Shopify, known for offering range of customer engagement tools to online retailers, is all set to help Walmart give some headache to Amazon.
Yes, the Canada-based e-commerce and fashion giant Walmart are coming together to bring 1,200 sellers using Shopify’s technology to Walmart’s marketplace by the end of 2020.
This was announced by both the companies yesterday (Monday).
And there couldn’t have been a better time than now! Walmart’s e-commerce market is finally showing a steady growth with its sales increasing by as much as 74 per cent in Q1. What’s noteworthy is that its growth has surpassed the entire business even as first-party sales were outstanding.
The American retail giant Walmart generates revenue of US $ 523.964 billion and has over 6,000 stores across 26 countries outside the US.
The partnership will enable approved Shopify sellers to seamlessly list their products on Walmart.com, thereby giving Walmart shoppers a wider range of products. That’s what every customer finally wants!
Over the last few years, Walmart has established itself in US – second only to Amazon in US e-commerce.
Like Amazon, Walmart is now encouraging third party sellers by offering shipping services and access to its infrastructure. Notably, the third party sales on a marketplace are typically more profitable as the sellers pay a fee to list items and often bear the delivery costs.
The deal works well for Shopify too as it offers the firm a wider client base and also enhances its value proposition.
Shopify merchants across America will have to first apply to sell through Walmart.com. Once approved, these merchants can connect their Shopify store to their Walmart Seller Account, which will sync their product catalogues and thereby create product listings on Walmart.com.
By providing impeccable state-of-the-art technology to such companies to handle orders, logistics and financial management constraints, Shopify has today grown from a small Canadian tech firm to a leading Amazon challenger with a market cap of almost US $ 100 billion.
The deal with Walmart is another step in that direction.