At Teikametrics, we have the data. We’ve pulled information from thousands of sellers across Amazon and Walmart Connect to get the clearest view of their performance in 2023. These lessons pulled from our free 2024 Amazon Vs. Walmart Benchmark Report will help sellers maximize their performance in 2024, so read on for tips and secrets!
Big Changes for Amazon and Walmart
While Amazon continues its reign as the leading e-commerce marketplace, Walmart increased its competitiveness. Walmart has continued its efforts since 2022 to improve the user experience for both shoppers and sellers. And they’re seeing results! Sellers can expect similar results to the following data as we enter the new year.
Walmart extended its pressure as a major e-commerce marketplace with updates to Walmart+ and major advancements regarding its Search and Display capabilities. These changes, along with Walmart’s rock-solid in-store reputation, made for consistent experiences regardless of where shoppers turned. This all led to major benefits for sellers and noteworthy statistics for the marketplace.
While in 2022, Walmart offered less competition and a lower cost of operation when compared to Amazon, these alluring facets are beginning to shift. Walmart saw increased competition and cost of sales, while Amazon’s numbers decreased year-over-year. This lends credibility to the idea that Walmart is beginning to siphon industry space from Amazon. Walmart is proving itself to be a viable competitor.
Key Statistics You Need to Know
The highest CPC (cost-per-click) for Amazon was $0.82, the average decreasing 2% YoY, while Walmart climbed to heights of $0.54, a whopping 28% increase YoY compared to 2022. With Walmart’s growth, they saw CPCs steadily increase month by month, whereas Amazon fluctuated throughout the year, with heights during Q4.
As valuable marketplaces, conversion rates (CVR) were high on both platforms. However, Walmart saw significant dips — from a high of 38.7% in February to a low of 23.9% in November — over the course of the year. Amazon saw a much more consistent 2023, increasing from 10.9% in January to a high of 12.9% in December.
Looking at Average Order Values (AOV), both platforms offer high value for sellers. Amazon kept consistent around $32, while Walmart fluctuated, reaching a high of $21 in November.
Amazon’s Actual Cost of Sales (ACOS) increased 4% over 2022, with a high of 20% in September 2023. Walmart saw a massive spike YoY, increasing by 30% to a high of 13% in January. This uptick can be attributed to increased competition in Walmart’s marketplace. As more sellers use the marketplace, the more difficult it will be to secure your sales.
These benchmarks underscore how focusing on constantly measuring meaningful performance data, with the capability to make changes to your tactics and strategy as that data indicates, is the bottom line for success on both Amazon and Walmart. Use the data from our full Amazon vs. Walmart Benchmark Report to measure your performance against competitors, against the market as a whole, and as a primary foundation for educating your strategy in the year ahead and expanding into new marketplaces.