Walmart’s Closing the Amazon Online Sales Gap

Why It Matters

Walmart’s accelerated online growth reshapes the competitive landscape, giving brands and suppliers a second major digital gateway beyond Amazon. The trend signals a more balanced e‑commerce market where grocery and everyday‑needs categories become decisive battlegrounds.

Key Takeaways

• Walmart eCommerce grew 27.2% YoY Q3 2025.
• Amazon holds 56% U.S. online share; Walmart 9.6%.
• Online sales now 20% of Walmart’s total U.S. business.
• Walmart dominates grocery online with ~86% market share.
• Since 2022 Walmart’s online growth 115% vs Amazon 63%.

Pulse Analysis

Walmart’s e‑commerce trajectory is redefining the retail race. While Amazon still commands a majority of U.S. online spend, Walmart’s 27.2% year‑over‑year growth in the third quarter outpaced Amazon’s 9.6% surge, compressing the competitive gap. The retailer’s online sales now account for roughly 20% of its total U.S. revenue, a share that has doubled since 2022, indicating a strategic shift from brick‑and‑mortar reliance to a robust digital presence.

A key driver of Walmart’s momentum is its dominance in the grocery segment. Amazon controls only about 14% of online grocery spend, whereas Walmart leverages its extensive store network to capture the remaining share, effectively controlling around 86% of the market. This structural advantage allows Walmart to offer lower delivery costs and faster fulfillment, reinforcing its position in essential‑goods categories while Amazon continues to lead in discretionary items such as electronics and media.

The evolving dynamics have far‑reaching implications for brands, suppliers, and payment providers. With two powerful digital channels now vying for consumer dollars, merchants must diversify their strategies to serve both Amazon’s marketplace and Walmart’s omnichannel ecosystem. The differing growth rhythms—Amazon’s event‑driven spikes versus Walmart’s steady everyday demand—also affect margin structures and inventory planning. As the e‑commerce landscape matures, the competition between these retail giants will likely intensify, prompting further innovation in logistics, pricing, and customer experience.