Wal-Mart’s ecommerce approach to combat Amazon.com

An article in Bloombergbusinessweek (April 2, 2012) cites WalMart’s 8 % growth in 2011 vs Amazon.com’s 41 % growth as reason for WalMart to innovate in the ecommerce space. The result (a) Endless Aisle – which permits customers to order online any items not in the store, (b) Pay With Cash – for customers without credit cards to order online and pick up at the store with cash, (c) Shopycat – which scans a customer’s Facebook friends preferences and suggests gifts. Will these festures be sufficient to combat “scan and scram” – whereby customers scan items in the store and purchase from cheaper e-tailers ? Given Amazon.com’s lead, will WalMart be able to use its $ 264 billion US sales heft and physical store presence to compensate ? Will upcoming ecommerce transaction sales tax collection requirement level the playing field between WalMart and Amazon ?

About aviyer2010

Professor
This entry was posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

One Response to Wal-Mart’s ecommerce approach to combat Amazon.com

  1. I feel like this whole fight between Amazon and Wal-Mart is shortsighted. Wal-Mart provides convenience at a low price and Amazon provides variety at a low price. If I “Scan and Scram” at Wal-Mart, I was probably an Amazon customer anyway.
    What will happen with Amazon when manufacturers start shipping straight to customers?

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