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.
As prices continue to rise on everyday essentials, more shoppers are turning to discount retailers to save on groceries and other household staples. When it comes to two of the biggest retailers, Amazon and Walmart, which one actually has the lower prices online?
According to a Consumer Reports analysis, Walmart is no longer the cheapest grocery store. But it's still home to plenty of bargains, especially if you opt for store brands. So how do its prices compare with one of its biggest rivals, Amazon?
Here's how Amazon and Walmart stack up on price, grocery delivery and other factors that can affect what you ultimately pay.
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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. That means there are still likely to be plenty of Walmart deals that are better than Amazon.
With a gap that narrow, the decision could come down to which shopping membership you already have or whether your order qualifies for free shipping. If it doesn't, shipping or delivery fees could easily erase a small price advantage.
Are groceries cheaper at Amazon or Walmart?
While it wasn't included in the study, Amazon does offer fresh grocery delivery. Prime members can get free delivery on qualifying grocery orders, depending on the service and order total.
You can get meat, produce and other fresh items delivered through Amazon Grocery on Same-Day Delivery, Amazon Fresh or Whole Foods, with delivery times varying by location and availability.
For Prime members, delivery is free on Amazon Grocery orders over $25 through Same-Day Delivery or on Amazon Fresh orders over $100. For non-Prime members, delivery charges vary between $4.95 and $13.95 depending on basket size. Additional fees may apply for faster delivery.
But Amazon Fresh and Whole Foods aren't necessarily cheaper than Walmart. Before ordering, compare not only the price of the groceries but also any delivery fees and minimum-order requirements. Those extra costs can change which retailer offers the better deal.
Still, Amazon's grocery delivery can be a convenient option, especially for Prime members who meet the thresholds for free delivery. And for shoppers who value convenience, quality or premium brands over finding the lowest possible price, Amazon's fresh grocery options may be worth considering.
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, including Target, in its local produce and organic offerings, which has helped it attract wealthy shoppers to its stores.
It has also added household essentials such as pet food and cleaning supplies. Overall, Walmart offers more brands, with over 175,000 items available in-store.
When it comes to grocery delivery, Walmart+ and Amazon Prime both offer ways for members to avoid delivery fees. Walmart+ members get unlimited free delivery on orders worth $35 or more. Amazon's thresholds vary by grocery service, so which option costs less can depend on what you're buying and how much you're spending.
Walmart+ also includes same-day delivery where available. The fastest delivery option available to you can depend on location, demand and available delivery windows.
In-store, Walmart+ members also get access to Scan & Go. Just scan the items you want to buy with your phone, pay through the app and scan the QR code at self-checkout before leaving the store.
A Walmart+ membership costs $12.95 per month or $98 per year, and eligible customers can try Walmart+ free for 30 days.
In comparison, Amazon Prime costs $14.99 per month or $139 per year, although Amazon offers discounted Prime memberships to some eligible customers.
Amazon vs Walmart vs the rest of the pack
The competition between Amazon and Walmart is fierce. The study showed that the two companies had identical prices on 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, with prices 13% higher than Amazon overall. But Target remained competitive in categories including home furnishings and toys and games.
Only a 1% price difference separated Chewy from Amazon in pet supplies, making it the most closely contested category in the study. Meanwhile, CVS was 52% more expensive than Amazon for health and personal care items on average, while Walgreens was 48% more expensive.
Overall, Amazon continues to have a price advantage across the categories included in the study. Prime members can also get additional value from shipping benefits and entertainment perks, including music, audiobooks and streaming.
Still, the price gap between Amazon and some competitors is narrow. Chewy remains especially competitive on pet supplies, while Walmart frequently comes close to Amazon's prices across categories.
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