Neil Stern, a contributor with Forbes, gives his opinion about Walmart needing to amp up its online initiative to tackle Amazon. I tend to disagree.
First, the e-commerce race is over – Amazon won! We’re now “moving on” to an omni-channel race – and guess what, Walmart is years ahead. The reasons? Brick-and-mortar and logistical infrastructure!
Second, when you think about Walmart vs. Amazon from an omni-channel context, 90% of all retail sales occur in a store and that pattern will continue for many years to come. With that in mind, Walmart has a fundamental, major advantage over Amazon, and any other e-commerce or brick-and-mortar retailer.
Finally, it’s necessary to see that Walmart’s angle toward e-commerce against Amazon (keep in mind Walmart is the second largest online retailer in the U.S.) is that e-commerce is simply another channel, not the core of its business. For Amazon, e-commerce is its only channel. Think about what Amazon will have to do to compete with Walmart in omni-channel – the investment is massive in comparison to Walmart’s investment with e-commerce, which will simply be a piece of the seamless customer experience Walmart is creating.
For the entire Forbes article, visit http://www.forbes.com/sites/neilstern/2016/05/16/walmart-doubles-down-on-e-commerce-is-it-too-late-to-slow-down-amazon/#392d91334379
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