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Saturday, April 10, 2021

Amazon Set To Dethrone Walmart Stock (NYSE: WMT) As The No. 1 Retailer In The U.S.

For almost two decades, Walmart has been the biggest retailer in the US in terms of revenue and the biggest revenue earner in the world during the same time as well. But Walmart stock is expected to be dethroned by the online retailer Amazon by 2021, suggests expert analysts.

Walmart stock has reached greatness by adopting different marketing strategies over the years. It includes low-pricing, a variety of products, and opening retail superstores in every corner of the country. Walmart has used this strategy both within the country and also internationally.

Amazon To Beat Walmart Stock In GMV By 2021

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Walmart stock v. Amazon stock
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Walmart stocks (NYSE: WMT) full year’s revenue is expected to stand at $550 billion in 2020. Although the company is still to top other retailer companies by a wide margin this year, experts analyse that Walmart stocks might be topped by Amazon within the next year. NASDAQ: AMZN stock revenue in 2020 is not very far from that of Walmart especially in one particular sector: The Gross Merchandise Volume (GMV). The e-commerce retail company, Amazon is likely to post $415 billion Gross Merchandise Volume by 2021 beating the 2021 general consensus on Walmart stock’s GMV that stands at $370 billion. This estimate does not include the net revenue. However, Walmart stocks are in serious threat of being replaced as No. 1 in the US.

Gross Merchandise Volume (GMV) is the calculation of net marketplace sales of the company including sales from direct and third-party sellers. But this doesn’t include the company’s revenue. Analysts argue that the GMV value is more important than the revenue as marketplace sales are likely to make a significant chunk of profit for the company than other sales.

Amazon Racing Fast Towards Walmart Stock Figures

Jeff Bezos, Amazon CEO announced in a statement that the company rose from 3% GMV in 1999 to a whopping 58% GMV in 2018 and counting. Other than Walmart stock, Amazon builds its customer base by boosting traffic in e-commerce. The company manages everything starting from storing, packaging and shipping individual orders. It has worked to boost its warehouse facilities and shipping infrastructure to improve customer service. Amazon’s Prime Program bases itself on efficiency. It promises delivery within 24 hours. These have widely improved the third-part sales of the company.

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While Walmart stocks continue to keep the first position, Amazon stock is racing fast towards the peak as a 58% rise in GMV includes $414 billion in Gross Merchandise Volume over the past 4 quarters. Approximately, $270 billion of this is earned from the US alone.

Walmart stock has also started improving on its e-commerce sector over the past few years. The company has a stable 40% rise in e-commerce. This figure increased since the pandemic. Walmart stock has also launched Walmart+ program that is similar to the Prime Program of Amazon. Walmart has to buckle up before Amazon stocks dethrone it within the upcoming year.

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