Walmart beats Costco and targets for best online shopping experience, according to consumers

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Online shopping has seen an incredible increase due to the pandemic and subsequent lockdowns. Indeed, total e-commerce sales for 2021 were estimated at $870.8 billion, an increase of 14%, according to the Commerce Department. But not all stores fare the same, and consumers are keenly aware of what makes an online shopping experience worth their time and money.

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A new GOBankingRates survey that asked which store had the best online shopping experience reveals that US consumers overwhelmingly prefer Walmart for their online shopping, at 42%. In terms of age groups, the 65+ age group had the strongest preference for Walmart at 49%, followed by the 45-54 age group at 47% and the 55-64 age group at 40%. After Walmart, Target takes second place with 31%, and Costco is a distant second with 9%. Finally, at the bottom of the list of best online shopping experiences are Ikea at 6%, Dollar General at 6%, Dollar Tree at 4% and Five Below at a measly 2%.

So what makes Walmart more attractive for online shopping? Keep reading to find out.

What puts Walmart at the forefront of online shopping?

There are a few deals that probably helped propel Walmart ahead of the rest.

Walmart+

According to experts, securing the top spot is a combination of several factors, including the Walmart+ Advantage, Walmart’s same-day shopping-on-demand service.

Shannon Vissers, retail analyst at MerchantMaverick.com, told GOBankingRates that Walmart+ is similar to Amazon Fresh or Instacart.

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“Target offers a similarly priced same-day delivery service called Shipt, but it doesn’t have as many advantages as Walmart+. In addition to free same-day shipping, Walmart+ also offers free ground shipping with no minimum order and member pricing on fuel and prescription drugs,” Vissers said.

The Walmart+ partnership with American Express

Another benefit (for some) members of Walmart+ is its partnership with American Express, which was announced in October 2021.

“I remember it surprised a lot of people last year when American Express added free Walmart+ membership for its Platinum cardholders,” Ted Rossman, senior industry analyst, CreditCards.com, told GOBanking Rates. “At first glance, it seemed like a strange match – isn’t Amex Platinum for millionaires, not the kind of people who shop at Walmart? But Amex said Walmart is actually one of the retailers the most popular for members of its Platinum card.

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Variety of items

Another factor that attracts consumers for online shopping is Walmart’s wide variety of items. Indeed, while Walmart, Target and Costco all offer highly navigable websites and apps and have a convenient online checkout process, Walmart sells a far greater number of items than Target or Costco, Merchant said. Maverick’s Vissers.

“The variety is pretty amazing, and Walmart is able to achieve this because it uses a large seller’s market, similar to Amazon. Target has a seller’s market called ‘Target Plus’, but it’s invite-only and therefore much more smaller than Walmart’s – 272 sellers on Target Plus versus 100,000 Walmart Marketplace sellers,” she said.

Address a wide range of consumers

Some experts also note that another driving force for Walmart is that the retailer has gone to great lengths to cater to diverse online audiences.

For example, it has expanded the number of language offerings on its website, enabling it to be a leading retailer among global audiences, as the use of native language makes the shopping experience familiar. and easy, Hila Shitrit-Nissim, CMO of BLEND Localization, told GOBankingRates. “It’s just one of the many ways they’ve created a meaningful online shopping experience for their customers,” Shitrit-Nissim said.

Access talent and knowledge

Walmart’s omnichannel strategy, which involved buying successful e-commerce companies, such as Jet.com, Bonobos and ModCloth, gave Walmart immediate access to the talent and know-how needed to create an online experience. first class.

“Based on this expertise, they invested in a mobile app, fast shipping and online store pick-up service (BOPIS), etc., to create a seamless customer experience,” said Fang Cheng, Founder and CEO of Link. , told GOBankingRates.

Accessibility

Cheng added that Walmart’s proximity to customers is a huge advantage over everyone else, even Amazon.

“With more than 5,000 stores nationwide, Walmart has claimed in recent years that 90% of Americans live just 10 miles from one of their stores. It comes down to one-stop convenience while giving shoppers full control over how and where they receive online orders,” Cheng said. “Walmart has made BOPIS super easy, whether shoppers want the convenience of curbside grocery pickup or prefer to visit a store because they’re worried about packages being lost or stolen at their doorstep. Plus, nearby stores provide shoppers with an easy way to handle returns and receive in-person customer service when needed. »

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About the Author

Yael Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She has also worked as a VP/Senior Content Writer for major New York-based financial firms, including New York Life and MSCI. Yael is now independent and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in journalism from New York University and one in Russian studies from Toulouse-Jean Jaurès University, France.

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