In a strategic move to boost its marketplace business and better compete with Amazon, Walmart has unveiled a suite of new services designed to support third-party sellers during the crucial holiday shopping season. The retail giant announced on Tuesday that it will now handle transportation of goods from Asia directly to its U.S. warehouses, manage order fulfillment, and oversee returns from any e-commerce website.
This new initiative is part of Walmart’s broader strategy to strengthen its marketplace business, which has become an increasingly significant revenue stream. The retailer’s decision comes on the heels of its recent divestment from Chinese e-commerce giant JD.com, signaling a shift towards managing more of its third-party sales operations internally.
During its annual Marketplace Seller Summit, Walmart revealed several key offerings aimed at assisting sellers in preparation for the holiday season. Among these is a cash advance program for qualified third-party sellers and the waiving of peak-season storage fees for inventories sent to Walmart’s fulfillment centers before September 30. These measures are designed to help sellers meet the heightened demand expected during the busy shopping period and capitalize on Walmart’s sales events, which often coincide with Amazon’s Prime Day in October.
Over the past year, Walmart has been aggressively expanding its marketplace, particularly focusing on attracting sellers from China. The retailer’s marketplace now features over 420 million products and more than 100,000 active sellers, with over a third of these sellers based in China. Despite this growth, Walmart’s marketplace still lags behind Amazon, which has more than 2 million active sellers.
Walmart’s new services also include competitive shipping rates. The retailer will offer fulfillment service rates averaging 15% lower than those of its competitors, although specific details on these competitors were not disclosed. Additionally, Walmart will facilitate the transportation of third-party sellers’ goods from Asian ports directly to its U.S. warehouses, further streamlining the supply chain for its marketplace partners.
The retailer’s efforts reflect a significant push to enhance its e-commerce capabilities and narrow the gap with Amazon. Sales through Walmart’s marketplace have surged by over 30% in each of the past four quarters, contributing to the company’s global e-commerce sales, which surpassed $100 billion last year.
As Walmart gears up for the holiday season, these new services are expected to provide a substantial boost to its marketplace sellers, helping them manage inventory, fulfill orders more efficiently, and ultimately drive sales during one of the busiest times of the year.
hii Aditi Sahu this side..
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