The battle between the three giants in the United States: Amazon, Walmart and Shopify compete for the leading e-commerce

According to eMarketer, the three largest e-commerce giants in the United States are competing fiercely for market dominance. Although Amazon currently dominates the US e-commerce market, Walmart and Shopify are also constantly eroding Amazon's revenue share. Here are the latest developments of these major players in e-commerce sales, advertising, and partnerships.

1. Walmart vs. Amazon

Amazon is forecast to be ahead of Walmart in U.S. retail e-commerce sales ($431.11 billion to $73.45 billion, respectively).

However, Walmart recently revamped its website to make its e-commerce shopping experience better than Amazon. In addition to the better visual experience, more importantly, Walmart's advertising products account for a smaller proportion than Amazon. Previously, Amazon has been criticized by consumers for having too many advertisements on its platform.

eMarketer predicts that Amazon's advertising business in the United States will far exceed Walmart's ($33.96 billion vs. $3.16 billion, respectively) in 2023. According to StreetAccount data cited by CNBC, Amazon's advertising revenue reached $9.5 billion in the first quarter, higher than the expected $9.1 billion.

2. Amazon vs. Shopify

Amazon and Shopify are competing in the DTC space. Amazon launched BuyWithPrime in April last year, a feature designed to allow Prime members to enjoy Amazon's membership services on brand shopping websites outside the platform.

However, since the launch of BuyWithPrime, only a few hundred brands have signed up for the feature, partly because Shopify has set up barriers. When merchants or users use the feature, Shopify will pop up a warning that the feature violates its terms of service.

According to an analysis by UBS, if Amazon BuyWithPrime is adopted, it could lose 8% to 18% of annual revenue to Amazon, Insider reported. Currently, Shopify and Amazon are reportedly discussing some form of integration.

3. Walmart vs. Shopify

Walmart and Shopify started to cooperate in 2020, and Shopify's sellers can enter Walmart's third-party platform for sales. At that time, Shopify was slightly smaller, so this kind of cooperation was reasonable.

However, data shows that Shopify achieved nearly 100% growth in U.S. e-commerce sales in 2020 and 40% in 2021, surpassing Walmart in e-commerce sales. Competition between the two is intensifying, which may affect their partnership.

This year, Shopify will generate $108.15 billion in U.S. e-commerce sales, compared with Walmart’s $73.45 billion. It’s worth noting that Shopify’s numbers include sales on websites owned by the retailer, while Walmart’s are limited to its own site.

Currently, Shopify is streamlining logistics, while Walmart is strengthening its logistics construction and adding more automated equipment, but both are laying off logistics employees.

Editor✎ Ashley/

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