What’s going on here?
Walmart has introduced new marketplace seller services aimed at Sales before the holiday season.
What does this mean?
Walmart is stepping up its competitive edge against e-commerce giant Amazon by introducing a number of new services for its marketplace sellers. The retail giant now handles transporting goods from Asia to U.S. warehouses, fulfilling orders and processing returns from any e-commerce site. Additionally, Walmart is offering cash advances to qualified sellers and waiving peak-season storage fees for inventory sent to its fulfillment centers before Sept. 30. This initiative, unveiled at Walmart’s annual Marketplace Seller Summit, is designed to help sellers prepare for the holiday shopping boom and Walmart’s sales events that often coincide with Amazon’s Prime Day in October.
Why should I care?
For markets: Festive mood for the shareholders.
Walmart’s push to boost third-party sales could shake up the e-commerce landscape. Over the past year, the company has aggressively added sellers to its Walmart.com marketplace, primarily from China, leading to a more than 30% increase in marketplace sales over the past four quarters. That growth has been instrumental in Walmart’s global e-commerce sales surpassing the $100 billion mark last year. And with the fulfillment service’s shipping rates averaging 15% cheaper than its competitors, Walmart is positioning itself as a more cost-effective option for sellers looking to expand their reach.
The overall picture: Strategic steps are consistent.
Walmart’s new services come shortly after the company unwound its stake in Chinese e-commerce giant JD.com, signaling a strategic shift to bring more third-party sales in-house. With over 420 million products on its marketplace and more than 100,000 active sellers — over a third of whom are based in China — Walmart is not only catching up to Amazon, but potentially setting a new standard in marketplace efficiency and seller support. These moves could have lasting effects on global e-commerce dynamics, especially as retailers prepare for another pandemic-influenced holiday season where online shopping will be critical.
