Since eCommerce is becoming a growing trend globally, sellers are focusing more on their online sales. The more platforms are onboarded, the more chances they get to be seen and grow business.
Now there’s good news for sellers on Shopify: they will be able to sell on Walmart’s ecommerce place by the end of this year. According to Walmart’s announcement, this integration will focus on “U.S.-based small and medium businesses whose assortment complements ours.”
With the partnership, Walmart expects to add 1,200 smaller Shopify sellers to its marketplace. The retail giant says this expansion is “a strategic priority.” If sellers activate Walmart selling channel through Shopify, they can easily sync their assortments with Walmart.com
What’s more, sellers from Shopify can also use Walmart tools to track orders on Shopify. They can check inventory and fulfillment as well as manage product information. Those functions won’t cost Shopify sellers an extra fee, but sellers from Shopify do need to pay a referral fee or advertising fee if they want to make a sale on Walmart.com.
Walmart.com is experiencing strong growth
The COVID-19 virus has caused many small businesses to close as people are forced to shop online. While choosing ecommerce platforms, larger platforms backed by large brands seem more reliable on product quality and more time-efficient when shipping. The same is happening to Walmart.com.
Although Walmart remained open during COVID-19, its ecommerce sales surged 74 percent in the first quarter. Walmart said its ecommerce performance “outpaced the overall business even as first-party sales were strong.”
Aside from the sales surge, another important reason for Walmart pushing its ecommerce platform is that the third-party marketplace is more profitable than first-party selling. The third-party marketplace is only providing an integrated platform. This leaves complicated things like inventory and fulfillment responsibilities and costs to the seller.
Rick Watson, founder and CEO of RMW Commerce Consulting, believes that Walmart’s partnership with Shopify is smart. Not expanding in fast pace gives this giant retailer more time to think about the strategy and make better choice. He said:
To me it shows that Walmart’s decision-making is improving. They need more selection and better selection.
China’s e-commerce is booming more than ever
For brands who are willing to land China or who are already selling in China, the huge ecommerce market means unlimited business opportunities.
Worth $1.94 trillion, China owns the largest ecommerce market in the world. China’s ecommerce sales have increased by an amazing 27.3 percent in 2019 and is predicted to grow more than 20 percent this year. This market is three times bigger than the U.S. and represents 54.7 percent of the global ecommerce market.
Let’s take the recent “618” Online Shopping Gala in China as example. Even under the gloom of the epidemic, Chinese ecommerce giants Alibaba and JD.com both announced that they have reached a record high: Alibaba sold around $98 billion and JD.com sold around $38 billion. This is a 33 percent increase over last year.
The record-high numbers might indicate a recovery in the Chinese consumer. Chinese people’s desire to shop online is expanding and foreign brands who wish to enter China must grab the chance. Ling Chenkai, vice president of JD Retail, said:
This moment is pretty important. This is the first nationwide sales event during the recovery of the virus… We do hope that there could be a very open and equal environment, global environment, for us to work with other partners, no matter [if they are] domestic or overseas.
But keep in mind that selling in China requires good quality too. Sticking to quality control and building your brand reputation is the best way to expand your business map.
Follow the link below to learn more about Walmart’s expanding ecommerce marketplace partnering with Shopify.
Walmart teams with Shopify to grow its marketplace – Daphne Howland, Retail Dive
The source :- intouch