Amazon has achieved a historic milestone by surpassing Walmart in quarterly revenue for the first time, reporting sales of $187.8 billion in the first quarter, compared to Walmart's $180.5 billion.

This development signifies a major turning point for Amazon, which has consistently increased its valuation and market presence over the years. Although Walmart remains the leader in total annual sales—projected to reach $708.7 billion this year—Amazon is rapidly closing the gap with an expected revenue of $700.8 billion.

Since 2015, Amazon has held the title of the largest retailer by market capitalization, now valued at $2.5 trillion, while Walmart's market capitalization exceeds $823 billion. Amazon's continued growth stems not only from its retail operations but also from its AWS cloud computing division, which generated $90 billion in revenue last year, alongside a 19% growth in its advertising business in the third quarter of 2024.

Conversely, Walmart has been focused on effectively integrating its physical retail operations with a robust e-commerce strategy, implementing several successful tactics from Amazon, particularly in advertising. Walmart registered a significant boost in online sales, with a 20% increase in U.S. eCommerce sales during the fourth quarter of 2024. Its omnichannel approach, which includes a 30% rise in U.S. advertising revenue, has contributed to maintaining its competitiveness.

For third-party sellers utilizing Amazon and/or Walmart to expand their businesses, this news presents a positive outlook. While challenges such as rising fees and increasing competition may arise, both platforms continue to demonstrate substantial potential for growth, ensuring that sellers can find ample opportunities to succeed.

In India, comparable dynamics are observable. Amazon commands a higher level of trust among consumers than Flipkart, which still faces trust issues. Meshoo, targeting lower-middle-class households, has also encountered limitations regarding product quality. However, Meshoo's shift towards video social commerce will be interesting to observe. Firstcry's positioning challenges have hindered its expansion into new categories. Nevertheless, niche, community-driven marketplaces could enhance sales through targeted campaigns on platforms such as Google. Ultimately, Amazon retains greater interaction potential, which is crucial for direct-to-consumer sellers, particularly in the pilot phase or during growth periods outside of their own social commerce platforms.

I am eager to collaborate with brands and sellers regarding Amazon services and Agentic Automation Services. I look forward to connecting with relevant businesses.

Sincerely,   Yalu Team