For more than two decades, Amazon has been at the center of the online shopping evolution, making it possible for consumers to purchase nearly any product and receive it at their doorstep within days or even hours.
But competition has intensified. Since entering the global market in 2015, Shein has rapidly gained popularity by offering a massive assortment of ultra-low-priced products, challenging established retailers and capturing a growing share of budget-conscious shoppers.
However, in 2025, the rapidly changing retail industry crowned one clear winner.
In its latest earnings report, Amazon revealed it surpassed $716.9 billion in revenue for the full fiscal year 2025, with net sales increasing 12% year over year.
This accomplishment allowed Amazon to overtake Walmart, which reported $713.2 billion in total revenue for the same time period in its latest earnings release, growing 4.7% year over year. Walmart had held the top spot for the largest annual revenue for the past 13 years.
The narrow margin shows how closely matched the two retail giants remain, even as Amazon’s technology and services businesses accelerate growth.
Shein invests $42 million to strengthen its supplier network
While Amazon and Walmart compete for dominance, Shein is focusing on supplier capability and manufacturing efficiency.
Through its Supplier Community Empowerment Program (SCEP), launched in 2023, the company has invested more than $42 million in long-term improvements across its supply network as of the end of 2025, according to a press release.
Factory modernization and operational efficiency
SCEP has supported the renovation and modernization of over 200 supplier factories, introducing optimised facility layouts, streamlined material flows, and configurable production spaces, improving working conditions and benefiting around 33,600 workers.
Innovation and workforce training
The program is supported by the Centre of Innovation for Garment Manufacturing (CIGM), a hub dedicated to research, development, and workforce training for modern garment manufacturing, focusing on developing new tools, lean production applications, and technology-enabled systems.
By 2025, the company conducted 300-plus vocational and technical training and certification sessions for more than 13,000 participants and introduced at least 180 new tools, aiming to improve efficiency and technical skills in daily operations.
Worker and family support programs
The SCEP program also offers two programs to help workers and their families.
- The Spotlight program: Introduced in 2021, it provides financial assistance for education and medical expenses. In 2025, more than 37,000 workers accessed the program, with upwards of $800,000 in grants distributed to 816 families.
- Child care facilities: 30 onsite child care centers served more than 1,000 children at no cost by the end of 2025.
For years, Shein has faced scrutiny over labor practices, with multiple investigations and reports alleging violations of labor laws and human rights, according to Anti-Slavery International. By implementing operational improvements, Shein is making efforts to address the claims.
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Walmart accelerates e-commerce transformation
While Walmart (WMT) was founded in 1962, it continues to modernize its operations to remain competitive in a digital-first retail environment.
Key initiatives
- Upgrading supply chain facilities and fulfillment infrastructure
- Expanding its third-party online marketplace
- Enhancing delivery, pickup, and same-day services
- Growing its subscription-based membership, Walmart+
- Launching pharmacy delivery
These efforts contributed to 24% global e-commerce growth in the fourth quarter.
Amazon doubles down on logistics, AI, and Cloud
Since its founding in 1994, Amazon (AMZN) has focused heavily on its delivery network and online retail logistics, expanding fulfillment centers, experimenting with drones, partnering with USPS, and even developing AI-powered robotics to accelerate operations.
Amazon Web Services (AWS) has recently become a major driver of profitability. In the fourth quarter of 2025, AWS segment sales increased 24%, the fastest growth in more than three years.
“This growth is happening because we’re continuing to innovate at a rapid rate, and identify and knock down customer problems,” said Amazon CEO Andy Jassy in the earnings report. “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low-earth orbit satellites.”
Amazon expects to invest about $200 billion in capital expenditures in 2026, anticipating a strong long-term return.
The rise of e-commerce and competitive pressure
Walmart’s major dethronement by Amazon highlights that continuous innovation is now essential for survival in retail.
The global e-commerce market was valued at $25.93 trillion in 2023 and is projected to grow at an 18.9% CAGR, reaching $83.26 trillion by 2030, according to Grand View Research.
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“Digital commerce doesn’t look the same as it did when it began,” said Forbes Business Strategy and Growth Expert John Hall.
“Improvements in logistics, online platforms, personalization, and marketing continue to drive the industry forward. Brands that are succeeding are putting customer experiences at the center of dynamic strategies, constantly adapting to the digital landscape.”Still, analysts warn that competition remains tight.
“The narrow margin of victory and Walmart’s robust operational performance suggest the competition remains fierce, with each company leveraging distinct advantages in a retail landscape that increasingly rewards scale, technology, and adaptability over any single business model,” said The Bull Team Retail Stocks Analysts.
As these companies continue to invest in their businesses to better adapt to changing consumer behavior, the race for global retail leadership is far from settled.
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