Amazon vs Walmart: Who Has the Cheapest Prices?
Should Amazon or Walmart be your go-to for online bargains? Here's what the data says.
Kathryn Pomroy
As prices continue to rise on things like coffee, beef, 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.
According to a consumer reports analysis, Walmart is no longer the cheapest grocery store. But it's still home to some great bargains, especially if you opt for generic brands. Still, are those bargains better than one of its biggest rivals, Amazon?
Here's how Amazon and Walmart stack up overall on prices.
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Amazon vs Walmart: Who has the cheapest prices?
For the ninth year in a row, the online retailer beat Walmart on pricing in the annual Price Wars study by Profitero, an internet commerce analytics platform. The report 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 on video games, appliances, fashion and sports and outdoors. But it held only a narrow lead in beauty and toys.
Profitero compared online prices of approximately 10,300 items across various leading online retailers.
The report concluded that in all 16 product categories analyzed, 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, Kohls, Lowes, 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 than competitors.
But only a 4% gap separated Walmart's and Amazon's prices across identical items. So, it's still likely worth checking both retailers to compare the specific items you are purchasing to make sure you're getting the best deal.
In fact, in almost every category, Walmart came in second place just behind Amazon. With a gap that narrow, there's still likely to be an item here and there that's cheaper at Walmart.
With a gap that narrow, the decision could come down to which shopping membership you have or whether what you're ordering qualifies for free shipping without the membership. If you have to pay for shipping on your order, that added fee could easily erase the savings you'd get from choosing Amazon.
Are groceries cheaper at Amazon or Walmart?
While the study didn't analyze fresh produce, meat and other common grocery items, it did look at some categories that might end up in your grocery cart. Packaged foods, for example, were 15% cheaper on average at Amazon than any other retailer. Though, they were only 5% cheaper than Walmart.
Household supplies like cleaning products and toilet paper tended to be 8% cheaper on average (and only 4% cheaper compared to Walmart).
The biggest price gap was in vitamins and supplements. At Amazon, you can expect to pay about 31% less on average for the same product. Though, that's only a slightly better deal than Walmart, where vitamin and supplement prices were just 2% higher than Amazon on average.
While it wasn't included in the study, Amazon does offer fresh grocery delivery as well. Delivery isn't free and order minimums can be high, but you can get your meat, produce and other fresh items delivered via Amazon Fresh or Whole Foods and have groceries at your doorstep in as little as one hour.
If you're not a Prime member, charges vary between $4.95 and $13.95 for 2-hour delivery depending on basket size. Additional fees are charged for rush and one-hour orders. Prime members can get these same services for cheaper.
But Amazon Fresh and Whole Foods aren't necessarily cheaper than Walmart. And, once you tack on the delivery fees, you're likely to end up spending more than you would have at your nearest Walmart.
Still, it's a convenient option, especially for Prime members. And, for those who value quality and premium brands above finding the lowest possible price, Amazon's fresh grocery options can be a good deal.
Walmart Plus has cheaper grocery delivery
A Walmart Plus membership has numerous benefits for members, and the retailer offers grocery prices that are generally lower than at Amazon’s Whole Foods Market.
Walmart has also made strides over its competitors (Target included) 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 beats Amazon. Walmart Plus members get unlimited free delivery on orders worth $35 or more. Combine that easier-to-meet minimum order with the fact that Walmart Plus is cheaper than Amazon Prime, and Walmart definitely wins when it comes to cheaper delivery fees.
That includes same-day delivery where available. The only catch: delivery scheduling is on a first come, first serve basis. So the fastest delivery available to you depends on how many other shoppers are fighting 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 that’s generated by the app, get your receipt and let a store associate know you’ve 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.
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 75% of the time. Other retailers are catching up too. Chewy matched Amazon's price 93% of the time on identical items while Home Depot did so 60% of the time.
Against Amazon, Target saw mixed results in its performance, with prices 13% more expensive than Amazon overall. Target continues to close the gap on Amazon with their home furnishings and toys and games priced competitively.
Only a 1% price difference separated Chewy from Amazon in pet supplies, making it the most hotly-contested category in the study. Meanwhile, CVS was 52% more expensive than Amazon for health & personal care items on average. Walgreens was 48% more expensive.
Overall, 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, audio books and shows.
While Amazon has been successful, the gap is slowly closing. Chewy has been nipping on Amazon's heels for awhile, and on the fashion end, Nordstrom has really stepped up its game, becoming a quality second option tied with Walmart.
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