After Thanksgiving weekend, Americans typically recede back into their daily lives of everyday hustle and bustle. Monday was no different as most shoppers grabbed up the most profitable of deals on Cyber Monday, racking up $6.95 billion in online sales by the end of the day.
Cyber Monday 2017 outranks Black Friday 2017 with online sales of $5.03 billion for the latter event, according to Adobe Analytics. Cyber Monday even broke its own previous record of $5.65 billion last year, indicating a 16.8% increase.
In all likeliness, Amazon took in an estimated 42% share of all online sales, according to Slice Intelligence, a market research firm.
“The problem for everybody else is that Amazon has basically become a verb. It’s the reflex reaction to start on Amazon and then you go other places only if you can’t find what you want there,” said Bob Goodwin, consumer electronics practice lead at InfoScout, a consumer-behavior research company.
Walmart is, however, posing a serious threat to Amazon with its lower competitive pricing policy. Its prices on average are now just 0.3% more expensive than Amazon, according to Market Track, a data analytics company. Last year its prices were 3% higher, it says.
“With investments in buying online and pickup in-store, as well as the acquisitions of Jet, ModCloth, Moosejaw, and Bonobos, the most interesting story will be how much ground” Walmart has gained, said Ken Cassar, principal analyst at Slice.
This pricing strategy is paying off well. Walmart’s online sales grew 50 percent year-over-year in the most recent quarter, helping it post its strongest quarterly U.S. revenue growth in nearly a decade. It now accounts for 3.6 percent of total U.S. online sales in the 12 months leading up to October 2017, which is up from a 2.8 percent share a year ago, according to digital research firm eMarketer.
Walmart could gain more market share at their expense through its price cuts, analysts say. “Wal-Mart’s objective here may not be to unseat Amazon as much as it is to convince (Wal-Mart‘s) loyal store shoppers it is also a low-price leader online,” said Keith Anderson, senior vice-president of strategy and insights at e-commerce analytics firm Profitero.