Amazon is massive in the ecommerce industry, making up nearly 50% of ecommerce sales and being valued at $1.4 trillion. COVID-19 has only helped their growth, with many consumers going online as traditional brick and mortar stores are forced to shut down during the pandemic. Another implication of the pandemic is the growth of online grocery, with ecommerce food and beverage sales projected to increase at least 4.5% by 2024.
When it comes to online grocery, Amazon’s biggest competitor is Walmart. In August 2020, Walmart had a 30% share of online food and beverage sales, surpassing Amazon’s 27.1% for the first time, although a separate study from Supermarket News reported that Amazon beat out Walmart in terms of online grocery customer satisfaction.
With their immense network of brick and mortar stores, Walmart is perhaps better equipped to maintain their lead post-pandemic; however, Amazon diversified its portfolio by acquiring Whole Foods for $13.7 billion in 2017, further encouraging the competition between these two industry giants.
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