In a bold move to enhance its e-commerce presence, Walmart Inc. has stepped up competition against major players like Amazon and eBay by expanding its online marketplace to include pre-owned watches, collectible trading cards, and high-end beauty products. This strategic expansion not only aims to attract a broader customer base but also addresses the growing demand for diverse product categories among today’s consumers.
According to Tom Ward, Walmart’s Chief E-commerce Officer, the addition of these unique categories is designed to meet customer demand and drive growth. The marketplace now includes products from third-party vendors, allowing Walmart to provide a more extensive array of options. This expansion adds to Walmart’s appeal, particularly when shoppers discover brands or items they didn’t expect to find, resulting in a significantly larger catalog of products for their browsing pleasure.
Walmart’s recent performance underscores the success of its marketplace strategy. In August, the Bentonville-based company reported a 22% increase in online sales in the U.S. during the previous quarter. This surge is attributed to an increase in weekly active customers, many of whom are opting for faster delivery options. Walmart is also committed to lowering its e-commerce costs and has reassured investors of its path toward achieving profitability.
Marketplaces, like the one Walmart is bolstering, enable retailers to appeal more effectively to online consumers through an extensive assortment of products and varying price points. This approach also allows for additional revenue opportunities through services such as advertising and fulfillment. For brick-and-mortar retailers, the marketplace can function as a testing ground for new products and collaborations with emerging brands.
Walmart’s competitors are employing diverse strategies to navigate the evolving retail landscape. Amazon, which has long established its marketplace selling a wide variety of items including pre-owned goods, showcases the importance of versatility. In contrast, Target Corp. is opting for a more curated selection by collaborating with Shopify.
The results of Walmart’s marketplace initiative are significant. The company reported that sales from its marketplace have skyrocketed, increasing by over 30% for four consecutive quarters. While Walmart does not disclose the exact number of sellers on its platform, the company confirmed a double-digit rise in seller participation. Specific product categories, including pet supplies and beauty products, have experienced annual growth rates ranging from 20% to 30%.
Additionally, the expansion has notably boosted Walmart’s general merchandise offerings, such as home decor and apparel. The retailer is now showcasing brands it previously did not carry, including luxury names like Cartier and Michael Kors. Handbags from Michael Kors were particularly popular last holiday season, reflecting a successful year in marketplace sales as reported during Walmart’s shareholder meeting.
The growing consumer interest in refurbished electronics signals a shift toward sustainability and cost-conscious shopping, according to Manish Joneja, Senior Vice President of Walmart Marketplace and Fulfillment Services. To further enhance its marketplace, the company is planning additional measures to verify sellers while also introducing preorder options for collectible items.
In conjunction with its marketplace expansion, Walmart is also enhancing its fulfillment services, now allowing sellers to ship products directly to customers, even if the order originated from external websites. This development broadens Walmart’s logistical capabilities, as the company will manage transportation for goods between Asia and the U.S.
As Walmart promotes its marketplace during seller summits, the company continues to focus on its strategic goals while keeping an eye on market trends. With its expanded offerings and increased sales forecasts, Walmart is well poised to compete aggressively in the online retail space.
This expansion into collectibles and pre-owned items reflects a broader trend in consumer behavior that favors sustainability and uniqueness in product offerings. Walmart’s investment in this sector exemplifies how traditional retailers can adapt to shifting market demands and increase their competitiveness against online retail giants.
