As Prices continue to rise. on things like coffee, butter, eggs and household goods, more people are turning to discount retailers to save on groceries and other consumables. When it comes down to the battle of two of the retail behemoths, Amazon vs Walmart, shoppers are asking which one has the cheaper prices online.
One study says it's Amazon all the way. In 2024, Profitero, an internet commerce analytics platform, released a report titled Price Wars study , which pitted Amazon and Walmart against each other, along with a handful of other key retailers.
The report found that, in addition to grocery prices, Amazon had the lowest prices in video games, appliances, fashion and sports and outdoors. But it held only a narrow lead in beauty and toys.
Profitero compared non-sale prices of approximately 14,000 items across various leading online retailers.
The report concluded that Amazon had lower prices than Walmart and 12 other U.S. retailers , including Best Buy, Chewy, CVS, Dick's Sporting Goods, GameStop, GNC, The Home Depot, Kohl's, Lowe's, Macy's, Nordstrom, Petco, PetSmart, Target, Ulta, Walgreens, Walmart and Wayfair.
How much lower? On average, the study found Amazon's prices were 14% lower. That's a 2% difference from last year, indicating competitors are closing the gap.
Only a 5% gap separated Walmart's and Amazon's prices across identical items. Compared to last year, Walmart became more competitive in 10 categories, including video games, fashion, and home improvement.
"Amazon’s and Walmart’s solidifying price leadership has significant implications for retailers, not just for sales but advertising investments as well," said Mike Black, CMO of Profitero.
If a retailer's product ads appear alongside competitors with significantly higher prices, their conversion rates and ROI won't be impressive. If you can't outprice them, outmaneuver them with agility.
Here's how Amazon and Walmart compare overall in terms of prices.
Amazon vs Walmart: Who has the cheapest grocery prices?
Amazon's acquisition of Whole Foods in 2017 ignited a rivalry between Walmart and Amazon that continues to this day. Both retail giants are fiercely competing to become your primary destination for groceries. Both provide convenience, variety, and savings that go well beyond just grocery items. But how do they stack up against each other, and who offers the lowest prices? Let's break it down.
Amazon Fresh
Amazon Fresh It is an online and physical grocery store that offers low prices, same-day delivery, and free pickup, but it's only available in certain areas. The service provides low prices on many of your favorite brands.
Plus, you can get weekly deals delivered to your inbox or visit the weekly in-store deals page , and earn 5% back at Amazon Fresh when you use your Prime Visa with an eligible Prime membership.
The good news is that anyone can shop at Amazon Fresh stores. To use Just Walk Out shopping or Amazon Dash Cart, you will need to have an Amazon account with a linked credit or debit card.
If your order is over $100, you can get 2-hour delivery free with Prime and you won't incur a service fee.
Delivery orders under $100 with 2-hour delivery windows come with a service fee of $6.95 for orders $50-$100, and $9.95 for orders under $50 for Prime members. But if you plan to use the service more than once a month, Prime members can get unlimited free delivery on Amazon Fresh (or Whole Foods) orders over $35 for just $9.99 per month.
If you're not a Prime member, charges for 2-hour delivery vary between $4.95 and $13.95 depending on basket size. Additional fees apply for rush and one-hour orders.
Customers in some areas with delivery time flexibility of up to six hours will receive a reduction in fees. Grocery pickup at all of Amazon's Fresh Stores and Fresh pickup points is free.
GrubHub Plus for Amazon Prime Members
Don’t forget, every Prime membership comes with a free Grubhub Plus Amazon says this free service saves their customers $300 annually in delivery charges.
Prime members enjoy a free Grubhub Plus subscription, which includes $0 delivery fees on eligible orders over $12, reduced service fees, 5% credit back on pickup orders, and exclusive offers.
Amazon Whole Foods
Seven years ago, Amazon purchased Whole Foods for $13.7 billion. Since then, Amazon has made a lot of changes to the specialty grocer, including embedding checkout technology and lowering prices at its 500-plus U.S. locations.
It is now one of the largest organic food stores in the U.S. Although prices are significantly higher than in conventional grocery stores, the food is generally of superior quality.
You can have your groceries delivered from the organic grocer, but the same delivery fees and order minimums that apply to Amazon Fresh also apply to your Whole Foods orders.
When comparing products offered at Amazon Fresh and Whole Foods, the prices are quite a bit higher at Whole Foods (but customers agree the quality is better).
However, Prime members can save an extra 10% off sale prices, plus get deals on seasonal favorites. You can apply for the Whole Foods Visa card and earn 5% back with Prime Visa and an eligible Prime membership. Check out Whole Foods weekly in-store deals.
Try Amazon Prime free for 30 days to get free same-day and next-day shipping, free GrubHub Plus, and other great benefits. Membership normally costs $14.99/month or $139/year. View Deal
Walmart Plus Offers Cheaper Grocery Delivery, Though
A Walmart Plus Membership has numerous benefits for members, and the retailer offers grocery prices that are generally lower than those at Amazon’s Whole Foods Market.
Walmart has also made strides over its competitors (including Target) in its local produce and organic offerings, which has helped it attract wealthy shoppers to its stores.
It has also added household essentials like pet food and cleaning supplies. Overall, Walmart offers more brands, with over 175,000 items available in-store.
When it comes to grocery delivery fees, Walmart supera a Amazon Walmart Plus members receive unlimited free delivery on orders of $35 or more. Combining that easier-to-meet minimum order requirement with the fact that Walmart Plus is cheaper than Amazon Prime, Walmart clearly comes out on top in terms of lower delivery fees.
This includes same-day delivery where available. The only catch: delivery scheduling is on a first-come, first-served basis. So the fastest delivery available to you depends on how many other shoppers are competing for those same-day time slots.
In-store, Walmart Plus members also get access to the scan-and-go service. Just scan the items you want to buy with your phone, pay with a credit or debit card, and head to the self-checkout when you’re done.
Then scan the QR code generated by the app, obtain your receipt, and inform a store associate that you have already paid.
A Walmart Plus membership costs $12.95/month or $98/year, but right now you can try Walmart Plus Free for 30 days .
In comparison, Amazon Prime , which you need to use with Amazon Fresh, costs $14.99 per month, or $139 per year.
Try Walmart+ free for 30 days and enjoy free shipping, free same-day delivery, a free subscription to Paramount+, and more. Normally, membership is $12.95/month or $98/year. View Deal
Amazon vs Walmart vs the rest of the pack
- The competition between Amazon and Walmart is fierce. The study showed that the two companies have identical prices across identical products 65% of the time. Other retailers are catching up too. Chewy matched Walmart's price 94% on identical items, while Home Depot did so 48% of the time.
- Amazon maintains a considerable price advantage in video games and fashion, with average prices around 12% and 5% lower than its closest competitors.
- Against Amazon, Target saw mixed results in its performance, with prices 13% more expensive than Amazon, compared to 16% last year. Target continues to close the gap on Amazon with their home furnishings and toys and games priced competitively.
- Only 1% and 3% separated Chewy and Petco from Amazon in pet supplies, making it the most hotly-contested category in the study. Chewy’s competition with Amazon is so fierce that they share the same prices 94% of the time.
- On average, CVS was 50% more expensive than Amazon for health & personal care items; Walgreens was 45% more expensive.
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Here's a look at the retailers with the lowest everyday prices and the retailers with the lowest holiday shopping prices, according to the report by Profitero.
|
Category |
Lowest Prices |
Second Lowest Prices |
Percentage Difference Between Lowest and Second Lowest Prices |
|
Baby |
Amazon |
Walmart |
4% |
|
Beauty |
Amazon |
Walmart |
6% |
|
Health & Personal Care |
Amazon |
Walmart |
4% |
|
Household Supplies |
Amazon |
Walmart |
4% |
|
Pet Supplies |
Amazon |
Chewy |
1% |
|
Vitamins & Supplements |
Amazon |
Walmart |
3% |
The bottom line
Amazon continues to be an incredible value across the board. And if you have an Amazon Prime membership, you can save on shipping, returns, and more on the streaming side with music, audiobooks, and shows.
While Amazon has been successful, the gap is slowly closing. Chewy has been nipping at Amazon's heels for a while, and on the fashion side, Nordstrom has really stepped up its game, becoming a quality second option tied with Walmart.
Related Content
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