Amazon’s E-Commerce Dominance: Why Shoppers Keep Choosing Small Orders and Personalized Experiences

Amazon’s dominance in e-commerce can be attributed to the millions of small orders made by their shoppers. The average Amazon shopper makes 72 purchases per year, spending around $37 per order. On the other hand, Walmart’s CFO has observed a shift in the behavior of Walmart+ members, who are increasingly placing orders of just one or two items. This is a departure from the typical Walmart shopper who spends more per transaction and tends to shop more in-store.

Walmart US CEO John Furner shared insights into shopper behavior during a recent conference, highlighting the importance of understanding customer preferences. He noted that by analyzing the type of items in customers’ baskets, the company can gain valuable insights into shopper intent. Furner also mentioned that it takes a shopper an average of four orders to fully embrace delivery options, after which usage tends to increase significantly.

In response to changing consumer preferences and shopping habits, both Walmart and Amazon are offering more convenient and personalized shopping experiences to their customers. While Walmart+ members are starting to resemble Amazon shoppers more closely by placing smaller, more frequent orders, Walmart is still offering pickup options for those who prefer them.