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Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy?

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  • Jindal, Rupinder P.
  • Gauri, Dinesh K.
  • Li, Wanyu
  • Ma, Yu

Abstract

A large body of academic research has recently focused on omnichannel retailing especially on brick-and-mortar (offline) retailers adding and integrating online capabilities. Relatedly, trade press has highlighted how offline retailers have been investing heavily in the use of their existing physical retail network for quicker delivery and pick-up of online orders. Looking at the competition between Amazon and Walmart, however, we demonstrate that focusing on quicker delivery is not the best strategy for offline retailers when opening online channels to compete with online retailers. We estimate a multivariate probit model using data from a customer survey and find that offline retailers should instead focus on delivering the fundamentals of retailing to their online customers too – larger assortment, competitive prices, and purchase convenience. Further, we employ cluster analysis to show which demographics are good targets for retailers as they develop omnichannel capabilities, as well as which demographics retailers need to keep loyal to their original channels.

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  • Jindal, Rupinder P. & Gauri, Dinesh K. & Li, Wanyu & Ma, Yu, 2021. "Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy?," Journal of Business Research, Elsevier, vol. 122(C), pages 270-280.
    • Handle: RePEc:eee:jbrese:v:122:y:2021:i:c:p:270-280
    DOI: 10.1016/j.jbusres.2020.08.053
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    3. Yande Gong & Yidan Ma & Zhe Wang, 2022. "Omnichannel Retail Strategy Considering Cost-Sharing and Consumer Heterogeneity under Different Power Structures," Mathematics, MDPI, vol. 10(21), pages 1-32, October.
    4. Hyeon Jo, 2023. "What Drives Recommendation Intention and Loyalty of Online for Offline (O4O) Consumers?," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    5. Hui-Ming Deanna Wang & Foo Nin Ho, 2023. "The Effects of Information Technology in Retailer Performance and Survival: The Case of Store-Based Retailers," SAGE Open, , vol. 13(4), pages 21582440231, December.
    6. Ratchford, Brian & Soysal, Gonca & Zentner, Alejandro & Gauri, Dinesh K., 2022. "Online and offline retailing: What we know and directions for future research," Journal of Retailing, Elsevier, vol. 98(1), pages 152-177.
    7. Rahman, Syed Mahmudur & Carlson, Jamie & Gudergan, Siegfried P. & Wetzels, Martin & Grewal, Dhruv, 2022. "Perceived Omnichannel Customer Experience (OCX): Concept, measurement, and impact," Journal of Retailing, Elsevier, vol. 98(4), pages 611-632.
    8. Christiane Lehrer & Manuel Trenz, 2022. "Omnichannel Business," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 687-699, June.
    9. Valeria Belvedere & Elisa Martina Martinelli & Annalisa Tunisini, 2021. "Getting the most from E-commerce in the context of omnichannel strategies," Italian Journal of Marketing, Springer, vol. 2021(4), pages 331-349, December.
    10. Rosado-Serrano, Alexander & Navarro-García, Antonio, 2023. "Alternative modes of entry in franchising," Journal of Business Research, Elsevier, vol. 157(C).
    11. Benoit, Sabine & Altrichter, Birgit & Grewal, Dhruv & Ahlbom, Carl-Philip, 2024. "Autonomous stores: How levels of in-store automation affect store patronage," Journal of Retailing, Elsevier, vol. 100(2), pages 217-238.
    12. Grewal, Dhruv & Gauri, Dinesh K. & Roggeveen, Anne L. & Sethuraman, Raj, 2021. "Strategizing Retailing in the New Technology Era," Journal of Retailing, Elsevier, vol. 97(1), pages 6-12.
    13. Grewal, Dhruv & Benoit, Sabine & Noble, Stephanie M. & Guha, Abhijit & Ahlbom, Carl-Philip & Nordfält, Jens, 2023. "Leveraging In-Store Technology and AI: Increasing Customer and Employee Efficiency and Enhancing their Experiences," Journal of Retailing, Elsevier, vol. 99(4), pages 487-504.
    14. Michal Stojanov, 2022. "Q-Commerce – The Next Generation E-Commerce," Business Management, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 1 Year 20, pages 17-34.

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