Walmart eCommerce Sales to Grow by 21% in 2021 to $65 Billion, Nearly a Sixth of Amazon’s $367 Billion

A massive boom in click-and-collect trends is expected to accelerate Walmart’s pandemic-driven momentum through 2021.

According to the research data analyzed and published by ComprarAcciones.com, the big box retailer will grow its online sales by 21.2% to $64.62 billion this year. Though Walmart’s growth rate will be relatively muted compared to the previous year, its share of US online retail sales will grow from 6.7% in 2020 to 7.1% in 2021.

In 2020, analysts had initially projected a growth rate of 27% for the e-retailer’s sales. Thanks to the pandemic though, it grew sales by 76% to $53.30 billion.

Its sales for 2021 will nearly double those of eBay, which is projected to rank third with a total of $38.67 billion. Walmart’s sales will also be higher than those of Best Buy, Target and The Home Depot combined. The three are forecast to generate a cumulative $60.59 billion ranking fifth, sixth and seventh, respectively.

Notably though, Walmart will be far behind the top US online marketplace, Amazon. Amazon’s sales are projected to reach $367.19 billion, nearly six times the Walmart total. Just like Walmart, Amazon will post a considerably lower growth rate, 15.3% compared to 2020’s 44.1%.

Its share of the US eCommerce market will slightly increase, going from 39.8% in 2020 to 40.4%. Among the reasons cited for its growth is the fact that SMBs will increasingly rely on online sales. As such, its marketplace sales (third-party vendors) will increase by 16.5% reaching $220.39 billion. They will, thus, account for a 60% share of Amazon’s overall sales.

 

Click-and-Collect Purchases will Grow by 15% to $83 Billion in 2021

According to a recent NRF ranking, Walmart holds the title of world’s biggest retailer, with Amazon hot on its heels. Its total sales for 2020 – both online and offline – amounted to $559 billion, more than $200 billion ahead of Amazon’s figure. Compared to the previous year, its annual revenue growth rate was 6.7%.

In a bid to compete more effectively with Amazon, it launched a number of new services during the year. These include Walmart+, a subscription service comparable to Amazon Prime, offering free delivery among other perks. It also introduced Walmart Express Delivery, a two-hour delivery service.

Its growth in 2020 was also linked to its huge brick-and-mortar footprint, which has driven online sales via click-and-collect. It has more than 4,700 stores in the US and 90% of Americans live within a 10-mile radius of one of them.

Click-and-collect online shopping grew significantly in the US in 2020. According to an eMarketer report, US shoppers made purchases worth $72.46 billion using the method. Compared to the 2019 total of $35.02 billion, the figure marked a growth rate of 106.9% YoY.

It accounted for 9.1% of all online purchases, up from 5.8% in 2020. Growth in the segment is expected to carry through 2021 with total sales increasing by 15.2% to $83.47 billion. Its share of total eCommerce will also grow, reaching 9.9%.

Even prior to the pandemic, the trend already had a measure of traction in the US. For instance, in 2018, 115.9 million people used it leading to sales totaling $22.16 billion. At the time, each buyer only spent an average of $191.20, compared to $503.80 per buyer in 2020.

 

150 Million US Residents Will Make at Least One Click-and-Collect Purchase in 2021

From the total of $200 billion in new eCommerce spending recorded in 2020, click-and-collect purchases accounted for $37.44 billion. Though it only held a 9.1% share of total spending on eCommerce, it accounted for close to 20% growth in total digital sales.

According to data from Bizrate Insights, 7% of US digital buyers were using curbside pickup, a click-and-collect option, in February 2020. By December, the figure had risen to 23%.

The number of buyers using the click-and-collect options increased from 115.9 million in 2018 to 127.4 million in 2019. During the pandemic year, they grew by 12.9% to 143.8 million.

From the total purchases made using the method in 2020, five big box retailers accounted for a 61% share, amounting to $44.2 billion. The five include Walmart, Lowe’s, Home Depot, Target and Best Buy.

Click-and-collect sales accounted for a 41.9% share of their collective sales. It also held a 50.2% share of their combined growth in digital sales during the year.

Even after the pandemic wanes, the trend will hold its gains and continue expanding at a healthy rate.

In 2021, eMarketer estimates that 150.4 million people in the US will make at least one purchase via click-and-collect. Sales under the click-and-collect vertical will continue growing at double-digit rates through 2024.

 

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Sobre Nica San Juan PRO INVESTOR

Nica is a BA Political Science graduate, startup founder and financial expert. She has an entrepreneurial spirit and started several startups from a young age, eventually becoming fascinated with stocks, cryptocurrencies and the blockchain economy. She specializes in financial tech and her expertise is in writing detailed tutorials and guides on how to invest in stocks and cryptocurrencies.

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