Walmart adopts Amazon’s strategy of building a big business with tiny orders.

Amazon has become dominant in e-commerce with millions of tiny orders, as the typical shopper makes 72 purchases per year spending $37 per order. In contrast, Walmart shoppers tend to shop less frequently but spend more per transaction and prefer in-store shopping. However, Walmart’s CFO revealed that Walmart+ members, who spend twice as much, are starting to resemble Amazon shoppers by placing orders of just one or two items. This shift towards smaller baskets and more frequent orders aligns with customers’ desire for convenience, with a trend towards more delivery over pickup.

Walmart’s CEO also discussed how they are able to gain insights into shopper behavior, particularly in the grocery sector. By analyzing the types of items in customers’ baskets, they can better understand their intentions. It was noted that it takes the average shopper four orders to fully embrace delivery, after which there is increased usage and frequency. This reveals how customers’ shopping behavior changes over time and highlights the importance of convenience in the shopping experience.