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Dive Overview:
- Walmart has expanded its Marketplace to include categories for luxury beauty, secondhand goods, and collectibles. The retail giant made the announcement on Tuesday..
- Walmart Premium Beauty will feature more than 20 new brands in its inaugural assortment of skin care, hair care and hair tool products, which the retailer will promote through custom storefronts and editorial content. Resale at Walmart will offer 5 million pre-owned items from more than 1,700 retailers across categories such as sporting goods, luxury fashion and electronics, according to a press release.
- The company is also introducing Collector Shop, where sellers can pre-order upcoming collectibles, including Walmart exclusives. According to the announcement, the company is offering 0% commission to qualified sellers through October 31 on items such as dolls, action figures, trading cards, sports memorabilia, comic books, records and musical instruments.
Dive Insights:
Walmart said the rollout of the new categories is part of an effort to accelerate its online marketplace, which has seen sales grow more than 30% each year over the past four quarters.
The expansion announcement was made at this year's Marketplace Seller Summit. The big box retailer held its first summit dedicated to Walmart Marketplace last year.
Walmart is expanding its secondhand selection as it sees growth in the secondhand market. A ThredUp report released earlier this year found that the U.S. secondhand clothing market was worth $1.2 billion. Reaching $73 billion by 2028On average, it is growing at 11% per year. Meanwhile, according to eBay's 2024 Recommerce Report, 86% of consumers worldwide will Purchased a used item Last 12 months.
“At Walmart, we are executing on our strategic priorities to be our customers' first choice for every product, every day, every season, and Walmart Marketplace is a key component of that mission,” said Tom Ward, executive vice president and chief e-commerce officer, Walmart U.S., in a statement. “Walmart continues to evolve our digital and fulfillment capabilities, including the new categories and features we announced today, to enhance the overall experience for customers and merchants on Walmart.com.”
Still, Walmart faces stiff competition from established players like eBay, which also deals in collectibles. In December, eBay announced it would close its doors. Announced partnership with COMCeBay partnered with sports trading card company COMC to give eBay shoppers access to COMC's digital inventory capabilities. In 2022, eBay announced it would acquire collectibles technology platform TCGplayer to further focus on the collectibles market.
Walmart's move into the luxury beauty market through Marketplace comes as consumers continue to pay more for cosmetics despite the lingering effects of inflation. According to a report from Adobe Analytics, consumers are They spent $16.3 billion on cosmetics online In the first five months of the year, it was up 8.8% year-over-year.