Walmart Won't Dominate Internet Retailing like Amazon.com Does


It's quite a statement to say that one retailer will rule the entire online retail world, but that's just what retailing behemoth Walmart (WMT) has tried to say (and failed to accomplish) in recent years.

Internet retailer Amazon.com (AMZN) has blown away every other online retailer in terms of sales, product breadth and customer service. Why can't the brick-and-mortar folks keep up? As usual, the first-to-market is ruling the landscape. Amazon.com won't be toppled by Walmart in online sales ever, no matter how much money the world's largest physical retailer pours into its online operations.

The move by Walmart to make online orders placed at its website available for free pick-up using drive-through windows (WSJ subscription required) at its stores won't change anything. Although Walmart offers free "site to store" shipping on its online products, what makes that different than the free shipping Amazon.com provides on everything it sells above the $25 mark? Nothing. Site to store is no game changer. It's just a tepid response to get more feet on the floor in Walmart locations.

Walmart is being a bit delusional if it thinks shipping to stores from customers placing orders on its website will make it "#1 online." That notion is hardly a competitive advantage. Walmart shoppers arrive at its physical stores to save money -- not get ga-ga over picking up orders from Walmart.com, which (from this writer's experience) has higher prices on many items over Amazon.com anyway.

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Last updated: February 10, 2012: 05:07 PM

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