Boston, MA 09/08/2014 (wallstreetpr) – Amazon.com, Inc. (NASDAQ:AMZN) goes without saying is the king of online transactions and with modern shopping patterns shifting to online, Wal-Mart Stores, Inc. (NYSE:WMT) will have to do a lot if it is to capture a sizeable amount of share from Amazon. Total amount of traffic seems to be the biggest challenge facing Wal-Mart according to 24/7 Wall Street.
Walmart Struggling on Online Traffic
The biggest concern that Wal-Mart management will have to address on the company’s online business is the fact that its traffic is not even half that of Amazon.com, Inc. (NASDAQ:AMZN). With the traffic to brick and Mortar stores on a constant decline, Wal-Mart Stores, Inc. (NYSE:WMT) will need to look for an urgent remedy for the standoff. Amazon is set to grow even further online, compared to Wal-Mart as it continues to make a push for home service delivery using drones that are expected to be more exciting and attractive to customers shopping online.
ComScore research data on the amount of traffic between major shopping retailers casts further doubt on the ability of Walmart to compete hand in hand against Amazon. According to July data, Amazon.com, Inc. (NASDAQ:AMZN) had 94.5 million unique visitors compared to Walmart’s 34.1 million, representing less than half of the former. Wal-Mart Stores, Inc. (NYSE:WMT) needs to address the fact that on its $420 billion annual sales, less than 5% come from online transactions.
Impact of Lack of Unique Products
Amazon.com, Inc. (NASDAQ:AMZN) is currently being faulted’ for having thin margins on its business but in reality; the company has been using its cash balance on research and Development as well as expansion. Wal-mart on its part needs to do a lot to address the fact that its same stores sales have been performing dismally compared to Amazon’s which have risen over the same period by 20%
Walmart’s poor performance on online transactions can also be attributed to the fact that this is not its core business as compared to Amazon.com, Inc. (NASDAQ:AMZN). Walmart also has a disadvantage on the fact that it does not have unique products such as Kindle Fire tablet as well as Fire phone that continue to contribute a big chunk of Amazon Sales.
