Walmart, a cultural institution in the US is now making waves as an online retail marketplace.
For brands looking to expand their marketplace channels, and continue to strengthen their position in the US market, Walmart.com’s rise is certainly one to consider.
A US$50 billion behemoth – and growing!
Walmart, a 60-year-old American icon, is the largest publicly owned retail company in the world. The bricks-and-mortar retail giant continues to evolve to meet shoppers’ modern day needs, and is now a leading e-retailer in the US as well.
Walmart experienced an impressive annual increase of 11% in e-commerce net sales in 2022 – for a total of $47.8 billion – up from $43 billion in 2021. These are incredibly strong numbers that are expected to continue to rise again in 2023.
A report in 2022 by Jungle Scout found that 95% of Walmart Marketplace sellers have profitable ecommerce businesses, with 73% of Walmart Marketplace sellers earning profit margins above 20% – confidence-building stats for those looking at adding Walmart as a new sales channel.
Loyalty matters:
Walmart’s large and loyal customer base works in their favour with 41% of consumers shopping on Walmart’s online marketplace based on familiarity with the bricks-and-mortar stores and its products. Sellers on Walmart.com are currently benefiting from a ratio of 1,918 customers for every one seller.
In terms of products and categories, research reveals that shoppers love to buy Automotive Parts and Accessories, Electronics and Exercise/Fitness Supplies on Walmart.com – and with 40,000 new sellers expected to be added to Walmart.com this year, the platform will experience strong growth in categories, with the list of popular products expected to increase also.
Take a multi-channel approach:
The 2022 report found that 97% of Walmart.com sellers also sell their products on at least one other online marketplace.
While Amazon is still the biggest online retail marketplace, when it comes to decisions about adding new sales channels to the mix, Walmart makes a strong case for an additional platform to be on, with its strong sales, sought after product offering and increasing number of sellers.
As many brands will know, not all marketplaces are the same. The rules and operating environment on Walmart.com is different to Amazon, eBay, and the many other online platforms. To discover more about Walmart, or developing a multi-channel sales strategy, chat to TWENTY TWENTY today.
Links:
https://www.practicalecommerce.com/charts-walmarts-ecommerce-sales-outlook#:~:text=Walmart’s%20U.S.%20 ecommerce%20 sales%20in,%2C%20up%2011%25%20from%202021.