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Walmart Ups E-Commerce Game Again, Adds Shopify to Marketplace
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Walmart Inc. (WMT - Free Report) has long been focusing on stepping up its e-commerce game, to evolve with the changing consumer environment and stay firm amid competition from the e-commerce king, Amazon (AMZN - Free Report) . The company has been benefiting from its constant e-commerce endeavors like alliances, buyouts and improved delivery services. The omnichannel retailer added a feather to its cap by teaming up with Shopify Inc. (SHOP - Free Report) , an all in one commerce platform.
With this partnership, the world’s largest retailer can open its Walmart Marketplace to sellers of Shopify. Certainly, the company’s efforts to strengthen its e-commerce business are paying off all the more amid the current pandemic-led situation, wherein customers are choosing to stay indoors and shop online. We note that Walmart’s U.S. e-commerce sales surged 74% in the first quarter of fiscal 2021, with marketplace growth outpacing the overall business despite solid first-party sales.
That said, we believe that the deal with Shopify is likely to be a deemed fit and benefit both companies, especially at this juncture when customers’ shift to online shopping has accelerated.
Shopify Sellers at Walmart Marketplace
With Shopify’s inclusion, Walmart intends to strengthen its marketplace with small and medium-sized, U.S.-based businesses, with complementary offerings. Shopify has a robust portfolio of third-party sellers, who in turn are looking for expansions through trusted selling channels. Certainly, Walmart is a solid platform for Shopify’s sellers, who can easily list their products on Walmart.com, thereby expanding assortments for the customers.
Walmart, which will begin integrating new sellers, now anticipates adding 1,200 Shopify sellers to its marketplace this year. Apart from strengthening Walmart’s business through enhanced assortments, which are likely to attract more customers, the deal will also allow Shopify to expand its sales network.
Walmart’s E-Commerce Efforts Worth Noting
Walmart has left no stone unturned to grow its e-commerce business. The company’s contracts with Green Dot and Microsoft (MSFT - Free Report) ; and buyouts of ShoeBuy, Moosejaw, Bonobos and ModCloth, among others, underscore its intention to build an impressive digital brand portfolio. Further, the buyout of the 77% stake in Flipkart has been bolstering its e-commerce sales. Apart from this, Walmart is making aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales.
Backed by such endeavors, U.S. e-commerce sales saw a sharp rise in the first quarter on strength in grocery pickup and delivery, walmart.com and the marketplace. The company saw an increased shift to online shopping, given the rise in stay-at-home trends.
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Walmart Ups E-Commerce Game Again, Adds Shopify to Marketplace
Walmart Inc. (WMT - Free Report) has long been focusing on stepping up its e-commerce game, to evolve with the changing consumer environment and stay firm amid competition from the e-commerce king, Amazon (AMZN - Free Report) . The company has been benefiting from its constant e-commerce endeavors like alliances, buyouts and improved delivery services. The omnichannel retailer added a feather to its cap by teaming up with Shopify Inc. (SHOP - Free Report) , an all in one commerce platform.
With this partnership, the world’s largest retailer can open its Walmart Marketplace to sellers of Shopify. Certainly, the company’s efforts to strengthen its e-commerce business are paying off all the more amid the current pandemic-led situation, wherein customers are choosing to stay indoors and shop online. We note that Walmart’s U.S. e-commerce sales surged 74% in the first quarter of fiscal 2021, with marketplace growth outpacing the overall business despite solid first-party sales.
That said, we believe that the deal with Shopify is likely to be a deemed fit and benefit both companies, especially at this juncture when customers’ shift to online shopping has accelerated.
Shopify Sellers at Walmart Marketplace
With Shopify’s inclusion, Walmart intends to strengthen its marketplace with small and medium-sized, U.S.-based businesses, with complementary offerings. Shopify has a robust portfolio of third-party sellers, who in turn are looking for expansions through trusted selling channels. Certainly, Walmart is a solid platform for Shopify’s sellers, who can easily list their products on Walmart.com, thereby expanding assortments for the customers.
Walmart, which will begin integrating new sellers, now anticipates adding 1,200 Shopify sellers to its marketplace this year. Apart from strengthening Walmart’s business through enhanced assortments, which are likely to attract more customers, the deal will also allow Shopify to expand its sales network.
Walmart’s E-Commerce Efforts Worth Noting
Walmart has left no stone unturned to grow its e-commerce business. The company’s contracts with Green Dot and Microsoft (MSFT - Free Report) ; and buyouts of ShoeBuy, Moosejaw, Bonobos and ModCloth, among others, underscore its intention to build an impressive digital brand portfolio. Further, the buyout of the 77% stake in Flipkart has been bolstering its e-commerce sales. Apart from this, Walmart is making aggressive efforts to expand in the booming online grocery space, which has long been a major contributor to e-commerce sales.
Backed by such endeavors, U.S. e-commerce sales saw a sharp rise in the first quarter on strength in grocery pickup and delivery, walmart.com and the marketplace. The company saw an increased shift to online shopping, given the rise in stay-at-home trends.
These endeavors are likely to further boost this Zacks Rank #3 (Hold) company’s online business. Shares of Walmart have gained 8.5% in the past year, almost in line with the industry’s performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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