Walmart’s Marketplace strategy with Shopify
Walmart’s push to expand beyond its retail store products to become a competing platform vs. Amazon brought Shopify to the table to then become partners mid-June 2020.
Shopify is connected to over 1M vendors to which can then bring their products to Walmart.com to boost its product diversity, and fuel the vendor relationships that make up a diverse marketplace. Bringing these vendors to expand their reach is the first step, the next has been connecting the Shopify eCommerce stores to the platform.
Bringing your shop to Walmart.com
If you are on Shopify, it is as easy as an app. The below-mentioned app will bring over your store’s products to the marketplace, the images, the swatches, and descriptions. Additionally, all order management is interconnected, thus all orders are managed from Shopify’s back-end.
Walmart is looking to grow rapidly through the Shopify partnership and is on track to blow away the goals that were set for the year, which was 1200 vendors, and as of the end of July 2020, they are looking at 3600 vendors. Walmart sees Amazon’s business model be disruptive to its brick and mortar stores, all the while their brand equity is strong. Additionally, the international reach can now be achieved via the online channel’s expanded reach via their marketplace.
Is Walmart being smart like Dell Computer was in the ’90s and becoming the fast follower to Amazon? This time, innovating away from Retail to Online via a marketplace? Sure, Amazon has had its growing pains with knock-off products, fraudulent vendors, and the like – all of which Walmart will have learned and ensured its guard is up and will avoid these issues – costing the company a lot less to penetrate the space.
Amazon has become a staple brand for having every product imaginable to be available globally. While the retail king, who has a global reach, but certainly focused on the US market has a new opportunity to become the key competitor as its brand equity carries it internationally. It’s not just product diversity but also payment method diversity that is required behind the scenes to which Shopify has cracked the nut on a global scale to offer every vendor a way to take payments online. With the ever-growing smartphone penetration, the ability to shop online for your product cheaper and reliably is becoming reliable.