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04/21/2021

Walmart e-commerce shoppers focused on prices

While Amazon leads Walmart in online customer reach, a specific subset of e-commerce consumers said they prefer Walmart.

Walmart.com shoppers are more focused on price than U.S. consumers overall, according to data analysis from selling platform JungleScout. Fifty-four percent of Walmart.com customers have experienced financial setbacks in the past year compared with 48% of U.S. consumers overall.

[ Read More: Walmart rolls out GoLocal third party delivery service ] 

Walmart.com shoppers also are adopting a number of money-saving strategies at higher-than-average rates. Eighty-three percent of Walmart.com shoppers and 75% of all U.S. consumers look for ways to save money when shopping (e.g., coupons, promotions, deals). Similar discrepancies occur in rates of engaging in strategies, such as becoming more conscientious of spending money (82% of Walmart shoppers versus 73% of all consumers), researching products before buying (78% versus 69%), spending time planning or making lists in preparing for shopping trips (77% versus 69%), and setting aside savings each month (50% versus 46%).

Seventy-three percent of U.S. shoppers made purchases on Amazon in the first quarter of 2021 compared with 40% who made purchases on Walmart.com, according to JungleScout. However, Walmart has grown its online customer base 13% since 2020, and is now the second most shopped online U.S. retailer after Amazon, ahead of Target.com at No. 3.

[ Read More: Walmart to launch omnichannel celebration with TikTok contest ]

Furthermore, Walmart saw high year-over-year growth during the 2020 holiday season, with its Black Friday and Cyber Monday events boosting fourth-quarter sales 124% from 2019. JungleScout analysis indicated toys and electronics were Walmart’s strongest categories, earning a combined $85 million in sales between Nov. 26 to 30, 2020.

By and large, JungleScout data indicated Walmart.com shoppers also are Amazon shoppers. More than three-quarters (77%) of U.S. consumers who shop online at Walmart hold Amazon Prime memberships and 60% make purchases on Amazon at least weekly. 

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By contrast, exactly half of online Walmart shoppers are members of Walmart+ (Walmart’s equivalent to Prime), with another 23% who would consider joining in the future.

When asked why they haven’t shopped on Amazon recently, Walmart shoppers said they haven’t needed anything (31%), they’ve been trying to spend less money (27%) and that Amazon’s prices are too high (15%). Another 9% admitted that they just don’t like Amazon. However, a majority of Walmart.com shoppers said they look to Amazon for products from specific brands (74%) and when they need fast shipping (71%). 

JungleScout also found that 7% of existing Amazon third-party sellers list products on Walmart Marketplace and another 39% are considering joining the platform during 2021. Thirty-three percent of Amazon sellers said they believe Walmart Marketplace will compete strongly with Amazon in 2021.

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This story originally appeared on Chain Store Age

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