Walmarthas been expanding its e-commerce business for the past few years, and is now looking to take its growth to the next level and better compete with its rivals. AmazonThe retail giant is looking to expand its marketplace offering.
The company announced on Tuesday (August 27th) Third Party Merchants. the 2024 Walmart Marketplace Seller SummitThe supermarket chain announced the introduction of new product categories including: Premium Beauty It also has features that simplify selling second-hand goods and selling across marketplaces.
“At Walmart, we are executing on our strategic priorities to be customers' first choice every day, every season, for every product.” Tom WardWalmart US Executive Vice President and Chief Electronic Commerce Officer statement Tuesday. “Walmart Marketplace is a key component of that mission.”
The company also discussed plans for multichannel fulfillment, which would allow merchants to use Walmart's logistics network to fulfill orders from other e-commerce sites, as well as cross-border import services to streamline global delivery. The marketplace saw sales grow by more than 30% each quarter last year.
Overall, Walmart's digital presence is Rapidly growingThe new edition of PYMNTS IntelligenceFull salaryThe report estimated Walmart and Amazon's market share in various categories based on years of revenue reports. Similarly From the data U.S. Census Bureau and Bureau of Economic AnalysisThe survey results showed that the retail giant's digital mix nearly doubled from the start of 2020 to the second quarter. of This year, it's growing from 9% to 16%. Moreover, during that same period, e-commerce sales surged from $9.3 billion in Q1 2020 to $21.8 billion in Q2 2024.
The company now appears to be turning to marketplaces to take its growth to the next level. fulfill the role of It's a testament to the effectiveness of the third-party model: In the second quarter, Amazon captured 8.3% of consumer retail spending, compared with Walmart's 7.5%.
Third-party marketplaces Offer to merchants It's a cost-effective way to diversify your product lineup and attract more customers. By allowing independent sellers to list their products on the platform, retailers can expand their inventory without carrying physical inventory, reducing risk and overhead. Additionally, a strong marketplace can generate new revenue streams through fees and charges, strengthen a retailer's brand as a comprehensive shopping destination, and drive increased traffic and engagement across their site.
Meanwhile, consumers are more likely to be satisfied with e-commerce experiences through third-party marketplaces than through brand or retailer sites or apps, according to a PYMNTS Intelligence report.Online features that encourage consumers to shop with brands, retailers and marketplacesAccording to a survey, about 80% of consumers Very or extremely A higher proportion of people say they feel satisfied when shopping on online marketplaces than those who shop on a retailer's site or app (76%) or a brand's site or app (72%).
As Walmart continues to ramp up its digital strategy, the expansion of its third-party marketplace is a clear indication of the company's intention to compete more aggressively with Amazon and grab a larger share of the e-commerce market.