Amazon vs. Walmart: The Rise of Small, Frequent Orders in E-commerce

Walmart’s CFO has observed a shift in the behavior of Walmart+ members, with them increasingly placing orders of just one or two items. This is a departure from the typical Walmart shopper who spends more per transaction and tends to shop more in-store. The CFO also noted that shoppers are moving towards more frequent delivery options in recent months rather than opting for pickup.

On the other hand, Amazon’s dominance in e-commerce has been driven in part by the millions of small orders made by their shoppers. The average Amazon shopper makes 72 purchases per year, spending around $37 per order. However, Walmart’s CFO mentioned that Walmart+ members, who spend twice as much as the typical customer, are starting to resemble Amazon shoppers more closely by placing smaller, more frequent orders.

Walmart US CEO John Furner shared insights into shopper behavior during a recent conference, highlighting the importance of understanding customer preferences. He noted that by analyzing the type of items in customers’ baskets, the company can gain valuable insights into shopper intent. Furner also mentioned that it takes a shopper an average of four orders to fully embrace delivery options, after which usage tends to increase significantly.

Overall, both Walmart and Amazon are adapting to changing consumer preferences and shopping habits by offering more convenient and personalized shopping experiences to their customers.