By
Bloomberg
Published
August 27, 2024
Walmart Inc. is adding used watches and trading cards to its online marketplace as the retailer looks to further bolster its e-commerce business and capture more spending from rivals such as eBay Inc. and Amazon.com Inc.
The company is expanding the assortment of its marketplace, which offers products from third-party vendors, to meet customer demand, according to Tom Ward, Walmart’s director of e-commerce. The new categories, which also include high-end beauty products, collectibles and other used goods, will help Walmart expand its customer base and drive growth, he said.
This increases Walmart's appeal, he said, when “they see a brand they didn't expect to see or search for something they're interested in, they find not just a couple of results but hundreds of thousands of results.”
The market is driving growth for Walmart’s e-commerce business. The Bentonville, Arkansas-based company said in August that its online sales grew 22% in the U.S. over the previous quarter. The number of weekly active customers is also rising, and consumers are increasingly paying more for faster delivery. The company is working to reduce costs associated with e-commerce and has assured investors that there is a path to profitability.
Marketplaces help Walmart and its competitors attract online customers by expanding their assortment and price points. Companies can also add revenue through related services, such as advertising and order fulfillment. For retailers that operate primarily through brick-and-mortar stores, marketplaces can also serve as a place to try out new products or emerging brands.
Big retailers’ strategies vary: Amazon, which has a marketplace more than two decades old, sells a wide range of products, including used items and collectibles. Target Corp., which partnered with Shopify Inc. earlier this year, is taking a more selective, curated approach.
Walmart said sales on the marketplace have increased more than 30% for four consecutive quarters. The total number of sellers on the platform, which the company does not disclose, has increased by double digits. Some categories, such as pet and beauty products, are growing at annual rates of between 20% and 30%.
The marketplace has particularly boosted Walmart’s offering of general merchandise, such as home decor and apparel, and it now offers brands it doesn’t normally sell, from Cartier to Michael Kors. Michael Kors handbags were among the top sellers in the marketplace last holiday season, executives said during Walmart’s annual shareholder week in June.
Consumers are increasingly seeking out refurbished electronics because they are looking for more sustainable and affordable options, said Manish Joneja, senior vice president of Walmart Marketplace and Walmart Fulfillment Services, on a call with reporters. The company plans to take additional steps to verify sellers. It will also tap into the enthusiasm for collectibles by offering preorders, he added.
Walmart is also starting to offer new services for its fulfillment services business that charges sellers to store and ship products at its distribution centers. It will now allow sellers to ship to customers through its fulfillment services, even if the order originated on another website. The company will also handle freight from Asia to the U.S.
Walmart is promoting its marketplace to vendors at a summit in San Francisco this week.
