The global pandemic has proved to be a boon for many e-commerce sellers. Amazon saw its net sales and operating profits rise by 97 percent last year thanks to online shoppers.
But not all have the same success. Walmart lost its digital momentum as economies opened again, despite having invested heavily in its online operations. The second quarter 2021 saw a slight increase in e-commerce sales of 6 percent, which is a decrease of 91 percent from last year.
A slowdown may have been inevitable as consumers returned to shopping at brick and mortar in person, yet it doesn’t fully explain the small gains when companies like Amazon saw a sales grow 22 percent in its North American sales in the same quarter. JPMorgan analysts released a June note stating that Amazon will overtake Walmart as the largest U.S. retail company by 2022.
Amazon’s U.S. gross merchandise volume (GMV), a closely watched industry metric used to measure the total value of goods sold over a certain time period, grew “significantly faster” than both U.S. adjusted retail sales and U.S. e-commerce, the analysts said.