SKU’d Thoughts 19: Can Amazon and Walmart coexist?
I am late with this week’s SKU’d Thoughts because I got married this past weekend in Mexico. Leading up to the wedding we had to purchase a few last minute items and we turned to two brands I have known to be reliable, Walmart and Amazon. We utilized both brands in very different scenarios.
I live in New York City so I don’t frequent Walmart much. The times I have had the opportunity to go, I have rarely been disappointed as they often have exactly what I am searching for. In Mexico, I went to Walmart for purchases that were extremely time-sensitive (needed in less than 48 hours). For items I needed after a 48-hour window, using Amazon was a no-brainer for me. Both brands provided me with a different level of customer convenience. Walmart allowed me to quickly buy the item and have it the same day while Amazon served as a huge product search engine for us to do price comparisons and customer reviews before buying.
If you have Amazon Prime and enjoy the free two-day delivery perk, it’s easy to assume most Americans have also opted in but Amazon Prime membership ($119) is still not a foregone conclusion. Although there are an impressive 101 million prime subscribers in the U.S., that still leaves about 65% of eligible subscribers who have not sprung for the service because of price or other factors. Walmart is there to service the non-Prime subscribers. The retailer’s footprint in the U.S. allows for customer convenience; there’s a Walmart within 10 miles of approximately 90 percent of the U.S. population.
The experience of having both Walmart and Amazon as viable options at the same time made me realize both brands can truly coexist. Competition is always great in business because the eventual winners are the customers. As Walmart and Amazon continue to battle each other in the retail sector, customers will reap the benefits through great customer experience and increased product offerings.
Cross posted on Medium