Amazon and Walmart are improving their search capabilities with next-gen technologies such as generative artificial intelligence (AI) in an effort to increase consumers’ spending and loyalty.
Amazon shared Wednesday (Oct. 2) how new features are improving the visual search experience. These include showing images to help users narrow down their query, the ability to add text prompts to uploaded image searches and “More Like This” recommendations, among others.
“We continue to innovate in visual search to help customers quickly and easily find and discover the products they want and need from Amazon’s wide selection,” Mita Mahadevan, Amazon’s director, visual search and search relevance, said, “and we’ve seen a 70% increase year over year in visual searches worldwide as customers use these new features.”
The move comes as consumers seek out more user-friendly eCommerce journeys. PYMNTS Intelligence research finds that four in 10 consumers consider how easy to navigate a merchant’s online store is when choosing where to make digital purchases.
Not to be left behind, Walmart is also adding new search functionality. For the retail giant, these innovations come alongside its push to grow its assortment, aiming to better compete with Amazon’s extensive reach through efforts such as expanding its marketplace offerings. With more products available, the retail giant has needed to improve consumers’ ability to find what they are looking for.
“Customers and members are already enjoying AI-powered search on our app and site. And now they’ll have even more help with a new shopping assistant that provides advice and ideas, answering questions like ‘Which TV is best for watching sports?’” Walmart CEO Doug McMillon told analysts on the company’s most recent earnings call. “Looking ahead, the assistant will be able to respond with more specific follow-up questions like, ‘How’s the lighting in the room where you’ll place the TV?’”
Walmart has been successful at growing its eCommerce share in recent years, as revealed by the study “Walmart’s Aggressive eCommerce Strategy Aimed at Amazon’s Best Customers.” The report is part of the PYMNTS Intelligence Whole Paycheck series, which estimates Amazon and Walmart’s market share in various categories using their earnings reports alongside data from the U.S. Census Bureau and Bureau of Economic Analysis (BEA). The results reveal that, in the four years between Q2 2020 and Q2 2024, Walmart grew its share of U.S. consumer eCommerce spend from 5.7% to 7.7%. This marks a 35% increase.
Meanwhile, Amazon held a considerably larger 53% share, but that figure is only up a few percentage points from 48% four years prior.
As Amazon and Walmart enhance their search capabilities with new technologies, they aim to streamline the shopping experience and drive greater consumer loyalty. These innovations, from visual search upgrades to AI-powered shopping assistants, are part of a broader push to meet evolving consumer expectations in the competitive eCommerce landscape. As both retail giants continue to refine their digital offerings, the battle for market share intensifies, with user-friendly search functionality emerging as a key differentiator in the race to win over shoppers.
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