT analysis. Let’s quickly recap the key strengths, weaknesses, opportunities, and threats that affect the brand the most.
What are Walmart strengths?
- Brand recognition: According to Forbes’ Global 2000 List, Walmart is now the sixth largest company and fourth biggest online store worldwide. Its website, Walmart.com, receives up to 100 million unique visits each month, placing Walmart as one of the most recognized retail brands across the globe.
- Strong market power over suppliers and most competitors: Thanks to its massive organizational scale and global reach, Walmart is in a position to exert market power over both its suppliers and rivals.
- “Every day low prices” slogan: Based on the economies of scale agenda, Walmart manages to maintain its competitive pricing strategy. The retail brand offers fixed costs for a wide range of products. Thus, it is one of the world’s cheapest marketplaces.
- International supply chain & logistic system: Walmart’s core competencies are logistic systems and distribution. The company takes advantage of Information Technology to track the performance of each product.
- Effective adoption of eCommerce: While the COVID-19 pandemic reduced in-store traffics, it also pushed Walmart to optimize its eCommerce channels. The end result is a significant boost in online sales.
What are Walmart weaknesses?
- Poor employee treatment & working conditions: Some of Walmart’s internal issues brought to public attention are low wages, poor working conditions, and inadequate healthcare.
- Negative publicity: The lawsuit against Walmart regarding its poor employee treatment has tainted the company’s reputation.
- Over-dependence on sales from the U.S. market: As of 2022, Walmart is operating about 10,500 stores internationally. Among them, 4,742 stores are located in the U.S. Its sales in the U.S. amounted to $341 billion, compared to around $120 billion in global sales.
- Imitation: Walmart’s business model can be imitated easily. The brand has no specific competitive edge over its competitors except the enormous business scale.
Which opportunities might Walmart have?
- Expansion to other markets: Walmart’s successful expansions may serve as a stepping stone for the company to explore other potential markets, such as Latin America, Middle East countries, and China.
- Strategic alliances: Walmart’s acquisition of the Indian eCommerce firm Flipkart proves that this strategy can be profitable for the company. In addition, it can form strategic alliances with major firms or merge with other international retailers.
- Quality standard enhancement: Low prices often mean low quality. Walmart has the opportunity to raise the products’ quality to address customers’ health concerns.
- Online sales improvement: With the number of online shoppers currently on the rise, Walmart can optimize its online marketplace to exploit this opportunity.
What threats does Walmart face?
- Numerous lawsuits and controversies over the years: The brand has been dealing with more and more lawsuits recently. These controversies will further damage Walmart’s public image.
- Political and legal problems: Political and legal affairs can be a barrier to the company’s operation in some countries.
- The website’s technical issues: Technical issues with Walmart’s website have been the subject of customer complaints. On the other hand, its competitor, Amazon, is renowned for its fast, effective, and well-organized site.
To sum up, selling on Walmart Marketplace is filled with challenges, yet it is rewarding if you can implement the right eCommerce strategies and have high-quality products. Therefore, Walmart Marketplace is one of the best sales channels for us, despite its threats and weaknesses.
10+ Walmart Competitors: What Are The Walmart Similar Companies?
But those above are not the biggest challenges Walmart is facing. As one of the world’s largest retailers, it is always a major target for competition. Many Walmart competitors, such as Amazon and Rakuten, not only rival Walmart in terms of revenues but also boast a relatively better public image. Below is a close look at each of them.
1. Amazon
Without a doubt, the Seattle-based eCommerce retailer is Walmart’s top competitor right now. As of 2022, Walmart’s total equity is $91.891 billion. For the fiscal year 2022, the company’s revenue increased by 2.43%, reaching $572.745 billion. In the first quarter of 2022, which wrapped up on May 1, it achieved total revenue of $141.57 billion versus the $138.94 billion expected.
On the other hand, Amazon’s total equity at the beginning of 2022 was $146.043 billion, and the numbers kept rising rapidly. In the first quarter of 2022, the company achieved net sales of $116 billion, a 7% increase over the same period in 2021. The year’s total revenue was $513.937 billion, a 9.4% from the previous year. If you have any intention of selling on Amazon, don’t forget to check out the Amazon best sellers for a skyrocketing revenue.
As you can see, Walmart still won, but by a nose. While Walmart relies on its 4,752 stores across the U.S. and the grocery sector, Amazon still maintains its eCommerce dominance as one of the top marketplaces, grabbing almost 50% of the total online market sales. Since the world is leaning more and more toward a digital-first culture, driven by consumers’ rising need for convenience, Walmart is forced to work more on its eCommerce strategy if it doesn’t want to be overpowered by Amazon.
You might also want to find out the key differences between Walmart vs Amazon.
2. Alibaba
With Amazon’s decision to partially withdraw from China, it seems like a good opportunity for Walmart to penetrate this potential market. However, the retail company still has to deal with stiff competition from local retailers. One of them is Alibaba.
In case you are not familiar with it, Alibaba caters to shoppers’ needs by providing them with a wide selection of both low-priced local products and high-end items from luxury brands. As of 2023, the Asian giant of eCommerce operates four leading sites:
- Alibaba.com: Asia’s largest B2B (business-to-business) platform, facilitating wholesale selling of products worldwide.
- Ali Express: A B2C (business-to-consumer) online marketplace allowing users to purchase items directly from distributors and manufacturers mostly based in mainland China.
- Tmall: A B2C online marketplace focusing on branded products.
- Taobao: A C2C online marketplace where small and individual vendors list their products directly in front of consumers.
The Middle Kingdom has long been strict with foreign brands. As two leading Chinese platforms to provide eCommerce services, Alibaba’s Taobao and Tmall have a clear advantage over Walmart in this country. Meanwhile, Alibaba.com is expanding into 200 countries and competing head-to-head with Walmart on a global scale. Altogether, they position Alibaba group as one of the top Walmart competitors.
3. Etsy
Compared to other names on this list, Etsy is not really one of the alternatives to Walmart. While Americans’ favorite retailer offers grocery, apparel, and home categories, Etsy is the place for e-sellers to list their vintage and handmade goods.
Furthermore, many people are learning how to sell on Etsy partly because of its low initial seller charges. In fact, you can start an Etsy shop from 20¢. There aren’t any monthly fees or subscription fees required, and with 20¢ for each product, you can have a listing for four months.
Another reason that makes Etsy a powerful marketplace with millions of consumers around the world is the product category. As mentioned, the best selling items on Etsy fall into the categories of art, crafts, homeware, jewelry, or baked goods. Sellers who are 20 years old and above may also stock vintage items.
That leads to some very appealing benefits for Etsy users: Not only can they find items that they can’t find elsewhere, but they can also join a bustling community of artists, home crafters, and designers who put creativity into their crafts. Last but not least, you might also want to read our in-depth reviews on Etsy Plus and Etsy Pattern.
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4. Wish
Last on the list of Walmart competitors, we have Wish, an online marketplace for anything you can imagine. Opening the Wish app, you will be presented with a vast array of stuff, including 13-foot-long pool floaties, creative toilet brush holders shaped like bananas, and a tee featuring a photo of Michael Jackson.
Those are not everything. Based on your personal demographics and shopping proclivities, you may see a collection of headphones, amusing pajamas, and cooking apparel. Almost all of these items are offered at unbelievably low prices: $8 for a set of knives and $3 for a T-shirt. How much are those earbuds? Free, with a $3 shipping fee. That’s what drew 600 million registered users to the platform when it first launched.
Compared to major marketplaces, Wish is hardly a household name. Still, it is worth noting that the company saw total revenue of $1.9 billion last each – double that of the year prior. Though there are still controversies regarding the quality of Wish’s products, this young marketplace certainly packs a lot of potentials.
5. Best Buy
With over 1779 stores in North America, Best Buy directly competes with Walmart in electronics and consumer goods. While Walmart offers lower prices, this online marketplace has a broader selection of electronics. In addition, the firm takes advantage of innovative ship-from-store capabilities in over 400 stores supported by four fulfillment hubs.
Both of these advantages granted Best Buy a 242% rise in domestic online sales. In addition, it achieved an annual revenue of $51.761 billion in 2022, a 9.52% increase from 2021. These statistics put the company ahead of the game and make it a worthy Walmart rival.
6. eBay
I’m sure you have heard of eBay, the online marketplace where you can sell and buy practically anything in the comfort of your home. It was established in 1995 and is now worth $24.51 billion. While the platform is not as renowned as it used to be, it still boasts over 135 million users worldwide and about 2 billion monthly transactions.
Compared to Walmart, selling on eBay is quicker and less complicated when it comes to listing your products and receiving payments. Since it is not only a marketplace but also an auction website, customers find limited and collectible items that Walmart doesn’t have. This places eBay as one of the top marketplaces to sell products. However, it also means you may end up paying a higher price for a given item than you would at Walmart. Speaking of products, you probably want to find out what the hottest selling items on eBay are. Come and check out our latest updates!
Regarding the public image, eBay, unfortunately, gained a bad reputation for hosting scammers a few years ago. However, since the platform has enforced new policies to protect buyers if an item doesn’t arrive, “trust” in the platform has steadily improved.
7. Rakuten
Walmart may be a titan in the U.S., but in Japan, it is up against strong competition from the Rakuten Group. Established in 1997, Rakuten is an ecosystem of services that includes banking & payments, eCommerce, incubation & investment, and even a streaming service (Rakuten TV).
As a competitor of Walmart, Rakuten adopts a unique business model to fuel its growth. It uses a cash-back system to encourage buyers to purchase the product through Rakuten instead of directly through brands. Thanks to this strategy, the company earned a net revenue of $15.238 billion, a 3.36% increase year-over-year.
Additionally, Rakuten has acquired a number of smaller companies, ready to expand its footprint abroad. It started with the acquisition of buy.com (U.S.), then play.com (U.K.), and Price Minster (France). All three firms’ websites now redirect to Rakuten’s official website.
8. TikTok Shop
Is it still too soon to place TikTok Shop among Walmart competitors? Well, there are two key trends that bode well for the Chinese company’s future in eCommerce.
The first is that younger generations are more likely to place trust in the platform. TikTok was named the most trustworthy social site in terms of user privacy by 9% of Gen Z respondents, compared to only 1% of Boomers. As this cohort ages and gains greater purchasing power, their comfort and familiarity with TikTok will build momentum for commerce that takes place directly on the platform.
The second is TikTok’s ability to impact consumers’ decisions. Trends like #tiktokmademebuyit have created viral elements for product discovery, which accelerates purchase behavior. Influencers on the platform have gained a number of loyal followers who trust them to recommend quality products. Keeping these users active and building their channels will be the key to TikTok’s success as a platform for eCommerce transactions.
In fact, TikTok’s strategy has proven to be effective. TikTok shop’s yearly revenue was $11.04 billion in 2022, a whopping 200% increase compared to a year before! In other words, its annual revenue in 2022 was 3 times higher than in 2021. Does that pose a threat to Walmart now?
9. Productsup
Known as the industry-leading platform for direct-to-consumer (D2C) sales, Productsup grants brands, manufacturers, service providers, and marketplaces the ability to transform commerce anarchy into commercial success. The platform provides a wide range of solutions, such as marketplace experience, social commerce, feed management, product content syndication, and seller/vendor onboarding, giving it a competitive edge over Walmart.
As of 2022, Productsup has been processing over two trillion products a month for more than 900 brands, including ALDI, Beiersdorf, IKEA, Redbubble, and Sephora. It processes even more monthly data requests than Google’s consumer search service.
10. CPG.IO
Our Walmart competitors analysis would be incomplete without mentioning CPG.IO. Having 10 years of experience in the field, CPG.IO is quite new to the game. However, with its unique platform, this Omnichannel eCommerce distribution company has made itself one of the biggest Walmart competitors.
What exactly does CPG.IO do? It provides packaged consumer goods to eCommerce websites. The platform stands out thanks to its versatile mix of purchase orders, advanced pricing models, trade management tools, retail price control, media buying, and zero storage fees. The innovative algorithms at CPG.IO offer products at competitive prices and are always updated to keep up with market trends, which is a key part of being successful in eCommerce.
With dedicated data analysts, account managers, and on-site marketing experts, more and more brands are turning to CPG.IO. They consider the platform’s “ways of working” as a game-changer.
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Walmart Competitors: FAQs
- Who are Walmart's biggest competitor?
As of now, Walmart’s biggest competitor by market share is Amazon. Operating over 10,500 stores and clubs worldwide, Walmart has slightly better financial metrics than its rival. Nonetheless, Amazon is now topping the eCommerce game and shows no sign of slowing down.
- What does Walmart do better than its competitors?
Compared to Walmart competitors, the biggest point in the company’s favor is the low prices it offers. Its slogan, “We save people money so they can live better,” is what keeps people coming back to Walmart despite its numerous controversies and lawsuits over the years.
- What are the strengths of Walmart?
The strengths of Walmart include:
- Brand recognition;
- Strong market power over suppliers and most competitors;
- Low prices;
- International supply chain & logistic system;
- Effective adoption of eCommerce.
To Conclude
It is clear that Walmart is unstoppable in many ways. New eCommerce brands and online retailers may be frightened by the idea of going head-to-head with this behemoth at first, but the fact is, there are many ways to be up against Walmart and establish a fruitful online business. These Walmart competitors are proof of this.
Understand your customers and what they value. Focus on the quality of your products. Always deliver the best service possible. Following these may not help you create an empire like Walmart, but you won’t have to worry about Walmart’s market share getting in the way of your success either.
Assuming you are new to the world of eCommerce, you may want to check out LitCommerce – the all-inclusive eCommerce listing software. Our solution can help you with professionally designed listing templates, order management, and inventory syncing, all from a central dashboard. Don’t hesitate to reach out to us – we are here to help you with your business!
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