As the battle for eCommerce dominance intensifies, Walmart is making strides in expanding its online presence. The retail giant has elevated its digital sales and profits, cementing eCommerce as a core element of its strategy. But despite these gains, Walmart still faces a daunting challenge: it remains a distant second to Amazon, whose overwhelming online sales continue to set the standard.

According to the PYMNTS Intelligence “Whole Paycheck” report, “Walmart Holds Grocery Lead Over Amazon Despite Overall Share Declines,” in Q3 2024 Amazon’s eCommerce sales totaled $152.25 billion, while Walmart’s reached just $22.45 billion, highlighting room for further growth.

Walmart’s eCommerce share has risen since Q1 2019, from 4.9% to 7.8% in Q3 2024, the report noted. This growth illustrates a strategic shift toward prioritizing online retail as part of its plans to capture a larger share of the retail market. Key to this strategy is Walmart+, the retailer’s subscription service aimed at competing with Amazon Prime, offering perks like free grocery delivery — critical since groceries are Walmart’s dominant category. Walmart’s share of grocery spending is seven times greater than Amazon’s, the report said.

While Walmart’s online expansion continues, its share remains a fraction of Amazon’s, showing the need for new strategies and incentives to attract more online shoppers. The competition for eCommerce leadership is still very much in play.

Here’s a look at other notable developments from Amazon and Walmart:

Amazon Highlights

• Amazon to Test Linking Brand Sites in Search Results: Amazon is testing a new shopping experience in which select products not sold directly by the company will appear in search results, linking to that brand’s website for purchases. Currently in beta, this feature will be available through the Amazon Shopping app and seeks to elevate product discovery convenience. It will expand Amazon’s search capabilities and resemble a Google-style shopping platform. These items will appear next to Amazon’s products, allowing customers to visit the brand’s website to view details, pricing, delivery options, and make purchases directly.
• Amazon Targets More Ad Dollars With Expanding Sports Portfolio: Amazon wants to attract more advertisers to its growing sports portfolio, which includes streaming rights for the NBA, NASCAR, and “Thursday Night Football.” As it expands its sports offerings, Amazon aims to generate more ad revenue, with projections of an additional $750 million from its NBA package. Amazon is targeting a younger audience with its Prime Video sports streams, noting “Thursday Night Football” was the only NFL regular-season broadcast to see a ratings increase. The company also plans to secure sponsorships for a new NBA production facility.

Walmart Highlights

• Walmart Partners With GreenPod Labs: Walmart is partnering with GreenPod Labs to combat food waste by extending the freshness of produce. The collaboration involves using sachets filled with plant extracts that slow microbial growth, keeping fruits like mangoes fresher longer. These sachets, created in India, will be applied to mangoes in Peru before shipping them to the U.S. Walmart is also working with the University of California, Davis to assess the technology’s effectiveness. This initiative follows Walmart’s earlier efforts, including a partnership with Agritask to use data analytics for better produce sourcing and reducing waste.
• Walmart Makes Leadership Changes: Walmart implemented leadership changes across its global business, which were effective Feb. 1. Lance de la Rosa will move from Sam’s Club COO to executive vice president at Walmart U.S., and Dave Guggina will become chief commerce officer. Rob Montgomery will take over as executive vice president of supply chain, and Megan Crozier will return to Walmart as executive vice president of general merchandise. Tom Ward will move to Sam’s Club as COO. Venessa Yates will become CEO of Walmart Canada, replacing Gonzalo Gebara, who is leaving after 25 years with the company.