Consumers prefer buying groceries at Walmart stores and locations versus Amazon, even with the latter taking the overall lead in e-retailing, according to an analysis by Jungle Scout.
Of the more than 1,000 American adults surveyed, 57% said they were more likely to shop Walmart for groceries, compared to 15% for Amazon.com, Jungle Scout reported in their “2022 Amazon vs. Walmart Report.” Walmart’s number includes 32% of customers who prefer to shop for groceries in its stores and 24% at Walmart.com.
Walmart is also getting a nod from consumers as a major destination for purchases in a range of other supermarket categories, the study from Austin, Texas-based Jungle Scout, which provides an e-commerce platform for selling on Amazon, said the study.
For example, 34% of respondents indicated that they would like to shop at Walmart for alcohol (15% at Walmart.com) versus 12% at Amazon, and 51% chose Walmart (19% for Walmart.com) in cleaning supplies, compared to 18% for Amazon.
Walmart also held the advantage in the following categories related to groceries: 32% prefer shopping at Walmart (16% at Walmart.com) for baby care versus 15% at Amazon, 46% at Walmart (20% at Walmart.com) for beauty/personal care versus 21% at Amazon, 49% at Walmart (20% at Walmart.com) for over-the-counter drugs vs. 15% at Amazon, 43% at Walmart (19% at Walmart.com) for pet supplies vs. 19% at Amazon, and 44% at Walmart (18% at Walmart.com) for vitamins and supplements versus 19% at Amazon.
In all, Amazon was the preferred purchase destination in nine of the 19 categories in the Jungle Scout study, including arts and crafts, and sewing; Car Care Books. Clothes; electronics. exercise/fitness equipment; home and kitchen office supplies; Toys and games.
“The retail environment is constantly changing, due to economic trends and the whims of consumers. Both Amazon and Walmart are taking advantage of both online and offline technologies as a way for brands to create more dynamic solutions that satisfy their customers,” noted Michael Chichuk, President of Small and Medium Business and Chief Marketing Officer In Jungle Scout. “Investments like Amazon’s Dash Cart in Amazon Fresh stores and Walmart’s Virtual Try-On in their iOS app will elevate all retailers and improve consumer experiences.”
Overall, 75% of US consumers surveyed by Jungle Scout said they had made a recent purchase from Amazon in the third quarter of 2022, compared to 43% from Walmart.com and 65% from a Walmart store. Forty-eight stores on Amazon at least once a week (14% at least once a day) versus 43% at least weekly on Walmart.com (15% at least once a day).
When asked why they shop online at Walmart.com via Amazon, survey respondents cited price (43% to 36%) as the number one reason, followed by product knowledge (41% Walmart vs 23% Amazon), repeat customer (32%) Walmart) for 23% Amazon), app selection (26% Walmart vs 24% Amazon), return policy (24% Walmart vs 23% Amazon), and ability to return to the store (32% for Walmart) and curbside pickup (21 % for Wal-Mart.
Amazon is chosen by Walmart.com online shoppers for fast products (37% for Amazon vs 35% for Walmart), shipping rates (40% for Amazon vs 29% for Walmart), and a membership program (36% for Amazon Prime vs. 19% for Walmart+), brand choice (28% Amazon vs 25% Walmart), products not normally found in stores (27% for Amazon) and easy returns/recurring orders (10%).
When it comes to consumer spending, Walmart.com leads by far, with 71% of those surveyed saying they spend up to $99 quarterly versus 45% at Walmart stores and 57% online with Amazon. The percentages are pretty much equal at the next spending level. Thirty-five percent of respondents spend between $100 and $499 at Walmart stores compared to 20 percent at Walmart and 33 percent at Amazon. At $1,000 or more, Walmart stores are in the lead with 6%, compared to 4% at Walmart.com and 3% at Amazon.
Other key findings from the Jungle Scout analysis:
• 63% of consumers surveyed have started searching for a product online on Amazon, compared to 43% on Walmart.com.
• 57% of consumers have an Amazon Prime membership compared to 31% who have a Walmart+ account.
• Amazon has 6.3 million third-party sellers compared to 150,000 Walmart sellers.
In its report, Jungle Scout tied total US e-commerce sales at Amazon to $50.9 billion (+4.61 year-over-year) and Walmart sales to $19.2 billion (+11.98% year-over-year). Amazon averages 2.5 billion monthly visitors compared to 429 million for Walmart. Also, Jungle Scout said Amazon is earning $8.7 billion in subscription sales, compared to $1.5 billion for Walmart. The report said Walmart had 3,335 physical locations (in the US), compared to Amazon’s 570 (including Whole Foods Markets).