Amazon has a stronghold as the largest eCommerce merchant in the United States, comprising as much as 43 percent of all U.S. online retail purchases in 2016. Wal-Mart, the largest brick-and-mortar retailer in the U.S., is one of the largest U.S. online retailers as well, but with online volumes less than one-fourth that of Amazon. With online and mobile sales continuing to cannibalize brick-and-mortar retail, Wal-Mart is focusing extensive effort on trying to take some of this online market share away from Amazon. After acquiring another major online retailer in late 2016, Wal-Mart has now announced a new online shipping strategy to undercut Amazon Prime, offering free two-day shipping on all orders of at least $35.
Amazon has been number one on Internet Retailer’s Top 500 list for many, many years now. In the latest ranking Wal-Mart is ranked fourth. While still the largest brick-and-mortar retailer in the United States, Wal-Mart sees the writing on the wall, and knows eCommerce is essential to the company’s continued growth and success.