According to a report, this week by eMarketer, Walmart has overtaken the Cupertino giant, Apple to take its place as the No. 3 online retailer in the U.S. Amazon is currently leading by a wide margin by accounting for about 48 percent of the e-commerce sales in 2018. On the other hand, Walmart (including also Sam’s Club and Jet.com) has planned to capture about 4 percent of all its online retail spending in the U.S. by year-end, which will lead to a whopping $20.91 billion.
The news of this overtaking comes after observing Walmart’s strong earnings which reported a 43 percent increase in online sales and an increase in its year-end forecast for both earnings and sales.
The company previously beat Wall Street’s expectations in its fiscal third quarter, by making $1.08 earnings per share instead of the expected $1.01. After this, it fell short on revenue by making about $124.89 billion instead of the expected $125.55 billion, due to currency complications.
eMarketer previously estimated in July that Walmart will be able to capture 3.7 percent e-commerce share in the U.S. this year, but it actually increased by 4 percent all credits to its quickly growing online sales. In 2018, Walmart’s online sales are predicted to grow by 39.4 percent which is just slightly behind the growth rate for online furniture and home goods retailer Wayfair, that is expected to see sales growth of 40.1 percent.
On the other hand, Apple has been predicted to grow by about 18 percent in 2018, which is a rather small amount. Its domination over the e-commerce market has not changed considerably from 2017 to 2018, which increased to 3.9 percent from 3.8 percent.
In comparison to this, Walmart has increased its share from 3.3 percent to 4.0 percent.
But both of these giants are way behind eBay, which is currently trading at 7.2 percent. eMarketer also predicted that Amazon might take in more than $252.10 billion domestically this year.
Andrew Lipsman, the principal analyst of eMarketer said thus- “Walmart’s e-commerce business has been firing on all cylinders lately. The retail giant continues to make smart acquisitions to extend its e-commerce portfolio and attract younger and more affluent shoppers. But more than anything, Walmart has caught its stride with a fast-growing online grocery business, which is helped in large part by the massive consumer adoption of click-and-collect.”