Walmart’s Big Push Still Lagging Behind Amazon But There is a Bright Spot
The Motley Fool, an investor website, in this article looked at the financial data from both Walmart and Amazon to compare how Walmart is trying to catch up to Amazon.
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Walmart over the last few years has made some major acquisitions such as Jet.com, ShoeBuy, MooseJaw, and Heyneedle, but despite these expenditures is still lagging behind Amazon in total sales and eCommerce growth rate.
Of course, total sales are not a surprise, but there are even signs that Walmart’s eCommerce growth rate has started to slow down after the acquisition’s initial bumps. That is a bit surprising as one would expect the opposite.
The 4th Quarter slowdown in Walmart’s eCommerce growth rate is especially perplexing as it includes the first full quarter of Jet.com’s sales.
Walmart Increases Marketplace Sales
But there is one bright spot according to the article, Walmart’s marketplace sales (3rd party sellers) have increased nearly 43% year over year. Could this be the real future for Walmart.com as Marketplace sales are also more profitable for the retail giant?
While Walmart has thrown everything but the kitchen sink at growing eCommerce, it is becoming one of the bigger players in the eCommerce business.
The significant growth of Marketplace sales is an interesting opportunity for entrepreneurs to exploit as Walmart’s pure willpower to go after Amazon opens up a niche to Walmart brand loyal customers that is still in its infancy.
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Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.