Dec 31, 2021
Amazon vs Target vs Walmart with Rick
Joe Lynch and
Watson discuss Amazon vs Target vs Walmart and their strengths
and weaknesses in the areas of ecommerce, fulfillment,
distribution, and logistics.
About Rick Watson
founded RMW Commerce
Consulting after spending 20+ years as a technology
entrepreneur and operator exclusively in the ecommerce
industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and
Pitney Bowes. Watson was one of the first employees at
ChannelAdvisor, spending 10 years there in various executive
capacities and launching many of the company’s flagship
offerings. He was then recruited to launch the third-party
marketplace at BarnesandNoble.com, expanding the
company’s product catalog by over 1 million items. After the
successful marketplace launch, he served as CEO of Merchantry and
led the company to a $30M acquisition by Tradeshift. Upon
fulfilling the transition obligations of Merchantry to Tradeshift,
Watson directed the cross-border product strategy of Pitney Bowes,
a $450M business, comprised of Borderfree and the eBay Global
Shipping Program. Watson’s work today is centered on supporting
investors and management teams incubating and growing
direct-to-consumer businesses. Most recently, in partnership with
WHP Global, Rick was a critical resource in architecting the WHP+
platform, a new turnkey direct-to-consumer digital ecommerce
platform that powers AnneKlein.com and JosephAbboud.com.
About RMW Commerce Consulting
Consulting supports investors and management teams
incubating and growing digital businesses online – both
direct-to-consumer and B2B. RMW was founded by Rick
Watson after his more than 20 years as a technology
entrepreneur and operator exclusively in the eCommerce
industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry,
and Pitney Bowes.
Key Takeaways: Amazon vs Target vs
- The lines have blurred when it comes to retail and ecommerce.
In the past, consumers either bought online or bought from their
- Today, consumer expectations have risen in large part because
companies like Amazon, Target, and Walmart have created such a
wonderful customer experience.
- During the discussion, Rick talked about each company’s
business model, along with their relative strengths and weaknesses
in the areas of customer experience, fulfillment, and
- Amazon is a pioneer in the ecommerce space, but to ensure that
the customer experience, delivery, and fulfillment is world-class,
Amazon has invested heavily in fulfillment centers close to
- The fulfillment centers enable Amazon to store inventory close
to consumers which allows for fast delivery and even same-day /
- Amazon has raised the bar on digital communication with
customers and their accurate, on-time home deliveries set the
benchmark for the rest of the industry.
- To further cement their position as the leader in-home
delivery, Amazon has started an asset-based logistics company to
keep the packages moving.
- Amazon is first and foremost a technology company and they will
use their superior tech capability to stay a leader in the
- Target started as an old-school retailer with virtually no
technology or online presence.
- In terms of selling online, Target had a very late start.
- Target was not equipped to manage an online store and they even
had Amazon manage their online sales for a short time.
- As a traditional retailer, Target couldn’t just copy Amazon’s
- Target ultimately decided to invest in their stores. They made
each store a fulfillment center and today, 90% of Target’s online
orders are fulfilled by their stores.
- Additionally, Target has pioneered several
purchasing/fulfillment options including BOPAC (Buy online and pick
up at curb) BOPIS (Buy online and pick up in store), and same-day /
next-day deliveries via Shipt (an independent subsidiary of
- Shipt facilitates same-day delivery from various retailers to
its members through either phone apps or via their website. Shipt
has over 200,000 personal shoppers delivering products to
- Walmart is the world's largest company by revenue, with over
$524 billion USD in 2020.
- Walmart is also the also the biggest food retailer in the
- Walmart is a juggernaut when comes to sales and operational
excellence. Walmart’s inventory management, distribution, and
logistics are arguably the best in the retail world.
- Obviously, the company understands retailing, but they
struggled with their transition to online sales.
- Walmart was late to the online party and they had a few
- In recent years, Walmart has made major investments that enable
their stores to be fulfillment centers.
- With over 11,500 stores worldwide, Walmart has locations close
to the world’s population centers.
- In addition to their store and fulfillment center investment,
Walmart purchased Jet.com to gain the experience and resources of a
web-native ecommerce company.
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Amazon vs Target vs Walmart with Rick Watson
The Logistics of Logistics Podcast
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