Amazon and Walmart both have loyal customer bases, but when it comes to the best deals, which retailer do you think wins the price war? A new study set out to determine exactly that, and the results were surprising.
For years, the two companies have been duking it out for sales supremacy.
In 2017, Walmart.com even began offering free 2-day shipping on more than 2 million items, making the company’s e-commerce business more competitive with Amazon’s free 2-day shipping with a Prime membership.
But which online website should you shop in order to get the best deals?
According to a new study by LendEDU, a personal finance website and online marketplace for student loans, Walmart was the winner in all categories, except one.
How Researchers Conducted The Study
In order to examine which retail giant offered customers the best prices on products, researchers from LendEDU added the same 50 products into their carts at each store’s website.
The items ran the gamut from inexpensive products like a 12-pack of Pepsi to more pricey goods like a Nest home thermostat and a treadmill. The items chosen were reportedly the same in quantity, style and model.
The study then grouped the items into five categories—Home Goods, Kitchen/Appliances, Technology & Entertainment, Food & Beverage and Miscellaneous Items—and used a math formula to calculate the difference in percentage for both specific items and for the categories of items collectively.
Shipping was not taken into consideration, nor was Amazon’s discounted bundling options.
Let’s say you are planning a picnic or party and needed to pick up a pack of red solo cups. A pack of 50 from Amazon would set you back $9, whereas the same 50 cups would only cost you $3.88 from Walmart, claims the study. Likewise, a 150-count package of Dixie paper plates on Amazon is $22.90 while the same product at Walmart costs only $14.94.
Overall, Amazon was 33.6 percent more expensive than Walmart when it came to the home good items examined by LendEDU.
In the Technology & Entertainment category, the margins are a bit slimmer with Amazon only 4% more costly, but Walmart still wins out. A pair of Beats by Dr. Dre Solo2 Black Luxe Edition headphones rings up at $129.99 on Amazon. Walmart’s price? Only $89.10.
Food And Drink
There was one category where Amazon tops Walmart, and that’s food and beverages. On average, Amazon was 20.58 percent less costly than Walmart in this area. For example, LendEDU found that Amazon sells a 15-ounce bottle of A.1. Original Steak Sauce for $4.49, compared to Walmart’s $5.97 price tag. Similarly, on Amazon, a can of Campbell’s Chunky Baked Potato Soup is $1.66, whereas the same can from Walmart costs $3.06. That’s a significant difference.
It turns out that if you’re in the market to purchase home goods, kitchen products, appliances, tech products, entertainment goods or miscellaneous items, Walmart is 28.96 percent cheaper per item than Amazon. However, if you’re shopping for food and beverages, then Amazon should be your go-to. Amazon’s food and beverages were cheaper, on average, than Walmart’s.
Amazon’s Response To The Study
As you might expect, Amazon didn’t agree with the study’s findings. The company issued a statement that read:
“The study issued by LendEDU is flawed and misleading, and based on incomplete data … Amazon’s prices are as low or lower than any other retailer and we work hard for customers to ensure that’s true every day. In addition to low prices, we offer customers a vast selection, and more than 100 million items that are eligible for free shipping to all customers, every day.”
Visit LendEDU to see a full breakdown and comparison of the items examined and the company’s methodology.