Wal-Mart vs. Amazon in FMCG and food in new online battle

Posted by AFN Staff Writers on 23rd May 2016

Online ShoppingWhile online grocery shopping is just growing in Australia, it is the focus of a new global war between two of America’s global biggest retailers.

Both Amazon and Wal-Mart have recently made news regarding the expansion of online shopping services. According to the Wall Street Journal,

Amazon, will soon be selling its own private label goods, including perishable food. The private labels are expected sell everything from nappies to nuts, coffee and vitamins.

The retailer is yet to confirm the move so information regarding shipping times, how products will be packaged and what type of price points products will be sold at is unknown.

Wal-Mart steps up online offerings

America’s retail giant Wal-Mart has its own plans to expand online sales irrespective of the new FMCG offerings from its online competitor Amazon.

Wal-Mart plans to grow its customer base with a new subscription service called ‘ShippingPass’. The service allows US shopper to pay a US $49 fee for a year’s worth of unlimited 2-day shipping of Walmart products.

Some US commentators have already described the service as a direct attempt to compete with Amazon’s ‘Prime’ service which gives its customers 2-day unlimited shipping. Amazon’s service is more costly, priced at US$99 for a one year subscription, but it also provides extras such as access to movies, TV shows and ad-free music streaming.

At the same time, Walmart has also expanded its ‘Walmart Pay’ technology into two new states, Texas and Arkansas. Walmart Pay lets customers pay for products through a Walmart app instead of using cash or card.