Walmart is the top grocery e-commerce player in the U.S.
Walmart took over Amazon’s spot as the top grocery e-commerce platform, according to a survey from TABS Analytics in August. About 30% of online grocery transactions come from Walmart while Amazon accounts for about 27%, down from 33% in 2019, the survey found.
Although Amazon disputed the claims, yet it seems that Walmart, the big box retailer with its large sales area with a wide selection, affordable prices and continuous innovation, is one of the winners of the pandemic. It has been steadily building out its ecosystem throughout the pandemic, developing new revenue streams to drive sales and giving shoppers alternative fulfillment options.
Walmart’s membership program
Five months after Walmart’s membership program, Walmart+, was released, data indicates that it has garnered between 7.4 million and 8.2 million members, signaling a promising start for a potential Amazon Prime rival, according to Consumer Intelligence Research Partners analysis released 10. Feb. 2021. The firm’s own estimation of Walmart+ memberships, which is higher than CIRP’s, shows 12 million U.S. households have Walmart+ memberships and 69.6% use them at least once per week. Despite the economic distress, the findings indicate that Walmart shoppers are willing to quickly spend the $98 for the subscription service.
The benefits of the Walmart+ membership are: free shipping, no order minimum for next or two-day shipping. Free grocery&more delivery on the same day in case of minumum 35USD order. Members get a special price and save 5 cent/gallon on fuel at Walmart&Murphy stations and at Sam’s Club fuel centers. Mobile scan&go – check out with smartphone option when shop in store. With all these benefits an average family can save 2,5 hours per week by getting the weekly groceries with free delivery. 84 USD/year can be saves on gas with member prices and 816USD/year less will be spent by getting the weekly groceries with free deliveries. The first registration is promoted with a 15-day free trial. They promise more to come as adding new benefits all the time, according Walmart.com.
Walmart+ shoppers spend more
Customers spend an average of $1,000 at Walmart.com per year, which is “remarkably similar to the long-term figure for Amazon according to the CIRP report. Walmart+ members currently account for about 13% to 14% of total Walmart.com shoppers as of Jan. 30, 2021 per the report. Consumers that shop for groceries at Walmart.com spend almost double the average online Walmart shopper per year, the CIRP survey shows, at $1,900. These shopping patterns make them ideal candidates for Walmart+ membership, and indeed, 26% of customers who purchased groceries in their last online order are Walmart+ members. Based on all this, Walmart + membership is expected to expand further in the coming months.
Walmart is covered in several of our articles outlining new aspirations as the retailer giant targets leadership in healthcare, mass vaccination, home delivery alternatives, and more and more areas that complement their core business.
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