Everyday Low Price Strategy: Walmart vs. Amazon

The battle for retail dominance between Walmart and Amazon has long been defined by pricing strategies, customer experience, and supply chain efficiency. One of the most critical strategies in this competition is Everyday Low Price (EDLP)—a pricing model that promises consistently low prices instead of frequent discounts and promotions.

Both Walmart and Amazon leverage EDLP in different ways, shaping the e-commerce and brick-and-mortar landscape. In this article, we’ll break down their approaches to EDLP, compare their effectiveness, and explore how businesses can adapt to these pricing models.

What is EDLP (Everyday Low Price)?

EDLP is a pricing strategy that ensures customers receive low prices on products consistently, rather than through temporary sales or discounts. This approach helps build customer trust, reduces marketing costs, and simplifies inventory management.

Walmart pioneered the EDLP strategy, reinforcing its brand as a low-cost leader in retail. Amazon, while initially focused on dynamic pricing, has adopted aspects of EDLP to stay competitive.

Walmart’s EDLP Strategy

1. Commitment to Low Prices

Walmart’s entire business model revolves around EDLP retail strategy, ensuring that customers always find the lowest possible prices without waiting for promotions. The company achieves this through:

Bulk purchasing and supplier negotiations to secure the best prices.
Operational efficiency with a highly optimized supply chain to reduce costs.
Private-label brands like Great Value and Equate, offering cheaper alternatives to national brands.

2. Store and Online Integration

Walmart has expanded its EDLP retail strategy model beyond physical stores to its online platform, leveraging its vast distribution network to offer low prices with in-store pickup and fast delivery.

3. Supplier Pressure

To maintain low prices, Walmart negotiates aggressively with suppliers, often pushing for lower wholesale costs in exchange for high sales volumes.

Amazon’s Approach to EDLP

1. Dynamic Pricing with EDLP Elements

Unlike Walmart’s strict EDLP model, Amazon employs a hybrid strategy that combines dynamic pricing with everyday low prices on key items. Amazon’s algorithms adjust prices based on:

Competitor pricing
Demand fluctuations
Supply chain efficiency

2. Amazon Prime’s Role

Amazon leverages its Prime membership model to reinforce EDLP. Prime members get access to exclusive deals, free shipping, and bundled services, effectively reducing total customer spending over time.

3. Private-Label Expansion

Like Walmart, Amazon has built a robust private-label business with brands like Amazon Basics, enabling it to offer lower-cost alternatives without relying on third-party suppliers.

Walmart vs. Amazon: Who Wins the EDLP Battle?

Feature	Walmart	Amazon
EDLP Consistency	✅ Strong	⚠️ Mixed (depends on item & timing)
Physical Presence	✅ 10,000+ stores	❌ None (except Whole Foods)
Online Pricing Adjustments	⚠️ Less frequent	✅ Highly dynamic
Private-Label Strength	✅ Strong (Great Value, Equate)	✅ Strong (Amazon Basics, Solimo)
Supply Chain Efficiency	✅ Optimized for in-store & online	✅ Optimized for fast delivery

Key Takeaways for EDLP Retail Strategy:

Walmart offers more consistent pricing, especially in physical stores.
Amazon provides competitive pricing through algorithms but fluctuates more frequently.
Both companies use private labels to drive EDLP retail strategy and compete on affordability.

How Businesses Can Compete with EDLP Giants

Differentiate with Unique Value Propositions – Instead of just competing on price, offer superior service, exclusive products, or enhanced customer experiences.
Leverage Data and Dynamic Pricing – Smaller retailers can use AI-driven pricing tools to adjust prices in real-time.
Optimize Supply Chain Efficiency – Reducing logistics costs can help sustain lower prices without sacrificing margins.
Build Brand Loyalty – Implement membership programs or personalized discounts to retain customers.

Final Thoughts

The EDLP battle between Walmart and Amazon continues to shape modern retail. Walmart remains the champion of consistently low prices, while Amazon excels in flexible pricing and convenience. Both strategies have their strengths, and understanding them can help businesses navigate today’s competitive e-commerce and retail landscape.

By studying how these giants implement EDLP, retailers can find new ways to optimize their pricing strategies and attract price-conscious consumers.