Amazon and Walmart are engaging in an ongoing price war. This isn’t just a contest of online vs. bricks-and-sticks, but involves Walmart’s Web presence as well. Some of America’s biggest brands, distributed by both giants, are nervous over how lean their profit margins are becoming. Grocery suppliers are especially feeling the pinch.
Smart shopping expert Trae Bodge has seen this showdown coming. “Well, I’m not surprised,” she says. Amazon and Walmart, she notes have been “duking it out for quite a while now, and so this is not surprising to see that they’re fighting over prices now.”
Who will be the winner of this epic contest? “The winner will be the consumer,” Bodge says. “We’re going to see this price war, and consumers who are savvy can look at Walmart and Amazon and see where they can get the best deal.”
And who loses? “The losers are really the brands,” Bodge observes. “The big brands can probably handle this, but smaller, more entrepreneurial brands are really going to struggle to meet those requirements that Amazon and Walmart are placing on them.” Bigger businesses can absorb the impact of slimmer profit margins through larger sales volume.
Bodge doesn’t see it ending anytime soon. “I think it’s going to continue,” she predicts. “Amazon and Walmart are going head to head. I don’t see this going away anytime soon. So this is always going to be good for us.” She says the deals can be even better depending on what shoppers are looking for at different seasons of the year.