Walmart's Closing the Amazon Online Sales Gap

Core Insights - Walmart's online business is evolving rapidly, focusing on changing the retail landscape rather than merely closing the gap with Amazon [1][2] Market Share and Growth - Amazon holds over 56% of total U.S. online retail spending as of Q3 2025, while Walmart's share is at 9.6% [8] - Walmart's eCommerce sales grew by 27.2% year over year in Q3 2025, significantly outpacing Amazon's growth rate of 9.6% [8] - Since Q1 2022, Walmart's online sales have surged by 115.6%, compared to Amazon's 63.2% growth during the same period [8] Category Dynamics - Amazon dominates discretionary segments like books and electronics, with online shares exceeding 60% and sometimes reaching over 75% [4] - Walmart's strength lies in the food and beverage sector, where it holds a significant advantage, controlling a larger share of online grocery spending compared to Amazon's 14% [5] Consumer Behavior and Strategy - Walmart's online sales now represent about 20% of its total U.S. business, nearly doubling since early 2022 [3][4] - The growth pattern for Walmart is steadier, focusing on everyday needs, which allows for better integration of online shopping into routine consumer behavior [6] Economic and Logistical Factors - Walmart leverages its extensive store network to reduce delivery costs and enhance speed, contrasting with Amazon's reliance on scale and logistics density [7] - The competitive landscape indicates stable leadership but increasing pressure, with Walmart redefining its market approach [9]