According to PYMNTS.com, Amazon captured 55.7% of all U.S. e-commerce spending in Q3 2025, dwarfing Walmart’s 9.6% share. However, Walmart’s online sales are growing much faster, surging 27.2% year-over-year compared to Amazon’s 9.6% growth. Walmart’s digital revenue now accounts for 19.9% of its total sales, more than double the 11.4% it was at the start of 2022. Since Q1 2022, Walmart’s e-commerce business has grown by 115.6%, while Amazon’s has increased by 63.2%. In the critical food and beverage category, Walmart is the titan with $87.5 billion in Q3 sales, while Amazon, despite owning Whole Foods, posted $11.9 billion.
The Speed vs. Scale Problem
Here’s the thing about those growth numbers. They’re impressive for Walmart, no doubt. A 27% jump is nothing to sneeze at. But you have to remember the base you’re starting from. Amazon‘s 9.6% growth on its colossal 56% market share adds an absolute mountain of new revenue. Walmart’s faster percentage growth is on a much, much smaller pie. It’s like comparing a sprinter’s acceleration to a freight train’s momentum. The sprinter might look quicker off the line, but the train is covering far more ground. Walmart is picking up the pace, but it’s starting from so far behind that closing the actual dollar gap is a Herculean task. It’s not a sprint; it’s a marathon where your competitor has a ten-mile head start.
Walmart’s Secret Weapon: Groceries
This is where it gets really interesting. The report highlights the food and beverage aisle as the major battleground. Walmart is the undisputed heavyweight here, with nearly 88 billion in quarterly sales. For most Americans, Walmart *is* the grocery store. Amazon, with all its tech and logistics genius, has only managed to grab a 14% share of the *online* grocery market. That’s the chink in Amazon’s armor. Walmart’s entire physical empire—those 5,200+ stores—becomes a massive advantage for click-and-collect and last-mile delivery. They’re essentially pre-built fulfillment centers in every neighborhood. If Walmart can successfully leverage its physical footprint to dominate online grocery, it builds a daily, habitual digital relationship with customers. That’s a powerful hook that goes way beyond buying a new phone charger or a book.
Different Beasts, Different Rhythms
One of the smartest insights from the data is how differently these companies operate. Amazon is “a racer of seasons.” Its sales go wild during Prime Day and the Q4 holiday rush. It’s built on discretionary spending—electronics, gifts, hobbies. Walmart, by contrast, is the “steady hoofbeat.” Its growth is more consistent because it sells the stuff you need every week: food, toilet paper, cleaning supplies. This makes Walmart’s digital growth potentially more resilient. When the economy tightens up, people might skip the new gadget from Amazon, but they still need to eat. Walmart’s hybrid model, blending essential physical retail with growing digital convenience, could be its stability superpower in a shaky economy. It’s not just chasing Amazon’s model; it’s playing a different game entirely.
Can The Gap Really Close?
So, is Walmart actually going to catch Amazon in online sales? In terms of total market share, probably not anytime soon, if ever. Amazon’s lead is just too entrenched. But I don’t think that’s even the right goal. The real story is Walmart’s successful transformation from a pure brick-and-mortar giant into a legitimate hybrid powerhouse. Going from a “tiny fraction” of sales online to nearly 20% in a few years is a stunning pivot for a company that size. They’re not trying to *be* Amazon. They’re using their unique strengths—especially in groceries and physical presence—to build a formidable digital business that complements their stores. For Amazon, the challenge remains cracking the code on mass-market, everyday grocery shopping. For now, this looks less like a winner-take-all race and more like the emergence of two dominant, but fundamentally different, models for the future of retail. And for other retailers watching, that’s the real lesson.
