July 8, 2020: Direct competition with a reduced price than what you provide is a threat. Walmart is all set to hit the market as Amazon buys unveiling the streaming product Walmart+.
Advantage of Walmart:
Launching a new product at a relatively lower price than Amazon is an added advantage for Walmart. The Amazon streaming product is with a monthly subscription of $12.99/ month and $119/year.
The subscription-based service planned to launch early this year. However, delayed due to the coronavirus pandemic. Amazon will face direct competition and, there will be few customers hoping from Amazon to Walmart as similar companies provide similar service. There will be a few vendors moving out as well.
Walmart has an added advantage to increase Walmart+ users as the online platform of the company is growing at a drastic speed. The e-commerce sales for Walmart was up by 37% in the last three months. The expert predictions say the says will increase by 44.3% by the end of the year with total revenue of $41.01 billion. The projection puts Walmart ahead of eBay that would see only 3% growth this year.
With pandemic situation continuing and people are more inclined towards e-commerce and pick-up and drop facility. Walmart+ would be the right time to get into the market and compete with Amazon.