One look at the charts of Amazon and Walmart tells the story the battle between two major retailers: One born and raised on the web, the other forged in brick and mortar finally succeeding at a game a of catch up online.
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Andy Swan of likeFolio says Walmart is edging out its Internet-birthed challenger, and points out the change in dominance was evident on social media even before earnings reports and stock charts proved the case.
likeFolio monitors all of English speaking Twitter looking for tradable trends in large companies. “What we’re seeing is the erosion of Amazon’s dominance in retail, even online retail,” he told Yahoo Finance’s Phil Pearlman.
Swan says three things in particular have played out in such a way on Twitter as to suggest Amazon’s dominance online is waning.
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Price matching
During the holiday shopping season Walmart managers finally allowed their associates to match Amazon’s prices. Swan says Twitter lit up with support for the change. Customers “knew they could just go into the store and get what they wanted at the same price.”
Sales tax
Amazon was long a place to find a way around paying sales tax, a practice which automatically built in a 4-9% discount for shoppers. “Now 15-20 states are starting to charge sales tax on the purchases so there’s not an automatic….savings by going to Amazon and that is getting a lot of chatter on social media,” Swan notes. “We’re really seeing people say ‘So what’s the difference between Walmart.com, Amazon.com” and others.
Brick and mortar retailers ramping up online
Swan says, as Yahoo Finance noted late last year, that “people are actually starting to respect these other older, what used to be brick and mortar [stores]. Their online presence is getting better. It’s not that Amazon is getting worse, it’s just that people are more favorably reacting to stuff that’s goin on on Walmart.com or Staples.com. They’ve upped their game and closed that gap with Amazon quite a bit.”
Related: Amazon is in trouble as online shopping grows
Can Amazon find a way to compete again and stay on top of the online game or are you heading to the Walmarts of the world instead? Let us know in the comments below.
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