Which Giant will Dominate E-commerce: Amazon vs. Walmart - Essay Example

Amazon vs. Walmart: Which Giant will dominate e-commerce?Introduction Wal-Mart and Amazon.com are two competitors in the world of commerce although they deal with dissimilar goods in certain instances and possess dissimilar business models. Amazon.com is a recent firm that commenced with retailing of books although recently, it has engaged in diverse merchandise and services. Conversely, Wal-Mart commenced its business undertakings earlier than Amazon.com since it was founded in 1962. Amazon.

com purely deals with e-commerce and is currently the most successful company in the field. In contrast, Wal-Mart utilizes both e-commerce and physical supplies. The firm has approximately 8000 physical stores around the globe and seeks to top e-commerce. However, Amazon.com has resolved to keep its place in e-commerce, as evident with the current price wars on various products.Question 4Amazon.com offers diverse commodities in its e-commerce markets, unlike Wal-Mart, which utilizes books, as the main competing item. Amazon.com resolved on utilizing e-commerce, as its greatest venture and has acquired numerous markets due to its low prices, and diversity in the commodities offered.

Amazon has offered its customers effective distribution channels through the creation of numerous warehousing facilities that cater for web shopping (Kesya 410). The firm offers premium service for shipping its consumer’s goods at a reasonable price. At the recent time, the price for the premium shipping stands at $79 per annum, although it still offers free shipment for definite commodities that reach $25 (Kesya 410). The firm offers doorstep deliveries of consumer products relieving consumers the hassles of shopping at malls and other places.

According to the firm, physical shopping involves a lot and waste lots of time. Currently, the firm has prefaced other delivery systems where certain cities in the U.S can obtain their deliveries in a single day. In addition, the firm has improved its internal systems in order to squeeze a second-day delivery that transpires on Saturdays. This has appreciably assisted the firm and its shoppers since certain goods can be delivered instantly. The shipping for Amazon are undertaken by third party, a factor that allows Amazon to provide wide-ranging commodities, and still hold the inventory expenditure low, while augmenting its revenues (Kesya 410).

In comparison, Wal-Mart offers free shipment of commodities that consumers purchase although they have to be above 1.5 million in quantity. The commodities are then taken to Wal-Mart stores where the owners can pick them. The firm is testing a drive-through window system for the internet shoppers to collect their commodities in a similar manner that restaurants carry out. Wal-Mart has recently prefaced free shipping for every online order that acts as a response to the improved Amazon.com delivery system (Kesya 411).

Question 5I would prefer making online buying at Amazon.com given the numerous benefits that the internet retailer offers to its customers. The firm offers diversity in the commodities that its offers in its online shopping services. Most people have shifted their attention to online shopping; therefore any firm that offers diverse commodities reduces the hassles that are undertaken in carrying out physical shopping.In addition, the firm offers affordable and effective distribution systems that allow it to deliver commodities at the right time.

Same-day delivery and second-day delivery system have substantially enabled the firm to gain popularity, since it addresses consumer needs in terms of delivery of goods that have been purchased online (Kesya 411). Although the firm is still young compared to its competitors, it can still offer commodities at lower prices. All these factors make it the ideal firm from which to purchase an assortment of commodities.Work CitedKesya. Amazon vs. Wal-Mart: Which Giant Will Dominate E-commerce? 2011.