Walmart And Amazon Dispute
Walmart And Amazon Dispute: Walmart in pursuit of winning E-commerce war has placed itself against Amazon which is an electronic commerce and cloud computing company based in Seattle, Washington founded by Jeff Bezos on July 5, 1994. Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.
A former Walmart business development employee Tri Huynh, was fired by Chief Executive Officer Doug McMillon when he indicated that the firm showed misleading e-commerce results illustrating meteoric growth in its business to appease investors. As per media sources, Walmart has invested billions to beat Amazon in the e-commerce business. They offered service for a customer to receive their 30$ purchase within four hours at a delivery fee of $9.95. This move of the world’s largest retailer Walmart ended up in a battle with the world’s most powerful e-commerce player, Amazon since Amazon purchased the Whole Foods grocery chain and planned to use those stores to service on-demand orders. Amazon mainly targets the industries of e-commerce and grocery that are increasingly appealing to retailers. They had a partnership with Google to sell Walmart products on Google Express.
Allegedly Walmart mislabeled products for lower commissions to be received by third party vendours. While filing a 70 page complaint Huynh stated that the company has pushed the core values in its rush to win the e-commerce war by all possible means and to silence any whistle-blower who spoke up against it. This is the violation of the Sarbanes-Oxley Act and California labor code.
However Walmart spokesperson stated that these complaints came as a result of workforce restructuring and Huynh was part of it. According to him, Walmart has never worked beyond its integrity and to gain business by improper means. Shares of WMT reflected a decline of 11.7% versus Amazon’s 35.3% return in the same period so far in 2018.