Amazon has recently outperformed Walmart in quarterly revenue for the first time. Amazon reported $187.8 billion in revenue for the fourth quarter, surpassing Walmart’s $180.5 billion in sales for the same period.
Previously, Walmart had been the top revenue earner each quarter since 2012, after it surpassed Exxon Mobil. While Amazon is closing the gap, Walmart still leads in annual sales. According to FactSet data, Walmart is projected to generate $708.7 billion in the upcoming fiscal year, while Amazon’s revenue for 2025 is estimated to be around $700.8 billion.
Amazon’s revenue is primarily driven by its retail division, but is also significantly boosted by its cloud computing services, advertising, and seller services.
Last year, third-party seller services, including commissions and fees from fulfilment, shipping, advertising, and customer support, accounted for 24.5% of Amazon’s total sales, while Amazon Web Services (AWS) contributed nearly 17%. Since 2020, AWS revenues have more than doubled, representing roughly 17% of Amazon’s overall sales.
In response to Amazon’s growth, Walmart has been studying strategies employed by its competitor.
Walmart has since developed a third-party marketplace and provides fulfillment services for sellers, though these operations are considerably smaller than Amazon’s. Walmart has also introduced an advertising division and a shopper loyalty program named Walmart+ to compete with Amazon Prime.