Despite Amazon’s dominance of the online retail space, competitors like Chewy.com and Shopify are still choosing to cannonball into the eCommerce pool. And right behind them… Enter the biggest heavy-hitter in the retail industry: Walmart. While their online store was previously used as a platform to sell their in-store products, the big “W” has recently opened their platform to third-party sellers in an effort to take on Amazon directly.
Fierce ECommerce Competition
If you think no one can get close to Amazon, think again. Walmart actually has something Amazon doesn’t… brick and mortar stores. And although people say in-person shopping is waning, Walmart has effectively capitalized on its highly successful pickup service which became particularly popular during the pandemic. In fact, the retail juggernaut’s first-quarter earnings beat Wall Street’s expectations, as its sales got a lift from strong grocery and e-commerce sales. Total revenue grew by nearly 3% to $138.31 billion from $134.62 billion a year earlier, exceeding Wall Street’s expectations of $131.97 billion.
The Popularity of Walmart’s Pickup Services
Walmart’s pickup services remove the uncertainty of when/if any e-commerce delivery is going to arrive (Amazon included). This service delivers a solution to consumers worried about goods being stolen by porch pirates, or for those who need their purchases immediately. More than 1.7 million packages are lost or stolen each day in the United States with a third of consumers reporting they have had a package stolen – making porch piracy a huge problem Amazon is struggling to solve.
“Having a wide range of fulfillment options, including delivery to home, collection from store – and by using stores for fulfillment – allowed Walmart to ramp up capacity in a way that many other players struggled to do. We also believe that by using stores effectively, Walmart mitigated some of the higher costs associated with the online channel” said Neil Saunders, Managing Director at GlobalData Retail. That sentiment was echoed when Walmart CFO Brett Briggs said: “it is a big advantage being an omnichannel retailer and I think that is showing right now. We were able to quickly use stores to fill online orders.”
Walmart Grocery Competes with Amazon Fresh
Walmart provides same-day delivery to some locations in an effort to compete with Amazon. Walmart’s grocery delivery and pickup service is out-performing in this category so much so that Amazon opened a new brick and mortar grocery chain, Amazon Fresh earlier this year. Yes, Amazon did that in the middle of a pandemic, demonstrating that stores are still a critical part of any retailer’s eCommerce strategy. But it will take Amazon many years before it has the kind of store network Walmart has.
How to Sell on Walmart Marketplace
As Walmart’s momentum continues to grow, brands are increasingly looking to sell their products on the platform, known to sellers as Walmart Marketplace. At Elite Automation, we can manage and grow your Walmart dropshipping business for you entirely. Our management team are all seasoned e-commerce sellers with decades of experience and millions in sales collectively. We can scale Walmart stores quickly from day one and ensure your Walmart store is set up and ready to be successfully automated, whether it’s brand new or an aged store transferred to our management teams. Get in touch with us and we are more than happy to schedule a complimentary call.
