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Financial Performance
Amazon Walmart
• Total ecommerce
• Worldwide: USD 2.3 Trillion in 2017 (10.2%)
• US: USD 0.46 Trillion in 2017 (9%)
• Projected to grow to 14% in 2021
Online (65/35 Split 70,430 37,924 108,354 • Hence Amazon retail is making losses in the range of $10Bn
between US and
International)
Third Party 20,723 11,158 31,881
Net Sales 226,479 3,933 374,526 14,835 466,114 61,093 495,761 177,866
No. of Employees 1,500,000 7,500 2,000,000 17,000 2,200,000 88,400 2,300,000 560,000
Total Assets 94,685 1,990 163,514 6,485 203,105 32,555 204,522 131,310
Sales/Total Assets 2.39 1.98 2.29 2.29 2.29 1.88 2.42 1.35
In Million USD Walmart Amazo Walmart Amazo Walmart Amazon Walmart Amazon
n n
Net Sales 226,479 3,933 374,526 14,835 466,114 61,093 495,761 177,866
No. of Employees 1,500,000 7,500 2,000,000 17,000 2,200,000 88,400 2,300,000 560,000
Total Assets 94,685 1,990 163,514 6,485 203,105 32,555 204,522 131,310
Sales/Employee 0.15 0.52 0.19 0.87 0.21 0.69 0.22 0.32 Walmart has a very high return on inventory?
Sales/Inventory 9.04 19.47 10.65 12.36 10.64 10.13 11.32 11.08
Walmart has more inventory?
Sales/Total Assets 2.39 1.98 2.29 2.29 2.29 1.88 2.42 1.35
Walmart is more capital intensive?
In Million USD Walmart Amazo Walmart Amazo Walmart Amazon Walmart Amazon
n n
Net Sales 226,479 3,933 374,526 14,835 466,114 61,093 495,761 177,866
No. of Employees 1,500,000 7,500 2,000,000 17,000 2,200,000 88,400 2,300,000 560,000
Total Assets 94,685 1,990 163,514 6,485 203,105 32,555 204,522 131,310
Sales/Employee 0.15 0.52 0.19 0.87 0.21 0.69 0.22 0.32 Walmart has a very high return on inventory?
Sales/Inventory 9.04 19.47 10.65 12.36 10.64 10.13 11.32 11.08
Walmart has more inventory?
Sales/Total Assets 2.39 1.98 2.29 2.29 2.29 1.88 2.42 1.35
Walmart is more capital intensive?
Source: 1. https://www.businessinsider.com.au/walmart-shopper-demographics-2016-10
2. https://www.cnbc.com/2015/12/03/amazon-vs-target-these-shoppers-skew-wealthier.html
3. https://www.cnbc.com/2017/04/12/nearly-every-american-spent-money-at-wal-mart-last-year.html
Amazon – What about needs-based segmentation ?
In 2016, 95% of all US consumers had shopped at Walmart store, while 42% had
shopped at Amazon.
This suggests that 37 – 42% of consumers have experience in shopping at both Amazon
and Walmart.
What is it that Amazon and Walmart offers to their
customers ?
What is it that Amazon and Walmart offers to their
customers ?
Factors Amazon Walmart
Convenience of ordering from home (specially for tech-savvy people) Amazon.com Walmart.com
Convenience of reaching a store Amazon Go Store Neighborhood Store
Convenience of getting product delivered at home Last-mile delivery Customer pickup
Convenience in checkout One-click tech Self check-out
Lower price High shipping cost Competitive
More product variety (Breadth) High Low
Product availability (Depth) High Low
Returnability Low High
Order tracking Low High
Response time High Low
Product search Low Scan and go feature
Discounts Frequent EDLP
What is the difference in online penetration between
books, apparel and grocery ?
• Product standardization
• Product Information
• Returns
• Quality assessments
• Operating 13 bookstores.
• Amazon Go.
• Amazon Prime
• Private labels
• Enhanced technology • Offer lower prices as shipping costs are not there
• Customer experience
Collection & • Offer click & collect • Cannot offer click & collect
Returns • Returns to store possible • Need to develop dedicated return process